California Business and Professions Code Section 21626 and SJMC Chapter 6.18 require secondhand dealers to obtain a state license through SJPD, hold purchases for 30 days, and report every transaction electronically.
Under California Business and Professions Code Sections 21625 to 21647, anyone whose business buys, sells, or exchanges used tangible personal property is a secondhand dealer and must obtain a state license, processed locally through the San Jose Police Department under SJMC Chapter 6.18. Dealers must collect seller identification, photograph or describe each item, report transactions daily through the California Pawn and Secondhand Dealer System (CAPSS), and hold purchased property for at least 30 days before resale or disassembly. Items reported stolen are placed on holds. Police may inspect inventory and records during business hours without notice. Coin shops, jewelry buyers, electronics resellers, and consignment stores frequently fall within the definition.
Operating without a license, failing to report to CAPSS, releasing items before the 30-day hold, or refusing police inspection is a misdemeanor under Business and Professions Code Section 21645 and grounds for revocation.
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