The purpose of this article is to discourage an increasingly prolific and socially deplorable business activity of dealing in stolen property, by requiring, among other regulations, the purchaser of certain secondhand goods to maintain a record identifying the authorized vendor and to record and maintain a reliable form of identification of the seller, if he is other than a manufacturer or authorized vendor. Further, this article should provide the police department with more adequate tools for investigations concerning stolen property. Items of property to be included in the regulations are limited to those items most frequently stolen and for which there is a ready market.
(Ordinance 83-65, sec. 1, adopted 6/28/83; 1957 Code, sec. 13-20)
The following definitions shall apply to the provisions in this article:
Person.
Any individual, firm, association, partnership, company, corporation, group or entity of any nature whatsoever.
Secondhand goods.
The following types of personal property that a secondhand goods dealer has purchased from a person, other than an authorized representative of a manufacturer or a regular dealer in such goods, in either a new or used condition:
(1) 
Jewelry;
(2) 
Silverware;
(3) 
Art objects;
(4) 
Any thing or object made, in whole or in part, from gold, silver, platinum, palladium, iridium, rhodium, osmium, ruthenium or other alloys;
(5) 
Any type of gem or precious stone, including diamonds;
(6) 
Furniture;
(7) 
Electronic equipment, including televisions, radios, stereos, appliances and office equipment;
(8) 
Power tools powered by electrical or AC/DC current or by liquid or gaseous fuels, including, but not limited to pneumatic equipment and welding equipment;
(9) 
Automotive parts;
(10) 
Firearms;
(11) 
Photographic equipment;
(12) 
Musical instruments;
(13) 
Scrap metal;
(14) 
Any type of electronic games, or gaming devices utilized in connection with electronic equipment, including but not limited to, Nintendo, PlayStation, Sega, Wii, and/or Xbox.
Secondhand goods dealer.
A person who purchases, in the regular course of business, secondhand goods, for the purpose of selling or renting such goods. Except as hereinafter excluded, the definition of secondhand goods dealer shall apply to persons who sell from either a temporary location or a permanent location, or both. The definition shall not include nonprofit or charitable secondhand goods or thrift-type shops, flea markets and neighborhood garage sales which are not operated on a regular basis, or a retail business that does not purchase any secondhand goods for resale but acquires same solely by means of trade-ins on new goods. The definition shall also not apply to persons who purchase goods sold by estates, or by business entities which advertise or give public notice of such sales, or pawnshops or other persons or entities preempted under state law.
(Ordinance 83-65, sec. 1, adopted 6/28/83; 1957 Code, sec. 13-21; Ordinance 2012-32, sec. 1, adopted 7/10/12)
An offense under this article is punishable by a fine of not less than one hundred dollars ($100.00) nor more than two hundred dollars ($200.00), and a violation constitutes a separate offense for each item of secondhand goods involved and for each day in which the violation continues.
(Ordinance 83-65, sec. 1, adopted 6/28/83; 1957 Code, sec. 13-29)
(a) 
A person commits an offense if that person:
(1) 
Fails to keep records as required by section 4-8-5;
(2) 
Purchases secondhand goods, or transacts or engages in the business of a secondhand goods dealer at any location within the city, without the license required by section 4-8-41;
(3) 
Fails to retain possession of secondhand goods as required by section 4-8-6;
(4) 
Fails or refuses to produce inspection or custody by a police officer the records required by section 4-8-5, when requested to do so at a reasonable time by a police officer;
(5) 
Fails or refuses to produce secondhand goods as required by section 4-8-8;
(6) 
Purchases secondhand goods for resale, rent or salvage use from a seller, other than a manufacturer or authorized vendor, who does not present a valid driver’s license, military identification card, or personal identification certificate;
(7) 
Purchases for resale, offers for sale or sells secondhand goods which have had the manufacturer’s identification number or any other identifying mark removed, defaced or altered; or
(8) 
Fails or refuses to comply with a hold order as required by section 4-8-6.
(b) 
A culpable mental state is not required for the commission of an offense under this section, unless the provision defining the conduct expressly requires a culpable mental state.
(c) 
In a prosecution under this article involving a recordkeeping requirement of section 4-8-5, it is an affirmative defense that the secondhand goods involved were purchased from a manufacturer or authorized dealer of such goods.
(d) 
An investigating police officer may inspect and copy any records required to be kept under section 4-8-5 without obtaining a court order.
(Ordinance 83-65, sec. 1, adopted 6/28/83; 1957 Code, sec. 13-28; Ordinance 2012-32, sec. 2, adopted 7/10/12)
(a) 
Purchase form.
A secondhand goods dealer shall make an extra copy of a purchase form for all secondhand goods purchased by the dealer, setting forth the information required herein, and which shall be consecutively numbered. This record shall include the following information:
(1) 
The amount paid for the secondhand goods;
(2) 
An accurate description of the person selling the secondhand goods, including name, address, sex, age, race, and any identification number of the seller (“identification number” means the driver’s license number and issuing state or military identification number or identification certificate or official number capable of identifying an individual, but specifically excluding any social security number);
(3) 
An accurate description of the property, including the serial number, brand name, and model, if reasonably available;
(4) 
A signed warranty from the seller that the seller has the right to possess the property;
(5) 
That the manufacturer’s identification number or any other identifying mark has or has not been defaced, removed or altered;
(6) 
A digital photograph of each item received.
(b) 
Electronic records of purchases.
(1) 
All secondhand goods dealers shall be responsible for registering and completing a Leads Online agreement to upload the daily incoming merchandise records to the Leads Online database website.
(2) 
Within five (5) working days of receiving secondhand goods all secondhand goods dealers shall upload the daily incoming merchandise records onto the Leads Online database.
(Ordinance 83-65, sec. 1, adopted 6/28/83; 1957 Code, sec. 13-22; Ordinance 2012-32, secs. 3– 4, adopted 7/10/12)
(a) 
The secondhand goods dealer shall segregate at the dealer’s local place of business the property purchased from the seller from property purchased from other sellers and attach to the property or container in which the property is held a tag indicating the name of the seller and the date on which the property was purchased. The dealer shall withhold the property from resale, or salvage, use or renting for seven (7) business days, including the date of purchase. Such property shall be made available for inspection at the person’s local place of business by any police officer during regular business hours, while the property is in the dealer’s possession.
(b) 
If a police officer has credible evidence to believe that a secondhand goods dealer is in possession of secondhand goods that may be stolen property, he may require the secondhand goods dealer to hold the property. In such cases, the police officer shall deliver to the secondhand goods dealer a hold order which shall be signed by the secondhand goods dealer and the police officer. The merchandise subject to the hold order shall not be resold until the police department has notified the secondhand goods dealer that the property has been cleared for sale.
(Ordinance 83-65, sec. 1, adopted 6/28/83; 1957 Code, sec. 13-25; Ordinance 2012-32, sec. 5, adopted 7/10/12)
Nothing in this article excuses noncompliance with another state law or city ordinance which may be applicable to a person subject to the requirements of this article.
(Ordinance 83-65, sec. 1, adopted 6/28/83; 1957 Code, sec. 13-26)
If a police officer finds secondhand goods offered for sale which have had the manufacturer’s identification number or any other identifying mark removed, defaced or altered, he may require the dealer to hold the property for thirty (30) days, or he may seize the property in any manner or for any period authorized by law. In the event of seizure of property under this section, the police officer shall issue to the owner a receipt for the property notifying the owner that the property may be redeemed in thirty (30) days at the police property division, unless it is otherwise required by law to be held.
(Ordinance 83-65, sec. 1, adopted 6/28/83; 1957 Code, sec. 13-27)
It shall be unlawful for any secondhand goods dealer to purchase personal property of any type from any minor, as that word is defined in the Texas Probate Code, unless such minor is accompanied by his or her parent or legal guardian. In this connection, the secondhand goods dealer shall require such proof of identification as is necessary in order to comply with this section.
(Ordinance 70-16, sec. 1, adopted 3/10/70; 1957 Code, sec. 13-30)
It shall be unlawful for any secondhand goods dealer to accept as security on a loan personal property of any type from a minor, as that word is defined in the Texas Probate Code, unless such minor is accompanied by his or her parent or legal guardian. In this connection, the secondhand goods dealer shall require such proof of identification as is necessary in order to comply with this section.
(Ordinance 70-16, sec. 2, adopted 3/10/70; 1957 Code, sec. 13-31)
Since other laws do regulate certain activities of persons who come within this article’s definition of secondhand goods dealer, this article is not intended to be in conflict with or repugnant to such other laws. In order to prevent this article from being invalid because of its possible application to activities expressly regulated by other laws which impose a different penalty for their violation, it is expressly provided that this article shall not apply to, nor in any way affect, those specific activities of persons coming within this article’s definition of secondhand goods dealer, which activities are expressly required or regulated by other laws.
(Ordinance 70-16, sec. 2, adopted 3/10/70; 1957 Code, sec. 13-32)
No secondhand goods dealer, as defined herein, shall transact or engage in the business thereof at any location within the corporate limits of the city until he has secured an annual license therefor, except for pawnshops licensed by the state, pursuant to Tex. Fin. Code, section 371.005.
(Ordinance 83-65, sec. 1, adopted 6/28/83; 1957 Code, sec. 13-23; Ordinance 2019-51 adopted 10/22/19)
(a) 
Secondhand goods dealers shall comply with the following conditions to obtain and maintain the license required in section 4-8-41:
(1) 
Submit an application to the police department which shall include the following information regarding the dealer:
(A) 
Name of the business;
(B) 
Address and telephone number of the business;
(C) 
Names and addresses of all owners and officers;
(D) 
Location of business;
(E) 
General description of business to be conducted at such location;
(F) 
Anticipated time or period of operations;
(G) 
Name and home address of manager;
(H) 
The location where secondhand goods will be kept during the holding period; and
(I) 
Any other relevant information determined to be necessary by the chief of police;
(2) 
Pay an annual license fee of twenty ($20.00) for said license to defray the cost of administration;
(3) 
Deliver a bond in the sum of one thousand dollars ($1,000.00) with two (2) or more good and sufficient sureties or with a surety company authorized to do business in the state for the faithful performance of the sections of this article. The form for such bonds shall be approved by the city attorney. In the event of violation of any provision of this article, the aggrieved parties and/or the city may recover on said bond by any legal means whatsoever;
(4) 
Demonstrate that the required records will be obtained;
(5) 
Be in compliance with all state and federal laws and city ordinances.
(b) 
Once the conditions in subsections (a)(1) through (5) above have been met, the police chief or his duly authorized representative will issue the license, which shall be valid for a period of one (1) year.
(c) 
A separate license shall be required for each location.
(d) 
The license required herein may be cancelled or suspended for a definite period by the chief of police for any violation of this article.
(e) 
If the chief of police refuses to issue a license or cancels or suspends a license, the applicant may appeal to the city council as provided in section 1-2-5.
(Ordinance 83-65, sec. 1, adopted 6/28/83; Ordinance 89-14, sec. 1, adopted 2/28/89; 1957 Code, sec. 13-24; Ordinance 2008-37, sec. 23, adopted 9/9/08)