(1) It shall be unlawful for any dealer licensed by this Chapter to sell, melt, change (except for customary testing), take apart, destroy, obliterate identification marks, or dispose of any secondhand property purchased or obtained by a dealer until 30 days have elapsed from the date of compliance with the reporting requirements of Sections 17-2-506 and 17-2-507, or for such additional time as to any specific item or items as may be directed by the Police Department or designee. All items being so stored shall be segregated from other items and shall be identified by a tag attached to the property numbered in a manner to correspond with the number of the transaction description in the business records required to be kept by this Chapter. Items purchased in bulk may be tagged in bulk. Items may be stored at other locations in the City approved by the Police Department. The dealer shall produce these items at the business location within one hour of a request to do so by a peace officer. Where compliance is impossible because of the close of business hours, the item shall be produced within one hour of the opening of business on the next business day.

(2) The requirements of subsection (1) above shall not be applicable to any unidentifiable secondhand precious metals which have been inspected and received written clearance for earlier disposition by the Police Department or designee.