CRAFTED PRECIOUS METALS DEALERS

Houston Code of Ordinances ch. 7, art. IV

in effect

Houston Code of Ordinances § 7-81 Definitions.

Sec. 7-81. - Definitions. The following words, terms and phrases, when used in this article, shall have the meanings assigned to them in this section, except where the context clearly indicates a different meaning: Crafted precious metal means jewelry, silverware, an art object, or another object made wholly or partly from precious metal, other than a coin, a bar, a commemorative medallion, or scrap or a broken item selling at five percent or more than the scrap value of the item. Dealer means a person licensed to engage in the business of purchasing and selling crafted precious metal (including purchases or sales made through the mail), except for coins, bars, commemorative medallions, or items that the dealer purchases for five percent or more than the scrap value. Licensee means any person licensed as a dealer pursuant to this article. Permanent registered location means a location where a crafted precious metals dealer engages in the business of buying crafted precious metal for one year or longer. Precious metal means gold, silver, platinum, palladium, iridium, rhodium, osmium, ruthenium, or an alloy of those metals. Scrap value means the value at which an item would be purchased by a person who will melt the item or otherwise transform it so that it will not be used for its original purpose. Tableware means any flatware, dishes, serving pieces or other items designed or intended to be used in connection with the serving or eating of food when the items are made of any precious metal or wholly or partially plated with a precious metal. Temporary dealer means any person who conducts business as a dealer in the city for a period of time not to exceed one year but does not have a permanent place of business in the city. (Ord. No. 2013-111, § 18, 2-6-2013)

Houston Code of Ordinances § 7-82 License required; display, exceptions.

Sec. 7-82. - License required; display, exceptions. (a) No person shall operate as a dealer or own any such business or engage in the business of buying, trading, or otherwise receiving jewelry, used tableware, or other used items containing precious stones or made of or plated with precious metals unless he is licensed pursuant to this article, is licensed as a pawnbroker pursuant to the statutes of the state or is acting in the employment of one licensed under one of the above-listed laws. A separate license shall be required for each permanent location of any such business. A license issued under this subsection shall be marked to indicate that the business is authorized to deal only in the items listed in this article and shall be posted in a conspicuous place upon the licensed premises. (b) A dealer must provide and display valid city and state license numbers on all forms of advertisement (i.e., print, video, internet, and radio) for business conducted within the city limits. (c) Exceptions to the applicability of this article are as provided in the Texas Occupations Code, Chapter 1956, Subchapter B. (Ord. No. 2013-111, § 18, 2-6-2013)

Houston Code of Ordinances § 7-83 Application for license.

Sec. 7-83. - Application for license. (a) Any person desiring a license required by this article shall make application therefor in writing to the director on an application form provided for that purpose. On the application, the applicant shall provide the following information: (1) The full name of the applicant, the street address where the business is to be located, and the residence address of each owner, manager and operator of the business; (2) Whether any owner or operator is an individual, partnership, corporation, or other legal entity; provided, however, that the type of business organization shall include only those organizations recognized by the Texas Business Organizations Code ("BOC") and authorized to engage in the type of business covered by this article, and if the organization is a foreign entity required to register under Chapter 9 of the BOC, full and complete copies of the organization's current registration; (3) If any owner or operator is a corporation, all officers of the corporation; and if there are fewer than five shareholders, the names of all shareholders; (4) If any owner or operator is a partnership, the type of partnership and names and addresses of all general partners, and for limited partnerships, the names and addresses of all members; (5) If any owner or operator is an unincorporated association, the names and addresses of all officers of the association; (6) If any applicant does business under an assumed name as that term is defined in Texas Business and Commerce Code section 71.002, all assumed names used; (7) The person responsible for the on-site day-to-day operation of the applicant's permanent registered location and a person responsible for each temporary location; (8) The location where the business will be conducted, along with a copy of the certificate of occupancy for the location; (9) The time period or periods during which the business will be conducted, including hours of operation; (10) A copy of the certification of registration issued by the Office of Consumer Credit Commissioner (OCCC) of the State of Texas; and (11) Any other information reasonably required by the director for the purpose of processing the application under the requirements of this article. (b) The application form shall be accompanied by an affidavit, sworn to by the applicant, (or declaration pursuant to Texas Civil Practice and Remedies Code § 132.001) acknowledging that the applicant: (1) Including his business partners, and, in the case of a corporation, all corporate officers, have not had a license revoked under this chapter or any preceding city ordinance governing the business described herein; (2) Has read the application and agrees to all of its terms and provisions; (3) Affirms the correctness and accuracy of the information given on the application; and (4) Affirms that he has the authority to bind the applicant to all of the terms, provisions and requirements of the application. (Ord. No. 2013-111, § 18, 2-6-2013)

Houston Code of Ordinances § 7-84 Temporary license.

Sec. 7-84. - Temporary license. A temporary dealer who wishes to purchase crafted precious metals in the city must apply for and secure a license for each location. An application for a temporary dealer's license shall be submitted as required in section 7-83, not later than 30 business days prior to the desired effective date of the license, and shall contain, for each location: (1) The approximate dates and hours of operation for each temporary location; and (2) The name of the person responsible for on-site operations and compliance with applicable laws at each temporary location. (Ord. No. 2013-111, § 18, 2-6-2013)

Houston Code of Ordinances § 7-85 Issuance, denial, fees.

Sec. 7-85. - Issuance, denial, fees. (a) Upon receipt of an application, the director shall investigate the items sworn to by affidavit or declaration. An application is complete when the application contains the information required by this article and is accompanied by the payment of the license fee. (b) Within 30 days of receiving an incomplete application, the director will provide written notice to the applicant stating that the application is incomplete and specifying the additional information required for completion. If the director requests additional information and the applicant does not respond within 30 days, the application will be considered withdrawn, and the applicant must reapply to obtain a license. (c) For temporary licenses, within ten business days of receiving an incomplete application, the director will provide written notice to the applicant stating that the application is incomplete and specifying the additional information. If the applicant does not respond within ten business days, the application will be considered withdrawn, and the applicant must reapply to obtain a temporary license. (d) Upon receipt of a complete application for a temporary or permanent license, the director shall issue a license to the applicant unless: (1) The information provided in the application is materially false or incorrect; (2) The applicant has violated the provisions of this chapter; (3) The applicant or any of the applicant's principals are not in compliance with the criminal history provisions of section 1-10 of this Code; or (4) The applicant, his business partners or corporate officers have had a license revoked under this article or a preceding city ordinance governing the business described herein within the last five years. (e) If the director denies the application, he shall give written notice by personal delivery or certified mail, return receipt requested, to the applicant at the address stated in the application. The written notice shall specifically set forth the reasons for the denial and shall be subject to an appeal pursuant to the procedures in section 7-7 of this Code. (f) The annual fee for a license issued pursuant to this article for a dealer with a permanent place of business within the city is stated for this provision in the city fee schedule. The license, unless revoked, shall be valid for one year from the date of issuance. (g) A temporary dealer shall pay the daily license fee for each show. The daily license fee is stated for this provision in the city fee schedule. (Ord. No. 2013-111, § 18, 2-6-2013)

Houston Code of Ordinances § 7-86 Change in business name or address; notice.

Sec. 7-86. - Change in business name or address; notice. (a) Should any person licensed under this article move his permanent place of business from the place designated in the license to a new address, he shall immediately give written notice to the director and have the change noted on his license. The fee stated for this provision in the city fee schedule, payable to the director, is hereby levied for such a change. (b) The director will rely on the mailing and e-mail addresses currently on file to contact dealers. The failure to maintain a current mailing or e-mail address with the director is not a defense to any action based on a dealer's failure to respond to notifications from the director. (Ord. No. 2013-111, § 18, 2-6-2013)

Houston Code of Ordinances § 7-87 Use of license at shows, other locations.

Sec. 7-87. - Use of license at shows, other locations. Each licensee with a permanent business location in the city may use the license for that business when attending shows or conducting business at other locations in the city. (Ord. No. 2013-111, § 18, 2-6-2013)

Houston Code of Ordinances § 7-88 Required recordkeeping; transaction report form, scrap value estimation, receipt.

Sec. 7-88. - Required recordkeeping; transaction report form, scrap value estimation, receipt. (a) A dealer shall keep at his place of business a record of all purchases of crafted precious metals in a real-time electronic web-based database, in a form and method approved by the chief of police. The record shall be updated daily, with a full description in English of each transaction in which personal property is purchased or otherwise received at the dealer's licensed place of business. (b) The dealer must prepare a transaction report form for each transaction. The report form shall be preprinted and pre-numbered, and shall contain all the following information: (1) The date of purchase. (2) The name and address of the dealer's permanent business location. (3) The name and address where the dealer purchased the crafted precious metal, if the location is different than the dealer's permanent business location and the transaction takes place in person. (4) The dealer's registration number. (5) The full name of the seller, as listed on the seller's driver's license or personal identification certificate as defined by Texas Occupations Code § 1956.001(8). (6) A physical description of the seller to include date of birth, height, eye color, and gender. (7) The physical address where the seller is residing at the time of the transaction. (8) The seller's driver's license number or personal identification number from the following unexpired forms of identification: a. A driver's license number from Texas or another state within the United States; b. An identification card issued by the Texas Department of Public Safety; c. A United States military identification card; or d. A United States passport or visa, or other identification issued by the United States government as described in the administrative rules promulgated pursuant to section 7-93 of this Code. (9) A clear digital photograph of the seller, in accordance with the administrative rules issued by the director and the chief of police. (10) A clear thumbprint from the seller. (11) The seller's certification that the seller's name and address, as well as the description of the crafted precious metal, are true and complete. (12) The seller's representation that the seller has the right to possess and sell the property. (13) A description of the crafted precious metal purchased by the dealer, accompanied by a clear digital image of each item purchased, including the: a. Total number of items purchased by the dealer; b. Type of each item (e.g., fork, tray, chain, ring); c. Type, color and purity of each kind of metal purchased (e.g., 10 karat white gold, 0.925 sterling silver); d. Weight in troy ounces, grams, or pennyweights for each kind of metal; e. Amount paid by the dealer for each kind of metal; f. Color (e.g., clear, blue, green), number, and approximate size (e.g. small, medium, large) of any stones and which item(s) included those stones; g. Size or length of each item (e.g., size 7, 18 inches); h. Any discernible serial numbers; i. Any engravings, inscriptions, distinctive markings, or designs; j. Gender for which any jewelry item was manufactured, if identifiable; and k. Any unique markings that are not visible and identifiable from the photographic images. (14) The total amount paid to the seller by the dealer. (15) The notice regarding oversight of precious metals dealers by the state's Office of Consumer Credit Commissioner and the office's contact information for consumer complaints as required by Title 7 of the Texas Administrative Code, Part 5, Ch. 85, Subch. B, Div. 2, Rule 85.2001(a). Additional information is permissible on the transaction report form as long as it is not misleading with respect to rights arising under the law. (c) The dealer shall maintain a scrap value estimation record for each purchase of crafted precious metal, including a reasonable good faith estimate of the each item's scrap value or the percentage of scrap value that the dealer will pay the seller. The scrap value estimation is not required on the seller's receipt copy of the transaction report form, but must be included on the dealer's copy, which must be maintained for a period of not less than three years, pursuant to Texas Occupations Code § 1956.063. (d) The dealer shall submit the required records to the real-time electronic web-based database by the close of business on each day on which the dealer is open for business. Failure to comply with any provision of this section shall be grounds for the revocation of or the refusal to issue or renew a dealer's license. Any person violating any provision of this section shall be punished as provided by section 1-6 of this code. (e) The dealer, his agents, or employees shall supply a consecutively-numbered receipt to the seller or transferor of the property. The receipt shall be dated on the actual date of the transaction and shall list the items sold or otherwise transferred. A printed version of the record input to the real-time electronic web-based database shall satisfy this requirement. An accurate copy or record of receipts shall be retained for a period of not less than three years. (f) A dealer and every person engaged in the business of buying, trading or otherwise receiving crafted precious metals in any form shall, upon request, submit and exhibit the various business records required to be maintained under this section for inspection and copying to any peace officer or authorized inspector of the director. Failure to maintain or to so permit the examination or copying of the records when requested shall be a misdemeanor. (Ord. No. 2013-111, § 18, 2-6-2013; Ord. No. 2016-964, § 5, 12-7-2016)

Houston Code of Ordinances § 7-89 Stock to be open for examination.

Sec. 7-89. - Stock to be open for examination. The stock or inventory of any dealer that is openly displayed and available to the public shall at any time during ordinary business hours be accessible for examination by any peace officer or authorized inspector of the department of administration and regulatory affairs. Failure to permit an examination when requested shall be a misdemeanor. (Ord. No. 2013-111, § 18, 2-6-2013)

Houston Code of Ordinances § 7-90 Articles to be retained, placed on hold, exceptions.

Sec. 7-90. - Articles to be retained, placed on hold, exceptions. (a) No dealer shall sell, dismantle, deface, melt, or in any manner alter or dispose of any item purchased or otherwise received at the dealer's licensed place of business for 11 days after receipt. During the 11-day period, all items of property shall be stored or displayed at the dealer's permanent business location or in a secure location readily accessible to the dealer, in the exact form received, and in a manner so as to be identifiable from the description entered in the record book. The property shall not be kept so as to prevent or impede its examination hereunder and shall be available for inspection by a peace officer within 24 hours of a peace officer's request to inspect the property. (b) A dealer may not melt, deface, alter, or dispose of crafted precious metal received by the dealer before the 11 th day after the required report is filed unless: (1) The peace officer to whom the report is submitted, for good cause, authorizes the disposition of the metal; (2) The dealer obtains the name, address, and description and other information pertaining to the buyer as required in section 7-88(b) of this article and retains a record of that information; or (3) The dealer is a pawnbroker and the disposition is the redemption of pledged property by the pledger. (c) A peace officer who has a reasonable suspicion that an item of crafted precious metal in a dealer's possession is stolen may place the item on hold for a period not to exceed 60 days by issuing to the dealer a written notice that specifically identifies the item alleged to be stolen and subject to the hold, and informs the dealer of the requirements of this section. (d) On receiving notice from a peace officer that an item is placed on hold, the dealer may not melt, deface, alter, or dispose of the identified crafted precious metal until the hold is released in writing by a peace officer of this state or by court order. (e) Failure to comply with any provision of this section shall be grounds for the revocation of or the refusal to issue or renew any license required of a dealer under this Code. Any person violating any provision of this section shall be punished as provided by section 1-6 of this Code. (Ord. No. 2013-111, § 18, 2-6-2013)

Houston Code of Ordinances § 7-91 Purchasing or receiving goods from minors.

Sec. 7-91. - Purchasing or receiving goods from minors. No dealer shall purchase or otherwise receive in the course of his business any item, ownership of which is claimed by any minor, or which may be in the possession of or under control of a minor, unless the minor's parent or guardian shall state in writing, that the transaction is taking place with the parent's or guardian's full knowledge and consent. It shall be the duty of the dealer to preserve and keep on file, and available for inspection, the written statements of consent, for a period of three years. (Ord. No. 2013-111, § 18, 2-6-2013)

Houston Code of Ordinances § 7-92 Revocation of license.

Sec. 7-92. - Revocation of license. (a) A license may be revoked pursuant to the procedures in section 7-7 of this Code if: (1) Any information supplied in the permit application was materially false or incorrect; (2) The license was issued as a result of error; (3) The licensee has failed to operate in compliance with any applicable provision of the license or this chapter; or (4) The licensee has violated the provisions of this chapter, or is not in compliance with the criminal history provisions of section 1-10 of this Code. (b) A dealer whose registration has been revoked may not reapply for five years from the date of revocation. (Ord. No. 2013-111, § 18, 2-6-2013)

Houston Code of Ordinances § 7-93 Administrative rules.

Sec. 7-93. - Administrative rules. The director and the chief of police shall promulgate rules and regulations to administer the provisions of this ordinance. The rules and regulations shall not conflict with any applicable provisions of this Code. All rules and regulations so promulgated shall be kept on file for public inspection at the office of the director and the office of the chief of police. (Ord. No. 2013-111, § 18, 2-6-2013)

Source: City of Houston, Code of Ordinances and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/houston/codes/code_of_ordinances?nodeId=COOR_CH7ANDECOMASCMEPRSEREREBU_ARTIVCRPRMEDEFetched: 10/26/2026