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

California operates one of the country's most comprehensive secondhand-dealer regimes, and the City of Napa follows the state framework rather than layering a separate municipal scheme. Under Business and Professions Code §21625 et seq., a 'secondhand dealer' is any person whose business includes buying, selling, trading, taking in pawn, accepting for sale on consignment, or otherwise dealing in tangible personal property which has been previously used. Pawnbrokers are covered separately under Financial Code §21000 et seq. The required steps to operate in the City of Napa are: (1) submit a Secondhand Dealer or Pawnbroker license application to the Napa Police Department under BPC §21641 (the local licensing agency for City of Napa) at 1539 First Street; (2) pass a Live Scan fingerprint-based background check by the California Department of Justice (BPC §21642 disqualifies anyone convicted of theft, embezzlement, or specified felonies in the prior ten years); (3) for pawnbrokers, post a $5,000 surety bond under Financial Code §21300; (4) register with CAPSS (the California Pawn & Secondhand Dealer System) and report every reportable transaction electronically to DOJ within one business day under BPC §21628; (5) hold every purchased item for 30 days at the licensed premises before resale, melt, or alteration under BPC §21636; (6) collect and retain seller information including thumbprint, government-issued photo ID, and physical description under BPC §21628.2; and (7) hold a City of Napa Business Tax Certificate under NMC Chapter 5.04. Categories requiring reporting include precious metals, electronics, firearms, musical instruments, and most jewelry. Exemptions exist for charitable thrift stores (BPC §21626(a)(8)), licensed motor-vehicle dealers, and certain antique dealers selling items at least 100 years old. Napa Police use CAPSS plus LeadsOnline to match transactions against stolen-property reports filed locally and regionally.