With the passage of House Bill 195 into law, the State of Louisiana has banned the use of cash in all transactions involving second-hand goods.
State representative Ricky Hardy, a co-author of the bill, claims that the bill targets criminals who traffic in stolen goods. According to Hardy, “It’s a mechanism to be used so the police department has something to go on and have a lead.”
The bill prohibits cash transactions by “second-hand dealers,” defined to include garage sales, flea markets, resellers of specialty items, and even non-profit resellers like Goodwill. Curiously, it specifically exempts pawnbrokers from the ban.
But of course, pawn shops – and not rented stalls at local church flea markets – are notorious as places that criminals frequent to convert stolen goods into quick cash. So what gives? Are the authors of the bill and those who voted for it ignoramuses – or are they deliberately obscuring the real purpose of the bill?
The answer is clear once we examine the other provisions of the bill. The bill goes far beyond banning cash transactions. As lawyer Thad Ackel notes, the bill requires:
… second-hand dealers to turn over a
valuable business asset, namely, their business’ proprietary client
information. For every transaction, a second-hand 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.
If a seller cannot or refuses to
produce to the second-hand dealer any of the required forms of
identification, the second-hand dealer is prohibited from completing the
transaction.
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