Hawthorne Municipal Code Ch. 5.28 Used Car Dealers

Every person operating or engaging in business as a used car dealer shall pay a license fee of two hundred dollars per year, which fee shall be nonapportionable or on gross receipts basis, whichever is greater.

(Ord. 1592 § 16, 1995)

There shall be filed by the applicant with the director of licensing and code enforcement at the time of filing said application, a bond running to the city and any person, firm or corporation aggrieved, executed and acknowledged by the applicant as principal, and by a corporation which is licensed by the Insurance Commissioner of this state to transact the business of fidelity and surety insurance, and no license or permit shall be granted to any person until a bond has been given in form as provided herein. Said bond must be joint and several and the penalty thereof must be two thousand five hundred dollars, and must be conditioned to be paid to the city, and any person, firm or corporation aggrieved, insuring them against any loss, or damage that may result to any person, firm or corporation from any transaction involving a used motor vehicle, by the dealer through failure to deliver a clear title to any person, firm or corporation legally entitled thereto, within forty-five days after the final payment has been made. Said bond shall not be void upon the first recovery but may be sued and recovered upon from time to time by any person aggrieved, until the whole penalty is exhausted.

(Prior code § 6-302.; Ord. 1284 § 1, 1983; Ord. 1903 § 1, 2007)

Upon receipt of an application, the director of licensing and code enforcement shall immediately notify the chief of police and the city manager. The chief of police shall, within twenty-one days of receipt of the application, investigate the character and antecedent business practices of the applicant, the general reputation and previous business record of the applicant and any other matters which may appear pertinent to such investigation. He shall file his report with the city manager who shall in turn approve or disapprove the said application on the basis of the investigation made and shall submit his recommendation to the city council.

The city manager shall investigate the location at which such applicant plans to engage in business, and the physical condition of said premises. He may require the submission of plans and specifications to show the planned improvement of said premises. As quickly as possible thereafter, he shall submit his recommendation directly to the city council.

(Prior code § 6-303.; Ord. 1284 § 1, 1983; Ord. 1903 § 1, 2007)

No person shall operate or engage in business as a used car dealer without first obtaining a permit to do so.

(Prior code § 6-304)

Any authorized location occupied by used car dealer may be enlarged to include contiguous property or such location may be changed to a new location provided application is made therefor in the same manner as in the case of an original permit. Applications for a change of location shall be accompanied by an application fee of five dollars.

(Prior code § 6-306)

Anyone who now holds or may hereafter hold a permit as a used automobile dealer, and who discontinues business for a period exceeding ninety days, will automatically relinquish all right or interest in said permit, and the same shall ipso facto be revoked without any further action on the part of the city council.

(Prior code § 6-307)

Every used automobile dealer shall keep a record of the purchases, consignments, sales or exchanges of each and every motor vehicle, purchased, sold, consigned to be sold or exchanged by him or them. Said record shall include the name and address of the person, firm or corporation, from whom purchased or received, to whom sold, the make, state license number, motor number, serial number, style and seating capacity of each used motor vehicle purchased, received or sold, and said record shall at all times be open to the inspection of the duly authorized representatives of the city. Such records shall be kept intact and preserved for a period of three years.

(Prior code § 6-308)

Every dealer in used automobiles must display a sign in letters of not less than six inches in height, said sign to be placed in a conspicuous place on the premises, and the same must be legible for fifty feet. Said sign must give the name of the person, firm or corporation authorized by the state law and the city to conduct the business of a used automobile dealer at said location.

(Prior code § 6-309)

Every person, firm or corporation operating under the provisions of this chapter shall be held strictly responsible for the conduct of his or their employees insofar as the sales or purchases of used automobiles or motor vehicles are concerned; it shall be his, her or their duty to see that no used automobiles or motor vehicles are sold or purchased by his or their agent or agents for any other person or persons in or upon his, her or their premises or location or locations other than his or their own used automobiles or motor vehicles unless such person or persons has or have a permit as provided for in this code.

(Prior code § 6-310)

It is unlawful for any person, firm or corporation to engage in, conduct, manage or carry on the business of used automobile dealer within the city unless at a fixed and determined place of business at which all vehicles offered for sale are on display.

It is unlawful for any permit holder to display or have on the business premises any automobile not in an operating condition, except if the place of business is also used as a garage or automobile repair shop and is duly licensed to conduct said repair work by the city council. In no event shall garage, repair or maintenance businesses be conducted outside of an enclosed building established under the provisions of this code.

(Prior code § 6-311)

All locations, premises and places where used automobiles are sold or offered for sale must meet the following requirements:

A. All premises must be covered with a two-inch asphalt, macadamized or concrete surface on a base of at least two inches of decomposed granite.

B. The property must be graded so as to provide adequate drainage to prevent the formation of stagnant waters.

C. Buildings and improvements on said locations shall be in conformance with the Uniform Building Code as adopted in this code.

D. All business premises shall maintain toilet facilities with adequate plumbing to promote maximum sanitary conditions.

E. Along the front line of each premises shall be maintained shrubbery, hedges, fences or barriers not to exceed thirty inches in height and not less than eighteen inches, subject to the approval of the city planning commission.

(Prior code § 6-312)

All permits to engage in business as a used car dealer shall expire on December 31st following the date of issuance, but may be renewed from year to year upon application.

(Prior code § 6-313)

No person engaging in business as a used car dealer shall advertise any motor vehicle for sale in a newspaper or other medium unless such motor vehicle is actually for sale at the time the advertisement is inserted in such newspaper or medium, nor shall he fail to discontinue an advertisement of any motor vehicle immediately upon the sale thereof. The records and books of all persons engaged in such business shall be open to the authorized representatives of the police department and the director of licensing and code enforcement for the purpose of determining whether or not any motor vehicles have been advertised for sale unlawfully.

(Prior code § 6-314.; Ord. 1284 § 1, 1983; Ord. 1903 § 1, 2007)

Any valid holder of a license as a new car dealer is exempt from the payment of a used car permit fee providing:

A. All other provisions of this chapter are complied with; and

B. Only used cars traded in for new cars sold by said licensee are sold on the used car lot; and

C. All gross receipts from the sale of the traded-in used cars are reported in the gross receipts affidavit used in determining the amount of license fee for the new car license.

(Prior code § 6-315)