The Administration and Regulatory Affairs Department (“ARA”) recommends that City Council approve an ordinance amending Chapter 7 of the City of Houston Code of Ordinances (“the Code”) relating to Secondhand Resellers.
Chapter 7 allows an individual to engage in the business of commercially selling any item previously used in a manner other than as manufacturer or vendor sample or floor model. Secondhand Resellers are regulated due to the sale and acquisition of secondhand goods that may contribute to the circulation of stolen property and hinder theft investigations.
The amendments to Chapter 7 will exempt specific organizations from the recordkeeping requirements associated with the permit. Specifically, retailers that buy back and resell their own proprietary and rebranded merchandise – for example, Ikea –would be exempt from these requirements. In addition, organizations incorporated under Section 501(c)(3) of the Internal Revenue Code – such as churches that receive and resell donated goods – would also be exempt from the recordkeeping requirements of the ordinance.
The proposed amendments are as follows:
Chapter 7 – Secondhand Resellers
- Amend Section 7-125 to exempt specific retailers from recordkeeping requirements. Exempted entities include:
- Retailers engaged in the sale of proprietary branded merchandise who maintain a centralized inventory tracking system and resell their own proprietary merchandise.
- Organizations incorporated under section 501(c)(3) of the Internal Revenue Code and obtaining merchandise solely via donations.
- Amend Section 7-126 to exempt the above entities from requirements to make any and all records accessible to a peace officer for examination.
The Houston Police Department supports these amendments.
Departmental Approval Authority:
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Tina Paez, Director Other Authorization
Administration & Regulatory
Affairs Department