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SB-926 Business: retail locations: cash payments. (2019-2020)

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Date Published: 05/13/2020 09:00 PM
SB926:v97#DOCUMENT

Amended  IN  Senate  May 13, 2020
Amended  IN  Senate  April 09, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 926


Introduced by Senator Hill
(Coauthor: Senator Wiener)
(Coauthors: Assembly Members Cristina Garcia, Mullin, and Voepel)

February 05, 2020


An act to add Part 5 (commencing with Section 18100) to Division 7 of the Business and Professions Code, relating to business.


LEGISLATIVE COUNSEL'S DIGEST


SB 926, as amended, Hill. Business: retail locations: cash payments.
Existing law establishes within state government a Department of Justice that is under the direction and control of the Attorney General. Existing law provides that the department is composed of the Office of the Attorney General and other divisions, bureaus, branches, sections, or other units created within the department by the Attorney General. Existing law provides that the Attorney General has charge, as attorney, of all legal matters in which the state is interested, except as specified. Existing law establishes the Public Rights Law Enforcement Special Fund within the State Treasury to be used, upon appropriation, for investigation and prosecution of specific public rights.
Existing federal law provides that United States coins and currency, including Federal Reserve Notes and circulating notes of Federal Reserve Banks and national banks, are legal tender for all debts, public charges, taxes, and dues.
This bill would require a retail location, as defined, in this state to accept cash payment when offered as payment by a consumer for any transaction that does not exceed $5,000 and involves the sale or lease of goods or services, or both, unless a specified exception applies. The bill would define cash for these purposes to mean Federal Reserve Notes and metal coins issued by the United States as legal tender. The bill would require the Attorney General to enforce these provisions, and would impose civil penalties for a violation of these provisions, to be deposited into the Public Rights Law Enforcement Special Fund, as provided. The bill would also require that cash acceptance continue during a declared state of emergency, unless incongruent with public health directives from the State Department of Public Health.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Part 5 (commencing with Section 18100) is added to Division 7 of the Business and Professions Code, to read:

PART 5. Retail Store Cash Payments

18100.
 For purposes of this part, the following definitions shall apply:
(a) “Retail location” means any business that has a permanent address and operates at a fixed location.
(b) “Cash” means Federal Reserve Notes and metal coins issued by the United States as legal tender pursuant to Section 5103 of Title 31 of the United States Code.

18101.
 (a) For any transaction that does not exceed five thousand dollars ($5,000), a retail location in this state shall accept cash payment when offered as payment by a consumer at the retail location for any transaction involving the sale or lease of goods or services, or both.
(b) This section does not require a retail location to accept cash at every point of sale at the retail location. Retail locations shall make every effort to have as many points of sale that accept cash as those that do not, and shall ensure the points of sale that accept cash are as accessible as points of sale that do not accept cash.

18102.
 This part shall not apply to any of the following:
(a) A transaction initiated online, by mail, by telephone, through a catalogue, or at any location other than a retail location, and completed at any location other than the retail location. A transaction is considered completed upon receipt of the goods, services, or both.
(b) A retail location that only sells or leases goods or services, or both, online, by mail, by telephone, through a catalogue, or at any location other than a retail location.
(c) A transaction for the rental of goods or services, or both, or for accommodations for which posting of collateral or security is typically required.
(d) A retail location that is prohibited from accepting cash payments by any other provision of law.
(e) All transactions, including membership fees, at wholesale clubs that sell consumer goods and services exclusively through a membership model.
(f) Consumer goods or services provided exclusively to employees and others authorized to be on the employer’s premises, and consumer goods or services provided at a facility whose overwhelmingly predominant purpose is to provide those goods or services to employees and others authorized to be on the employer’s premises, and when the possibility of purchases by nonemployees or others not authorized to be on the employer’s premises is at most incidental to that predominant purpose.

18103.
 This part shall not be construed to require a retail location to accept Federal Reserve Notes in a denomination larger than a twenty-dollar ($20) bill.

18104.
 (a) The Attorney General shall enforce the provisions of this part.
(b) A violation of this part shall be punishable by a civil penalty of not less than twenty-five dollars ($25) nor more than five hundred dollars ($500), as determined by the Attorney General.
(c) The civil penalty shall be deposited in the Public Rights Law Enforcement Special Fund for the Attorney General’s use in enforcing this part.

18105.
 Cash acceptance shall continue in a declared state of emergency unless incongruent with public health directives from the State Department of Public Health.