5.42.020 License - Requirements - Exemptions.
   (A)   No personnel shall carry on the business of a secondhand dealer without first having obtained a license from the city to do so in the manner provided in this chapter, which license shall be posted and maintained in a conspicuous place on the premises where such business is conducted.
   (B)   The following activities are exempt from license requirements.
      (1)   Authorized agent. The provisions of this section shall not apply to the receipt or sale of any secondhand goods, wares or merchandise by any person who receives the same as part payment on new goods, wares or merchandise, if such person is the authorized representative or agent of the manufacturer, jobber or distributor.
      (2)   Junk dealers or junk collectors. The provisions of this section shall not apply to or affect a junk dealer, junk collector or used car dealers.
      (3)   Secondhand dealer activities for charitable and nonprofit purposes. The provisions of this section shall not apply to any religious, charitable, fraternal, educational organization or association, which as part of its activities operates as a secondhand dealer solely for the purposes and objects for which such organization or association was formed and from which secondhand dealership the net gain, monetary or otherwise, is used only for the purposes and objects for which such organization or association was formed.
   (C)   The provisions of this chapter shall not apply to any tangible personal property which has been:
      (1)   (a)   Acquired in good faith in a transaction involving the stock in trade of another secondhand dealer who previously has made the report or reports required by this chapter of such property included in the transaction and who states in writing that the report or reports so required have been made, provided and acquiring secondhand dealer submits a copy of such statement to the Chief of Police or to the Sheriff, on forms prescribed and provided by the Department of Justice, all tangible personal property which he or she has acquired in such transaction to the Chief of Police. Each of the secondhand dealers involved in the transaction shall retain a copy of the statement and the report referred to in this subdivision for a period of three years as a matter of record which shall be made available for inspection by any law enforcement officer;
         (b)   No report to the Chief of Police shall be required of the acquiring secondhand dealer if the other secondhand dealer states in writing under penalty of perjury, on a form prescribed and provided at actual cost by the Department of Justice, that the report or reports required by this chapter have been properly made and submitted by such dealer. Such a declaration shall be delivered to the acquiring dealer, who shall retain it for a period of three years as a matter of record and shall make it available for inspection by any law enforcement officer;
      (2)   Acquired in a nonjudicial sale, transfer, assignment, assignment for the benefit of creditors or consignment of the assets or stock in trade, in bulk or a substantial part thereof, or an industrial or commercial enterprise for purposes of voluntary dissolution or liquidation of the seller’s business, or for the purpose of disposing of an excessive quantity of personal property, or which has been acquired in a nonjudicial sale or transfer from an owner of his or her entire household of personal property, or a substantial part thereof; provided, the secondhand dealer retains in his or her place of business for a period of three years a copy of the bill of sale, receipt, inventory list or other transfer document as a matter of record which shall be made available for inspection by any law enforcement officer; and provided, further, that the secondhand dealer notifies the Chief of Police that exemption from reporting is being claimed under this subdivision. "Industrial or commercial enterprise" and "owner," as used in this subdivision, do not include a secondhand dealer;
      (3)   Acquired in a sale made by any public officer in his or her official capacity, trustee in bankruptcy, executor, administrator, receiver or public official acting under judicial process or authority or which has been acquired in a sale made upon the execution of, or by virtue of, any process issued by a court or under the provisions of the California Commercial Code;
      (4)   Acquired as the surplus property of the United States government or of a state, city, county, city and county, municipal corporation or public district and which after requisition or acquisition by the United States government or by a state, city, county, city and county, municipal corporation or public district has never thereafter been sold at retail; and
      (5)   Reported by a secondhand dealer as an acquisition or a purchase or which has been reported as destroyed or otherwise disposed of:
         (a)   To a state agency by the authority of any other law of this state; or
         (b)   To a city, county or city and county officer or agency by the authority of any other law of this state or a city, county, or city and county ordinance.
(`78 Code, § 5.42.020.) (Ord. 1597 § 1 (part), 1981.)