Payment Choice Act of 2021
Bill: H.R.4395 | Sponsor: Rep. Payne, Donald M., Jr. (D-NJ)
Policy area: Commerce

Summary:
Payment Choice Act of 2021
This bill requires retail businesses to accept cash as a form of payment for sales in amounts less than $2,000, and it prohibits them from charging cash-paying customers a higher price compared to customers not paying with cash. Such businesses are those engaged in the business of selling or offering goods or services at retail to the public that accept in-person payments at a physical location.
The bill provides for enforcement through preventative relief and civil penalties.

To prohibit retail businesses from refusing cash payments, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Payment Choice Act of 2021''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that every consumer has the right to 
use cash at retail businesses who accept in-person payments.

SEC. 3. RETAIL BUSINESSES PROHIBITED FROM REFUSING CASH PAYMENTS.

    (a) In General.--Subchapter I of chapter 51 of title 31, United 
States Code, is amended by adding at the end the following:
``Sec. 5104. Retail businesses prohibited from refusing cash payments
    ``(a) In General.--Any person engaged in the business of selling or 
offering goods or services at retail to the public who accepts 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)--
            ``(1) shall accept cash as a form of payment for sales made 
        at such physical location in amounts less than $2,000; and
            ``(2) may not charge cash-paying customers a higher price 
        compared to the price charged to customers not paying with 
        cash.
    ``(b) Exceptions.--Subsection (a) shall not apply to a person if 
the person--
            ``(1) is unable to accept cash because of--
                    ``(A) a sale system failure that temporarily 
                prevents processing cash payments; or
                    ``(B) temporarily having insufficient cash on hand 
                to make change; or
            ``(2) provides customers with a device that converts cash 
        into prepaid cards on the premises--
                    ``(A) if--
                            ``(i) there is no fee for the use of the 
                        device;
                            ``(ii) the device does not require a 
                        minimum deposit of more than one dollar;
                            ``(iii) any funds placed onto a prepaid 
                        card using the device do not expire;
                            ``(iv) the device allows customers to 
                        redeem any unused balance for cash at any time;
                            ``(v) the device does not collect any 
                        personal identifying information from the 
                        customer; and
                            ``(vi) there is no fee to use the prepaid 
                        card that the device produces; and
                    ``(B) regardless of whether there is a limit to the 
                number of transactions on such cards.
    ``(c) Right To Not Accept Large Bills.--
            ``(1) In general.--Notwithstanding subsection (a), for the 
        5-year period beginning on the date of the enactment of this 
        section, this section does not require a person to accept cash 
        payments in $100 bills or any larger bill.
            ``(2) Rulemaking.--
                    ``(A) In general.--The Secretary shall issue a rule 
                on the date that is the end of the 5-year period 
                beginning on the date of the enactment of this section 
                with respect to any bills a person is not required to 
                accept.
                    ``(B) Requirement.--When issuing a rule under 
                subparagraph (A), the Secretary shall require persons 
                to accept $1, $5, $10, $20 and $50 bills.
    ``(d) Enforcement.--
            ``(1) Preventative relief.--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.
            ``(2) Civil penalties.--Any person who violates this 
        section shall--
                    ``(A) be liable for actual damages;
                    ``(B) be fined not more than $2,500 for a first 
                offense; and
                    ``(C) be fined not more than $5,000 for a second or 
                subsequent offense.
            ``(3) Jurisdiction.--An action under this section may be 
        brought in any United States district court, or in any other 
        court of competent jurisdiction.
            ``(4) Intervention of attorney general.--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.
            ``(5) Authority to appoint court-paid attorney.--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.
            ``(6) Attorney's fees.--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.
            ``(7) Requirements in certain states and local areas.--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.
    ``(e) Greater Protection Under State Law.--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.
    ``(f) Rulemaking.--The Secretary shall issue such rules as the 
Secretary determines are necessary to implement this section and such 
rules may prescribe additional exceptions to the application of the 
requirements described in subsection (a).''.
    (b) Clerical Amendment.--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.''.
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