The state of Louisiana makes using CASH illegal for certain transactions!

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I found this very alarming article at a website called In it the author explains how it is now illegal in the state of Louisiana to use cash for the sale or purchase of used or secondhand items. This is very disturbing, especially as the author points out that as far as I knew US legal tender is required to be valid and all transactions by federal law. Read the article below and let us know your opinion.

Louisiana businesses are suddenly discovering a new law that flew under the radar during the last legislative session:

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.

The law states those who buy or sell second hand goods are prohibited from using cash. State representative Rickey Hardy co-authored the bill.

Hardy says, “they give a check or a cashiers money order, or electronic one of those three mechanisms is used.”

Hardy says the bill is targeted at criminals who steal anything from copper to televisions, and sell them for a quick buck. Having a paper trail will make it easier for law enforcement.

The standard justification for a law such as this is easy to understand. Second hand stores and pawnbrokers if only because both have long been a source for people in possession of stolen good to fence their ill-gotten wares. However, the law itself actually exempts pawnbrokers from the no-cash part of the law even though it’s fairly clearly that pawn shops are notorious as the destination for stolen goods. If the law was really aimed at preventing stolen goods from being sold in this manner, why ban pawnbrokers? Even if you accepted the justifications on their face, though, his law goes way too far, especially in the banning of cash transactions. The purpose of the bill could be met simply be requiring some form of Identification be taken when a transaction is made, and that records of the same be maintained. Banning the use of legal tender completely is way over the top.

Additionally, while I haven’t researched the issue, I’m not even sure that the state has the authority to say that Federal Reserve Notes, which Congress has made legal tender for all transactions, cannot be used in a transaction. I would think that there’s a case to be made here that Louisiana has violated the Supremacy Clause of the Constitutional by saying that U.S. currency cannot be used for a certain class of transactions. Certainly, if this is allowed to stand, then the effect would be that any state could say that cash cannot be used for any number of transaction in the name of “fighting crime,” “public safety,” or whatever other excuse an inventive legislator can come up with.


Full article found at:

Featured image by stevepb


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