California Business and Professions Code Section 21626 requires secondhand dealers to register with local law enforcement, hold tangible items 30 days, and report acquisitions daily; the Santa Clara County Sheriff administers registration for unincorporated areas.
Under California Business and Professions Code Section 21626 et seq., any business that buys, sells, or exchanges secondhand tangible personal property (electronics, jewelry, tools, bicycles, sporting goods) must register annually as a secondhand dealer with the local police chief or sheriff. Santa Clara County Sheriff handles registration for unincorporated areas. Dealers must report every acquisition to the California Department of Justice's CAPSS system (or successor LEADS Online), photograph and tag items, hold tangible property at least 30 days before resale (longer for some categories), and check seller identification. Live Scan and background checks are required. Violations are misdemeanors with state preemption barring stricter local schemes.
Operating without registration, failing to report transactions to the state system, releasing items before the 30-day hold, accepting goods without seller ID, or buying from minors triggers misdemeanor charges and registration revocation.
See how Palo Alto's secondhand dealers rules stack up against other locations.
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