HB3281ham001 103RD GENERAL ASSEMBLY

Rep. Edgar Gonzalez, Jr.

Filed: 3/24/2023

10300HB3281ham001 LRB103 29030 SPS 60000 a

AMENDMENT TO HOUSE BILL 3281

AMENDMENT NO. ______. Amend House Bill 3281 by replacing everything after the enacting clause with the following:

"Section 5. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2BBBB as follows:

(815 ILCS 505/2BBBB new)

Sec. 2BBBB. Retail businesses prohibited from refusing cash payments.

(a) As used in this Section:

"Cash" means the coin and paper money of the United States.

"Electronic payment" means a payment transaction that is initiated and processed using electronic or digital means.

"Fuel station" means an establishment at which motor vehicles are refueled.

"Grocery store" means a retail establishment where 50% or more of its gross sales include nonprescription medicines, uncooked article of foods, beverages, confections, and condiments used for or intended to be used for human consumption off premises.

"Pharmacy" has the meaning set forth in subsection (a) of Section 3 of the Pharmacy Practice Act.

"Prepaid card" means any secured instrument that uses an account identification number that is not connected with a personal financial account to access deposited cash to purchase goods, services, or anything else of value.

"Retail mercantile establishment" means a fuel station, pharmacy, restaurant, or grocery store.

"Restaurant" means any business that is primarily engaged in the sale of ready-to-eat food for immediate consumption that comprises at least 51% of the total sales, excluding the sale of liquor. "Restaurant" does not include a temporary vendor at a market or festival, a business operating from a vehicle or other mobile space, or a street vendor.

"Self-service checkout" means an interactive electronic terminal that facilitates an action or displays a piece of information and allows a consumer to pay for goods and services.

(b) Each State or local agency or public utility or an authorized agent of the State or local agency or public utility shall provide a means to accept cash to pay any amount due of less than $750 to that State or local agency or public utility.

(c) A retail mercantile establishment selling or offering to sell goods or services to the public that employs an individual to accept in-person payments at a physical location shall not:

(1) refuse to accept cash as a form of payment for sales of less than $750 made at such physical location;

(2) post a sign on the premises stating that cash payment is not accepted; or

(3) charge a higher price to customers paying with cash compared to the price charged to customers not paying with cash.

(d) The provisions of subsection (c) shall not apply to:

(1) self-service checkouts;

(2) retail sales that occur between the times of 11 p.m. and 6 a.m. for restaurants, fuel stations, and grocery stores only;

(3) a retail mercantile establishment that is unable to accept cash because of a sales system failure that temporarily prevents the processing of cash payments or a temporary insufficiency in cash on hand needed to provide change;

(4) a retail mercantile establishment that sells consumer goods exclusively through a membership model requiring payment by means of an affiliated mobile device application or online application;

(5) a retail mercantile establishment that sells consumer goods and services through a membership model;

(6) a retail mercantile establishment that both (i) accepts prepaid cards as payment for goods and services; and (ii) provides a mechanism to convert cash to the prepaid card either at the point of sale, self-service checkout, or similar method within the retail mercantile establishment; or

(7) retail sales made by the telephone, internet, mobile application or other similar means but completed in person at the seller's location or retail sales made by the telephone, internet, mobile application, or other similar means but completed in person off-premises.

(e) Notwithstanding paragraph (1) of subsection (d), a retail mercantile establishment subject to subsection (c) shall be deemed to comply with this Section if no fewer than one point of sale at that physical location accepts cash.

(f) Nothing in this Section requires a person to accept any bills larger than $20 bills as payment for goods or services.

(g) The regulation of accepting cash or electronic payments by retail mercantile establishments is an exclusive power and function of the State. A home rule unit may not regulate the acceptance of cash or electronic payments by a retail mercantile establishment that is inconsistent with this Section. This Section is a denial and limitation of home rule powers and functions under subsection (i) of Section 6 of Article VII of the Illinois Constitution.

(h) Nothing in this Section shall be construed to limit, regulate, or prohibit the acceptance of electronic payments by a retail mercantile establishment.

(i) A violation of this Section shall be a business offense and may be fined as follows:

(1) for a first violation, a fine not exceeding $50;

(2) for a second violation within a 12-month period, a fine not exceeding $100;

(3) for a third violation within a 12-month period, and any additional violation within a 12-month period, a fine of no more than $500.

A retail mercantile establishment shall not be fined in excess of $5000 per year for violations under this Section.

Section 99. Effective date. This Act takes effect January 1, 2024.".