Senate Bill No. by Senator Miller seeks to amend and reenact various articles of the Louisiana Civil Code related to leases of movable property. The bill introduces new provisions that clarify the binding nature of leases against owners when the lessor possesses the item with the owner's consent and leases it in good faith for fair value. It also stipulates that leases of immovables are effective against third parties only when registered, while leases of movables take effect upon actual delivery to a good faith lessee. Additionally, the bill revises existing articles to ensure that the transfer of a leased item by the lessor does not terminate the lease, allowing the lessee to seek damages for losses incurred due to such transfers.

Moreover, the legislation clarifies the rights and obligations of lessors and lessees, allowing both parties to assign or encumber their rights unless explicitly prohibited by the lease agreement. It specifies that a lease provision prohibiting subleasing, assigning, or encumbering is interpreted to prohibit all these actions unless stated otherwise, applying this rule only to leases of immovables. The bill also establishes that sublessees or assignees acquire no greater rights than the original lessee, except as provided by law. These changes aim to modernize the legal framework governing leases, enhancing protections for lessees and clearly defining the rights of all parties involved. The new provisions will take effect on August 1, 2026.