Secondhand dealers and pawnbrokers in San Francisco must hold an SFPD permit, hold purchased goods for 30 days, and report all transactions daily to the state LEADS database under Business and Professions Code and Police Code Article 21.
California Business and Professions Code 21625 et seq. and SF Police Code Article 21 require any business that buys, sells, or trades used tangible personal property — jewelry, electronics, musical instruments, sporting goods — to register as a secondhand dealer with the SFPD. Operators report each transaction to the California Department of Justice LEADS (Law Enforcement Agencies Data System) within one business day, including the seller's photo ID and a description of the item. Goods must be held intact and unaltered for 30 days to allow stolen-property recovery. Pawnbrokers add a layer of state Department of Financial Protection and Innovation licensing. Annual SFPD permit renewal includes a background check.
Skipping LEADS reporting, breaking the 30-day hold, or operating without an SFPD permit triggers misdemeanor charges, permit revocation, and forfeiture of inventory.
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