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Austin, TX Business Licensing & Operations: Secondhand Dealers (2026)

Light Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified May 2026

Key Facts

Statute
TX Occupations Code Ch. 1956
Registration
APD Pawn and Secondhand Detail
Reporting platform
LeadsOnline daily uploads
Hold period
7 days minimum on metals
Penalty
Class A misdemeanor

Summary

Texas Occupations Code Chapter 1956 regulates secondhand dealers and crafted-precious-metal dealers, requiring registration with local police, transaction reporting, holding periods, and seller identification; Austin Police Department administers compliance for Austin merchants.

Sec. 1956.003. LOCAL LAW; CRIMINAL PENALTY. (a) A county, municipality, or political subdivision of this state may adopt a rule, charter, or ordinance or issue an order or impose standards that are more stringent than but do not conflict with this chapter or rules adopted under this chapter. (b) A county, municipality, or political subdivision of this state may issue a license or permit to a business to allow the business to act as a metal recycling entity in that county or municipality and may impose a fee not to exceed $250 for the issuance or renewal of the license or permit.

Source: TX Occupations Code Chapter 1956View official code

Full Breakdown

Texas Occupations Code Chapter 1956 governs every Austin secondhand dealer in jewelry, electronics, tools, instruments, and crafted precious metals. Dealers must register with APD, photograph or thumbprint sellers, record government identification, and submit electronic transaction reports daily through the LeadsOnline system. A seven-day hold applies to gold and silver, and longer holds may apply if APD issues a hold notice on suspected stolen goods. Out-of-state purchases and pawn redemptions follow distinct rules. Records must be retained for at least one year. Antique dealers, charitable thrift stores, and farmers selling produce are exempt. Austin's Pawn and Secondhand Detail audits dealers and serves hold notices in active theft investigations.

Violations & Fines

Failure to register, missed reports, or sales during a hold are class A misdemeanors under Section 1956.301, up to one year jail and $4,000 fine, plus forfeiture of stolen merchandise and APD registration revocation.

Frequently Asked Questions

Do Austin antique stores need to register as secondhand dealers?
Antique dealers selling items over 100 years old are exempt under Texas Occupations Code Section 1956.002. Most other resale shops, jewelry buyers, and electronics resellers must register with APD.
How long must I hold purchased items?
Crafted precious metals require a seven-day hold under Section 1956.158, and APD may extend the hold on any item suspected stolen. Local hold notices override the statutory minimum.

Sources & Official References

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