Wednesday, October 19, 2011

Markets NOT in Everything: No Cash Sales in LA

KLFY-TV --  "Cold hard cash. It's good everywhere you go, right? You can use it to pay for anything. But that's not the case here in Louisiana now. It's a law that was passed during this year's busy legislative session.

"House Bill 195 basically says those who buy and sell second hand goods cannot use cash to make those transactions, and it flew so far under the radar most businesses don't even know about it. Besides non-profit resellers like Goodwill, and garage sales, the language of the bill encompasses stores like the Pioneer Trading Post and flea markets.

Lawyer Thad Ackel Jr. feels the passage of this bill begins a slippery slope for economic freedom in the state. "The government is placing a significant restriction on individuals transacting in their own private property," says Ackel."

HT: Andy Weintraub

14 Comments:

At 10/19/2011 2:40 PM, Blogger LakeDweller said...

Does the new law restrict bartering? Could I exchange this piece of gold for that flea market item? If so, then as a reseller, I would also sell brand new pieces of gold for cash and allow those customers to turn around and exchange that gold for my used item. The Market will find a way to work around the law. They always do.

 
At 10/19/2011 2:55 PM, Blogger Reliapundit said...

UNCONSTITUTIONAL.

US CURRENCY IS LEGAL TENDER FOR ALL DEBTS PUBLIC AND PRIVATE.

LOUISIANA CANNOT REGULATE THE US CURRENCY

 
At 10/19/2011 3:18 PM, Blogger morganovich said...

relaiopundit-

i don't think that is in the constitution anywhere.

i do agree with your assessment though. it is legal for any and all debts and federal law supersedes state.

this is just a ham handed way to try and crack down on illegal behavior at the expense of the 99% who are behaving legally.

 
At 10/19/2011 3:25 PM, Blogger aorod said...

That's because as taxes increase, the black market economy increases. The flea markets will simply go undercover. Barataria anyone?

 
At 10/19/2011 3:37 PM, Blogger Eric H said...

"i don't think that is in the constitution anywhere."

Neither is paper currency.

Oh, and LakeDweller, the new law says if you buy or sell any used item or "junk" (which is cleverly defined in the bill as "any property or material commonly known as junk") more than once a month, you are considered a second-hand dealer and therefore have to keep your daily records of the check-or-money-order-only transactions you are allowed to make.

 
At 10/19/2011 5:58 PM, Blogger Craig said...

UNCONSTITUTIONAL.

That was certainly my reaction upon reading this earlier today. It also goes a long way towards dimming the star of Louisiana's young governor, often considered a rising star amongst us small-government types.

 
At 10/19/2011 6:46 PM, OpenID Sprewell said...

What a bunch of morons, don't they know that most people just sell stuff on craigslist these days anyway? Oh, that's right, they don't know shit about anything. I bet nobody's paying taxes on those craigslist transactions, let alone determining legality, so these dumb govts are just grasping at straws as they increasingly become irrelevant.

 
At 10/19/2011 7:04 PM, Blogger sethstorm said...

Well, given that the state has been quite corrupt, it would be a good step. It goes a good way towards cleaning up the mess exposed by the oil spill.

What about states like Michigan that allow for restrictions on use of large bills? Try paying for a tank of gas with a $50, and you're not guaranteed to be able to do it.

Besides, there are plenty of ways to track transactions that were thought to be "off the radar".

 
At 10/19/2011 7:23 PM, Blogger t11s said...

http://www.law.cornell.edu/uscode/31/5103.html

"TITLE 31 > SUBTITLE IV > CHAPTER 51 > SUBCHAPTER I > § 5103
Prev | Next
§ 5103. LEGAL TENDER

United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts."

This applies only to debts. No federal statute requiring a private business, a person or an organization to accept currency or coins for payment for goods and/or services, except as mandated by state law.

So I suspect Louisiana may be in the clear for this.

 
At 10/20/2011 3:02 AM, Blogger Ron H. said...

t11s: "This applies only to debts. No federal statute requiring a private business, a person or an organization to accept currency or coins for payment for goods and/or services, except as mandated by state law.

So I suspect Louisiana may be in the clear for this.
"

You are correct that a private businesses aren't required to take any and all forms of payment, but this is the State forbidding private businesses to take US currency.

It won't likely hold up.

There seems to be no limit to how low Louisiana will stoop to increase revenue. Didn't they just recently get rid of a ridiculous license requirement for flower arrangers?

 
At 10/20/2011 10:40 AM, Blogger Free2Choose said...

"Didn't they just recently get rid of a ridiculous license requirement for flower arrangers?"

Yes...and, if I'm not mistaken, there is still a license required to sell coffins as well. As a Louisiana native who moved away right after High School, I feel comfortable in saying that the business environment in La. is, um.....unique.

 
At 10/20/2011 10:40 AM, Blogger Free2Choose said...

"Didn't they just recently get rid of a ridiculous license requirement for flower arrangers?"

Yes...and, if I'm not mistaken, there is still a license required to sell coffins as well. As a Louisiana native who moved away right after High School, I feel comfortable in saying that the business environment in La. is, um.....unique.

 
At 10/20/2011 11:31 AM, Blogger Ron H. said...

Free2Choose: "Yes...and, if I'm not mistaken, there is still a license required to sell coffins as well. As a Louisiana native who moved away right after High School, I feel comfortable in saying that the business environment in La. is, um.....unique."

You will be happy to hear that the Institute For Justice has helped overturn that onerous Louisiana law.

IJ has been helping fight such laws in many states including AZ and WI.

In fact, while I'm viewing their site, I believe I'll hit the "donate" button.

 
At 10/25/2011 12:54 AM, Blogger g said...

I noticed comments from people stating that the law was unconstitutional. Others stated that it was legal and gave a link to some law book at Cornell University.
I'm no expert, but the Constitution does have a section that states that the government should stay out of free commerce. Since Obamacare steamrolled through that hurdle pretty easily (I know some courts say it's illegal but it is still being implemented), this law will be a precedent for the rest of the country unless something stops it in Louisiana.

 

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