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

Gilroy's Chapter 12B covers both junk dealers (scrap metal, rags, wire, bottles) and secondhand dealers as defined in California Business and Professions Code §§ 21626-21626.5. Applicants file with the chief of police (§ 12B.3), and the application must clear a Department of Justice review before the city's finance department will issue the accompanying business license (§ 12B.4). Permits run one year from issuance and renew annually on payment of the council-set fee (§ 12B.4(b)).

Every dealer must keep a permanent, English-language transaction log open to police inspection at all times (§ 12B.6), recording each seller's driver's license, passport or Matricula Consular number, the item description, and any engraved markings. Purchased or received property must be held for 30 days from the date it is reported to the chief before resale, though the chief can authorize earlier disposition for good cause (§ 12B.8(a)); dealers must also report every purchase daily, or by the next working day, on Department of Justice forms (§ 12B.8(b)).

Scrap dealers face an added restriction: possessing a stolen fire hydrant, fire department connection, manhole cover or backflow device is a separate violation unless the dealer reports the discovery to police by the next business day (§ 12B.10(b)-(c)). Refusing to let the chief of police inspect the required records is itself unlawful (§ 12B.7), and a revoked permit locks the holder out of the business for six months (§ 12B.5(a)).