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

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Permitting authority
Chief of Police, § 5.30.030
State law tie-in
Bus. & Prof. Code § 21500 et seq.
Application
CPA-reviewed financial statement required
Renewal cycle
Every two years, § 5.30.090
Transferability
Permit non-assignable, § 5.30.080
Denial appeal
Chapter 2.115 SCCC procedure
Max penalty
$1,000 fine or 6 months jail

Summary

Santa Clara requires secondhand dealers, businesses that buy, sell, trade or take in secondhand goods for consignment or auction, to hold a Chief of Police permit before operating, under City Code § 5.30.030. Applicants file a CPA-reviewed financial statement, submit fingerprints for a California Department of Justice background check, and pay a DOJ investigation fee plus a City processing fee before the Chief approves the permit.

"Secondhand dealer" shall include any person, corporation, firm, or corporation whose business includes buying, selling, trading, taking in pawn, accepting for sale on consignment, accepting for auctioning or auctioning secondhand tangible personal property pursuant to Section 21626 of the Business and Professions Code, as amended from time to time. ... It shall be unlawful for any person to engage in the business of a pawnbroker or secondhand dealer within the city limits without first obtaining a permit issued by the Chief of Police.

Full Breakdown

" A permitted pawnbroker is exempt from this separate secondhand dealer permit for pawn transactions under Business and Professions Code §§ 21641-21642, but a pawnbroker who also runs a secondhand-goods operation must still meet secondhand dealer requirements. 050 and forwards fingerprints to the California Department of Justice. 115 SCCC. 090 requires renewal every other year. 130.

Violations & Fines

Buying, selling or taking in goods from anyone "in an intoxicated condition or from any suspected thief... or a suspected or known receiver of stolen property" violates § 5.30.110 and supports permit denial or revocation. Operating without the required permit, or any Chapter 5.30 violation, is enforced citywide under § 1.05.070 SCCC: up to a $1,000 fine, six months in County jail, or both, as a misdemeanor at the City Attorney's discretion, with each day of a continuing violation a separate offense.

Frequently Asked Questions

What counts as a secondhand dealer in Santa Clara?
City Code § 5.30.020(b) covers any person, corporation or firm whose business includes buying, selling, trading, taking in pawn, accepting for sale on consignment, or auctioning secondhand tangible personal property under Business and Professions Code § 21626, and that business needs a Chief of Police permit.
Do secondhand dealers have to submit fingerprints in Santa Clara?
Yes. Section 5.30.050 requires the Chief of Police to investigate the application and forward the applicant's fingerprints to the California Department of Justice for review before a permit issues.
Can Santa Clara deny a secondhand dealer permit application?
Yes. Under § 5.30.060, the Chief of Police can refuse a permit for a falsified application or a conviction for a property offense like larceny, fraud, grand theft, embezzlement or receiving stolen property, and the applicant can appeal under Chapter 2.115 SCCC.
How long does a Santa Clara secondhand dealer permit last?
Two years. Section 5.30.090 requires pawnbroker and secondhand dealer permit applications submitted to the California Department of Justice to be maintained and renewed every other year from the date of City issuance.

Sources & Official References

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