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

Section 5.38.030 requires a permit and license before conducting business as a secondhand dealer, displayed on the premises during business hours. A secondhand dealer is defined as anyone buying, selling, or exchanging secondhand goods other than as a pawnbroker, expressly excluding new and secondhand car dealers (§ 5.38.010); the chapter also exempts retailers whose secondhand sales are limited to items taken in trade toward new merchandise if they already hold a valid city business license (§ 5.38.020). Applicants submit a photograph, fingerprints, true name and aliases, age, address history for the preceding 12 months, and prior business history to the Police Chief, who investigates good moral character and must approve or deny within 60 days (§ 5.38.040).

Only items designated on official Garden Grove Police Department information orders must be reported, showing the time received, the seller's identity and description, and a complete item description including serial numbers and identifying marks; reports go to the Police Chief within 72 hours (§ 5.38.060). Records of purchases, sales, and police reports must be retained at least three years (§ 5.38.170). Reported items may not be sold within 30 days of receipt (§ 5.38.100), and dealers may not buy or take in pledge goods from anyone under 18, regardless of the minor's claimed age (§ 5.38.110).

A peace officer may impose a 90-day hold on suspected stolen property, and disposing of held property is unlawful (§ 5.38.130). Licenses renew annually without a new application unless the Police Chief has placed a stop on the permit (§ 5.38.120).