Decatur, AL Business Licensing & Operations: Secondhand Dealers (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?
What must I record when I buy jewelry from a seller?
How long must I hold purchased items before reselling?
Who is exempt from these requirements?
Sources & Official References
Other rules in Decatur
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