Secondhand dealers in Los Angeles need a Police Commission permit under LAMC §21.12 and must register under California Business and Professions Code §21626 et seq. Operators report every acquired item daily through LeadsOnline or the CAPSS system and must hold purchased property for 30 days before resale.
California Business and Professions Code §§21625-21647 sets the statewide Secondhand Dealer Act, requiring fingerprint-based DOJ background checks, photographing of sellers, and electronic reporting of every transaction within 24 hours. LAMC §21.12 layers a Los Angeles Police Commission permit, an annual business tax registration, and LAPD Detective Headquarters Division audit authority. The 30-day police hold under §21636 freezes resale so detectives can match items against stolen-property reports. LAPD inspectors may enter licensed premises during business hours without a warrant for compliance review. Pawn-style loans are prohibited unless the dealer also holds a pawnbroker license under California Financial Code §21000.
Operating without a Police Commission permit, failing to electronically report a transaction, or selling within the 30-day hold period are misdemeanors carrying up to $1,000 fines, six months jail, and Police Commission permit revocation.
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