Secondhand Dealer's License ($10,000) Bond - Statewide in Connecticut
Table of Contents
Brief Summary
Most Connecticut secondhand dealers do not get their license from the state. They get it from the police chief in their own town, and the $10,000 bond runs to that town. Knowing which office licenses you before you order the bond keeps the obligee correct the first time.
C.G.S. 21-47d requires every licensed secondhand dealer in Connecticut to file a $10,000 bond with competent surety when the license is issued, conditioned on faithful performance of the business. The licensing authority is the chief of police of the town or city, or the Commissioner of Emergency Services and Public Protection where the town has no organized police department. The license costs $250, renews at $100 a year and runs for one year.
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How to Apply for a Secondhand Dealer's License ($10,000) Bond:
- Confirm whether your town's police chief or DESPP is your licensing authority.
- Get the bond form your licensing authority requires. DESPP uses DPS-368-C.
- Have the business name and the single business location the license will cover.
- Owner name, home address and Social Security number for the credit review.
- Buy the $10,000 bond and file it when the license is issued.
- Pay the $250 initial license fee, then $100 each year at renewal.
- File each renewal at least 60 days before the license expires.
Detailed Information About the Connecticut Secondhand Dealer's License ($10,000) Bond:
Who licenses you decides who the bond runs to
Under C.G.S. 21-39a, the licensing authority for a secondhand dealer is the chief of police of the town or city. If the town has no organized local police department, the Commissioner of Emergency Services and Public Protection (DESPP) is the licensing authority, and applications go to the DESPP Special Licensing and Firearms Unit. Section 21-47d says the bond is given to the city or town. DESPP's own bond form, DPS-368-C, Bond for Secondhand Dealer's License, is written for $10,000 to the State of Connecticut for dealers it licenses. Ask your licensing authority which form and obligee it wants.
Who counts as a secondhand dealer
A secondhand dealer is a person primarily engaged in buying personal property of any type from someone other than a wholesaler, for resale or exchange, while taking physical possession. The definition in 21-39a excludes antiques, art, coin and stamp, precious metals or stones, special collectibles, musical instrument, used book, used clothing, used children's products and used sporting equipment dealers, as well as pawnbrokers, consignment shop operators, motor vehicle dealers, auctioneers, junk dealers, scrap metal processors, recycling facilities, charitable or religious corporations and certain kiosk and trade-in retailers. Section 21-47d also exempts garage, yard, tag and estate sales at a private residence lasting no more than 72 hours in any six month period, and lets the licensing authority grant exemptions for good cause.
License terms
The license is issued for a specific business, location and town and runs for one year unless suspended or revoked sooner. The initial fee is $250 and renewal is $100 a year. Renewal applications must be filed at least 60 days before the license expires.
What the bond guarantees
The DPS-368-C form conditions the bond on conducting the business in full compliance with state and federal law, and covers losses from acts that are grounds for suspension or revocation or from the licensee going out of business. The surety can cancel on 30 days' written notice to the principal and the commissioner.
Eligibility and Requirements for a Connecticut Secondhand Dealer's License ($10,000) Bond:
- Bond amount of exactly $10,000 under C.G.S. 21-47d.
- Competent surety authorized to write bonds in Connecticut.
- Obligee as your licensing authority directs, the city or town under 21-47d, or the State of Connecticut on DESPP form DPS-368-C.
- A fixed place of business in the licensing town.
- Owner credit review, which shapes the rate.
Connecticut Secondhand Dealer's License ($10,000) Bond FAQs:
Usually your town. The chief of police is the licensing authority. Only towns without an organized police department send applicants to DESPP.
Not if you fall within an exclusion in C.G.S. 21-39a, such as antiques, art, coins and stamps, used books, used clothing, used sporting equipment or consignment. Pawnbrokers and precious metals dealers hold separate licenses.
One year. Renewal costs $100 and must be filed at least 60 days before expiration.
The surety prices the bond from the $10,000 amount and the owner's credit and business history.
