Downey, CA Business Licensing & Operations: Secondhand Dealers (2026)

5 defines a "secondhand dealer" as anyone whose principal business is "buying, selling, trading, taking in pawn, accepting for sale on consignment, accepting for auctioning, or auctioning secondhand personal property," but exempts new-goods retailers who occasionally take used items as trade-in credit. Section 6542 requires a City permit before conducting that business, obtained through the Chapter 4 procedure: a sworn application to the Chief of Police (Section 6402), a background investigation into the applicant's moral character (Section 6403), and appeal rights to the City Council (Section 6404).

Once permitted, Section 6538 requires every secondhand dealer to file an original and duplicate report with the Chief of Police, on City-supplied forms, of every item of identifiable secondhand property purchased, taken in trade, pawned, consigned or accepted for auction, no later than noon the day after the transaction. A triplicate copy stays with the dealer for three years, and the dealer's inventory and records must be open to police inspection at any time during business hours. 1 spells out what each report must show: the hour the item was received, the true name, address and description of the person who sold or pawned it, the pawn ticket number if applicable, the amount loaned or paid, and a description of each item; a copy of this part of the Code must stay posted at the dealer's place of business.

Section 6539 makes it unlawful to fail to file a required report or to refuse an officer's demand to inspect records or merchandise. Section 6540 bars a secondhand dealer from reselling or otherwise disposing of any item for 30 days after acquiring it, giving police a window to match reported goods against theft reports. A dealer who also runs another regulated business defined in this part, such as a pawnshop or junk operation, at the same location must hold a separate permit for each activity under Section 6543.