THE SENATE

S.B. NO.

3255

THIRTY-THIRD LEGISLATURE, 2026

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO CURRENCY.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that access to basic goods and services is essential to the health, safety, and economic well-being of the people of the State.  In recent years, an increasing number of merchants and vendors have adopted "cashless" business models that refuse to accept United States currency as payment for goods or services.  While these models may offer convenience for some consumers, they effectively exclude individuals who rely on cash transactions, including kupuna, low-income residents, individuals without access to banking or credit services, and others who are unbanked or underbanked.

     The legislature recognizes that United States coins and currency are designated as legal tender for all debts, public charges, taxes, and dues, and that the refusal to accept cash for everyday transactions may create barriers to commerce, undermine consumer choice, and exacerbate existing economic inequities in the State.  The legislature further finds that this exclusion may function as an economic barrier that disproportionately affects vulnerable populations and undermines the State's commitment to fairness and equal access.

     The legislature further finds that the United States Treasury has stopped minting the penny for general circulation, which has created a shortage for many businesses in the State.  To protect the ability of businesses in the State to accept cash payments and make change, rounding to the nearest five cents should be permissible by law to address this urgent issue.

     Accordingly, the purpose of this Act is to:

     (1)  Safeguard access to goods and services by requiring retail merchants to accept cash payments in in-person transactions; and

     (2)  Enable cash transaction rounding.

     SECTION 2.  Chapter 481B, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part     .  CASH TRANSACTIONS

     §481B-    Forms of payment; cash.  (a)  All merchants shall accept cash as payment for goods or services; provided that this section shall not apply to online purchases or sales made over the Internet.

     (b)  For the purposes of this section, "merchant" shall have the same meaning as defined in section 481B-5.5.

     §481B-    Cash transaction rounding.  (a)  Notwithstanding any law to the contrary, any person selling goods or services in a cash transaction, entering into any other transaction that results in a payment or transfer of cash between the parties to the transaction, or paying cash wages to an employee as compensation, shall round the payment in the following manner for any person seeking to make payment with legal tender:

     (1)  In any case in which the total transaction amount, including any taxes, ends with one cent, two cents, six cents, or seven cents as the final digit, the amount of cents in the sum shall be rounded down to the nearest amount divisible by five;

     (2)  In any case in which the total transaction amount, including any taxes, ends with three cents, four cents, eight cents, or nine cents as the final digit, the amount of cents in the sum shall be rounded up to the nearest amount divisible by five; and

     (3)  Notwithstanding paragraph (1) to the contrary, in any case in which the total transaction amount, including any taxes, totals $0.01 or $0.02, the transaction shall be rounded up to $0.05.

     (b)  Subsection (a) shall not apply to any transaction for which payment is made by any demand or negotiable instrument, electronic fund transfer, check, gift card, money order, credit card, or other like instrument or method."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  This Act shall take effect on July 1, 2050.

 


 

Report Title:

Cash Payments; Cash Transactions; Discrimination; Public Accommodations; Unfair and Deceptive Practices; Rounding; Pennies

 

Description:

Requires retail merchants to accept cash payments in in-person transactions.  Requires cash transactions to be rounded up or down to the nearest five cents.  Requires cash transactions that total $0.01 or $0.02 to be rounded up to $0.05.  Exempts transactions in which payment is made by demand or negotiable instrument, electronic fund transfer, check, gift card, money order, credit card, or other like instrument or method.  Effective 7/1/2050.  (SD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.