Tuesday, October 21, 2014

Louisiana Bans Cash Transactions for Second-Hand Merchandise

CashA new law passed in Louisiana has made it illegal for consumers to pay for second-hand goods with cash, in a ruling that has a substantial effect on the many flea markets in the state.

House Bill 195 states that “Anyone, other than a non-profit 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 non-profit entity, shall be deemed as being in the business of a secondhand dealer. A secondhand dealer shall not enter into any cash transactions in payment for the purchase of junk or used or secondhand property. Payment shall be made in the form of check, electronic transfers, or money order issued to the seller of the junk or used or secondhand property.

What This Means for Vendors

The bill will make operations for trading posts and flea markets far more strenuous in an attempt to stop fraud, as customers will be forced to use checks or money orders for transactions. The definition of the bill is broad enough that it also could be used to stop sales through Ebay or Craigslist. State Representative Rickey Hardy, who co-authored the bill, said that the paper trail will make it more difficult for criminals to sell stolen items for quick cash. “It’s a mechanism to be used so the police department has something to go on and have a lead.”

Attorney Thad D. Ackel, lead counsel at Ackel and Associates LLC, writes on the firm’s blog a detailed description of what would be necessary for every cash sale. “For every transaction a secondhand dealer must obtain the seller’s personal information such as their name, address, driver’s license number and the license plate number of the vehicle in which the goods were delivered. They must also make a detailed description of the item(s) purchased and submit this with the personal identification information of every transaction to the local policing authorities through electronic daily reports.”

In Ackel’s legal opinion, the law is adding unnecessary steps to simple, everyday transactions.This legislation amounts to a public taking of private property without compensation,” he writes. “Regardless of whether or not the transaction information is connected with, or law enforcement is investigating a crime, individuals and businesses are forced to report routine business activity to the police. Can law enforcement not accomplish its goal of identifying potential thieves and locating stolen items in a far less intrusive manner?”


Comments

38 Responses to “Louisiana Bans Cash Transactions for Second-Hand Merchandise”
  1. This is just another step being taken to remove our constitutional rights. Just don’t obey it!

  2. no name says:

    Well done, Loseriana!

  3. freedom liberty says:

    this should have never been pass. someone should do something about this. under hand way to pull this over the citizens of Louisiana. this will change if everyone stand together to amend this bill.

  4. Patriot Act says:

    This isn’t about stolen goods. It’s about tracking the sale of used goods so that no transactions can go untaxed and no income can go unreported to the tax man!

  5. Kelly says:

    This bill is ludicrous, however Goodwill is a non profit organization and is therefore exempt. You stated that in your first paragraph.

  6. Nobody says:

    Hmm. Every dollar I have states “This note is legal tender for all debts public and private.”

  7. Nicholas Denney says:

    There is one problem that this ‘law’ has been skirting and that is that it is… illegal, or rather, unconstitutional. All U.S. bills are marked with the words “THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE”

    Real smooth, Louisiana. Lots of luck being your own country from now on…

  8. Not only is this a bad law, but I know of a better solution. Worth forwarding if you agree…http://thecivillibertarian.blogspot.com/2011/10/louisiana-now-banning-cash-in-misguided.html

  9. Anon says:

    Unbelievable. This has to be unconstitutional.

  10. Wayne Duke says:

    I’m not in business but this is absolutely the most rediculous thing I have ever heard of. We live in America where money is legal tender, this law cannot be legal and those responsible should be removed from office immediately. This would cripple our state economically, is this really a state you would choose to live in?

  11. sdog says:

    So, does this mean in Louisianna, Cash is NOT king?

  12. AnonZ says:

    The law simply cannot be enforced, since it violates Federal law. Take a look on any note: “THIS NOTE IS LEGAL TENDER FOR ALL DEBTS PUBLIC AND PRIVATE.” Anyone want to guess how long it will take for a challenge to be filed in Federal court?

  13. Hugh Robertson says:

    This is a bill to help banks. There are a lot of people who are below the poverty line in Louisiana that who don’t even have bank accounts. So this would mean to do any business they would have to go get a money order – for a fee. Another blow against the poor, hit’em while their down. I hope this goes to court quickly.

  14. Granny says:

    I’m packing my bags! And guess what is next? To go “VOTE” today. I guess I will throw away my sign that reads, “In God we trust, all others pay cash”.

  15. AvonCTStyle says:

    It sounds to me like what they started out trying to do was curtail the sale of stolen goods through fleamarket vendors who will buy stuff & resell it to the public & they just lost track by including everything
    What they should have done was say that any flea market, seller of 2nd hand goods or pawn shop when taking in items must get the detail records of the person selling the items – that is what the law says in CT so that when people bring in their old game systems to GameStop they have to show picture id & sign a bunch of papers listing what is being turned in to the store & serial numbers it makes that paper trail the police might need if items do turn out to be stolen that were taken in & protects the shop as the paperwork shows that they made the attempt to establish the goods weren’t stolen

    I think the law as it is written will get challenged & overturned because they have to accept the legal tender of the country

  16. Patriot says:

    This sounds like a call to arms for you in Louisiana! They have no right to do this and anyone enforcing this bogus law should be dealt with.

  17. fighting4commonsense says:

    I am sorry for you, Louisiana. Not enough police (or intelligence) to simply prosecute fences for receiving stolen goods instead of placing the burden on small business?

  18. James White says:

    well, this is just the beginning with their foot in the door…what is next? It should not be illegal to use cash to do any purchase at any time… our dollar is legal tender for all transactions~! shame on the Republicans for doing this!!! I’m a republican and I take this very seriously and will find out exactly who is behind this and my vote will reflect this action.

  19. Greg says:

    I am really surprised that go passed & even got signed. I thought it was a joke, when I saw a link on facebook. It maybe unconstitutional as stated above. Someone ought to report this law to the FDIC, OCC website. They will take care of that. Federal law supersedes state laws. I agree with the poster that says “This Note Is Legal Tender For All Debts, Public and private” The forgot about one thing. What about vegetable/fruit stands. None of them take checks, money order or credit cards. You can actually get around this by declaring yourself non profit for profit but it cost a lot. I used to work for non profit for profit. It a special irs form. I glad I don’t live in Louisiana.

  20. nick says:

    A transition toward the cashless society so the government can cut you off any time they want. Next is RFID.

  21. Illuminati Banksters says:

    Sounds like everyone in Louisiana needs to cash in their Monopoly money for Silver and then barter with Silver or Gold. Problem solved =) Not only that but you will have more value in the long run when you hold precious metals.

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  1. [...] recently passed a law that, acccording to fleamarketzone, makes it “illegal for consumers to pay for second-hand goods with cash.” The law [...]

  2. [...] recently passed a law that, acccording to fleamarketzone, makes it "illegal for consumers to pay for second-hand goods with cash." The law itself clearly [...]

  3. [...] will have to use checks, credit cards, or purchase a money order. And it gets worse, according to Attorney Thad D. Ackel, lead counsel at Ackel and Associates LLC.: . “For every transaction a secondhand dealer must [...]

  4. [...] recently passed a law that, acccording to fleamarketzone, makes it “illegal for consumers to pay for second-hand goods with cash.” The law [...]

  5. [...] for Secondhand TransactionsC:TEMPCopy of HB195 Act 389 (rev 0).wpd – Louisiana LegislatureLouisiana Bans Cash Transactions for Second-Hand Merchandise …Cash Transactions Banned by Louisiana: Government Takes Private …Legislative Detail: LA House [...]

  6. [...] Last year Louisiana banned the use of cash when selling secondhand goods http://fleamarketzone.com/2011/10/louisiana-bans-cash-transactions-for-second-hand-merchandise/ [...]

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