Sec. 5406. Payment choice
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/bill/117/hr/7900/pcs/section-5406·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
It is the sense of Congress that every consumer has the right to use cash at retail businesses who accept in-person payments. Subchapter I of chapter 51 of title 31, United States Code, is amended by adding at the end the following: Any person engaged in the business of selling or offering goods or services at retail to the public with a person accepting in-person payments at a physical location (including a person accepting payments for telephone, mail, or internet-based transactions who is accepting in-person payments at a physical location)— shall accept cash as a form of payment for sales of less than $2,000 (or, for loan payments, payments made on a loan with an original principal amount of less than $2,000) made at such physical location; and may not charge cash-paying customers a higher price compared to the price charged to customers not paying with cash.
Subsection
(a)shall not apply to a person if such person— is unable to accept cash because of— a sale system failure that temporarily prevents the processing of cash payments; or a temporary insufficiency in cash on hand needed to provide change; or provides customers with the means, on the premises, to convert cash into a card that is either a general-use prepaid card, a gift card, or an access device for electronic fund transfers for which— there is no fee for the use of the card; there is not a minimum deposit amount greater than 1 dollar; amounts loaded on the card do not expire, except as permitted under paragraph (2); there is no collection of any personal identifying information from the customer; there is no fee to use the card; and there may be a limit to the number of transactions. A person seeking exception from subsection
(a)may charge an inactivity fee in association with a card offered by such person if— there has been no activity with respect to the card during the 12-month period ending on the date on which the inactivity fee is imposed; not more than 1 inactivity fee is imposed in any 1-month period; and it is clearly and conspicuously stated, on the face of the mechanism that issues the card and on the card— that an inactivity fee or charge may be imposed; the frequency at which such inactivity fee may be imposed; and the amount of such inactivity fee. Notwithstanding subsection (a), for the 5-year period beginning on the date of enactment of this section, this section shall not require a person to accept cash payments in $50 bills or any larger bill. The Secretary of the Treasury, in this section referred to as the Secretary, shall issue a rule on the date that is 5 years after the date of the enactment of this section with respect to any bills a person is not required to accept. When issuing a rule under subparagraph (A), the Secretary shall require persons to accept $1, $5, $10, $20, and $50 bills. Whenever any person has engaged, or there are reasonable grounds to believe that any person is about to engage, in any act or practice prohibited by this section, a civil action for preventive relief, including an application for a permanent or temporary injunction, restraining order, or other order may be brought against such person. Any person who violates this section shall— be liable for actual damages; be fined not more than $2,500 for a first offense; and be fined not more than $5,000 for a second or subsequent offense. An action under this section may be brought in any United States district court, or in any other court of competent jurisdiction. Upon timely application, a court may, in its discretion, permit the Attorney General to intervene in a civil action brought under this subsection, if the Attorney General certifies that the action is of general public importance. Upon application by an individual and in such circumstances as the court may determine just, the court may appoint an attorney for such individual and may authorize the commencement of a civil action under this subsection without the payment of fees, costs, or security. In any action commenced pursuant to this section, the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney’s fee as part of the costs, and the United States shall be liable for costs the same as a private person. In the case of an alleged act or practice prohibited by this section which occurs in a State, or political subdivision of a State, which has a State or local law prohibiting such act or practice and establishing or authorizing a State or local authority to grant or seek relief from such act or practice or to institute criminal proceedings with respect thereto upon receiving notice thereof, no civil action may be brought hereunder before the expiration of 30 days after written notice of such alleged act or practice has been given to the appropriate State or local authority by registered mail or in person, provided that the court may stay proceedings in such civil action pending the termination of State or local enforcement proceedings. This section shall not preempt any law of a State, the District of Columbia, a Tribal government, or a territory of the United States if the protections that such law affords to consumers are greater than the protections provided under this section. The Secretary shall issue such rules as the Secretary determines are necessary to implement this section, which may prescribe additional exceptions to the application of the requirements described in subsection (a). . The table of contents for chapter 51 of title 31, United States Code, is amended by inserting after the item relating to section 5103 the following: 5104. Retail businesses prohibited from refusing cash payments. . The amendments made by this section may not be construed to have any effect on section 5103 of title 31, United States Code. Subparagraph
(A)of section 7(a)(3) of the Federal Reserve Act ( 12 U.S.C. 289(a)(3)(A) ) is amended by reducing the dollar figure described in such subparagraph by $15,000,000. The amendment made by paragraph
(1)shall take effect on September 30, 2022.
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