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Friday, 21 October 2011 17:47

Author Of Louisiana Second-Hand Sale Disallowing Cash Law Gone Viral Says Claim Wrong

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Substantial controversy over a Louisiana law concerning the sale of second-hand or used goods has gone viral across the Internet and has caused plenty of anger and hostility towards the state. 

However, according to the law’s author and at least one other legislator, all the commotion over the legislation is in error and as a result incorrect information is being circulated aboutthose transactions that affect people acquiring or disposing of goods and products one would find in garage sales, flea markets and other popular venues.

The “buzz” spreading around the web, like a Louisiana brushfire, is the claim that cash would not be permitted in purchases of second-hand or used items in an industry which relies upon the green stuff.

In fact, one Louisiana legislator Rep. Tim Burns has sent out a special email to his followers stating, “I have been receiving several calls the last few days regarding House Bill 195 (Act 389), which seeks to prevent sales of stolen property by second hand dealers.   Below is a discussion of the bill by its author, Rep. Clif Richardson. If you still have questions about it, feel free to contact me at 985-624-4492.  Also, please contact me if the measure creates some unintended issues or burdensome regulation for you or your organization, so that immediate relief from the measure can be sought.    

 Part of the statement from Rep. Richardson says, "It has come to my attention that incorrect information is circulating concerning Act 389 of the 2011 Regular Session. This law was passed to curtail the theft and then sale of copper and other metals and materials”.( the entire statement is below).

Here are some comments on the web:

“It looks like the good state of Louisiana is borrowing a page out of eBay's policy handbook. Legislators there passed a bill banning the use of cash for the sale of second-hand goods. And while the bill ostensibly targets dealers, the law is so broad it could affect almost anyone.” …EcommerceBytesblog

“I’ve read about a lot of really stupid ideas in my time but this one from the halls of the Louisiana state government has to rank up there as one of the most ridiculous idea yet.

Proclaiming the law as a way to help law enforcement fight the sale of stolen goods Louisiana has decided to make the ability to pay cash for second-hand goods illegal.

Yes you read that right. It is now illegal in the state of Louisiana to use a piece of paper that is clearly stamped “This note is legal tender for all debts, public and private.” (as well as “In God We Trust”) to buy second-hand merchandise.” Inquistr

The bill will make operations for trading posts and flea markets far more strenuous in an attempt to stop fraud, as customers will be forced to use checks or money orders for transactions. The definition of the bill is broad enough that it also could be used to stop sales through Ebay or Craigslist. State Representative Rickey Hardy, who co-authored the bill, said that the paper trail will make it more difficult for criminals to sell stolen items for quick cash. “It’s a mechanism to be used so the police department has something to go on and have a lead.” Fleamarketzone

Also, here is a very relevant video from a local TV station that has been circulating around the Internet that might explain the national hullabaloo:

Now, here's Rep. Richardson's written comments and after reading it, DISCUSS THE ISSUE BELOW


"It has come to my attention that incorrect information is circulating concerning Act

389 of the 2011 Regular Session. This law was passed to curtail the theft and then sale

of copper and other metals and materials.

Under Act 389 a person, other than a nonprofit entity, who buys, sells, trades in,

or otherwise acquires or disposes of junk or used or secondhand property more than once

a month, is deemed to be a secondhand dealer. All payments for the purchase of used

property by a secondhand dealer are to be by check, money order, or electronic transfer

to the seller of the used property and are to be reported separately in the required daily

reports. Secondhand dealers are required to obtain a signed statement from the seller of

the junk or used or secondhand property stating that it has been paid for or is owned by

the seller. This is new to the secondhand dealers' law but was an existing

requirement for junk dealers before the passage of Act 389. A secondhand dealer,

under Act 389, who obtains the required statement is exonerated from any fraudulent,

willful, or criminal knowledge. Act 389 does not effect the purchase of goods by a

consumer from any business.

Under Act 389, (R.S.37:1861 (B), the following are exempt from the

secondhand dealer law:

(1) Dealers in coins and currency, dealers in antiques, gun and knife shows or other

trade and hobby shows.

(2) Persons solely engaged in the business of buying, selling, trading in, or

otherwise acquiring or disposing of motor vehicles and used parts of motor vehicles,

or wreckers or dismantlers of motor vehicles

(3) Private residential sales commonly known as "garage sales" or "yard sales" as

long as such sales take place at a residential address

(4) Any bona fide charity possessing a valid exemption under Section 501(c)(3) of

the Internal Revenue Code.

(5) Collectors, transporters, or disposers of waste whose waste collection,

transportation, and disposal activities are regulated by the Department of

Environmental Quality, or persons who collect, transport, or manage recyclable

materials pursuant to a residential collection, recycling, or disposal contract with a

municipality or political subdivision.

Also,If you would like more information on Act 389, click here to be redirected to the full text on the Louisiana Legislative website

by Stephen Sabludowsky, Publisher of

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