BILL NUMBER: S342
SPONSOR: GOUNARDES
 
TITLE OF BILL:
An act to amend the general business law, in relation to requiring
merchants to accept cash as payment for goods
 
PURPOSE:
This bill would require business establishments to accept US currency
(cash) as legal tender when offered as payment, with certain exceptions
pursuant to regulation.
 
SUMMARY OF PROVISIONS:
Section 1 adds a new section 396-ff to General Business Law to:
1. Require that any retail mercantile establishment, establishment in
which food is prepared, sold, or served, or other establishment offering
goods and services shall accept US currency (cash) when offered as
payment; prohibit such establishments from discriminating against cash
buyers by requiring use of credit or debit cards for payment; exempt
transactions in which the buyer is not present in the establishment's
physical place of business.
2. Authorize the superintendent of the department of financial services
to make regulations to implement this section, including authorizing
exemptions or exclusions based on certain criteria.
3. Impose a fine of up to $500 for a violation of this section.
Section 2 sets the effective date.
 
JUSTIFICATION:
Several businesses have recently gone "cashless." While this can have
the aura of being cutting edge and efficient, cash remains the most
widely used form of payment, especially for small purchases. For many
New Yorkers, cash is not only convenient but essential - their only way
of paying. According to the NYC Department of Consumer Affairs, twelve
percent of New York City households did not have bank accounts as of
2015 - rising to 40%-50% in some neighborhoods in the Bronx and Brook-
lyn. It is almost impossible to have a credit or debit card without a
bank account, and many more people just do not have a credit or debit
card. Refusing to accept cash amounts to discrimination against low and
moderate income customers. Businesses refusing to accept cash payments
contribute to increased credit card debt. Decades of research indicates
that people spend up to twice as much for the same item if they aren't
paying cash. Cash is also the only form of payment that affords custom-
ers privacy in their purchases and is not subject to hacking.
 
LEGISLATIVE HISTORY:
2021-2022: S4133 - Referred to Consumer Protection
2019-2020: S5135 - Referred to Consumer Protection
2018: A10686 - Referred to Consumers
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect 180 days after it shall have become law,
provided that the superintendent of the department of financial services
may make regulations and take other actions reasonably necessary to
implement this act on that date.