SB 3255: Cash Transactions; Unfair and Deceptive Practices; Rounding; Pennies

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 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 enable cash transaction rounding.

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

     "§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, may 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 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 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 totals one cent or two cents, the transaction shall be rounded up to five cents.

     (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.

     (c)  Notwithstanding section 480-2 or any other law to the contrary, no person may bring a private action to enforce this section.

     (d)  Any person who engages in cash transaction rounding pursuant to this section shall not be subject to section 486‑116.

     (e)  For the purposes of this section, "total transaction amount" includes fees, surcharges, and taxes."

     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.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2026.

Report Title:

Cash Transactions; Unfair and Deceptive Practices; Rounding; Pennies

Description:

Authorizes cash transactions to be rounded up or down to the nearest five cents, except for cash transactions that total $0.01 or $0.02, which are 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 7/1/2026.  (CD1)

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

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 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 enable cash transaction rounding.

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

     "§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, may 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 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 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 totals one cent or two cents, the transaction shall be rounded up to five cents.

     (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.

     (c)  For purposes of this section, "total transaction amount" includes fees, surcharges, and taxes."

     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.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

Cash Transactions; Unfair and Deceptive Practices; Rounding; Pennies

Description:

Authorizes cash transactions to be rounded up or down to the nearest five cents, except for cash transactions that total $0.01 or $0.02, which are 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 7/1/3000.  (HD2)

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

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 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 enable cash transaction rounding.

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

     "§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 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 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 totals one cent or two cents, the transaction shall be rounded up to five cents.

     (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.

     (c)  For purposes of this section, "total transaction amount" includes fees, surcharges, and taxes."

     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.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

Cash Transactions; Unfair and Deceptive Practices; Rounding; Pennies

Description:

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 7/1/3000.  (HD1)

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

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.

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 tenders 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.

     Accordingly, the purpose of this Act is to safeguard access to goods and services by requiring retail merchants to accept cash payments in in-person transactions.

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

     "§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."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Cash Payments; Discrimination; Public Accommodations; Unfair and Deceptive Practices

Description:

Requires retail merchants to accept cash payments in in-person transactions.

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

STAND. COM. REP. NO. 2879

Honolulu, Hawaii

RE:     S.B. No. 3255

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 3255 entitled:

"A BILL FOR AN ACT RELATING TO CURRENCY,"

begs leave to report as follows:

     The purpose and intent of this measure is to require retail merchants to accept cash payments in in-person transactions.

     Your Committee received testimony in support of this measure from Imi Ila Legacy, LLC and six individuals.

     Your Committee received comments on this measure from the Hawaii Food Industry Association, Retail Merchants of Hawaii, and one individual.

     Your Committee finds that merchants in the State refusing to accept cash as legal tender can exclude individuals who rely on cash transactions, particularly those who are unbanked or underbanked.  This measure would ensure fair and equal access to goods and services for all residents of the State.

     Your Committee acknowledges the concerns raised in testimony that due to the United State Treasury decision to cease penny production, there is a penny shortage in the State that cannot be rectified, which is creating difficulties for local businesses to legally settle cash transactions.  Your Committee notes that House Bill No. 2346, introduced in the Regular Session of 2026, would permit rounding in cash transactions to the nearest amount divisible by five to better allow merchants to settle cash transactions in light of the penny shortage.  To ensure consideration of this matter within the current legislative session, amendments to this measure are necessary to incorporate the contents of H.B. No. 2346 (2026) to facilitate discussion as this measure moves through the legislative process.

     Accordingly, your Committee has amended this measure by:

     (1)  Inserting language that requires cash transactions to be rounded up or down to the nearest five cents, with certain conditions;

     (2)  Inserting additional legislative findings and amending section 1 to reflect its amended purpose;

     (3)  Inserting a savings clause;

     (4)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     Your Committee notes the concerns raised in testimony that small businesses often use a cashless model to simplify operations, lower costs, and avoid the risks and liabilities of cash handling.  Accordingly, as this measure continues through the legislative process, your Committee respectfully requests that subsequent Committees to which this measure is referred consider the establishment of a threshold for cash mandates dependent on business size.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3255, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3255, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,