AN ACT to prohibit retail businesses and health care providers from refusing cash payments.

The General Assembly of North Carolina enacts:

SECTION 1.  Chapter 66 of the General Statutes is amended by adding a new Article to read:

Article 51.

Cash Commitment Act.

§ 66‑501.  Short title and purpose.

This Article may be cited as the Cash Commitment Act. The purpose of this Article is to ensure that every consumer has the right to use cash at retail businesses and health care providers that accept in‑person payments.

§ 66‑502.  Retail businesses prohibited from refusing cash payments.

(a)        The following requirements must be met by any person that engages in the business of selling goods or services at retail to the public and any health care provider if they accept in‑person payments at a physical location:

(1)        The person shall accept cash as a form of payment for sales made at the physical location during the hours in which the physical location is attended by an owner, operator, or other employee.

(2)        The person shall not charge cash‑paying customers a higher price compared to the price charged to customers not paying with cash.

(b)        Subsection (a) of this section does not apply to any of the following circumstances:

(1)        A person is unable to accept cash either because of a sale system failure that temporarily prevents the processing of cash payments or because the person temporarily lacks sufficient cash on hand to make change.

(2)        A person provides to customers a device at the physical location that converts cash into a prepaid card, so long as all of the following requirements are met:

a.         There is no fee for the use of the device.

b.         The device does not require a minimum deposit of more than one dollar ($1.00).

c.         Any funds placed on the prepaid card do not expire.

d.         The device allows the customer to redeem any unused balance for cash at any time.

e.         The device does not collect any personal identifying information from the customer.

f.          There is no fee to use the prepaid card.

The person may impose a limit to the number of transactions for which a single prepaid card may be used.

(3)        Goods are sold from a vending machine.

(4)        Goods sold that are delivered to a customer outside of a physical location, including, but not limited to, curbside pickup or delivery to the customer's location.

(5)        A customer chooses to purchase goods utilizing a device, including, but not limited to, a smartphone, prior to payment.

(6)        The payment is processed for a good or service outside the physical location of the business.

(7)        An employer provides goods or services to their employees, independent contractors, or vendors in an employer‑owned facility.

(8)        A self‑checkout device is utilized, and the ability for the customer to utilize cash to purchase goods or services somewhere else in the business is available.

(9)        Fuel is offered for sale when an employee of the business is not on duty at the place of business or when it is part of a membership club.

(10)      Goods may be purchased and the location does not have an employee on‑site whose primary job duties include accepting payment in any form.

(11)      Payment is processed for vehicle wash services.

(12)      A hotel, motel, tourist home, or similar establishment that provides lodging for pay and requires its guests to pay an initial deposit.

(13)      Payment is required by credit card, charge card, or debit card as a security deposit for unforeseen damages or expenses associated with a short‑term vehicle lease or rental.

(c)        Subsection (a) of this section does not apply to any of the following locations:

(1)        Venues that host any professional athletic activity.

(2)        Venues that host any interscholastic athletic activity.

(3)        Rental car companies, as defined by G.S. 58‑33‑17(a)(3).

(4)        Insurance producers, as defined by G.S. 58‑33‑10(7).

(d)       This section does not apply to Consumer Finance Companies licensed and doing business under Chapter 53 of the General Statutes or doing business pursuant to Chapter 25A of the General Statutes.

§ 66‑503.  Right to not accept large bills.

Notwithstanding G.S. 66‑502, this Article does not require a person to accept cash payments in fifty dollar ($50.00) bills or any larger bill.

§ 66‑504.  Rulemaking; civil penalty.

(a)        The Secretary of Commerce may adopt rules to implement this Article and may prescribe additional exceptions to the requirements of G.S. 66‑502(a).

(b)        A person who violates this Article is subject to a penalty of up to five hundred dollars ($500.00) per violation, not to exceed five hundred dollars ($500.00) in any calendar month or two thousand dollars ($2,000) in any calendar year. A person who is assessed a civil penalty for a violation of this Article is not subject to the civil penalty provided in this subsection if the person establishes that the person came into compliance with this Article within 30 days of the issuance of the civil penalty and the person has remained in compliance with this Article. The Superior Court, on complaint by the Secretary of Commerce for a violation of this Article, may issue an injunction against such violation.

SECTION 2.  This act becomes effective October 1, 2023.