Secondhand Dealer in Louisiana

Louisiana Revised Statutes
Title 37. Professions and Occupations (Refs & Annos)
Chapter 21. Miscellaneous Occupations (Refs & Annos)
Part II. Second-Hand Dealers (Refs & Annos)
§ 1861. “Secondhand dealer” defined
§ 1861.1. Secondhand property; purchase when forbidden
§ 1861.2. Location of business limited
§ 1862. License required; application; bond; exemptions
§ 1862.1. Record and reporting requirements; application
§ 1863. Change in location to be noted on license
§ 1864. Record of secondhand goods or objects purchased required; exceptions; retention period; inspections by law enforcement; violations; penalty
§ 1864.1. Photographic and other records; exceptions
§ 1864.2. Purchase of precious metals and stones from minors; purchase of junk from minors prohibited; penalty
§ 1864.3. Payment by check for copper or other metals required; check cashing prohibited; penalties
§ 1864.4. Statement by seller required; failure to exact statement evidence of fraudulent intent; exoneration from criminal knowledge
§ 1865. Book to be open for inspection
§ 1866. Daily report of entries
§ 1867. Disposal or changing identity prohibited during thirty-day period; exceptions
§ 1868. Hours of business
§ 1869. Violations; penalty
§ 1869.1. Prohibitions; sale of certain uniforms
§ 1870. Failure to comply; penalty

§ 1861. “Secondhand dealer” defined

A. (1) Every person in this state engaged in the business of buying, selling, trading in, or otherwise acquiring or disposing of junk or used or secondhand property, including but not limited to jewelry, silverware, diamonds, precious metals, ferrous materials, catalytic converters, auto hulks, copper, copper wire, copper alloy, bronze, zinc, aluminum other than in the form of cans, stainless steel, nickel alloys, or brass, whether in the form of bars, cable, ingots, rods, tubing, wire, wire scraps, clamps or connectors, railroad track materials, water utility materials, furniture, pictures, objects of art, clothing, mechanic's tools, carpenter's tools, automobile hubcaps, automotive batteries, automotive sound equipment such as radios, CB radios, stereos, speakers, cassettes, compact disc players, and similar automotive audio supplies, used building components, and items defined as cemetery artifacts is a secondhand dealer. Anyone, other than a nonprofit 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 nonprofit entity, shall be deemed as being engaged in the business of a secondhand dealer.
(2) For purposes of this Part “cemetery artifacts” means any object produced or shaped by human workmanship or tools, including ornaments of archaeological, historical, cultural, or sentimental significance or interest, which may be used to memorialize the dead and shall include but not be limited to all cemetery items, objects, and properties including but not limited to any type of religious or sentimental addition or adornment, inside or outside of a tomb, gravesite, plot, mausoleum, vault or interment location, whether placed privately or by assignment, regardless of monetary worth, age, size, shape, or condition including but not limited to statues, bricks, signage, plaques, tablets, urns, pots, planters, benches, chairs, crosses or other religious symbols, vases, gates, fences, or any portions thereof.
(3) For purposes of this Part, a “used building component” shall mean any object produced or shaped by human workmanship or tools that is an element of structural, architectural, archaeological, historical, ornamental, cultural, utilitarian, decorative, or sentimental significance or interest, which has been and may be used as an adjunct to, or component or ornament of any building or structure, regardless of monetary worth, age, size, shape, or condition, that is immovable property or fixture, including but not limited to bricks, siding, gutters, downspouts, lightning rods, chimney roofs, lights, chandeliers, stoves, tubs, sinks, faucets, faucet handles, toilets, bidets, showers, fans, furnaces, air conditioners, water heaters, sprinkling systems, shelving, countertops, cabinets, built-in speakers, shutters, trim, rafters, roof tiles, roofing, studs, foundation, barge boards, paneling, stairs, risers, banisters, wiring, plumbing, hinges, door latches, door knobs, medallions, mantles, flooring, carpet, tiles, molding, wainscoting, pavers, doors, windows, sills, transoms, joists, mailboxes, signage, fountains, decking, gates, fences, planters, landscaping, plantings or portions thereof, or component parts of immovable property of any nature or kind whatsoever. 
(4) For purposes of this Part, a “lot of used building components” shall mean a group of like used building components.
(5) For the purposes of this Part, “junk” shall include any property or material commonly known as “junk”.
(6) For the purposes of this Part, “railroad track materials” shall include steel in the form of railroad tracks or in the form of rail, switch components, spikes, angle bars, tie plates, or bolts of the type used in constructing railroads, or any combination of such materials.
(7) For the purposes of this Part, “water utility materials” shall include but not be limited to water meters, valves, pipes, and fittings.
(8) For the purposes of this Part, “precious metal object” means one of the following:
(a) A precious metal containing gold, iridium, palladium, platinum, or silver.
(b) A precious or semiprecious stone or a pearl, that is or appears to be attached to or inlaid in a precious metal or alloy of a precious metal.
(c) An object, including currency or coinage regardless of the issuing governmental entity, that is composed of a precious metal or precious metal alloy if at least twenty-five percent of the object's weight is precious metal or the market value of the metal in the object lies primarily in the precious metal component.
B. Except as provided for in R.S. 37:1869. 1, the provisions of this Part shall not apply to:
(1) Dealers in coins and currency, dealers in antiques, nor to gun and knife shows or other trade and hobby shows.
(2) Persons solely engaged in the business of buying, selling, trading in, or otherwise acquiring or disposing of motor vehicles and used parts of motor vehicles, excluding tires and rims, and shall not apply to wreckers or dismantlers of motor vehicles who are licensed under the provisions of R.S. 32:783 et seq.
(3) Private residential sales commonly known as “garage sales” or “yard sales” as long as such sales take place at a residential address.
(4) Any bona fide charity possessing a valid exemption under Section 501(c)(3) of the Internal Revenue Code.
(5) The operations of a company that has received a permit, registration, or other authorization from the Department of Environmental Quality for the collection, transportation, treatment, storage, processing of materials to be recycled or reused, or disposal of solid waste as defined in R.S. 30:2153.
(6) The purchase of educational course materials and products including but not limited to books, classroom response devices, and calculators.
(7) Purchases of scrap metal by persons operating as a scrap metal recycler under the provisions of R.S. 37:1961 et seq.

§ 1861.1. Secondhand property; purchase when forbidden

No person shall willfully or knowingly purchase junk or used or secondhand property, unpaid for by the seller, or not owned by the seller.

§ 1861.2. Location of business limited

A. No license shall be granted for the operation of a secondhand dealer facility which will be situated within three hundred feet or less of any official gaming establishment or designated docking facility of a riverboat licensed to conduct gaming activities or gaming operations pursuant to Chapter 4 or 5 of Title 27 of the Louisiana Revised Statutes of 1950. As to official gaming establishments, this distance shall be measured as a person walks using the sidewalk from the nearest point of the property line of the official gaming establishment to the nearest point of the dealer's location. As to docking facilities, this distance shall be measured in a straight line from the nearest point of the docking facility to the nearest point of the dealer's location. The provisions of this Section shall not apply to retail jewelry, automobile, furniture, and antique businesses.
B. The subsequent construction, erection, development, or movement of an official gaming establishment or designated docking facility which causes a secondhand dealer facility to be located within the prohibited distance shall not be cause for revocation, withholding, denial, or nonrenewal of a license.

§ 1862. License required; application; bond; exemptions

A. No person shall do business as a secondhand dealer in this state without having first obtained the occupational license required by law. Any person desiring a license as secondhand dealer shall make application in writing, specifying the street number and house number of the building where the business is to be carried on. This application shall be signed by at least three property taxpayers of the city or parish where the business is to be established certifying that the applicant is of good moral character. He shall also submit with his application a bond in favor of the city or parish, as the case may be, where the business is to be established in the sum of two thousand five hundred dollars with security conditioned for the due observance of all provisions of this Part.
B. Repealed by Acts 2012, No. 292, § 2.

§ 1862.1. Record and reporting requirements; application

The provisions of R.S. 37:1864, 1864.1, 1864.3, 1865, and 1866 shall not apply to a person operating as a secondhand dealer pursuant to R.S. 37:1785. Persons operating as secondhand dealers pursuant to R.S. 37:1785 shall be subject to the record acquisition, maintenance, and reporting requirements of R.S. 37:1796, 1797, and 1798.

§ 1863. Change in location to be noted on license

If after issuance and delivery of a license under the provisions of this Part any change is made in the location of the place of business designated therein, the business shall not be conducted at the new location or under such license, until the official issuing the licenses notes the change on the license, and the superintendent of police of the city or the sheriff of the parish in which the second-hand dealer is doing business is notified in writing of the change.

§ 1864. Record of secondhand goods or objects purchased required; exceptions; retention period; inspections by law enforcement; violations; penalty

A. (1) Every individual, firm, corporation, entity, or partnership, except municipalities, political subdivisions, and public utility companies, engaged in the business of purchasing and reselling any of the materials provided for in this Part located either at a permanently established place of business or in connection with a business of an itinerant nature, including junk shops, junk yards, junk stores, auto wreckers, scrap metal dealers or processors, salvage yards, collectors of or dealers in junk or secondhand property, and junk trucks, shall either keep a register and file reports or electronically maintain data and be capable of readily providing reports, as specified in Subsection B of this Section, in the form prescribed by the Department of Public Safety and Corrections which shall contain the following information:
(a) The name and address of the residence or place of business of the person required to either keep the register and file reports or electronically maintain the data and generate the requested reports.
(b) The date and place of each such purchase.
(c) The name and address of the person or persons from whom the material was purchased, including the distinctive number of the person's or persons' Louisiana driver's license, driver's license from another state, passport, military identification, or identification issued by a governmental agency or the United States Postal Service. If the person cannot produce any of the above forms of identification at the time of purchase, the purchaser shall not complete the transaction.
(d) Repealed by Acts 2012, No. 292, § 2.
(e) A full description of all such material purchased, including the weight of the material and whether it consists of bars, kegs, cable, ingots, rods, tubing wire, wire scraps, clamps, connectors, or other appurtenances or some combination thereof.
(f) A full description of railroad track materials purchased, including the weight and whether it consists of rail, switch components, spikes, angle bars, tie plates, or bolts of the type used to construct railroads or other appurtenances or some combination thereof.
(2) This Section shall not apply to purchases of materials from any manufacturing, industrial, or other commercial vendor that generates, as a byproduct or recyclable waste, or sells such materials in the ordinary course of its business.
B. Each such person shall keep either one copy of such completed form in a separate register or book or maintain the information in electronic format as provided in Subsection A of this Section which shall be kept for a period of three years at his place of business and shall be made available for inspection by any peace officer or law enforcement official at any time during the three-year period.
C. Failure to maintain the information or the register or to produce a report requested by any peace officer or law enforcement official as required by this Section shall be prima facie evidence that the person receiving such material described in this Section and not registered or reported, received it knowing it to be stolen, in violation of R.S. 14:69.
D. Whoever violates this Section shall be fined not less than one thousand dollars or imprisoned for not less than thirty days nor more than six months, or both.

§ 1864.1. Photographic and other records; exceptions

A. (1) In addition to the information required in R.S. 37:1864, every secondhand dealer shall obtain a photograph of a person selling or delivering merchandise or articles to the dealer if the fair market value of the merchandise is one hundred dollars or greater. The quality of such photograph shall be sufficient readily to identify the person depicted. In lieu of the photograph of the person selling or delivering the merchandise, the dealer may obtain either a thumbprint of such person, the quality of which thumbprint shall be sufficient to identify the person, or a photocopy of the person's Louisiana driver's license, driver's license from another state, passport, military identification, or identification issued by a governmental agency or the United States Postal Service. Each photograph, thumbprint, or photocopy, as the case may be, shall be cross-referenced with the ledger entry required by R.S. 37:1864. The photograph, thumbprint, or photocopy shall be preserved for a period of at least a year.
(2) Pursuant to a request from a law enforcement agency, a secondhand dealer shall be required to capture photographically uniquely identifiable used merchandise or articles purchased pursuant to R.S. 37:1864(A). Photographs shall be made available to the law enforcement agency within twenty-four hours after the request.
B. A transaction between dealers who are licensed under Part I of Chapter 21 of Title 37 of the Louisiana Revised Statutes of 19501 shall be exempt from this Section.
C. The provisions of this Section shall not apply to:
(1) The sale or purchase of manufactured registered bullion bars, coins, or other numismatic items; or
(2) Repealed by Acts 2012, No. 292, § 2.

§ 1864.2. Purchase of precious metals and stones from minors; purchase of junk from minors prohibited; penalty

A. No secondhand dealer shall purchase gold, silver, copper, brass, aluminum other than in the form of cans, or other precious metals, jewelry, precious stones, or objects composed of such precious metals or stones from a person under the age of eighteen. Lack of knowledge of age shall not be a defense to a violation of this Section.
B. No owner, employee, keeper, or proprietor of a junk shop, junk store or yard, of a junk cart or other vehicle or boat, or collector of or dealer in junk, shall receive or purchase from any minor under seventeen years of age, any goods, chattels, wares, or other merchandise, including any material defined in R.S. 37:1861.
C. The provisions of this Section shall not apply to the sale or purchase of manufactured registered bullion bars, coins, or other numismatic items.
D. Whoever violates this Section shall be fined not less than twenty-five dollars nor more than one hundred dollars, or imprisoned for not less than fifteen days nor more than three months, or both.

§ 1864.3. Payment by check for copper or other metals required; check cashing prohibited; penalties

A. (1) A secondhand dealer shall not enter into any cash transactions in payment for the purchase of copper. Payment for copper shall be made in the form of a check made payable to the seller of the metal and mailed to the address recorded on the photo identification of the seller no earlier than five business days after the date of the transaction.
(2) A secondhand dealer shall not enter into any cash transactions in payment for the purchase of any precious metal object. Payment for a precious metal object shall be made in the form of a check made payable to the seller of the metal.
(3) A secondhand dealer shall not enter into any cash transactions in excess of three hundred dollars in payment for the purchase of metal property other than copper or a precious metal object. Payments in excess of three hundred dollars for metals other than copper or a precious metal object shall be made in the form of a check made payable to the name and address of the seller and may be tendered to the seller at the time of the transaction. The secondhand dealer, at his discretion, may make payment by either cash or other method for transactions of three hundred dollars or less for all metals other than copper or a precious metal object.
B. All payments made by check shall be reported separately in the daily reports required by R.S. 37:1866.
C. (1) No secondhand dealer shall allow a seller to engage in multiple transactions within a twenty-four hour period totaling more than three hundred dollars for the purpose of circumventing this Section.
(2) No secondhand dealer shall cash, offer to cash, or provide the means for exchanging for cash a check issued to a seller pursuant to this Section on the premises of the secondhand dealer's place of business, including but not limited to the use of an automatic teller machine.
D. Violations of this Section shall be subject to the penalties provided for in R.S. 37:1869 and 1870.

§ 1864.4. Statement by seller required; failure to exact statement evidence of fraudulent intent; exoneration from criminal knowledge

A. (1) Every secondhand dealer shall obtain a signed statement from the seller that the junk or used or secondhand property has been paid for or is owned by the seller, and a failure of the dealer to exact a statement from the seller shall be prima facie evidence of the fraudulent intent and guilty knowledge on the part of the dealer within the meaning of this Part, sufficient to warrant a conviction.
(2) In transactions involving railroad track materials, a secondhand dealer shall require the party seeking to sell or dispose of the materials to furnish a signed statement from the appropriate railroad company consenting to the sale of the railroad track materials identified in the statement, which shall be retained by the secondhand dealer. The statement shall include the name of the railroad company consenting to the sale and the name, employee number, and phone number of the person signing the statement authorizing the sale. The secondhand dealer shall attempt to verify the authenticity of the statement authorizing the sale of the railroad track materials.
B. A secondhand dealer who obtains the required statement from the seller shall be exonerated from any fraudulent, willful, or criminal knowledge within the meaning of this Part.

§ 1865. Book to be open for inspection

The book containing the record of purchase as provided for in R.S. 37:1864 and the various articles purchased and referred to therein shall at all times be open to the inspection of law enforcement officers of the Office of State Police, or the superintendent of police or sheriff of the parish or anyone designated by them of the city, town, or parish in which the second-hand dealer does business.

§ 1866. Daily report of entries

A. (1) Every secondhand dealer licensed under the provisions of this Part shall make out and deliver to the chief of police of the city or town or to the sheriff of the parish in which he is doing business, every day before the hour of twelve noon, a legible and correct copy of the entries in the book mentioned in R.S. 37:1864 during the previous day. The means for providing the transactional information required under this Section shall be by electronic transmission.
(2) The appropriate law enforcement official may, for purposes of an investigation of a crime relating to a particular secondhand transaction, request the secondhand dealer to mail or fax such official the personally identifiable information relating to such transaction under investigation. The secondhand dealer shall deliver the personally identifiable information relating to the identified transaction to the appropriate law enforcement official within twenty-four hours of the request.
B. The secondhand dealer shall have the responsibility of tendering the information provided for in Subsection A of this Section regardless of its use or nonuse by the chief of police in the city or town in which he is doing business or, alternatively, to the sheriff of the parish in which he is doing business. The tender of this information is a courtesy mandated by state law and which provides a benefit to the general public. The chief of police or sheriff shall not be mandated to take any particular action concerning the information tendered.

§ 1867. Disposal or changing identity prohibited during thirty-day period; exceptions

A. No secondhand dealer shall sell or dispose of or change or destroy the identity of any goods, articles, or things purchased by him before an interval of thirty calendar days from the date of purchase has elapsed. During the thirty calendar days after purchase, a secondhand dealer shall keep the purchased goods, articles, or things on the premises of the secondhand dealer's business location or at such other location within the parish where the secondhand dealer's business is located and the item was purchased. In all instances, a secondhand dealer shall make the item immediately available upon request by a law enforcement agency. Any secondhand dealer may sell, dispose of, change, or destroy any goods, article, or thing purchased by him from a client without any delay, provided that the dealer can prove that the client had valid title to the goods, article, or thing of which he intends to dispose.
B. Repealed by Acts 2012, No. 292, § 2.

§ 1868. Hours of business

A second-hand dealer shall neither open his place of business before the hour of 7 o'clock a.m. nor keep it open after the hour of 7 o'clock p.m. except on Saturdays and during the month of December, during which time the hour of 7 o'clock p.m. shall be extended to 10 o'clock p.m.

§ 1869. Violations; penalty

A. Any licensed secondhand dealer who violates, neglects, or refuses to comply with any provision of this Part, shall be fined not less than two hundred fifty dollars, nor more than five hundred dollars or be imprisoned for not less than thirty days nor more than sixty days, or both.
B. For the second offense, his occupational license shall be suspended for a thirty-day period. For a third offense, his license shall be revoked and he shall not thereafter be permitted to engage in the business of secondhand dealer in the state of Louisiana.
C. Any secondhand dealer convicted of selling stolen goods shall have his occupational retail license revoked.
D. The occupational license tax collector is hereby vested with the authority, upon motion in a court of competent jurisdiction, to rule the noncomplying secondhand dealer to show cause in not less than two nor more than ten days, exclusive of holidays, as to why the noncomplying secondhand dealer's retail occupational license should not be suspended or revoked as prescribed under this Part. This rule may be tried out of term and in chambers and shall be tried with preference and priority. If the rule is made absolute, the order rendered therein shall be considered a judgment in favor of the municipality or parish.

§ 1869.1. Prohibitions; sale of certain uniforms

No secondhand dealer, including those secondhand dealers exempted by R.S. 37:1861(B) shall sell or offer for sale any article of clothing, including but not limited to hats, shirts, pants, or jackets, which exhibits or displays the insignia of any law enforcement agency or public utility.

§ 1870. Failure to comply; penalty

A. Anyone acting as an unlicensed secondhand dealer without complying with the provisions of this Part shall be fined not less than two hundred fifty dollars or be imprisoned not less than thirty days nor more than sixty days, or both.
B. For a second offense, the offender shall be fined not more than two thousand dollars or be imprisoned with or without hard labor for not more than two years, or both.
C. For a third or subsequent offense, the offender shall be fined not more than ten thousand dollars or be imprisoned with or without hard labor for not more than five years, or both.

La. Rev. Stat. Ann. §§ 37:1861 - 37:1870