Preserving Legal Tender and Cash Transactions Act

Economy
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Preserving Legal Tender and Cash Transactions Act

Purpose: To ensure the right of consumers to use cash for transactions, promote financial inclusion, and maintain cash as a legal and universally accepted form of payment.

Section 1: Short Title

This Act may be cited as the “Preserving Legal Tender and Cash Transactions Act.”

Section 2: Findings

The Congress finds that:

  1. Cash, in the form of U.S. coins and Federal Reserve Notes, is designated as legal tender for all debts, public charges, taxes, and dues.

  2. The option to use cash ensures that individuals, regardless of age, income, citizenship status, or technological access, are able to participate fully in the economy.

  3. The elimination of cash payment options has the potential to marginalize certain groups, such as low-income individuals, seniors, those with limited access to banking services, and those who wish to maintain their financial privacy.

  4. Cash transactions contribute to a robust and resilient economy by providing an alternative to digital payments, which are subject to technological and cybersecurity risks.

  5. Many small businesses rely on cash transactions as they incur fewer transaction fees and are less susceptible to digital payment system outages.

Section 3: Definitions

For purposes of this Act:

  1. “Cash” means physical currency issued by the U.S. Department of the Treasury, including coins and Federal Reserve Notes.

  2. “Legal Tender” refers to currency that must be accepted if offered in payment of a debt.

  3. “Business” refers to any establishment, institution, or organization that offers goods or services for sale to consumers, whether for-profit or non-profit.

Section 4: Requirement to Accept Cash Payments

(a) Acceptance of Cash:

All businesses offering goods or services to consumers within the United States are required to accept U.S. cash as a form of payment.

(b) Exceptions:

Businesses may refuse cash payments for:

  1. Online and mail-order transactions.

  2. Transactions that exceed $10,000, for which other methods of payment may be required for security or regulatory reasons.

  3. Situations where acceptance of cash poses a documented and reasonable risk to public safety.

(c) Penalties for Non-Compliance:

  1. A business failing to comply with this requirement may be subject to civil penalties, including fines of up to $1,000 per violation.

  2. Repeat violations may result in additional penalties, up to and including the suspension of business licenses in extreme cases of non-compliance.

Section 5: Preemption of State Laws

This Act supersedes any state law, regulation, or ordinance that prohibits or restricts the use of cash for payment of goods and services. States may not enact or enforce legislation inconsistent with this Act.

Section 6: Public Awareness and Consumer Education

(a) Campaign for Consumer Awareness:

The U.S. Department of Treasury, in collaboration with the Federal Reserve, will conduct a public awareness campaign highlighting the right to use cash for transactions and the benefits of cash acceptance for financial inclusion.

(b) Educational Resources:

Educational resources will be developed and distributed to businesses, encouraging awareness of the importance of cash transactions, financial inclusion, and economic resilience.

Section 7: Effective Date

This Act shall take effect 180 days after the date of its enactment.

Section 8: Severability

If any provision of this Act, or the application of any provision to any person or circumstance, is found to be invalid, the remainder of this Act and its provisions shall not be affected.

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Penalize banks that charge consumers for depositing and handling cash. Cash is cash, there should be zero penalties.

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