Cash Transactions Banned by Louisiana: Government Takes Private Property Without Due Process

[ensho]

http://www.sott.net/articles/show/236218-Cash-Transactions-Banned-by-Louisiana-Government-Takes-Private-Property-Without-Due-Process


This summer, the State Legislature and Governor of Louisiana passed a law that bans individuals and businesses from transacting in cash if they are considered a "secondhand dealer". House Bill 195 of the 2011 Regular Session (Act 389) broadly defines a secondhand dealer to include "... 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. " The law then states that "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..." The broad scope of this definition can essentially encompass everyone; from your local flea market vendors and buyers to a housewife purchasing goods on ebay or craigslist, to a group of guys trading baseball cards, they could all be considered secondhand dealers. Lawmakers in Louisiana have effectively banned its citizens from freely using United States legal tender.

The law goes further to require secondhand dealers to turn over a valuable business asset, namely, their business' proprietary client information. 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. If a seller cannot or refuses to produce to the secondhand dealer any of the required forms of identification, the secondhand dealer is prohibited from completing the transaction.

-snip-

Interestingly enough, although Pawnshops are still required to obtain clients personal information and transmit their client database information to law enforcement, they are exempt from the restriction of cash payments. A jeweler next door to a pawnshop cannot offer clients the same payment method offered by its competing pawnshop neighbor.

Act 389 passed by unanimous consent of the Louisiana House of Representatives and only mustered one nay vote (Senator Neil Riser) from the State Senate. The governor signed legislation into law on July 1, 2011.
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whose pockets will now be filled by this? what is the real reason they made this law?

will the citizens take this without a whimper?

[Rochester]

1. "This note is legal tender for all debts, public and private"

This law will be challenged and overturned.

[truebrit71]

2. Yup.

n/t

[saras]

3. The pockets that are filled are pretty fucking obvious - all your transactions pass through banks

[dtexdem]

4. Loseriana just keeps at it.

Well, since global-climate change will raise sea levels enough to doom New Orleans, what else is there to lose? Maybe the sea level rise will put the whole state out of its misery.

[Jack Rabbit]

5. This really sounds outrageous

I can't even begin to fathom the rationale for such nonsense.

Where are the small government conservatives when we need them?

[newspeak]

8. and LA voted for jindal again?

I remember there was a story a while back about two guys who had their money confiscated by the police as drug money in la. They had saved that money to buy a fishing boat. Their employer testified that they had earned that money and it was not drug money. A lot of hassle to get the money back and then there were the legal fees.

[oldhippie]

9. It's obviously for tax purposes ....

The state gov't wants its fair share of the income and sales taxes. Aren't we for the gov't getting the tax revenue it needs to perform it's functions? Shouldn't everyone have to pay their fair share, and not hide cash transactions off the books? This action forces all sales to be auditable.

[Jack Rabbit]

11. We don't seem to have a problem in California collecting sales taxes

Our fiscal problem is that it's almost impossible to raise property taxes and that the politicians are afraid to raise income taxes when they clearly need to. Sales taxes are "fair" because everyone, rich or poor, pays them (according to some second-rate matinee idol we had for governor forty years ago).

Somehow, our retailers manage to collect money without collecte one's name and address whenever he buys a candy bar.

[Javaman]

6. way to go repukes for destroying micro business.

however, they just allowed bartering to flourish.

[lovuian]

7. of all the places Louisiana

this is really amazing

[Tsiyu]

10. Talk about your over-regulation!

This is the best legislators can do for the people?

Amazing use of time and resources when Louisiana is teeming with poverty.

Make it HARDER for the little guy, but let the Oilco's shit on your coast. (Then the little guy can't even fish for his supper.)

Amazing, Lousiana.