Houston, TX Business Licensing & Operations: Secondhand Dealers (2026)
Key Facts
- State law
- TX Occupations Ch. 1956
- Reporting system
- LeadsOnline within 48 hours
- Hold period
- 14 days before resale
- Metal cash ban
- Catalytic converter, copper wire
- Local enforcement
- HPD Pawn and Property Unit
Summary
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.
Sec. 1956.022. ISSUANCE OF CERTIFICATE; QUALIFICATIONS. (a) The department shall issue a certificate of registration to an applicant who:(1) applies and pays a registration fee;(2) presents any relevant evidence relating to the applicant's qualifications as required by commission rule;(3) submits a declaration describing the extent to which the applicant intends to engage in transactions involving catalytic converters removed from motor vehicles in the course of the applicant's business activity;(4) presents evidence satisfactory to the department that the applicant intends to act as a metal recycling entity and use a fixed location to wholly or partly conduct an activity described by Section 1956.
Full Breakdown
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.
Violations & Fines
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.
Frequently Asked Questions
How long must a Houston pawn or thrift shop hold purchased items?
Can Houston scrap yards pay cash for catalytic converters?
Sources & Official References
Other rules in Houston
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Secondhand Dealers in Nearby Cities
How other cities in Harris County handle secondhand dealers.