Requires merchants to accept cash as payment for goods and services; permits the superintendent of financial services to provide exemptions based on certain criteria.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1935
SPONSOR: Rajkumar TITLE OF BILL:
An act to amend the general business law, in relation to requiring
merchants to accept cash as payment for goods
PURPOSE OR GENERAL IDEA OF BILL:
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-aaa 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. Effective date 180 days after it shall have become law.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION ( IF APPLICABLE):
Click here to enter text.
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 is 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 customers privacy in their
purchases and is not subject to hacking.
PRIOR LEGISLATIVE HISTORY:
2018: A10686 - Referred to Consumers
2019: A771 referred to Consumers / Senate Consumer Protection
2020: A771 referred to Consumers / Senate Consumer Protection
2021: A22 referred to consumer affairs and protection
2022: A22 referred to consumer affairs and protection
2023-24: A7146 referred to consumer affairs and protection
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None
EFFECTIVE DATE:
180 days after it shall have become law, provided that the superinten-
dent of the department of financial services may make regulations and
take other actions reasonably necessary to implement this act on that
date.
STATE OF NEW YORK
________________________________________________________________________
1935
2025-2026 Regular Sessions
IN ASSEMBLY
January 14, 2025
___________
Introduced by M. of A. RAJKUMAR, DINOWITZ, COLTON, SIMON, COOK, McDO-
NOUGH, HUNTER, SEAWRIGHT, GLICK, OTIS, REYES, SAYEGH -- read once and
referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to requiring
merchants to accept cash as payment for goods
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general business law is amended by adding a new section
2 396-ff to read as follows:
3 § 396-ff. Cash payment non-discrimination. 1. Any retail mercantile
4 establishment as defined in article twelve-B of this chapter, in which
5 food is prepared, sold, or served subject to title eight of article
6 thirteen of the public health law, or other establishment offering goods
7 or services for sale shall accept United States currency (cash) as legal
8 tender when offered as payment. Such establishment shall not discrimi-
9 nate against a cash buyer by requiring the use of a credit or debit card
10 or electronic payment device or process in order to purchase food,
11 goods, or services. This section shall not apply to telephone, mail
12 order, electronic, online, or other transactions in which the buyer is
13 not present in the establishment's physical place of business.
14 2. The superintendent of the department of financial services may make
15 regulations to implement this section, including authorization of
16 exemptions or exclusions from this section. Exemptions or exclusions
17 under this section may be provided based on criteria including, but not
18 limited to, the nature of the establishment; the nature of the food,
19 goods, or services; the denomination of currency used; or the amount of
20 the transaction.
21 3. A violation of this section shall be punishable by a fine not to
22 exceed five hundred dollars.
23 § 2. This act shall take effect on the one hundred eightieth day after
24 it shall have become a law. Effective immediately, the superintendent of
25 the department of financial services may make regulations and take other
26 actions reasonably necessary to implement this act on that date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03672-01-5
