SB1162 would amend Hawaii’s consumer protection laws to prohibit businesses from requiring cash-only payment for any business transaction of $25 or more. For covered transactions, businesses would have to accept either a credit card or debit card, while still being allowed to pass along a convenience fee for card use so long as the fee does not exceed the business’s actual processing cost for that transaction.
The bill is framed as a consumer access and fairness measure. Its findings emphasize the benefits of digital payments, the burdens cash can place on unbanked and underbanked residents, and the state’s interest in reducing tax evasion and improving transparency in commercial activity. The measure would take effect upon approval and would apply prospectively, without affecting prior rights, penalties, or proceedings.
Impact
If enacted, SB1162 would add a new section to chapter 489J, Hawaii Revised Statutes, creating a statewide rule that businesses may not require cash-only payment on transactions of $25 or more. It would directly affect retailers and other businesses operating in Hawaii by requiring them to offer at least one electronic payment option—credit or debit card—for covered sales, while preserving the ability to charge a convenience fee capped at the business’s actual card-processing cost. The bill would not regulate transactions below $25 and would not disturb existing obligations or cases that arose before the effective date.
Sentiment
The bill’s stated purpose and findings suggest generally favorable policy sentiment toward expanding payment options, improving consumer convenience, and reducing exclusion of unbanked and underbanked residents. No committee transcript or vote record is available in the provided materials, so there is no documented floor or committee debate to indicate opposition or support beyond the bill text itself. The measure was referred to the Senate Committee on Commerce and Consumer Protection (CPN), indicating it was still in early committee consideration.
Contention
The main likely point of contention is the balance between consumer access and business autonomy. Supporters would view the bill as promoting payment flexibility, fairness, and inclusion, while critics may argue it imposes operational burdens on small businesses, especially those that prefer cash for fee avoidance or accounting reasons. Another potential issue is the $25 threshold and the convenience-fee provision: businesses may support the ability to recoup processing costs, but consumers could object if card fees increase the cost of modest purchases. The bill also references tax compliance and illicit activity, which may be seen as a policy justification by supporters but could be disputed as an overbroad rationale for regulating payment methods.
A resolution to direct the Clerk of the House of Representatives to only present to the Governor enrolled House bills finally passed by both houses of the One Hundred Third Legislature.
Relating to nonsubstantive additions to, revisions of, and corrections in enacted codes, to the nonsubstantive codification or disposition of various laws omitted from enacted codes, and to conforming codifications enacted by the 88th Legislature to other Acts of that legislature.