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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2011
SENATE BILL NO. 162
BY SENATOR SMITH
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
SECONDHAND DEALERS. Provides for an exception to the definition of secondhand
dealer. (gov sig)
AN ACT1
To enact R.S. 37:1861(C) and 1864(C), relative to secondhand dealers; to provide for an2
exception to the definition of secondhand dealer; to provide for record requirements;3
and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 37:1861(C) and 1864(C) are hereby enacted to read as follows: 6
§1861. "Secondhand dealer" defined7
* * *8
C. Except as provided for in R.S. 37:1864 and 1869.1, the provisions of9
this Part shall not apply to any person holding an occupational license as a retail10
dealer in merchandise who accepts used or secondhand property as part of a11
retail trade-in program that allows customers to trade-in property for a similar12
item of greater value or a gift card, gift certificate, coupon, or rebate, provided13
that the retail business of licensed retail dealer constitutes the major portion of14
the taxable annual gross sales and receipts of the business.15
* * *16
§1864. Record of secondhand goods or objects purchased required17 SB NO. 162
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
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C. Persons excluded from this Part pursuant to R.S. 37:1861(C) shall2
maintain a book or ledger setting forth each item of used or secondhand3
property accepted under a retail trade-in program when the trade-in value4
given for any single piece of merchandise or article exceeds twenty-five dollars.5
The discount given on the item of greater value or the amount issued on a gift6
card, gift certificate, coupon, or rebate shall be considered prima facie evidence7
of the trade-in value of the piece of merchandise. The book or ledger entry shall8
contain a description of the merchandise or article received, including serial9
numbers, if distinguishable, the name, address, and driver's license number of10
the person delivering said merchandise or articles, and the value given to the11
merchandise or article under the retail trade-in program. The records shall be12
preserved for a period of at least three years.13
Section 2. This Act shall become effective upon signature by the governor or, if not14
signed by the governor, upon expiration of the time for bills to become law without signature15
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If16
vetoed by the governor and subsequently approved by the legislature, this Act shall become17
effective on the day following such approval.18
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Alan Miller.
DIGEST
Present law defines "secondhand dealer" persons engaged in the business of buying, selling,
trading in, or otherwise acquiring or disposing of used or secondhand property.
Proposed law provides for an exception to the definition of "secondhand dealer" to exclude
persons holding an occupational license as a retail dealer in merchandise accepting used or
secondhand property as part of a retail trade-in program that allows customers to trade-in
property for a similar item of greater value or a gift card, gift certificate, coupon, or rebate,
provided that the retail business of licensed retail dealer constitutes the major portion of the
taxable annual gross sales and receipts of the business.
Present law requires every secondhand dealer to maintain a book or ledger setting forth each
purchase of secondhand or used merchandise when the value of any single piece of
merchandise or article received, or any single lot of used building components, shall be $25
or more for each single transaction. The price at which a piece of merchandise is offered for
sale by a secondhand dealer is considered prima facie evidence of the value of the piece of
merchandise. SB NO. 162
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law requires that persons excluded from definition of "secondhand dealer" to
maintain a book or ledger setting forth each item of used or secondhand property accepted
under a retail trade-in program when the trade-in value given for any single piece of
merchandise or article exceeds $25.
Proposed law provides that for persons excluded from definition of "secondhand dealer" that
the discount given on the item of greater value or the amount issued on a gift card, gift
certificate, coupon, or rebate shall be considered prima facie evidence of the trade-in value
of the piece of merchandise.
Proposed law requires persons excluded from definition of "secondhand dealer"to maintain
a ledger entry that contains a description of the merchandise or article received, including
serial numbers, if distinguishable, the name, address, and driver's license number of the
person delivering said merchandise or articles, and the value given to the merchandise or
article under the retail trade-in program.
Proposed law requires persons excluded from definition of "secondhand dealer" to preserve
records for a period of at least three years.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 37:1861(C) and 1864(C))