Senate Bill No. SLS 26RS-291, introduced by Senator Miller, seeks to amend the Louisiana Civil Code regarding leases of movable property. The bill introduces new provisions that clarify the effects of leases against third parties, the delivery of leased goods, and the implications of leases made by non-owners. It establishes that a lease of a corporeal movable can be binding against the owner if the lessor possesses the item with the owner's consent, is a merchant in the business of leasing similar items, and leases the item for fair value to a good faith lessee. Additionally, it specifies that a lease of an immovable takes effect against third parties once filed for registry, while a lease of a movable is effective against third parties upon actual delivery to a good faith lessee.

The bill also revises existing articles to clarify 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 the transfer. It states that a transferee of a leased item is not automatically bound by the lease unless they explicitly assume the obligations of the transferor. Furthermore, it introduces provisions regarding the rights of sublessees and assignees, limiting their rights to those of the original lessee unless otherwise provided by law. The bill also clarifies that both lessors and lessees can assign or encumber their rights in the lease unless explicitly prohibited, and it sets the effective date for these changes as August 1, 2026.