A secondhand dealer is any person whose business includes buying, selling, taking in trade, taking in pawn, taking on consignment, accepting for auction or auctioning secondhand tangible personal property. Persons doing business involving coins may also fall into licensing or reporting laws Business & Professions Code (B&P) 21626 & 21641.

A pawnbroker is anyone engaged in the business of receiving goods in pledge as security for a loan Financial Code (FC) 21000.

What is tangible personal property? Tangible personal property is any property bearing a serial number, personalized initials, or inscription or which, bears evidence at time acquired have evidence of the above. It may also be property that appears on the State Attorney General’s list of property which is commonly sold by secondhand dealers such as: jewelry, sterling silver, etc. Contact the Police Department if you’re unsure of an items classification. (See Attorney General Opinion).

What’s the purpose of this law? The intent of the law is to provide law enforcement agencies with a means to curtail the dissemination of stolen property and to facilitate its recovery by means of a uniform statewide, state administered secondhand dealer licensing and reporting program.

How does this protect me? First, it protects you by knowing this process makes it difficult for a thief to unlawfully attempt to sell stolen goods. Around half of all burglaries are committed by juveniles. The law prohibits any purchases involving a minor.

Secondly, because there is a background check to assure the applicant has not had any criminal associations, the law filters out criminal business ownerships in the community.

Lastly, you and the community will have a sense of assurance and confidence that the items sold at your business have been acquired legally.