Subject: 9807/Amend CCC Sections 11-396 thru 11-410 Date: Thu, 17 May 1990 11:50:00 -0500 ORDINANCE NO. 9807 AN ORDINANCE TO AMEND CHATTANOOGA CITY CODE, PART II, SECTIONS 11-397 THROUGH 11-410 ENTITLED SPECIAL SALES TO BE MODIFIED IN PART TO REVISE PROCEDURES FOR GOING OUT OF BUSINESS SALES IN THE CITY OF CHATTANOOGA. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHATTANOOGA, TENNESSEE, that Sections 11-397 through 11-410 of the Chattanooga City Code entitled "Special Sales" be modified and amended by the following changes: Section 1: That the definition set forth within Section 11-397 be amended to insert a definition for "person" immediately following the definition of licensee as follows: Person shall mean one (1) or more individuals, partnerships, associations, corporations, business trusts, legal representative, or any organized group of persons conducting a sale within the definition of this chapter. Section 2: The definition of "sale" for purposes of this chapter shall be amended by deleting the definition of sale in its entirety and substituting in lieu thereof the following: Sale for purposes of this chapter shall mean the sale or any offer to sell to the public, goods, wares, and merchandise of any and all kinds and descriptions on hand and in stock in connection with a declared purpose, as set forth by advertising, on the part of the seller that such sale is anticipatory to the termination, closing, liquidation, revision, wind up, discontinuance, conclusion, or abandonment of the business in connection with such sale. The definition of "sale" within this chapter shall include any sale advertised to the public in such a manner as to reasonably cause the public to believe that upon the disposition of the stock of goods on hand the business will cease and be discontinued which shall include but not be limited to any sale advertised as a "adjuster's sale"; "adjustment sale"; "alteration sale"; "assignee's sale"; "benefit of creditors sale"; "benefit of trustee's sale"; "liquidation sale"; "reorganization sale"; "final days sale"; "forced out of business sale"; "lease expires sale"; "loss of lease sale"; "mortgage sale"; "quitting business sale"; "receiver's sale"; "removal sale"; and any and all other sales advertised in such a manner as to reasonably convey to the public that upon disposal of the stock of goods on hand the business will cease and be discontinued. Section 3: Chattanooga City Code Section 11-402 shall be deleted in its entirety and the following language shall be substituted in lieu thereof: 11-402. General duties of treasurer. The treasurer is hereby authorized and empowered to supervise and regulate sales or special sales as defined in Section 11-397 of this Code and to issue any appropriate license or licenses therefor. Any special sale licensed within this chapter shall be issued in the discretion of the treasurer upon written application submitted by any person desiring to obtain a license for a sale to be held in accordance with this chapter. The treasurer shall approve a written application form which shall be completed by any person, or by an authorized officer of any corporation which intends to conduct a sale governed by the provisions of this chapter. Any application prepared by the treasurer shall contain: 1) a description of the place where such sale is to be held; 2) the nature of the occupancy of the person desiring to conduct such a sale, whether by lease or sublease; 3) the effective date of the termination of such occupancy; 4) the means to be employed in advertising or publishing such a sale; 5) the address and position of the person who shall conduct the sale for the licensee, if different from the licensee. Such application shall further require any person desiring a license to submit with the application an itemized list of all goods, wares and merchandise to be offered for sale at that location including (a) the place where such stock was purchased or acquired; and (b) if not purchased, the manner of such acquisition by the person desiring to obtain a special sales license under this chapter; and (c) other information as may be required pursuant to 11-409. The treasurer may further include on the application form any additional information which may be required by the provisions of Tennessee law at T.C.A. A76-55-401 to 6-55-413 as amended. Section 4: That Section 11-403 of the Chattanooga City Code be deleted in its entirety and the following substituted in lieu thereof: 11-403. Investigation of application; issuance; duration. Upon receipt of an application for a special sale under this chapter which shall include the original business license in effect for that location as set forth within Section 11-402 and the payment of the fee hereinafter established in Section 11-404, the treasurer shall examine and investigate the qualifications of the person requesting a license and shall issue a license for a special sale in accordance with this chapter permitting the advertising, publication, and conduct of such sale if all requirements of this chapter are met. Any license issued by the treasurer shall not be renewable and shall be for the express period necessary to complete any termination, closing, liquidation, revision, wind up, discontinuance, conclusion or abandonment of any business at a specific location in connection with such sale. Any license issued by the treasurer shall not exceed ninety (90) days. Section 5: Section 11-404 of the Chattanooga City Code through 11-410 of the Chattanooga City Code are deleted in their entirety and the following code sections are substituted in lieu thereof: 11-404: Fee to accompany application. Upon filing an original application for a license to advertise and conduct a sale or special sale, as defined in this chapter the applicant shall pay to the treasurer a fee in the sum of one hundred dollars ($100.00). If any application is disapproved, such payment shall be forfeited to the treasurer as and for the cost of investigating the statements contained in such application. 11-405: Application of regulations: (a) Provisions Supplement General Business. The provisions of this chapter are intended to augment and be in addition to the applicable laws of the State of Tennessee. Where this ordinance imposes a greater restriction upon persons, premises, business, or practices than is imposed by the laws of the State of Tennessee, this ordinance shall control. (b) Interval between sales. Any person who has held a sale, as regulated hereunder, at the location stated in the application under the same or some other business name within one (1) year from the date of such prior application shall not be granted a license to conduct a sale within the provisions of this chapter. (c) Where a person applying for a license hereunder operates more than one (1) place of business the license shall only apply to the store location specified in the application and no other store or branch shall advertise or represent that it is cooperating or in any way participating in a licensed sale, nor shall the store location or branch conducting a licensed sale advertise or represent that any other store or branch is cooperating with it or participating in any way in the licensed sale. 11-406. Duties of licensee. (a) A licensee hereunder shall: (1) Adhere to inventory. Make no additions whatsoever during the period of licensed sale, to the stock of goods set forth in the inventory which is attached to the application for license. (2) Truth in advertising. Refrain from employing any untrue, deceptive or misleading advertising. (3) Adhere to advertising. Conduct the licensed sale in strict conformity with any advertising or holding out incident thereto. (4) Keep duplicate inventory. Keep available at the place of sale a duplicate copy of the inventory submitted with the application and shall present such duplicate to any inspecting official upon request. (5) Segregate non-inventoried goods. Keep any other goods separate and apart from the goods listed in the filed inventory as being objects of sale and shall make such distinction clear to the public by placing tags on all inventoried goods in and about the place of sale apprising the public of the status of such goods. (6) Display of license. The special sale license issued by the treasurer pursuant to this chapter shall be prominently displayed near the entrance of the premises and a duplicate of the original application and stock list pursuant to which the license was issued, shall at all times be available to any inspector. (7) Access of inspectors. The licensee shall permit any City inspector to examine all merchandise in the premises for comparison with the stock list at all times and at the close of each business day the stock list attached to the application shall be revised and those items disposed of during each such day shall be marked thereon. (8) Surrender of business tax license. After the conclusion of any sale under this chapter which shall in no event exceed ninety (90) days, the licensee shall surrender any business tax license issued by the City of Chattanooga to the treasurer. 11-407. Contents of advertising. All advertisements or advertising and the language contained therein shall be in accordance with the purpose of the sale as stated in the application pursuant to which such a license was issued. The wording of any advertisement shall not vary from the wording indicated in the application. Such advertising shall contain a statement in these words and no others: "Sale held pursuant to license number ______ of the Department of Finance of the City of Chattanooga, granted on the ___ day of ________, 19___." And in such blank spaces shall be indicated the license number and the requisite date. 11-408. Purchase of goods for sale hereunder. In order to carry out the purposes of this chapter it shall be unlawful for the applicant to add, permit or permit to be added to, or included in the itemized list of goods, wares, or merchandise to be offered for sale as required by Section 11-402 of this chapter, goods ordered in contemplation of conducting a sale regulated under this article and any unusual order, purchase or addition to the stock of goods of the business hereby affected within thirty (30) days before the filing of such an itemized list of goods shall be deemed to be prima facie evidence of an intent to violate this provision. 11-409. Manner of listing goods on inventory. To further carry out the purpose of this article, the itemized list of goods, wares and merchandise to be sold, which is required to be filed along with the application for a license and the business license as provided in Section 11-402, shall be sufficient if such goods, wares or merchandise are listed separately with the dealer cost and date of acquisition of any item to be sold under this chapter. 11-410. Suspension and/or revocation. The treasurer shall have power to suspend or revoke at any time any license granted in accordance with this article. 11-411. Penalties. Any individual violating the provisions of this chapter shall be subject to a penalty up to and including $500.00 for each offense and a suspension or revocation of any license issued under this chapter. Each day of violation shall constitute a separate offense. Section 6: This ordinance shall take effect within two (2) weeks from the date of the passage as provided by law. Reading November 2, 1992. s/s_________________________________ CHAIRPERSON APPROVED:_______ DISAPPROVED:_______ DATE:_________________ ______, 1992. s/s_________________________________ MAYOR PAN/bas