RÉSUMÉ DIGEST
ACT 374 (SB 304) 2018 Regular Session Walsworth
Prior law defined "going-out-of-business sale" as any sale advertised, represented, or held
forth as a sale to dispose of all goods as a means of ceasing to do business or changing
business location. Such term includes a sale held under the designation of "going-out-of-
business", "selling out", "liquidation", "lost our lease", "forced to vacate", "moving to a new
location", or any other designation of like meaning. However, such term does not include
an end-of-the-season sale or a going-out-of-business sale limited to sale of a particular brand
or line of goods.
New law retains prior law and adds sales held under the designations "closing out sale" and
"store closing sale".
Prior law required a deposit for each application for a "going-out-of-business sale" license
of either $500 or a dollar amount equal to one percent of the wholesale cost of the inventory,
whichever amount is greater.
New law retains prior law.
New law provides that upon failure of the licensee to return the "going-out-of-business sale"
license or an affidavit in lieu of the return within 365 calendar days from expiration of the
license, the deposit reverts to the Unclaimed Property Division of the Department of the
Treasury in the name of the licensee and the consumer protection section of the Department
of Justice.
New law requires that while in the hands of the Unclaimed Property Division, the deposit is
subject to the provisions of prior law. Provides that the deposit be released to the licensee
only upon verification by the Department of Justice that the licensee has returned the license
to the consumer protection section which cancels the license with endorsement of the date
of its delivery and cancellation and the deposit made for the license is held by the consumer
protection section for 60 days from date of delivery of the returned license or affidavit.
Effective July 1, 2018.
(Amends R.S. 51:42(1) and 51(A); adds R.S. 51:51(E) and (F))