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ACT No. 389
Regular Session, 2011
HOUSE BILL NO. 195
BY REPRESENTATIVES RICHARDSON, BOBBY BADON, BARROW, BISHOP,
CARMODY, FOIL, HARDY, HENDERSON, KATZ, POPE, PUGH, SEABAUGH,
THIBAUT, AND WILLMOTT AND SENATOR ERDEY
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To amend and reenact R.S. 37:1861(A)(1) and (B)(introductory paragraph) and (2), 1862.1,2
1864, 1864.2(B), 1869(A), and 1870, to enact R.S. 37:1861(A)(5), (6), and (7) and3
(B)(5), 1861.1, 1864.2(C) and (D), 1864.3, and 1864.4 and to repeal Part V of4
Chapter 2 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S.5
51:571 through 579, relative to secondhand dealers; to define "secondhand dealer";6
to provide for an exemption for motor vehicle dismantlers and parts recyclers; to7
provide for an exemption for certain persons performing waste management and8
recycling; to prohibit certain purchases of secondhand property; to provide an9
exemption for pawnbrokers; to require a record of secondhand property purchased;10
to require the record to be kept for three years; to require the record to be made11
available for inspection by law enforcement; to prohibit the purchase of junk from12
minors; to require a statement of ownership from the seller; to provide that failure13
to obtain the statement shall be prima facie evidence of fraud; to provide for14
exoneration from fraudulent, willful, or criminal knowledge; to require payment by15
check or money order; to require daily reports; to provide for violations; to provide16
for penalties; to repeal provisions regulating the purchase of junk; to repeal17
provisions regulating the purchase of certain metals; and to provide for related18
matters.19
Be it enacted by the Legislature of Louisiana:20
Section 1. R.S. 37:1861(A)(1) and (B)(introductory paragraph) and (2), 1862.1,21
1864, 1864.2(B), 1869(A), and 1870 are hereby amended and reenacted and R.S.22 ENROLLEDHB NO. 195
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37:1861(A)(5), (6), and (7) and (B)(5), 1861.1, 1864.2(C) and (D), 1864.3, and 1864.4 are1
hereby enacted to read as follows: 2
§1861. "Secondhand dealer" defined3
A.(1) Every person in this state engaged in the business of buying, selling,4
trading in, or otherwise acquiring or disposing of junk or used or secondhand5
property, including but not limited to jewelry, silverware, diamonds, precious metals,6
ferrous materials, catalytic converters, auto hulks, copper, copper wire, copper alloy,7
bronze, zinc, aluminum other than in the form of cans, stainless steel, nickel alloys,8
or brass, whether in the form of bars, cable, ingots, rods, tubing, wire, wire scraps,9
clamps or connectors, railroad track materials, water utility materials, furniture,10
pictures, objects of art, clothing, mechanic's tools, carpenter's tools, automobile11
hubcaps, automotive batteries, automotive sound equipment such as radios, CB12
radios, stereos, speakers, cassettes, compact disc players, and similar automotive13
audio supplies, used building components, and items defined as cemetery artifacts14
is a secondhand dealer. Anyone, other than a nonprofit entity, who buys, sells, trades15
in, or otherwise acquires or disposes of junk or used or secondhand property more16
frequently than once per month from any other person, other than a nonprofit entity,17
shall be deemed as being engaged in the business of a secondhand dealer.18
* * *19
(5) For the purposes of this Part, "junk" shall include any property or20
material commonly known as "junk".21
(6) For the purposes of this Part, "railroad track materials" shall include steel22
in the form of railroad tracks or in the form of rail, switch components, spikes, angle23
bars, tie plates, or bolts of the type used in constructing railroads, or any combination24
of such materials.25
(7) For the purposes of this Part, "water utility materials" shall include but26
not be limited to water meters, valves, pipes, and fittings.27
B. Except as provided for in R.S. 37:1864.3 and 1869.1, the provisions of28
this Part shall not apply to:29
* * *30 ENROLLEDHB NO. 195
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(2) Persons solely engaged in the business of buying, selling, trading in, or1
otherwise acquiring or disposing of motor vehicles and used parts of motor vehicles,2
and shall not apply to wreckers or dismantlers of motor vehicles who are licensed3
under the provisions of R.S. 32:771 32:783 et seq.4
* * *5
(5) Collectors, transporters, or disposers of waste whose waste collection,6
transportation, and disposal activities are regulated by the Department of7
Environmental Quality, or persons who collect, transport, or manage recyclable8
materials pursuant to a residential collection, recycling, or disposal contract with a9
municipality or political subdivision.10
§1861.1. Secondhand property; purchase when forbidden11
No person shall willfully or knowingly purchase junk or used or secondhand12
property, unpaid for by the seller, or not owned by the seller. 13
* * *14
§1862.1. Record and reporting requirements; application15
The provisions of R.S. 37:1864, 1864.1, 1864.3, 1865, and 1866 shall not16
apply to a person operating as a secondhand dealer pursuant to R.S. 37:1785.17
Persons operating as secondhand dealers pursuant to R.S. 37:1785 shall be subject18
to the record acquisition, maintenance, and reporting requirements of R.S. 37:1796,19
1797, and 1798.20
* * *21
§1864. Record of secondhand goods or objects purchased required; exceptions;22
retention period; inspections by law enforcement; violations; penalty23
A.(1) Every secondhand dealer as defined in this Part shall be required to24
maintain a book or ledger setting forth each purchase of secondhand or used25
merchandise when the value of any single piece of merchandise or article received,26
or any single lot of used building components, shall be twenty-five dollars or more27
for each single transaction. The price at which a piece of merchandise is offered for28
sale by a secondhand dealer shall be considered prima facie evidence of the value of29
the piece of merchandise. Each ledger entry shall be entered at the time of each30 ENROLLEDHB NO. 195
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transaction and shall contain an accurate description in the English language of the1
merchandise or article received including serial numbers of said objects, if2
distinguishable, along with the amount paid therefor.3
Every individual, firm, corporation, entity, or partnership, except4
municipalities, political subdivisions, and public utility companies, engaged in the5
business of purchasing and reselling any of the materials provided for in this Part6
located either at a permanently established place of business or in connection with7
a business of an itinerant nature, including junk shops, junk yards, junk stores, auto8
wreckers, scrap metal dealers or processors, salvage yards, collectors of or dealers9
in junk or secondhand property, and junk trucks, shall either keep a register and file10
reports or electronically maintain data and be capable of readily providing reports,11
as specified in Subsection B of this Section, in the form prescribed by the12
Department of Public Safety and Corrections which shall contain the following13
information:14
(a) The name and address of the residence or place of business of the person15
required to either keep the register and file reports or electronically maintain the data16
and generate the requested reports.17
(b) The date and place of each such purchase.18
(c) The name and address of the person or persons from whom the material19
was purchased, including the distinctive number of the person's or persons' Louisiana20
driver's license, driver's license from another state, passport, military identification,21
or identification issued by a governmental agency or the United States Postal22
Service. If the person cannot produce any of the above forms of identification at the23
time of purchase, the purchaser shall not complete the transaction.24
(d) The motor vehicle license number of the vehicle or conveyance on which25
such material was delivered.26
(e) A full description of all such material purchased, including the weight of27
the material and whether it consists of bars, kegs, cable, ingots, rods, tubing wire,28
wire scraps, clamps, connectors, or other appurtenances or some combination29
thereof.30 ENROLLEDHB NO. 195
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(f) A full description of railroad track materials purchased, including the1
weight and whether it consists of rail, switch components, spikes, angle bars, tie2
plates, or bolts of the type used to construct railroads or other appurtenances or some3
combination thereof.4
(2) This Section shall not apply to purchases of materials from any5
manufacturing, industrial, or other commercial vendor that generates, as a byproduct6
or recyclable waste, or sells such materials in the ordinary course of its business.7
B. The name, address, sex, race, height, weight, and driver's license number8
of the person or persons selling or delivering said merchandise or articles to the9
dealer shall be obtained and included with each ledger entry. Records of each10
purchase shall be preserved for a period of at least three years.11
Each such person shall keep either one copy of such completed form in a12
separate register or book or maintain the information in electronic format as provided13
in Subsection A of this Section which shall be kept for a period of three years at his14
place of business and shall be made available for inspection by any peace officer or15
law enforcement official at any time during the three-year period.16
C. Failure to maintain the information or the register or to produce a report17
requested by any peace officer or law enforcement official as required by this18
Section shall be prima facie evidence that the person receiving such material19
described in this Section and not registered or reported, received it knowing it to be20
stolen, in violation of R.S. 14:69.21
D. Whoever violates this Section shall be fined not less than one thousand22
dollars or imprisoned for not less than thirty days nor more than six months, or both.23
* * *24
§1864.2. Purchase of precious metals and stones from minors; purchase of junk25
from minors prohibited; penalty 26
* * *27
B. No owner, employee, keeper, or proprietor of a junk shop, junk store or28
yard, of a junk cart or other vehicle or boat, or collector of or dealer in junk, shall29
receive or purchase from any minor under seventeen years of age, any goods,30 ENROLLEDHB NO. 195
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chattels, wares, or other merchandise, including any material defined in R.S.1
37:1861.2
C. The provisions of this Section shall not apply to the sale or purchase of3
manufactured registered bullion bars, coins, or other numismatic items. The4
provisions of this Section shall not apply to a retail tire outlet or an automobile dealer5
dealing in tires. 6
D. Whoever violates this Section shall be fined not less than twenty-five7
dollars nor more than one hundred dollars, or imprisoned for not less than fifteen8
days nor more than three months, or both. 9
§1864.3. Payment by check or money order required10
A secondhand dealer shall not enter into any cash transactions in payment for11
the purchase of junk or used or secondhand property. Payment shall be made in the12
form of check, electronic transfers, or money order issued to the seller of the junk or13
used or secondhand property and made payable to the name and address of the seller.14
All payments made by check, electronic transfers, or money order shall be reported15
separately in the daily reports required by R.S. 37:1866.16
§1864.4. Statement by seller required; failure to exact statement evidence of17
fraudulent intent; exoneration from criminal knowledge18
A.(1) Every secondhand dealer shall obtain a signed statement from the19
seller that the junk or used or secondhand property has been paid for or is owned by20
the seller, and a failure of the dealer to exact a statement from the seller shall be21
prima facie evidence of the fraudulent intent and guilty knowledge on the part of the22
dealer within the meaning of this Part, sufficient to warrant a conviction.23
(2) In transactions involving railroad track materials, a secondhand dealer24
shall require the party seeking to sell or dispose of the materials to furnish a signed25
statement from the appropriate railroad company consenting to the sale of the26
railroad track materials identified in the statement, which shall be retained by the27
secondhand dealer. The statement shall include the name of the railroad company28
consenting to the sale and the name, employee number, and phone number of the29
person signing the statement authorizing the sale. The secondhand dealer shall30 ENROLLEDHB NO. 195
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attempt to verify the authenticity of the statement authorizing the sale of the railroad1
track materials.2
B. A secondhand dealer who obtains the required statement from the seller3
shall be exonerated from any fraudulent, willful, or criminal knowledge within the4
meaning of this Part.5
* * *6
§1869. Violations; penalty7
A. Any licensed secondhand dealer who violates, neglects, or refuses to8
comply with any provision of this Part, shall be fined not less than two hundred fifty9
dollars, nor more than five hundred dollars or be imprisoned for not less than thirty10
days nor more than sixty days, or both.11
* * *12
§1870. Failure to comply; penalty 13
A. Anyone acting as a second-hand an unlicensed secondhand dealer without14
complying with the provisions of this Part shall be fined not less than two hundred15
and fifty dollars or be imprisoned not less than thirty days nor more than sixty days,16
or both.17
B. For a second offense, the offender shall be fined not more than two18
thousand dollars or be imprisoned with or without hard labor for not more than two19
years, or both.20
C. For a third or subsequent offense, the offender shall be fined not more21
than ten thousand dollars or be imprisoned with or without hard labor for not more22
than five years, or both.23 ENROLLEDHB NO. 195
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Section 2. Part V of Chapter 2 of Title 51 of the Louisiana Revised Statutes of 1950,1
comprised of R.S. 51:571 through 579, is hereby repealed in its entirety.2
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: