Relates to prohibiting food stores and retail establishments from refusing to accept payment in cash, the official text

S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4153--A
     Cal. No. 320
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2025
                                ___________
 
 Introduced  by  Sens.  SANDERS, ADDABBO, MAY, MURRAY, WEBB -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on Consumer Protection --  reported  favorably  from  said  committee,
   ordered to first and second report, ordered to a third reading, passed
   by  Senate and delivered to the Assembly, recalled, vote reconsidered,
   restored to third reading, amended and  ordered  reprinted,  retaining
   its place in the order of third reading
 
 AN  ACT  to  amend  the general business law, in relation to prohibiting
   food stores and retail establishments from refusing to accept  payment
   in cash
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 396-ii to read as follows:
   § 396-II. CASHLESS POLICIES PROHIBITED. A. AS USED  IN  THIS  SECTION,
 THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (I)  "CASH"  MEANS UNITED STATES COINS AND CURRENCY, INCLUDING FEDERAL
 RESERVE NOTES. CASH DOES NOT INCLUDE FOREIGN CURRENCY; ANY PAPER INSTRU-
 MENT OTHER THAN A FEDERAL RESERVE NOTE, INCLUDING, BUT NOT  LIMITED  TO,
 ANY CHECK, BOND, OR PROMISSORY NOTE; OR ANY FOREIGN METAL COIN.
   (II)  "CONSUMER COMMODITY" MEANS ANY ARTICLE, GOOD, MERCHANDISE, PROD-
 UCT OR COMMODITY OF ANY KIND OR CLASS PRODUCED, DISTRIBUTED  OR  OFFERED
 FOR  RETAIL SALE FOR CONSUMPTION BY INDIVIDUALS, OR FOR PERSONAL, HOUSE-
 HOLD OR FAMILY PURPOSES.
   (III) "FOOD STORE" MEANS AN ESTABLISHMENT WHICH GIVES  OR  OFFERS  FOR
 SALE  FOOD  OR  BEVERAGES TO THE PUBLIC FOR CONSUMPTION OR USE ON OR OFF
 THE PREMISES, OR ON OR OFF A PUSHCART, STAND OR VEHICLE.
   (IV) "RETAIL ESTABLISHMENT" MEANS AN  ESTABLISHMENT  WHEREIN  CONSUMER
 COMMODITIES  ARE  SOLD, DISPLAYED OR OFFERED FOR SALE, OR WHERE SERVICES
 ARE PROVIDED TO CONSUMERS AT RETAIL. THIS DEFINITION  DOES  NOT  INCLUDE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00727-03-5
 S. 4153--A                          2
 
 BANKS OR TRUST COMPANIES AS SUCH TERMS ARE DEFINED IN SECTION TWO OF THE
 BANKING LAW.
   B.  IT SHALL BE UNLAWFUL FOR A FOOD STORE OR A RETAIL ESTABLISHMENT TO
 REFUSE TO ACCEPT PAYMENT IN CASH FROM CONSUMERS, PROVIDED THAT SUCH FOOD
 STORE OR RETAIL ESTABLISHMENT MAY REFUSE TO ACCEPT PAYMENT:
   (I) IN CASH BILLS DENOMINATED ABOVE TWENTY DOLLARS; OR
   (II) IN CASH FOR ANY TELEPHONE, MAIL, OR  INTERNET-BASED  TRANSACTION,
 UNLESS  THE  PAYMENT FOR SUCH TRANSACTION TAKES PLACE ON THE PREMISES OF
 SUCH FOOD STORE OR RETAIL ESTABLISHMENT.
   C. NO FOOD STORE OR RETAIL ESTABLISHMENT SHALL CHARGE A  HIGHER  PRICE
 FOR THE SAME CONSUMER COMMODITY TO A CONSUMER WHO PAYS IN CASH THAN TO A
 CONSUMER WHO PAYS FOR SUCH COMMODITY THROUGH A CASH-LESS TRANSACTION.
   D.  A FOOD STORE OR RETAIL ESTABLISHMENT THAT VIOLATES THIS SECTION IS
 LIABLE FOR A CIVIL PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS FOR THE
 FIRST VIOLATION AND A CIVIL PENALTY OF NOT MORE THAN ONE  THOUSAND  FIVE
 HUNDRED DOLLARS FOR EACH SUCCEEDING VIOLATION.
   E.  (I)  THIS SECTION SHALL NOT APPLY TO A FOOD STORE OR RETAIL ESTAB-
 LISHMENT THAT PROVIDES A DEVICE ON PREMISES THAT CONVERTS CASH,  WITHOUT
 CHARGING  A  FEE  OR REQUIRING A MINIMUM DEPOSIT AMOUNT GREATER THAN ONE
 DOLLAR, INTO A PREPAID CARD THAT ALLOWS A CONSUMER TO COMPLETE A  TRANS-
 ACTION AT SUCH FOOD STORE OR RETAIL ESTABLISHMENT.
   (II)  UPON  REQUEST,  SUCH  DEVICE  SHALL PROVIDE EACH CONSUMER WITH A
 RECEIPT INDICATING THE AMOUNT OF CASH SUCH CONSUMER DEPOSITED  ONTO  THE
 PREPAID CARD.
   (III)  CASH  DEPOSITS ONTO SUCH A PREPAID CARD SHALL NOT BE SUBJECT TO
 AN EXPIRATION DATE AND THERE SHALL BE NO LIMIT ON THE NUMBER  OF  TRANS-
 ACTIONS THAT MAY BE COMPLETED ON SUCH PREPAID CARD.
   (IV)  IN  THE  EVENT  THAT SUCH DEVICE MALFUNCTIONS, THE FOOD STORE OR
 RETAIL ESTABLISHMENT WHERE SUCH DEVICE IS LOCATED SHALL  ACCEPT  PAYMENT
 IN  CASH  FROM CONSUMERS THROUGHOUT THE TIME PERIOD IN WHICH SUCH DEVICE
 DOES NOT FUNCTION IN ACCORDANCE WITH THE STANDARDS  SET  FORTH  IN  THIS
 SECTION.  SUCH FOOD STORE OR RETAIL ESTABLISHMENT SHALL PLACE A CONSPIC-
 UOUS SIGN ON OR IMMEDIATELY ADJACENT TO SUCH DEVICE INDICATING THAT SUCH
 FOOD  STORE OR RETAIL ESTABLISHMENT IS REQUIRED BY LAW TO ACCEPT CASH IF
 SUCH DEVICE MALFUNCTIONS, AND THAT CONSUMERS MAY REPORT ANY VIOLATION TO
 THE DEPARTMENT OF STATE DIVISION OF CONSUMER PROTECTION. THE  DEPARTMENT
 OF  STATE MAY ESTABLISH BY RULE ADDITIONAL REQUIREMENTS RELATING TO SUCH
 SIGNS AND THE DISPLAY OF SUCH SIGNS.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.