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ACT No. 292
Regular Session, 2012
HOUSE BILL NO. 1187 (Substitute for House Bill No. 751 by Representative
Richardson)
BY REPRESENTATIVES RICHARDSON, ADAMS, ANDERS, ARMES, BARROW,
BERTHELOT, BROWN, COX, HARRIS, HARRISON, HOFFMANN, HONORE,
HOWARD, LEBAS, LOPINTO, JAY MORRIS, NORTON, PIERRE, PONTI,
POPE, PYLANT, REYNOLDS, SCHEXNAYDER, ST. GERMAI N, AND
THIBAUT AND SENATORS APPEL, CORTEZ, THOMPSON, AND WHI TE
AN ACT1
To amend and reenact R.S. 37:1861(B)(introductory paragraph), (2), and (5), 1862(A),2
1864.1(A), 1864.2(C), and 1864.3, to enact R.S. 37:1861(B)(6), and to repeal R.S.3
37:1862(B), 1864(A)(1)(d), 1864.1(C)(2), and 1867(B), relative to used or4
secondhand property; to prohibit cash payment for the purchase of copper; to5
establish a maximum cash payment for metals other than copper; to require an6
occupational license to act as a secondhand dealer; to require photographic records7
of certain goods upon request of law enforcement; to exempt the purchase of8
educational course materials; to repeal the exemption for tires and rims; to repeal the9
requirement that secondhand dealers record the license plate of a seller; and to10
provide for related matters.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S. 37:1861(B)(introductory paragraph), (2), and (5), 1862(A),13
1864.1(A), 1864.2(C), and 1864.3 are hereby amended and reenacted and R.S.14
37:1861(B)(6) is hereby enacted to read as follows:15
§1861. "Secondhand dealer" defined16
* * *17
B. Except as provided for in R.S. 37:1864.3 and 1869.1, R.S. 37:1869.1, the18
provisions of this Part shall not apply to:19
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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
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 of materials12
to be recycled or reused, or disposal 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
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§1864.1. Photographic and other records; exceptions1
A.(1) In addition to the information required in R.S. 37:1864, every2
secondhand dealer shall be required to obtain a photograph of a person selling or3
delivering merchandise or articles to the dealer if the fair market value of the4
merchandise is one hundred dollars or greater. The quality of such photograph shall5
be sufficient readily to identify the person depicted. In lieu of the photograph of the6
person selling or delivering the merchandise, the dealer may obtain either a7
thumbprint of such person, the quality of which thumbprint shall be sufficient to8
identify the person, or a photocopy of the person's Louisiana driver's license, driver's9
license from another state, passport, military identification, or identification issued10
by a governmental agency or the United States Postal Service. Each photograph,11
thumbprint, or photocopy, as the case may be, shall be cross-referenced with the12
ledger entry required by R.S. 37:1864. The photograph, thumbprint, or photocopy13
shall be preserved for a period of at least a year.14
(2) Pursuant to a request from a law enforcement agency, a secondhand15
dealer shall be required to capture photographically uniquely identifiable used16
merchandise or articles purchased pursuant to R.S. 37:1864(A). Photographs shall17
be made available to the law enforcement agency within twenty-four hours after the18
request.19
* * *20
§1864.2. Purchase of precious metals and stones from minors; purchase of junk21
from minors prohibited; penalty22
* * *23
C. The provisions of this Section shall not apply to the sale or purchase of24
manufactured registered bullion bars, coins, or other numismatic items. The25
provisions of this Section shall not apply to a retail tire outlet or an automobile dealer26
dealing in tires.27
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§1864.3. Payment by check or money order for copper or other metals required;1
check cashing prohibited; penalties2
A.(1) A secondhand dealer shall not enter into any cash transactions in3
payment for the purchase of junk or used or secondhand property copper. Payment4
for copper shall be made in the form of a check, electronic transfers, or money order5
issued to the seller of the junk or used or secondhand property and made payable to6
the name and address of the seller made payable to the seller of the metal and mailed7
to the address recorded on the photo identification of the seller no earlier than five8
business days after the date of the transaction.9
(2) A secondhand dealer shall not enter into any cash transactions in excess10
of three hundred dollars in payment for the purchase of metal property other than11
copper. Payments in excess of three hundred dollars for metals other than copper12
shall be made in the form of a check made payable to the name and address of the13
seller and may be tendered to the seller at the time of the transaction. The14
secondhand dealer, at his discretion, may make payment by either cash or other15
method for transactions of three hundred dollars or less for all metals other than16
copper. 17
B. All payments made by check , electronic transfers, or money order shall18
be reported separately in the daily reports required by R.S. 37:1866. 19
C.(1) No secondhand dealer shall allow a seller to engage in multiple20
transactions within a twenty-four hour period totaling more than three hundred21
dollars for the purpose of circumventing this Section.22
(2) No secondhand dealer shall cash, offer to cash, or provide the means for23
exchanging for cash a check issued to a seller pursuant to this Section on the24
premises of the secondhand dealer's place of business, including but not limited to25
the use of an automatic teller machine.26
D. Violations of this Section shall be subject to the penalties provided for in27
R.S. 37:1869 and 1870.28 ENROLLEDHB NO. 1187
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Section 2. R.S. 37:1862(B), 1864(A)(1)(d), 1864.1(C)(2), and 1867(B) are hereby1
repealed in their entirety.2
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: