Ordinance 401A
1444
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OHDINANCE
DEFINING TRANSIENT MERCHANTS AND TEMPORARY STORES,
PROVIDING FOR THE REGULATION OF TRANSIENT MERCHANTS, PRO-
VIDING POR ISSUANCE OF PERMIT FOR TRANSIENT 1ffiRCHANTS, AND
PROVIDING FOR A FEE TO BE PAID TIfEREFOR, AND ],'OR TIfE REVOCA-
TION OF SAID PERMIT, AND PROVIDING THE PENALTY FOR THE VIOLA-
TION OF THIS ORDINANCE.
BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF GILROY,
SECTION 1. The words "transient merchantft f'or the
purpose of this ordinance shall mean and include all persons,
both principals and agents, who engage or conduct in one or
more locations or in no specified location within the City
of Gilroy, a temporary store or temporary or transient busi-
ness of selling goods, wares or merchandise with the intention
of continuing in said business in said City for a period of
less than one hundred twenty (120) days. A merchant who
operates a main or branch temporary store shall be a transient
merchant as to said temporary store notwithstanding the fact
that said merchant may operate other stores Which are not
temporary.
SECTION 2. As used in this ordinance, the words "tempo-
rary store" shall mean a store, store room, Office, room,
doorway space, vacant lot, or other place, opened and/or main-
tained for the exhibition and present or future sale to the
pUblic, of goods, wares or merChandise, where the seller or
owner of such goods, wares or merchandise intends to operate
such store, store room, Office, room or other place, for a
period of' less than one hundred twenty (120) days.
SECTION 3. The prOVisions of this ordinance shall not
apply to sales made to dealers by commercial travelers or
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selling agents in the Usual course o~ business, ~or resale,
nor to any sales o~ goods, Wares or merchandise at and during
the continuance o~ any annual ~air, nor to any sales by
societies acting ~or charity, religious or public purposes,
nor to the resale o~ goods, weres and merchandise by any person,
firm or corporation which haa acquired a stock o~ auch goods,
werea and merchandiae in bulk, and o~~era the ssme to the public
in premisea Which have been occupied ~or a period o~ not leaa
than one yeer by the peraon, ~irm or corporation ~m which
the said stock was 0.0 acqUired, nor to reaident w~eaale
produce merChants, nor to auctioneers who ere conducting auctiona
in accordance with the proviaiona or Ordinance No. 297, nor to
peddlers licensed as such by said City.
SECTION 4. 'Ihe word nperson It as used in this ordinance
shall be construed to mean any individual, essociation, partner_
ship, or corporation, or the operator ~or or the agent o~ any
such person, who sells to the public et retail as a transient
merchant any gOOds, wares or merChandise, except as herein
provided.
SECTION 5. Every transient merchant desiring to do busi-
'ness in the City or Gilroy shall make an application in writing
to the Common Council o~ said City ~or a permit to operate as
a transient merchant, which application ahall be ~iled with
said Common Council at least ten (10) days be~ore auch applicant
shall be authorized to begin such business. l~e application
shall contain a statement under oath, setting ~orth such in-
formation as the Common Council shall prescribe.
SECTION 6. Upon the granting o~ said permit the City
Clerk shall deliver said permit to the applicant upon his ~iling
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of the bond referred to in Section 7, and payment of the
following fees: One hundred (~~100 .00) Dollars per week or
fraction thereof for the first two weeks, and Seventy ($70.00)
Dollars per week, or fraction thereof, for every week there-
after, plus in a.l1 cases Two ($2.00) Dollars for each One
Hundred ($100.00) Dollars of retail inventory value of goods,
wares or merchandise to be sold or exhibited for sale. Said
values shall be stated in a sworn inventory filed with said
City Clerk at the time of the payment of said fee. The full
amount of said fee shall be paid ror each temporary store,
whether a main store or a branch store. If for any reason the
value of goods, wares or merchandise actually sold or exhibited
for sale by said transient merchant shall exceed the value on
which a fee has been based, said transient merchant shall pay
without fUrther demand a proportionate additional fee.
SECTION 7. The bond referred to in Section 6 shall be
executed by the applicant, as prinCipal, and a surety company,
qualified and authorized to do business in the State of Cali-
fornia, as surety, in the sum of Five Hundred ($500.00)
Dollars. It shall be conditioned that the principal will pay
to the City of Gilroy all amounts which may become due under
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the terms or this ordinance, shall fully comply with the provi-
sions of this ordinance and all other applicable ordinances of
said City, and the rules and regulations of any department
thereof, and with a.11 statutes of the State of California,
relative to the conduct of the business in which said princi-
pal may be engaged, and that he shall pay all judgments re-
covered or rendered against him for any violation of said
ordinances, statutes, rules or regUlations, and further con-
ditioned that said principal shall pay any and all judgments
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which may be recovered by any person~ firm, association or
corporation for injuries to person, loss or damage to property
resulting from the negligent operation of said business by
said principal, as well as all damages sustained by any person,
firm, association or corporation by reason of any misrepresenta_
tion or deception practiced by said principal or his agents
tion transacting business with such transient merchant.
or employees on any such person, firm~ association or corpora-
SECTION 8. Any person desiring to continue said business
or transient merchant for a period longer than that stated in
said application and permit issued pursuant to the provisions
of this ordinance, shall make application to the Common Council
of said City of Gilroy for the renewal thereof. In the event
of the renewal of said permit, said transient merchant shall
pay the license fee herein provided in the same manner as he
paid the license fee under his original license, and the
liability insurance policy or bond referred to shall remain in
full force and effect.
SECTION 9. Permits issued under the provisions of this
ordinance may be revoked or suspended by the Common Council
hereof.
upon failure of the holder to comply with any of the terms
SECTION 10. Any person whom the Common Council believes
to be a transient merchant, but who declares himself not to
be a transient merchant, upon filing such declaration in
writing, ~nd under oath as said Common Council shall direct,
may~ in the discretion of said Common Council, and in lieu
of the payment of any fee or posting of any other bond~ 'and
as a condition of transacting business as a Vendor ofmerchan_
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dise without the payment of any such fee, be required to file
with the City Clerk a liability insurance policy or bond,
executed by the declarant as principal and a surety company,
qualified and authorized to do business in the State of Califor-
nia, as surety, in the sum of One thousand five hundred
($1,500.00) Dollars upon the same conditions as those set
forth in Section 7 of this ordinance, and further conditioned
to secure the payment of the fee required in the event that he
proves to be a transient merchant, provided that if such person
remains in business in the same place in said City of Gilroy
for a period of One hundred twenty (120) days he shall be
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considered and deemed not to be a transient merchant. '
SECTION 11. Actual operation of a business or store for
less than One hundred twenty (120) days shall be a prima fa.cie
evidence that said store or business was opened with the in-
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tention of opera.ting less than One hundred twenty (120) days.
SECTION 12. Any person who causes to be advertised in
any manner a sale of gOOds as herein contemplated~ without
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complying with the provision~ of this ordinance~ or any person
who violates any of the provisions of this ordinance, shall be
deemed guilty of a misdemeanor and shall be punishable by a
fine of not to exceed one hundred (~~100 .00) Dollars, or by im-
prisonment in the City Prison for a period not to, exceed thirty
(30) days, or both such fine and imprisonment. Each day or
fraction thereof any person, firm, association or corporation
shall be engaged in such business without a permit shall be con-
sidered as separate and distinct offense.
SECTION 13. If any section, SUb-section, sentence, clause
or phrase of this ordinance is for any reason held to be uncon-
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stitutiona1, such decisions shall not affect the validity or
the remaining portions of this ordinance. The Common Council
hereby declares that it would have passed this ordinance, and
each section, sub-section, sentence, clause, and phrase there-
of, irrespective of the fact that anyone or more other
sections, sub-sections, sentences, clauses or phrases be de-
clared unconstitutional.
SECTION l4. All ordinances or parts of ordinances, inso-
far as they conflict with this ordinance, are hereby repealed
to the extent of such conflict.
/fl31DOPTED AND PASSED this ltLct day of j;J~ ~ A.D.,
~, by the following vo~x: r ~, iZA (! ()/lA. P ',~ Q
~,(c:vei~l 'cfL.<J, ,rr~ (l-?
AYES, Councilmen - ~ C ~, 9. N ~
A 1.9, ?dvk, !:L__)t~, u _ _
NOES: Councilmen - n (/yI ~
ABSENT: Councilmen - 91 ~
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AT'l'EST:
{;' Cj vP ~;' Clerk.