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Decatur, AL Business Licensing & Operations: Secondhand Dealers (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Who must notify
Buyers of precious metals or stones in the city or police jurisdiction
Notice to
Chief of police, by letter, before starting business
Seller data logged
Name, address, date of birth, driver's license number
Record retention
Six (6) months after any purchase
Holding period
Fifteen (15) days after notifying the chief of police
Reporting
Daily report on forms furnished by the chief of police

Summary

Section 16-20 of the Decatur City Code makes anyone buying precious metals or precious stones in the city or its police jurisdiction notify the chief of police by letter before starting, keep a purchase book for six months, hold each purchase 15 days, and file daily reports. It is a notice and recordkeeping rule, not a license fee.

(b)Police notified. Any person within the corporate limits or the police jurisdiction of the city who engages in the business of purchasing precious metals or precious stones, or any person who purchases precious metals or precious stones, pursuant to an advertisement wherein the proposed purchaser holds himself out as such purchaser or offers to buy said precious metals or precious stones, shall, before engaging in such business or enterprise, notify the chief of police by letter that such business or enterprise will be conducted, and the notice shall contain the name of the person who is conducting the business and the address at which such business will be conducted. ... Such book shall be kept for six (6) months next subsequent to any purchase, and shall be open to the inspection, during business hours, of any authorized law enforcement officer who may make a request to examine same.

Full Breakdown

Decatur's dealer rule for used gold, silver and gems sits in § 16-20. Precious metals and precious stones cover all gold, silver, pearls, diamonds, rubies and other precious stones, plus any ornament or item made from or containing gold or silver or set with such stones. The rule applies to a person within the corporate limits or the police jurisdiction of the City of Decatur, Alabama, who engages in the business of purchasing those items, and to anyone buying under an advertisement that offers to buy them.

Before starting, the buyer must notify the chief of police by letter, giving the name of the person conducting the business and the address where it will be conducted. Subsection (c) requires a purchase book with an entry for every purchase: the seller's name, address, date of birth and driver's license number (or other adequate and positive identification), the time and date, and a detailed description including markings, make, pattern, size, weight and height, plus the kind, size and setting of any stones. The book is kept for six (6) months after any purchase and is open during business hours to any authorized law enforcement officer.

Subsection (d) requires each seller's items to be packaged or kept separately for fifteen (15) days, and bars selling, removing, intermingling or altering the items until fifteen days after notice of the purchase goes to the chief of police. Subsection (e) requires a daily report, mailed or delivered to the chief of police on forms the chief furnishes, listing each item bought the previous day. Subsection (f) exempts a merchant or jeweler buying for commercial resale from a person whose principal business is wholesale sale of such items.

Violations & Fines

Section 16-20 prints no separate penalty, so the § 1-8 general penalty applies unless a specific penalty is provided elsewhere: a misdemeanor with a fine of not less than $1 nor more than $500, up to six months of imprisonment at the municipal judge's discretion, and a separate offense for every day. A corporation faces the fine plus court costs only.

Frequently Asked Questions

Does Decatur license gold buyers?
Section 16-20 does not set a license or fee. It requires anyone buying precious metals or precious stones to notify the chief of police by letter before starting, giving the operator's name and business address, then to keep a purchase book and file daily reports.
What must I record when I buy jewelry from a seller?
Section 16-20(c) requires the seller's name, address, date of birth and driver's license number, the time and date of purchase, and a detailed description with markings, make, pattern, size, weight and height. For stones, the kind, size and setting must also be recorded.
How long must I hold purchased items before reselling?
Fifteen (15) days. Under § 16-20(d), items from each seller stay separately packaged and cannot be sold, removed from the place of business, intermingled, or altered until fifteen days after the chief of police is notified of the purchase.
Who is exempt from these requirements?
Section 16-20(f) exempts purchases by a merchant or jeweler from a person whose principal business is wholesale sale of such items, when bought for commercial resale in the ordinary course of business. Retail buyers from the public are not covered by that exemption.

Sources & Official References

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