Houston secondhand dealers, including used-jewelry buyers, used-merchandise stores, and metal recyclers, must register under Texas Occupations Code Chapter 1956 and report transactions to police. Houston Police runs the LeadsOnline reporting system to recover stolen goods.
Texas Occupations Code Chapter 1956 governs metal recycling and Chapter 1802 covers used-merchandise dealers. Houston Police Department's Pawn and Property Crimes Unit administers the local reporting framework, requiring dealers to record seller identification, take a thumbprint, photograph each item, and electronically transmit transaction data to LeadsOnline within 48 hours. Items must be held for at least 14 days before resale to allow stolen-property checks. Metal recyclers face additional restrictions on cash payment for regulated material such as catalytic converters, copper wire, and stainless beer kegs; all such purchases require certified fund payment under Section 1956.038. State preemption limits Houston to enforcement and reporting roles; the city does not issue a separate secondhand-dealer permit beyond what state law authorizes.
Failing to record sellers, skipping LeadsOnline reporting, paying cash for restricted metals, or selling within the 14-day hold period triggers Class A misdemeanor charges, civil penalties up to $10,000 per violation, and DPS license suspension for metal recyclers.
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