San Leandro Municipal Code Art. 2 Permit Required

No person shall publish or conduct any closing-out sale without first obtaining a permit from the City Manager as provided in this Chapter.

No permit to conduct a closing-out sale shall be granted except upon written application to the City Manager, signed and verified by the person who intends to conduct such a sale, and each application shall set forth and contain the following information:

(a) Description by street location at which such sale is to be held;

(b) The nature of the occupancy, whether by ownership, lease, or sublease, and if by lease or sublease, the effective date of the termination of such tenancy;

(c) A copy of all advertisements proposed to be used in connection with such sale, and a statement of the means or methods of advertising to be used in advertising such sale;

(d) The facts in regard to the insurance, bankruptcy, insolvency, assignment, mortgage foreclosure, administration, receivership, trusteeship, removal, executorship removal, or other cause advertised to be the reason for the proposed sale;

(e) An inventory or statement, in such form and in such detail as the City Manager may require, setting forth the amount and description of goods, wares, and merchandise to be sold at such a sale, and, when required by the City Manager, the date of acquisition of such goods, wares, or merchandise, the person from whom obtained, the place from which said goods were last taken, and such other information describing the goods as the City Manager may require.

The City Manager may make or cause to be made an examination, audit or investigation of the applicant and his or her affairs, in relation to the proposed sale.

If the City Manager finds that the statements in the application are true and complete, that the inventory is complete, that the advertising set forth is not false, fraudulent, deceptive, or misleading in any respect, and that the methods to be used by the applicant in conducting the same are not such as, in the opinion of the City Manager, will work a fraud upon the purchasers, the City Manager shall issue to the applicant a permit to conduct such sale in accordance with the provisions of this Chapter; otherwise, the City Manager shall deny the application and refuse said permit. No application shall be denied unless an opportunity for a hearing before the City Manager has been given the applicant by a 10 days' notice in writing.

No application for any such permit shall be accepted by the City Manager for filing unless accompanied by a filing fee in the amount set forth by the City Council by resolution, no part of which shall be refundable.

Each permit shall have printed, written, or stamped on the face thereof the following:

"This permit is granted by the City Manager and accepted by the permittee upon the condition that such permittee comply with and abide by all the provisions of the San Leandro Municipal Code."

with a line thereunder for signature by the permittee and a witness. At the time of the delivery of said permit such statement must be signed by the permittee in the presence of the City Manager who shall sign as a witness.

Any permit shall authorize the one type of sale named in the application, at the place named therein, for a period of not more than 60 calendar days, and shall permit the sale of goods only which are set out in said application, all of which goods throughout the duration of the sale must be definitely separated from any other goods displayed at, or within the store or place of business, and all advertising, signs or notices referring to, or calling attention to the sale, must be confined to the display, or displays of goods involved in the sale.

Provided, however, that the City Manager may, upon a verified application therefor, renew said permit for a period of not to exceed 30 days, upon the payment of a renewal fee in the amount set forth by the City Council by resolution. Such verified petition for renewal shall set forth a complete list of goods listed in the original application and remaining unsold, and shall not contain any goods, wares, or merchandise not named in such original application. Upon receipt of such application for renewal the City Manager shall cause an investigation to be made at once, and if satisfied of the truth of the statements therein contained, the City Manager shall grant such renewal, which shall be endorsed and signed as provided for in the original permit. The City Manager may renew any original permit in the manner above provided not to exceed two times, upon the payment of the renewal fee; provided, however, that the City Manager may not issue permits or renewals which will allow the conduct of any closing-out sale, or sales, of any kind, or kinds at any one location for more than 120 calendar days in any one twelve (12) month period.

Such permit shall be valid only for the advertising, representation and sale of the particular goods, wares, or merchandise described in the original application therefor, and at the particular time, and particular place stated therein, and by the particular applicant, and any renewal, replenishment or substitution of such goods, wares, or merchandise, or change of such time or place for such closing-out sale, or change of person conducting the closing-out sale, shall be unlawful and shall render such permit void. No person in contemplation of conducting any such closing-out sale or during the continuance of such closing-out sale, shall order any goods, wares, or merchandise for the purpose of selling them at such closing-out sale, and any unusual purchase, or additions to the stock of such goods, wares, or merchandise, within 60 calendar days before the filing of such application for a license to conduct such a closing-out sale shall be presumptive evidence that such purchase or additions were made in contemplation of such closing-out sale and for the purpose of selling them at such closing-out sale.

The City Manager shall have the power to revoke at any time any permit granted in accordance with this Chapter whenever any such closing-out sale is being conducted in violation of any of the provisions of this Chapter or in such manner as to deceive or defraud the public, or if:

(a) The permittee has made any material misstatement in the application for such permit;

(b) The permittee has been guilty of any fraudulent practice or practices, in the conduct of the sale authorized by such permit;

(c) The permittee has failed to include in the inventory required by the provisions of this Chapter the goods, wares, or merchandise required to be contained in such inventory;

(d) The permittee has added, caused to be added, or permitted to be added any goods, wares, or merchandise not described in the original inventory; or

(e) The permittee has violated any of the provisions of this Chapter of any other law pertaining to advertising.

No permit shall be revoked until a hearing has been held by the City Manager. Written notice of the time and place of such hearing, and a brief statement of the grounds for such revocation, shall be served upon the permittee at least five days prior to the date set for such hearing. A person aggrieved by the decision of the City Manager in denying or revoking any permit may, within 10 days after notice of decision of the City Manager is served, appeal to the City Council by filing a written notice of appeal with the City Clerk. The City Council shall forthwith hold a hearing and its decision shall be final. During the pendency of an appeal, the license shall not remain in effect.