This initiative measure is submitted to the people in accordance with the provisions of Section 8 of Article II of the California Constitution.
The people of the State of California do hereby enact as follows:
SECTION 1. Title.
This measure shall be known and may be cited as "The California Cash Preservation Act."
SEC. 2. Findings and Declarations.
The people of the State of California find and declare as follows:
(a) A growing number of businesses are refusing to accept cash, creating a two-tiered economy that excludes and harms many of our most vulnerable fellow citizens.
(b) An estimated 5.9 million households in the United States are "unbanked," with no access to checking or savings accounts. For these individuals, cash is a necessity for participating in the economy.
(c) Vulnerable populations, including the elderly, low-income individuals, homeless individuals, immigrants, and people with disabilities, are disproportionately harmed by a cashless economy.
(d) A cashless society enables unprecedented levels of surveillance by both government and corporations, creating a detailed and permanent record of every purchase a person makes and threatening the fundamental right to privacy.
(e) Reliance on digital-only payment systems creates systemic vulnerabilities to power outages, telecommunications failures, and cyberattacks, which can paralyze the economy and leave individuals unable to purchase essential goods in an emergency.
(f) For victims of domestic abuse, cash provides a critical lifeline, allowing them to save money and escape abusive situations without being tracked by their abusers through digital financial records.
(g) Small businesses are burdened by mandatory credit and debit card transaction fees, which can range from 1.5% to 3.5% of each purchase, reducing their profits and increasing costs for consumers.
(h) The United States currency is legal tender for all debts, public and private. Ensuring its acceptance in commerce is essential for a fair and inclusive economy.
SEC. 3. Purposes and Intent.
The people of the State of California declare that the purposes and intent of this act are to:
(a) Ensure that all persons in California have the right and ability to participate in the economy and purchase essential goods and services using cash.
(b) Protect the financial inclusion of unbanked and underbanked populations, the elderly, and other vulnerable communities.
(c) Safeguard the privacy and autonomy of individuals by preserving the option to engage in anonymous transactions.
(d) Promote economic resilience by ensuring a payment method remains available during emergencies, power outages, and system failures.
(e) Prevent discrimination against consumers who are unable or prefer not to use digital payment methods.
SEC. 4. Addition of Section 1726 to the Civil Code.
Section 1726 is added to the Civil Code, to read:
1726. (a) Except as provided in subdivision (b), a retail business that operates from a physical location in this state shall accept cash as a form of payment for any transaction for the sale of goods or services at that location.
(b) Subdivision (a) does not apply to any of the following:
(1) Transactions for the sale of goods or services made by telephone, mail, or over the internet.
(2) Transactions at a retail business that, by law, is required to accept only non-cash payments.
(3) Transactions at a retail business that provides a device on the premises that converts cash to a prepaid card that can be used at that business without charging any fee or cost to the consumer.
(4) Transactions for parking facilities and airports.
(5) Transactions for the rental of consumer goods, services, or accommodations for which a deposit is typically required.
(c) A violation of this section shall be subject to a civil penalty of not more than five hundred dollars ($500) for a first offense and not more than one thousand dollars ($1,000) for any subsequent offense. Each transaction in which a retail business refuses to accept cash in violation of this section shall constitute a separate violation.
(d) The Attorney General, a district attorney, or a city attorney may bring an action to enforce this section and to collect the civil penalties provided for in subdivision (c).
(e) For purposes of this section, "retail business" means any person or entity that sells or offers for sale goods or services at retail to the public from a physical location in California.
SEC. 5. Severability.
If any provision of this act, or part thereof, is for any reason held to be invalid or unconstitutional, the remaining provisions shall not be affected, but shall remain in full force and effect.
Prepared by Movement For California
December 2024