South Pasadena Municipal Code Art. V Close-Out Sales

For the purpose of this article, the following words and phrases shall have the meanings attributed to them as provided in this section:

(a) “Bankruptcy sale” means any sale, or offer to sell to the public or by invitation, of goods, wares, or merchandise in stock that have been involved in any business failure or have been derived from any business that has been adjudicated bankrupt, has been closed, has been discontinued, has been liquidated, or has been placed in receivership.

(b) “Close-out sale” means any sale, or offer to sell to the public or by invitation, of goods, wares, or merchandise, in furtherance of a declared purpose, when such sale is anticipatory of the termination, liquidation, revisions, windup, discontinuance, removal, relocation, dissolution, closing, or abandonment of a business conducted at any location.

(c) “Fire sale” means any sale, offer to sell to the public or any part thereof, of goods, wares, or merchandise that have been damaged or altered as the result of contact with, or exposure to, fire, smoke or water. (Ord. No. 2258, § 21, 2013.)

It is unlawful for any person to conduct a close-out sale, fire sale, or bankruptcy sale, as defined in this article, without first obtaining a permit from the license collector. (Ord. No. 2258, § 21, 2013.)

The provisions of this article shall not apply to, or affect, the following persons:

• (a) Persons acting in their official capacities as public officials;

• (b) Persons acting pursuant to process issued by a court of competent jurisdiction;

(c) Duly licensed auctioneers, selling at auction. (Ord. No. 2258, § 21, 2013.)

Any person desiring to apply for a permit to conduct a sale regulated by this article shall make a written application to the license collector, accompanied by a fee in the sum as set and adjusted by resolution of the city council.

(a) If the proposed sale is a bona fide close-out, fire or bankruptcy sale, the license collector shall issue the permit.

(b) The permit shall expire thirty days from date of issue. (Ord. No. 2258, § 21, 2013.)

Every applicant shall submit to the city license collector a deposit as set and adjusted by resolution of the city council conditioned upon compliance with the provisions of this article. If the sale is conducted and completed in accordance with the provisions of this article, the deposit shall be returned to the applicant; if not so conducted and completed, the same shall be forfeited, but such forfeiture shall not affect any misdemeanor complaint or charge for violation of the provisions hereof. (Ord. No. 1633, § 2; Ord. No. 2005, § 1.)

It is unlawful for any permittee:

• (a) To conduct any sale not in conformity with the purposes stated on the permit application;

• (b) To sell any goods, wares or merchandise not physically located on the licensed premises on the date(s) of the permitted sale. (Ord. No. 2258, § 21, 2013.)

The city license collector and the chief of police shall have the power to revoke at any time any permit granted hereunder whenever the permitted sale is being conducted in violation of any of the provisions of this Code; or in such a manner as to deceive or defraud the public; or if:

(a) The holder of any such permit has been adjudged of or pled guilty to any fraudulent practice in the conduct of the sale authorized by such permit;

(b) The holder of the permit has extended the sale to a location other than the permitted location;

(c) The holder of any such permit has violated any of the provisions contained in this article. (Ord. No. 2258, § 22, 2013.)

(a) Any administrative decision made pursuant to this article by the license collector or the chief of police may be appealed within ten calendar days thereafter to the city manager, who may affirm, modify or reverse the decision in writing forthwith. Notice of the city manager’s decision shall be served by certified U.S. mail.

(b) Pending the appeal before the city manager, the administrative decision shall remain in effect.

(c) The time for filing a court challenge to a decision of the city manager is governed by Sections 1094.5 and 1094.6 of the California Code of Civil Procedure. Notice of the hearing officer’s decision and his/her findings shall include citation to Sections 1094.5 and 1094.6 of the California Code of Civil Procedure. (Ord. No. 2258, § 22, 2013.)

Upon being issued a close-out sale permit hereunder, the permittee shall surrender to the city license collector without refund all other business licenses he or she may then hold applicable to the location and goods covered by the sale permit. (Ord. No. 2258, § 22, 2013.)

Except as set forth herein, no permit issued under this article shall be renewable; provided, the city manager may, if he or she finds that the weather, holidays or other circumstances during the permit’s thirty-day period have worked unnecessary hardship on the permittee, renew the permit for a period of time not to exceed an additional thirty days. (Ord. No. 2258, § 22, 2013.)