{"id":47257,"date":"2021-04-21T18:03:32","date_gmt":"2021-04-22T00:03:32","guid":{"rendered":"https:\/\/dh.durangoherald.com\/tj\/colorado-businesses-may-be-required-to-accept-cash\/"},"modified":"2026-03-31T03:37:41","modified_gmt":"2026-03-31T09:37:41","slug":"colorado-businesses-may-be-required-to-accept-cash","status":"publish","type":"post","link":"https:\/\/dh.durangoherald.com\/tj\/colorado-businesses-may-be-required-to-accept-cash\/","title":{"rendered":"Colorado businesses may be required to accept cash"},"content":{"rendered":"\n

\"A
A masked Courtney Limmer pays general manager Ashley Magy in cash for her drink at Fika Coffee House in Parker. The Main Street business asked customers not to use cash earlier in the pandemic for safety reasons.<\/span>Kevin Simpson\/The Colorado Sun file<\/span><\/figcaption><\/figure>\n<\/p>

Colorado businesses could be fined up to $250 if they refuse to accept cash for goods and services under a bill that cleared the state Legislature on Tuesday and is headed to Gov. Jared Polis\u2019 desk.<\/p>\n

The measure from state Rep. Alex Valdez and state Sen. Robert Rodriguez, who are both Denver Democrats, would make turning down cash a Class 2 petty offense.<\/p>\n

Valdez and Rodriguez introduced House Bill 1048 after a constituent came to Rodriguez after struggling to find a business that would accept their cash.<\/p>\n

\u201cA large percentage \u2013 19% of the state \u2013 is underbanked. Five percent to 7% is unbanked completely,\u201d Valdez said. Underbanked refers to people with bank accounts that also tap into alternative financial services like short-term payday lenders and prepaid debit cards. Unbanked refers to people who don\u2019t use banks or financial services at all. \u201cAnd that doesn\u2019t even count folks that are undocumented.\u201d<\/p>\n

Fears early on in the pandemic that COVID-19 could spread via paper money and coins led more Coloradans to shop with credit cards and more businesses to adopt contactless payment. Combined with a shift to digital transactions, some businesses might be reluctant to take paper money and change during a pandemic, Valdez said.<\/p>\n

House Bill 1048 passed by a 47-18 vote in the state House and by 21-13 in the state Senate. Some Republican legislators opposed the bill, arguing that the fines are too onerous and that the state shouldn\u2019t be interfering in the decisions of private businesses.<\/p>\n

State Sen. Larry Liston, R-Colorado Springs, said he initially supported the bill under the \u201ccash is king\u201d mantra. But he changed his mind, pointing to the up to $250 fine per attempted transaction.<\/p>\n

\u201cThe fine is too great,\u201d Liston said.<\/p>\n

\"A
A masked Courtney Limmer pays general manager Ashley Magy in cash for her drink at Fika Coffee House in Parker. The Main Street business asked customers not to use cash earlier in the pandemic for safety reasons.<\/span>Mark Lennihan\/Associated Press file<\/span><\/figcaption><\/figure>\n<\/p>

Sen. Rob Woodward, R-Larimer County, called the measure \u201can attack on small business.\u201d<\/p>\n

\u201cIf you are a small business owner, it should be up to you how you want to take payment,\u201d he said. \u201cFor some, they may want chicken or eggs or credit cards, what have you.\u201d<\/p>\n

Woodward added that retailers could incur health risks, pointing to Centers for Disease Control and Prevention guidance saying cash could carry the coronavirus.<\/p>\n

Studies have shown that bills and coins in circulation can accumulate hundreds of varieties of microbes, bacteria and viruses. But the CDC has since said the primary mode of coronavirus transmission takes place \u201cthrough exposure to respiratory droplets carrying infectious virus.\u201d<\/p>\n

A handful of groups including the Colorado Hotel and Lodging Association and National Federation of Independent Businesses opposed the measure.<\/p>\n

\u201cBusinesses know which form of payment they want to accept, and they should be able to accept that,\u201d said Tony Gagliardi, Colorado\u2019s director at the National Federation of Independent Business. \u201cThey should not be dictated by government.\u201d<\/p>\n

Valdez said the measure is meant to ensure cash remains a viable method of payment. The bill\u2019s fiscal note expects very few violations of the new law and resulting fines. He added that he and his fellow legislators worked to reconcile issues that came from hesitant groups.<\/p>\n

\u201cWe worked it out with the stakeholders that had concerns with the bill, like rental cars and hotels and folks that needed security deposits,\u201d Valdez said. \u201cThey were really the only folks that had concerns.\u201d<\/p>\n

The bill allows exemptions for businesses that require that a security deposit be placed on a credit card. Businesses that have a machine that allows consumers to turn cash into a prepaid card are also exempt.<\/p>\n

The Colorado Fiscal Institute was one of several organizations that backed the measure. Carol Hedges, who leads the group, testified in support.<\/p>\n

\u201cSo many Coloradans do not have access to credit cards, debit cards and gift cards,\u201d she said.<\/p>\n

Hedges added that people who rely on cash are often younger individuals, many of whom might not be old enough to open a bank account. She also said low-income individuals and people of color tend to use cash more than their white and wealthier counterparts.<\/p>\n

It\u2019s not clear if Polis will sign the bill into law. \u201cThe governor will review the final bill when it reaches his desk,\u201d a spokesperson said.<\/p>\n

Valdez said he didn\u2019t have insight into Polis\u2019 decision-making. The governor or his staff will often let lawmakers know if legislation is likely to be vetoed or signed into law.<\/p>\n

\u201cI don\u2019t know what the governor is going to do, but I don\u2019t see any reason for him not to (sign),\u201d Valdez said.<\/p>\n

If Polis signs the bill, it would go into effect 90 days after the Legislature adjourns its 2021 lawmaking term, a date that would likely fall in early to mid-September.<\/p>\n

The Colorado Sun is a reader-supported, nonpartisan news organization dedicated to covering Colorado issues. To learn more, go to coloradosun.com<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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