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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT, CALIFORNIA, ADDING CHAPTER
5.08 REGARDING DECEPTIVE TRADE PRACTICES
AND GOING OUT OF BUSINESS SALES.
The City Council of the City of Palm Desert, California does hereby ordain as
follows:
SECTION 1. Chapter 5.08 of the Palm Desert Municipal Code is added to read as
follows:
"Chapter 5.08
DECEPTIVE TRADE PRACTICES
Section 5.08.010 Going Out of Business Sales
A. Definitions
1. "Going out of business sale" means an offer to sell to the public, or the
sale of, goods, wares, and merchandise, to the public, on the implied or direct
representation by written or oral advertising that the sale is in anticipation of the
termination of all of the operations of a business at all of its locations in the city.
2. "Person" means any person, business, firm, partnership, corporation,
association, club or organization, or the like.
B. Prohibited Conduct
1. A person may not conduct a sale advertised with the phrase "going out
of business," "closing out," "shutting doors forever," or "bankruptcy sale"; the word
"foreclosure" or "bankruptcy"; and/or a similar phrase or word indicating that an
enterprise is ceasing business unless the business is closing all of its operations in the
city.
2. A person may not fraudulently represent that the person is conducting
a "going out of business sale."
C. "Goina Out Of Business Sale" Process and Procedure
1. A "going out of business sale" can be noticed and approved in one of
two manners:
ORDINANCE NO. 1191
a. If a patrolling code officer observes a "going out of business
sale" and/or similar activity, or responds to a complaint regarding such an activity, he or
she will stop and issue a notice and a handout/application explaining the requirements
for conducting a "going out of business sale," including signage requirements. From the
date the notice is issued, applicants will be authorized to conduct the sale for ninety (90)
days; or
b. If a business owner goes to City Hall requesting "going out of
business sale" information/procedure, an official from Planning or Code will provide a
handout/application explaining the requirements to conduct a "going out of business
sale," including signage requirements. From the date the handoudapplication is given,
the applicant will be authorized to conduct the sale for ninety (90) days.
2. At the time the application is filed, applicant shall grant permission to
the City Manager (or his or her designee) to enter, during normal business hours, the
property or premises on which the sale is to be conducted for the purpose of verifying
the accuracy of the inventory statement required by this section.
3. Applicant may apply for one (1) forty-five (45) day extension, which
shall be subject to the conditions imposed by the City Manager.
D. Deadline for Orders
A person may not sell an item at a "going out of business sale" if the
person ordered the item after the beginning date of the sale.
E. Disposition of Sale Items
After a sale ends, a person may not sell at retail price an item offered at
the sale.
F. Exceptions
This subchapter does not apply to:
1. A sale conducted by a public officer as part of the officer's official
duties;
2. A sale for which an accounting must be made to a court of law;
3. A sale conducted pursuant to an order of a court of law; or
4. A foreclosure sale pursuant to a deed of trust or other lien.
G. Penaltv and Enforcement
1. It is unlawful for any person to violate any provision or to fail to comply
with any of the requirements of this chapter. In addition to other remedies provided by
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ORDINANCE NO. 1191
law, any person violating any provision of the chapter for failing to comply with any of
the requirements is deemed guilty of an infraction in accordance with Chapter 1.12 of
this code.
2. Each person shall be deemed guilty of a separate offense for each and
every day, or any portion thereof, during which any violation of or failure to comply with
any of the provisions of this chapter is committed, continued or permitted by such
person, and each instance shall be deemed punishable as provided in this chapter.
3. The provisions of this chapter shall not be construed as permitting
conduct not prescribed herein and shall not affect the enforceability of any other
applicable provisions of law.
H. Appeal
An applicant may appeal a decision by the City Manager or his or her
designee to impose condition on a sale, denying a sale, or revoking approval of a sale
by filing a written appeal with the City Clerk within ten (10) days after the date on the
notice of the decision of the City Manager. The City Council may hear the appeal, or
appoint a hearing officer to take evidence, and submit findings and recommendations.
The City Council shall render its decision within thirty (30) days after the hearing or thirty
(30) days after receipt of hearing officer report for final decision. The decisions of the
City Council shall be final.
SECTION 2. SEVERABILITY
If any section, subsection, clause or phrase of this Ordinance or any part thereof
is for any reason held to be invalid, unconstitutional, or unenforceable by the decision of
any court of competent jurisdiction, such decision shall not affect the validity of the
remaining portion of the Ordinance. The City Council declares that it would have
passed each section, subsection, paragraph, sentence, clause or phrase thereof,
irrespective of the fact that any one or more section, subsection, sentence, clause or
phrase would be declared invalid, unconstitutional or unenforceable.
SECTION 3. COMPLIANCE WITH CALIFORNIA ENVIRONMENTAL QUALITY ACT
This ordinance complies with the "City of Palm Desert Procedure for
Implementation of California Environmental Quality Act, Resolution No. 02-60", in that
pursuant to Section 3.07, the ordinance is exempt because there is no possibility that
the adoption of the ordinance will have any significant negative effect on the
environment.
SECTION 4. PUBLICATION
The City Clerk of the City of Palm Desert, California, is hereby directed to publish
this ordinance in the Desert Sun, a newspaper of general circulation, published and
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ORDINANCE NO. 1191
circulated in the City of Palm Desert, California, and shall be in full force and effective
thirty (30) days after its adoption.
PASSED, APPROVED AND ADOPTED by the Palm Desert City Council this
day of , 2009, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT A. SPIEGEL, Mayor
ATTEST:
RACHELLE D. KLASSEN, City Clerk CI'�'COUNCILA�'TION
City of Palm Desert, California APPROVF,D � DENiF,D
I2EC IVED OTHER
�. 1VU.
MEET( G DATFs ��7-
AYF,S: �2/ i7 �- ��
NO�S: �OYI�(%
A I3SCNT: 1�63?l�
AI3S7'AIN:
VCRIFIEU BY:
Ori�;i��.il on Fitc with City k's Office
* Adopted Ord. No. 1191, with additional direction that staff provide ample
notice to businesses and the mPdia to inform of this new regulation. 5-0
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