HLS 12RS-1948 ORIGINAL
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are additions.
Regular Session, 2012
HOUSE BILL NO. 1187 (Substitute for House Bill No. 751 by Representative
Richardson)
BY REPRESENTATIVE RICHARDSON
SECONDHAND DEALERS: Provides for the purchase of used or secondhand goods
AN ACT1
To amend and reenact R.S. 37:1861(B)(2) and (5), 1862(A), 1864.1(A), 1864.2(C), and2
1864.3, to enact R.S. 37:1861(B)(6), and to repeal R.S. 37:1862(B), 1864(A)(1)(d),3
1864.1(C)(2), and 1867(B), relative to used or secondhand property; to prohibit cash4
payment for the purchase of copper; to establish a maximum cash payment for5
metals other than copper; to require an occupational license to act as a secondhand6
dealer; to require photographic records of certain goods upon request of law7
enforcement; to exempt the purchase of educational course materials; to repeal the8
exemption for tires and rims; to repeal the requirement that secondhand dealers9
record the license plate of a seller; and to provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 37:1861(B)(2) and (5), 1862(A), 1864.1(A), 1864.2(C), and 1864.312
are hereby amended and reenacted and R.S. 37:1861(B)(6) is hereby enacted to read as13
follows:14
§1861. "Secondhand dealer" defined15
* * *16
B. Except as provided for in R.S. 37:1864.3 and 1869.1, the provisions of17
this Part shall not apply to:18
* * *19 HLS 12RS-1948 ORIGINAL
HB NO. 1187
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are additions.
(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
excluding tires and rims, and shall not apply to wreckers or dismantlers of motor3
vehicles who are licensed under the provisions of R.S. 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. The operations of a company that has received10
a permit, registration, or other authorization from the Department of Environmental11
Quality for the collection, transportation, treatment, storage, processing, or disposal12
of solid waste as defined in R.S. 30:2153.13
(6) The purchase of educational course materials and products including but14
not limited to books, classroom response devices, and calculators.15
* * *16
§1862. License required; application; bond; exemptions 17
A. No person shall do business as a secondhand dealer in this state without18
having first obtained the occupational license required by law. Any person desiring19
a license as secondhand dealer shall make application in writing, specifying the street20
number and house number of the building where the business is to be carried on.21
This application shall be signed by at least three property taxpayers of the city or22
parish where the business is to be established certifying that the applicant is of good23
moral character. He shall also submit with his application a bond in favor of the city24
or parish, as the case may be, where the business is to be established in the sum of25
two thousand five hundred dollars with security conditioned for the due observance26
of all provisions of this Part.27
* * *28
§1864.1. Photographic and other records; exceptions29 HLS 12RS-1948 ORIGINAL
HB NO. 1187
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are additions.
A.(1) In addition to the information required in R.S. 37:1864, every1
secondhand dealer shall be required to obtain a photograph of a person selling or2
delivering merchandise or articles to the dealer if the fair market value of the3
merchandise is one hundred dollars or greater. The quality of such photograph shall4
be sufficient readily to identify the person depicted. In lieu of the photograph of the5
person selling or delivering the merchandise, the dealer may obtain either a6
thumbprint of such person, the quality of which thumbprint shall be sufficient to7
identify the person, or a photocopy of the person's Louisiana driver's license, driver's8
license from another state, passport, military identification, or identification issued9
by a governmental agency or the United States Postal Service. Each photograph,10
thumbprint, or photocopy, as the case may be, shall be cross-referenced with the11
ledger entry required by R.S. 37:1864. The photograph, thumbprint, or photocopy12
shall be preserved for a period of at least a year.13
(2) Pursuant to a request from a law enforcement agency, a secondhand14
dealer shall be required to capture photographically uniquely identifiable used15
merchandise or articles purchased pursuant to R.S. 37:1864(A). Photographs shall16
be made available to the law enforcement agency within twenty-four hours after the17
request.18
* * *19
§1864.2. Purchase of precious metals and stones from minors; purchase of junk20
from minors prohibited; penalty21
* * *22
C. The provisions of this Section shall not apply to the sale or purchase of23
manufactured registered bullion bars, coins, or other numismatic items. The24
provisions of this Section shall not apply to a retail tire outlet or an automobile dealer25
dealing in tires.26
* * *27
§1864.3. Payment by check or money order for copper or other metals required;28
check cashing prohibited; penalties29 HLS 12RS-1948 ORIGINAL
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are additions.
A.(1) A secondhand dealer shall not enter into any cash transactions in1
payment for the purchase of junk or used or secondhand property copper. Payment2
for copper shall be made in the form of a check, electronic transfers, or money order3
issued to the seller of the junk or used or secondhand property and made payable to4
the name and address of the seller made payable to the seller of the metal and mailed5
to the address recorded on the photo identification of the seller no earlier than five6
business days after the date of the transaction.7
(2) A secondhand dealer shall not enter into any cash transactions in excess8
of three hundred dollars in payment for the purchase of metal property other than9
copper. Payments in excess of three hundred dollars for metals other than copper10
shall be made in the form of a check made payable to the name and address of the11
seller and may be tendered to the seller at the time of the transaction. The12
secondhand dealer, at his discretion, may make payment by either cash or other13
method for transactions of three hundred dollars or less for all metals other than14
copper. 15
B. All payments made by check , electronic transfers, or money order shall16
be reported separately in the daily reports required by R.S. 37:1866. 17
C.(1) No secondhand dealer shall allow a seller to engage in multiple small18
transactions for the purpose of circumventing this Section.19
(2) No secondhand dealer shall cash, offer to cash, or provide the means for20
exchanging for cash a check issued to a seller pursuant to this Section on the21
premises of the secondhand dealer's place of business, including but not limited to22
the use of an automatic teller machine.23
D. Violations of this Section shall be subject to the penalties provided for in24
R.S. 37:1869 and 1870.25
Section 2. R.S. 37:1862(B), 1864(A)(1)(d), 1864.1(C)(2), and 1867(B) are hereby26
repealed in their entirety.27 HLS 12RS-1948 ORIGINAL
HB NO. 1187
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are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Richardson HB No. 1187
Abstract: Regulates the purchase of junk or used or secondhand property by secondhand
dealers.
Present law provides that every person in this state engaged in the business of buying,
selling, trading in, or otherwise acquiring or disposing of junk or used or secondhand
property is a secondhand dealer. Present law further provides that 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.
Present law provides that, except as provided for the prohibition against cash payments and
the prohibition against selling uniforms of law enforcement and utilities, the provisions of
present law shall not apply to the following:
(1)Dealers in coins and currency, dealers in antiques, nor to 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, and shall
not apply to wreckers or dismantlers of motor vehicles who are licensed under the
provisions of R.S. 32:783 et seq.
(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 Dept. 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.
Proposed law retains present law but removes automobile tires and rims from the scope of
the exemptions, clarifies the exemption for solid waste collectors, and adds an exemption
for the purchase of educational course materials.
Present law prohibits a person from doing business as a secondhand dealer in this state
without having first obtained the license required by law.
Proposed law retains present law but specifies that required license is an occupational
license.
Present law requires every secondhand dealer to obtain a photograph of a person selling or
delivering merchandise or articles to the dealer. HLS 12RS-1948 ORIGINAL
HB NO. 1187
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are additions.
Proposed law retains present law but narrows the requirement to merchandise with a fair
market value of $100 or greater.
Present law provides that, pursuant to a request from a law enforcement agency, a
secondhand dealer shall capture photographically used merchandise or articles purchased
and make the photographs shall be made available to the law enforcement agency within 24
hours after the request.
Proposed law retains present law but narrows the requirement to used merchandise or
articles that are uniquely identifiable.
Present law prohibits a secondhand dealer from entering into any cash transactions in
payment for the purchase of junk or used or secondhand property.
Proposed law prohibits a secondhand dealer from entering into any cash transactions in
payment for the purchase of copper. Proposed law requires payment for copper to be made
in the form of a check issued to the seller of the metal and mailed to the address recorded on
the photo identification of the seller no earlier than 5 business days after the date of the
transaction.
Proposed law prohibits a secondhand dealer from entering into any cash transactions in
excess of $300 for the purchase of metal property other than copper. Payments in excess of
$300 for metals other than copper are to be made in the form of a check made payable to the
seller of the metal and may be tendered to the seller at the time of the transaction. The
secondhand dealer, at his discretion, may make payment by either cash or other method for
transactions of $300 or less for all metals other than copper.
Proposed law requires all payments made by check to be reported separately in the daily
reports required by proposed law.
Proposed law prohibits a secondhand dealer from allowing a seller to engage in multiple
small transactions for the purpose of circumventing proposed law.
Proposed law prohibits a secondhand dealer from cashing, offering to cash, or providing the
means for exchanging for cash a check issued to a seller on the premises of the secondhand
dealer's place of business, including but not limited to the use of an automatic teller machine.
Proposed law provides that violations shall be subject to the penalties provided for in
proposed law.
Present law requires a secondhand dealer to record the license plate number of the seller of
the used property.
Proposed law repeals present law.
Present law contains an exemption for retail tire outlets or an automobile dealers dealing in
tires.
Proposed law repeals present law.
(Amends R.S. 37:1861(B)(2) and (5), 1862(A), 1864.1(A), 1864.2(C), and 1864.3; Adds
R.S. 37:1861(B)(6); Repeals R.S. 37:1862(B), 1864(A)(1)(d), 1864.1(C)(2), and 1867(B))