There have been many articles out on the blogosphere talking about Louisiana House Bill No. 195 regarding the new rules for dealers in second-hand, used or junk goods in the state of Louisiana. They’ve been eronneously reporting that these dealers will now be prohibited from taking cash from their customers for these second-hand goods, therefore targeting small flea markets and people having garage sales.
Well this just didn’t sound right to me so I got busy doing what I do best, RESEARCH.
- First, I read the bill and it’s amendments for myself and felt that it was NOT targeted at yard or garage sales, but instead at businesses like flea markets and second-hand stores.
- Second, I read the resume of the bill which describes in simple language what the old law said and what the new one says.
- Third, I called Representative Clifton Richardson’s office and confirmed what I felt to be true. They sent me Richardson’s news release regarding the bill.
- Fourth, I viewed the archived recording of the actual debate regarding this bill at the House Commerce Committee hearing of May 10th.
Before the passage of this bill, there were different laws dealing with: second-hand dealers, R.S. 37:1861-1870; junk dealers, R.S. 51:571-578; and metal dealers, R.S. 51:571-578. This new bill is basically lumping all those dealers together and requiring the same from them all.
This bill actually came about because of the large number of problems Louisiana has been having in the area of copper and other metal being stolen and re-sold. It has gotten to the point that the thieves are digging the copper out of the ground and destroying contruction sites to obtain the metal for resale. This bill would address that problem and help law enforcement to ensure all second-hand dealers are obtaining their goods in legal, reputable ways.
To explain how the law is written, I will use an example:
Mr. X owns a second-hand furniture and appliance store. He is the “second-hand dealer” as outlined in the bill. He purchases a refrigerator from someone, who is considered the “seller“. When he purchases that item he must: 1) pay for it with a check, money-order, or electronic transfer, therefore establishing a money trail for the purchase. 2) He must obtain a statement from the seller of that item that it was paid for or owned by the seller – this is new to the second-hand dealer law but was already included in the junk dealer’s law. Having this statement keeps the second-hand dealer from getting into trouble, if the item indeed turns out to the stolen. 3) He must keep a record for three years with details regarding the purchase of that good from the seller. They already had to do this, but they changed what is required in the record a little. You can read page 2 of the resume to get the details of what is required in the record.
The bill provides for exemptions for different businesses, such as pawn shops who operate under R.S. 37:1785-1800. The part of the bill that exempts garage and yard sales is covering under the part which is now R.S.37:1861, paragraph A which includes the sentence: Anyone, other than a nonprofit entity, who buys, sells, trades in, or otherwise acquires or disposes of junk or used or secondhand property more frequently than once per month from any other person, other than a nonprofit entity, shall be deemed as being engaged in the business of a secondhand dealer. Personally, I would have felt more comfortable if the terms garage sales and yard sales had been spelled out more specifically, but they felt that the average citizen having a garage sale would most probably not have them more than once a month and those who do more than once a month are probably selling goods that they have purchased for selling and therefore need to be covered under this law.
So, as you can see, the news coverage regarding this bill has gotten mis-communicated. If I have a garage sale, the law doesn’t apply. If I operate a small flee market I do have to follow the law, but I definitely CAN take cash from the customers who come into my flee market and want to buy my second-hand goods. I’d like to know what you think.
Sources:
Actual Bill: http://www.legis.state.la.us/billdata/streamdocument.asp?did=760886
Resume of Bill: http://www.legis.state.la.us/billdata/streamdocument.asp?did=762297
News Release: Act 389, 2011 RS[2]
Archive Video of Floor Debate: http://house.louisiana.gov/H_Video/2011/May2011.htm : Page down to May 10th and Click on Commerce.
