SECTIONS 21660-21669.1 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 21660-21669.1

21660. It is the intent of the Legislature in enacting this article
to require the reporting of personal property exchanged, sold, or
offered for sale or exchange at swap meets, flea markets, and
open-air markets, and information regarding vendors selling or
displaying new merchandise, for the purpose of ensuring that swap
meet, open-air market, and flea market operators and vendors are in
complete compliance with all state laws and regulations applicable to
displaying, offering for sale, selling, and exchanging new and
previously owned merchandise.
This article shall apply to operators and vendors at swap meets,
flea markets, and open-air markets unless the merchandise or the
transaction is specifically exempt under this article and shall not
be superseded or supplanted by any provisions or ordinances or
charters of any city, county, or city and county, nor supplemented by
any local ordinances or charters or provisions. Nothing contained in
this article shall be deemed to affect the land use and zoning
regulatory power of a local agency, nor be construed to require any
local agency to permit swap meets, flea markets, or open-air markets
if local land use or zoning regulations prohibit those operations.
Any transaction that is regulated by this article shall not be
subject to the provisions of Article 4 (commencing with Section
21625), regulating transactions in identifiable secondhand tangible
personal property. No person, partnership, or corporation shall be
considered a "secondhand dealer" within the meaning of Section 21626
because of activities regulated by this article.
Article 5 (commencing with Section 21650) of this chapter shall
not apply to operators or vendors at swap meets, flea markets, or
open-air markets.

21661. (a) As used in this article, the term "swap meet" includes a
flea market or an open-air market and means an event at which two or
more persons offer merchandise for sale or exchange and that meets
one of the following conditions:
(1) A fee is charged for the privilege of offering or displaying
merchandise for sale or exchange.
(2) A fee is charged to prospective buyers for parking or for
admission to the area where merchandise is offered or displayed for
sale or exchange.
(3) The event is held more than six times in any 12-month period.
(b) Notwithstanding subdivision (a), the term "swap meet," as used
in this article, includes a flea market or an open-air market and
means an event, regardless of the number of persons offering or
displaying personal property or the absence of fees, at which used
personal property is offered or displayed for sale or exchange if the
event is held more than six times in any 12-month period.
(c) The term "swap meet," as used in this article, is
interchangeable and applicable to "flea markets," "indoor swap meets,"
"open-air markets," or other similar terms, regardless of whether
these events are held either inside a building or outside in the
open. The primary characteristic is that these activities involve a
series of sales sufficient in number, scope, and character to
constitute a regular course of business.
(d) "Operator," as used in this article, means any person,
partnership, organization or corporation that controls, manages,
conducts or otherwise administers a swap meet.
(e) "Vendor," as used in this article, means any person,
partnership, organization or corporation who exchanges, sells, or
offers for sale or exchange any merchandise at a swap meet. A swap
meet vendor shall be classified according to the following
categories:
(1) A "casual swap meet vendor" means a vendor who participates in
a swap meet two times or less per year.
(2) A "regular swap meet vendor" means a vendor who participates
in a swap meet three or more times per year.

21662. The provisions of this article shall not apply to:
(a) An event held not more than two times per calendar year that
is organized for the exclusive benefit of any community chest, fund,
foundation, association, or corporation organized and operated for
religious, educational, hospital, or charitable purposes, if no part
of any admission fee or parking fee charged vendors or prospective
purchasers, or the gross receipts or net earnings from the sale or
exchange of merchandise, whether in the form of a percentage of the
receipts or earnings, as salary, or otherwise, inures to the benefit
of any private shareholder or person participating in the
organization or conduct of the event.
(b) An event at which all of the merchandise offered or displayed
is new, and all persons selling, exchanging, offering, or displaying
merchandise for sale or exchange are manufacturers or licensed retail
or wholesale merchants.
(c) Any vehicle or trailer or any vehicle accessory or vehicle
part usable for a motor vehicle eligible for vehicle registration
under Section 5004 of the Vehicle Code, and items of memorabilia or
history, or both, relating to these vehicles.

21663. (a) Except as provided in Section 21663.1, every vendor
shall report all merchandise offered or displayed for sale or
exchange on a form, prescribed or approved by the California
Department of Justice, containing all the following information:
(1) The name and address of the vendor.
(2) A description of the merchandise offered for sale or exchange,
including serial numbers and personal identification marks, or if
there is no serial number, other identification marks or symbols, if
any, or a general description of the item.
(3) A certification by the vendor that to his or her knowledge and
belief, the information contained on the form is true.
(4) The make, year, color, state of registration, and license
number of the vehicle or vehicles in which the merchandise is
transported to the swap meet.
(5) The California seller's permit number (State Board of
Equalization sales tax number), if any, of the vendor.
(6) The vendor's motor vehicle driver's license number and its
state of issuance or California identification card numbers.
(7) If the vendor is an agent of an individual, company,
partnership or corporation, the name and business address of the
principal.
(8) The dates of sale for which the report is made.
(9) A receipt number given by the operator for the dates of the
sale or the space used by the vendor.
(10) A requirement that the vendor check an appropriate box that
sets forth his or her permit number for sales tax purposes.
If the vendor's permit number is not listed in the appropriate
place on the form, the vendor shall indicate that he or she has not
and does not contemplate making more than two sales of sufficient
size, scope, and character within a 12-month period to require a
permit.
(b) In addition to the official governmental form, consisting of
an original and at least two copies, the information required may be
recorded on a computerized or other similar record that contains the
same information required by subdivision (a).
(c) In no case shall a swap meet owner or operator be liable or
responsible for the accuracy of, or any discrepancy in, any
information submitted by the vendors on the forms provided to them by
the swap meet owners or operators.

21663.1. (a) A vendor selling or displaying new merchandise and a
vendor holding a business license issued by a city, county, or city
and county of this state are not required to comply with Section
21633 if the swap meet is conducted at the same location at least
once per month on real property owned by the operator or leased to
the operator for a period of not less than one year.
(b) A vendor meeting the conditions of subdivision (a) shall, at a
minimum, provide the operator with the following information prior
to offering or displaying merchandise for sale at the event:
(1) The name and address of the vendor.
(2) The vendor's California seller's permit number (State Board of
Equalization sales tax number).
(3) The vendor's motor vehicle driver's license number and its
state of issuance or his or her California identification card
number.
(4) The vendor's business license number and its city or county of
issuance, unless the vendor is operating under a business license
issued to the operator.
(c) The operator shall maintain the information required by this
section in written or electronic form for six months after the date
of its receipt and shall make copies of the information available for
inspection, upon request, to any peace officer or any authorized
representative of the Board of Equalization or Department of Justice.
(d) In no case shall the operator be liable for the accuracy of,
or any discrepancy in, any information submitted by a vendor.

21664. (a) The swap meet operator shall obtain sufficient blank
forms from the Department of Justice at a cost not to exceed the
actual cost to the department, or shall cause to be printed and be
available sufficient forms approved by the department, for the use of
vendors attending the swap meet, and shall distribute them to
vendors as needed. The vendor shall submit the completed form to the
operator who shall note on the vendor's copy that the vendor has
submitted the form. The vendor shall submit the form to the swap meet
operator prior to the close of the business day on which the item is
to be placed on sale. The swap meet operator shall provide this form
required by subdivision (a) of Section 21663 to the chief of police,
if the swap meet occurs within the territorial limits of an
incorporated city, or the sheriff, if the swap meet occurs outside a
city, within 24 hours, or, before the end of the first working day
following the swap meet. The original shall also be available to the
State Board of Equalization to permit them to detect possible sales
tax evasion. The reports shall not be utilized by a chief of police,
a sheriff, the Department of Justice, or any other governmental
agency for the purpose of providing a permanent record of property
ownership, nor shall the information derived from these reports form
the basis for any record other than reports which assist in tracing
and recovering of stolen property or assist in detecting sales tax
evasion.
(b) Every vendor shall submit to the swap meet operator the form
disclosing the information required by subdivision (a) of Section
21663 for each swap meet at which he or she is a vendor prior to the
close of the business day at which the item is to be placed on sale.
Items described in reports previously submitted pursuant to paragraph
(2) of subdivision (a) of Section 21663 may be omitted from the
description on the forms submitted at subsequent swap meets if the
vendor furnishes the swap meet operator of each subsequent swap meet
with two copies of the report previously submitted, marked to
indicate personal property currently being offered or displayed.
(c) A vendor who regularly offers or displays for sale or exchange
any new or used personal property or merchandise shall be required
to submit to the swap meet operator the form disclosing the
information required by subdivision (a) of Section 21663 only once
every 60 days. The vendor shall, however, submit a new report at any
swap meet at which he or she is a vendor and offers or displays for
sale or exchange any personal property not included by generic
classification in the previously submitted report. For purposes of
this subdivision, a vendor shall be deemed to regularly offer or
display for sale or exchange any items of merchandise if such vendor
participates for four or more days in a month at a swap meet
conducted at the same location. Any vendor claiming to be a regular
seller of new or used merchandise under the provisions of this
subdivision shall so indicate on the bimonthly report.
(d) Every vendor shall submit to the swap meet operator the form
disclosing the information required by subdivision (a) of Section
21663 for each swap meet at which he or she is a vendor prior to the
business day on which the item is to be placed on sale. A vendor who
regularly offers or displays merchandise for sale or exchange shall
be required to submit to the swap meet operator the form disclosing
the information required by subdivision (a) of Section 21663 only
once every six months, provided the vendor has a written agreement
with the swap meet operator for a periodic term of one month or
longer. All other casual vendors shall submit the form disclosing the
information required by subdivision (a) of Section 21663 on each
instance of offering merchandise for sale or exchange at the swap
meet.

21665. (a) Swap meet operators shall retain a copy of the reports
collected by them for six months and shall make the copies available
for inspection, upon request, by a peace officer as defined in
Section 830.1 or subdivision (a) of Section 830.3 of the Penal Code,
or a peace officer of the Department of the California Highway Patrol
as defined in subdivision (a) of Section 830.2 of the Penal Code,
when the swap meet occurs on state property, or properly identified
representatives of the State Board of Equalization or Department of
Justice.
(b) Vendors shall have available for inspection during the swap
meet a completed copy of the report form which was submitted to the
swap meet operator describing the goods offered or displayed for sale
or exchange at the swap meet.

21666. (a) Upon request, a vendor shall provide the purchaser a
written receipt disclosing the vendor's name and address for any
items purchased which has a selling price in excess of fifteen
dollars ($15).
(b) No vendor shall offer or display at a swap meet any new or
used personal property or merchandise of a kind which the swap meet
operator has expressly prohibited. Every swap meet owner shall post
or display in prominent places at the swap meet, or give written
notice to every vendor prior to the commencement of a swap meet of
the kinds of personal property or merchandise which may be not
offered for sale or exchange. The swap meet owner or operator shall
also post a sign at the main entrance of the swap meet which states
that vendors are required to issue receipts in accordance with
subdivision (a).

21667. A violation of any provision of this article, except
subdivision (b) of Section 21666, is a misdemeanor and may be
punishable by up to six months in county jail, a fine of fifty
dollars ($50) for the first violation, one hundred dollars ($100) for
the second violation, and two hundred dollars ($200) for the third
and subsequent violations.

21668. A chief of police of a city or the sheriff of an area
outside of the city may waive any requirement of this article for
swap meet operators and vendors in the city or area outside of the
city if the chief of police or sheriff determines it is not necessary
or appropriate in the public interest to impose the requirement. If
the swap meet is located in both the city and area outside of the
city, the chief of police of the city has the authority to grant the
waiver authorized by this section.

21669. (a) All swap meets which are conducted two or more times per
calendar year on any premises or property owned or leased by any
city, county, city and county, state, or any other local governmental
agency, entity, or board, shall comply with all of the following
procedures:
(1) The swap meet operator shall have a valid business license.
(2) The swap meet operator shall have a valid California seller's
permit number (State Board of Equalization sales tax number), if
applicable.
(3) The swap meet operator shall provide the state or local
governmental entities described in this subdivision upon whose
property the swap meet is being held, a certificate of insurance
certifying that the swap meet operator maintains public liability and
property damage insurance for the operation of the swap meet of at
least two million dollars ($2,000,000), and that the policy names
that governmental entity as an additional insured under the policy.
(4) The swap meet operator shall provide the state or local
governmental entity a hold harmless and idemnification agreement for
his or her operation of the swap meet and activities and acts arising
from that swap meet.
(5) The swap meet operator shall comply with all other provisions
of this article relating to swap meets.
(b) State or local governmental entities shall not operate or
manage a swap meet for profit in direct competition to a private
enterprise, unless they comply with subdivision (a) of Section 21662.

21669.1. In addition to the requirements specified in subdivision
(a) of Section 21669, all swap meets conducted on the premises or
property of a state or local governmental entity that has or expects
to have an average daily attendance of 10,000 or more persons shall
provide all of the following:
(a) A statement of ownership, including the identity of
individuals holding a financial interest of 5 percent or more.
(b) A sworn statement that no individuals who have a financial
interest of 5 percent or more in the swap meet have been convicted of
any crime involving dishonesty or moral turpitude.
(c) A financial statement showing the operator's financial
capability to operate a major swap meet and to meet any financial
obligations to the lessor and subcontractors.
(d) A statement that the operator is not knowingly delinquent in
any payments owed to a state or local governmental entity and that he
or she is not knowingly in violation of any state or local law or
ordinance related to public health or safety standards.
(e) Evidence that the operator has a minimum of five years of
experience in the management and operation of a swap meet for profit
with an average daily attendance of 5,000 or more.
(f) A plan for operations, including security, crowd control,
sanitation, and emergency medical response.