Petaluma Municipal Code Ch. 6.24 Jewelry Auction Sales

A. "Close-out sale" means any bona Rde sale of stock or merchandise by public auction Where the owner

thereof or the creditors of the owner are engaged in the legitimate closing out of any such stock, and such sale is

held upon the premises where the owner of the business carried on the business for not less than one year

immediately preceding.

B. "Jewelry" includes platinum, gold, silver, plated ware, precious stones, semiprecious stones, watches, clocks

and other articles usually considered as jewelry.

(Ord. 353 NCS §§1.0-1.4; prior code §5.1.)

It is unlawful for any person to conduct a jewelry auction in the city, except a close-out jewelry auction sale of a

stock on hand of any person who shall, for the period of one year next preceding the sale, have been continuously

in business in the city, as a retail or wholesale merchant of such jewelry merchandise, and is bona Rde disposing

of such stock for the purpose of retiring from the jewelry business in the city, and who has secured a close-out

jewelry auction sale permit as required by this chapter. (Ord. 353 NCS §6.0; prior code §5.15.)

It is unlawful for the holder of a permit under this chapter to sell or oUer for sale at auction any jewelry to which

there is not attached a card or label containing a true and correct statement, plainly written or printed in the

English language, specifying the kind and quality of metal of which the article is made or composed, or its

percentage of karat or purity of such metals. If the articles are plated or overlain, then the tag or label shall contain

a true statement of the kind of plate. When precious stones are sold or oUered for sale at auction, as such or as

part of an article of jewelry, such statement shall set forth the true name of the stone. When imitations of precious

or semiprecious stones are oUered for sale, or sold at auction as such, or as part of an article of jewelry, such

imitations shall be described or deRned as synthetic or imitations of the stones they purport to represent. When

watches or clocks are sold or oUered for sale at public auction, the true names of the manufacturers shall be

stated in writing, and no parts of the movement or mechanism thereof shall be substituted or contain false or

misleading names or trademarks, neither shall secondhand or old movements be oUered for sale in new cases

without a true statement to that eUect. Used and rebuilt watches shall be so indicated. The card, tag or label shall

remain securely attached to any such article of merchandise, and shall be delivered to the purchaser as a true and correct description and representation of the article sold, and shall be deemed prima facie evidence of intent to

defraud in case such written statement is not a true and correct description or representation of the article sold.

(Ord. 353 NCS §10.0; prior code §5.16.)

It is unlawful for any person to conduct, allow or permit or suUer to be conducted any jewelry auction sale

between the hours of six p.m. of any day and eight a.m. of the following day. (Ord. 353 NCS § 13.0; prior code

§5.17.)

It is unlawful for any person conducting an auction sale to ring a bell, or cause or permit the same to be rung, in or

about the front of the premises, or in any place on or near such premises where the same may be heard on the

public street or sidewalk in front of the premises when there is conducted an auction sale, before, after or during

the sale, for the purpose of attracting the public to such auction sale.

It is unlawful for any person conducting an auction sale to use a searchlight or similar light, or to solicit or to

permit the soliciting by music, singing or loud or unusual noises for the purpose of attracting the public to an

auction sale. (Ord. 353 NCS § 12.0; prior code §5.18.)

The applicant for a permit to conduct a public auction of jewelry shall make application therefor not less than

thirty days previous to the intended auction and Rle the same with the city clerk, and at the time of such

application, shall pay a Rling fee of twenty-Rve dollars to cover the cost of investigating the application as

mentioned in Section 6.24.050. The application shall be in writing and under oath, showing all the facts in regard

to the closing out of the applicant’s business, and showing all the facts in regard to conducting the sale and public

auction, and the place of conducting the same, and an inventory of the jewelry to be sold at the proposed sale, the

quality, quantity and grade of the items, the wholesale value thereof, and a statement of the names of the persons

from whom the jewelry so to be sold was obtained, the date of the delivery of such jewelry to the person applying

for the permit, and the place from which such jewelry was last taken, and all details necessary to fully identify the

jewelry. The application shall specify the proposed period of time over which such proposed sale at public auction

shall continue, which period shall not exceed thirty days, Sundays and legal holidays excluded. Each item of

merchandise in the inventory must be numbered separately and the number in the inventory must correspond to

the number physically attached to such item. (Ord. 353 NCS §§6.1, 11.0; prior code §5.19.)

The inventory when Rled with the city clerk must be accompanied by a statement, sworn to by the applicant, that

all of the merchandise described in the inventory is a bona Rde part of the applicant’s stock in trade, and was not

secured, purchased or brought into his place of business for, or in anticipation of, the close-out sale, and that no

other merchandise will be brought into the place of business after the date of the Rling of the application, and that

no merchandise will be sold or oUered for sale that is not set forth in the inventory, and that each of the

statements in the inventory are true and correct to his own personal knowledge.

No article of jewelry shall be sold or oUered for sale or advertised for sale at public auction which is an addition to

the stock on hand of the holder of a permit, or which is not included in the inventory Rled with the city clerk with

the application for a permit (Ord. 353 NCS §§6.1, 11.0; prior code §5.19.)

Upon receipt of an application for a permit to conduct a public auction under this chapter, the city clerk shall refer

the same to the chief of police for investigation and report. Thereupon, the chief of police shall cause an

investigation to be made of the moral character and reputation of the applicant and the person who is to conduct

the sale, and, in the case of an application for a jewelry auction sale, shall determine whether the jewelry proposed

to be sold at public auction is a bona Rde part of the applicant’s stock in trade and not secured, purchased or

brought into his place of business for or in anticipation of the proposed sale. If the investigation by the chief of

police discloses that neither applicant nor any of its oTcers, directors or members have violated the provisions of

this chapter, he shall report to the city clerk that such an application should be issued; otherwise he shall report

that the application be revoked. The making of any abnormal jewelry purchase by the applicant within a period of

six months prior to the application for permit under this article shall be prima facie evidence that such purchases

were made for the purpose of disposing of the same at such proposed close-out jewelry public auction and shall

be just cause for the denial of the permit (Ord. 353 NCS §7.0; prior code §5.20.)

If it is made to appear upon a sworn application to the city clerk, at any time during the thirty-day period in a

permit for a close-out jewelry public auction, that all of the jewelry described and inventoried in the original

application has not been sold, accompanied by a statement or inventory of what remains thereof, a permit

supplemental to that provided for under this chapter may be issued by the city clerk, upon the same terms and

conditions as the original permit, granting authority to continue such sale for a further period of thirty days. (Ord.

353 NCS §8.0; prior code §5.21.)

In the event the chief of police Rles an unfavorable report of his investigation of an application for a permit under

this chapter, or the city clerk denies the same, the applicant shall have the right to Rle a written appeal to the city

council within ten days after the notice of such denial. Thereafter the council shall set such appeal for hearing

before it, and hear the appeal within twenty days after the notice of appeal. Notice of the hearing shall be

published once in the oTcial newspaper not less than Rve days before the hearing, and a copy thereof mailed to

the applicant at the address shown on the application. After the hearing, the council may grant the application for

permit, or if it Rnds that the conduct of an auction at the location as shown on the application, or for any other

reason, would be contrary to this chapter or any ordinance of the city, or would constitute a public nuisance, the

application may be denied. The decision of the city council shall be Rnal. (Ord. 353 NCS §7.1; prior code §5.22.)

Any permit granted under this chapter may be suspended or revoked by the chief of police when it appears to the

chief that the business or calling of the person to whom the permit was granted is conducted in a disorderly or

improper manner, or in violation of any law of the state, or of any ordinance of the city, or that the place where

such business or calling is being conducted or maintained is not a proper or suitable place in which to conduct the

business or calling. (Ord. 353 NCS §9.0; prior code §5.23.)

Complaints to suspend or revoke permits granted by the chief of police must be in writing, signed by the person

making the complaint and Rled with the chief of police and a copy thereof, certiRed by the chief of police, must be

served upon the party complained against, or upon the person in charge of the place of business at least forty-

eight hours before the time set for the hearing of the complaint. Upon the suspension or revocation of the permit,

the license issued thereon shall immediately terminate or be suspended during such time as the chief of police

shall determine. The holder of the suspended or revoked permit shall have the same right of appeal to the city

council pursuant to the same procedure provided for in Section 6.24.080 in the case of denial of an original

application for a permit. (Ord. 353 NCS §9.0; prior code §5.24.)