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Proposed Ordinance Related to Retail Transactions; Creating Section 18-1 of Hernando County Code to be Entitled “Prohibition on Imposing Surcharge for Use of Debit or Stored Value Cards Unless Cash is Also Accepted as Payment”; Prohibiting Retail Businesses From Refusing to Accept Cash Payments for Goods or Services
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BRIEF OVERVIEW
Procedural History
At Commissioner Champion’s request, the Board of County Commissioners, during its meeting of November 28, 2023, directed the County Attorney’s Office to draft a proposed ordinance that would prohibit retail businesses from operating on a “cashless” basis.
The Board first considered the proposed ordinance during its meeting on January 9, 2024 (previous Item No. 13345), but the Board postponed the item to January 23, 2024. On the latter date, the Board voted to defer this matter until such time as (1) staff could prepare a report on which of the County’s departments accepted, or do not accept, cash, and (2) the Legislature considered its own proposed bill on the same subject, i.e., CS/SB 106. (previous Item No. 13471). (Additionally, a plurality of the Commissioners stated that they wanted to reduce the number of exceptions in the proposed ordinance, but the Commissioners did not reach a consensus as to which exceptions should be removed.) Subsequently, Deputy County Administrator Toni Brady completed her report on the County’s cash acceptance policies and CS/SB 106 died in committee.
The Board once again considered the proposed ordinance on July 9, 2024 (previous Item No. 14128), but one Commissioner was absent, and the Board’s vote ended in a 2-2 tie. When the proposed ordinance came back before the Board on July 30, 2024 (previous Item No. 14255), it voted to reject it.
On February 24, 2026, the Board directed staff to place the proposed ordinance back on a future agenda for discussion purposes.
The Board then reconsidered the proposed ordinance on March 23, 2026 (previous item No. 17248). At that time, the Board reached a consensus to have the County Attorney’s Office redraft the proposed ordinance so that it prohibits retail businesses from adding a surcharge to debit card transactions unless the business also accepts cash as payment, and when so doing, incorporates therein the relevant federal and state laws on this subject. Finally, the Board directed the County Attorney’s Office to place the redrafted proposed ordinance on a future agenda.
This agenda item follows.
The Proposed Ordinance
The proposed ordinance creates Section 18-1 of the Hernando County Code. If enacted, the proposed ordinance will, effective January 1, 2027, prohibit a brick-and-mortar business from imposing a surcharge on a buyer who uses a debit or stored value card instead of another form of payment unless it will also accept cash from the buyer as payment for the transaction. The proposed ordinance will define “cash” as United States coins and currency. It will also incorporate by reference the applicable provisions of the governing federal law: the Durbin Amendment, 15 U.S.C. § 1693o-2, to the Electronic Fund Transfer Act (EFTA), 15 U.S.C. §§ 1693-1693r. Violations of the proposed ordinance will be prosecuted before a special master in accordance with Hernando County Code Chapter 2, Article III. Finally, the proposed ordinance will apply countywide unless the City of Brooksville enacts an ordinance in conflict with it, in which case the proposed ordinance will apply to the County’s unincorporated areas only.
To ensure that the proposed ordinance’s scope does not exceed the County’s regulatory authority or violate any state and federal laws, it will apply only to “brick-and-mortar businesses” selling or offering for sale consumer goods or services. It will not apply to businesses that do not operate out of a permanent physical presence in Hernando County (e.g., telephone, mail, or internet-based transactions), to businesses that operate out of a vehicle or mobile space (e.g., food trucks, etc.), to businesses that are operating out of a temporary physical premises (e.g., pop-up restaurants, tent sales, etc.), or to government entities. For the same reason, the proposed ordinance will exclude from its scope: (1) transactions at wholesale clubs that sell consumer goods and services through a membership model (e.g., Sam’s Club, etc.), (2) transactions at retail stores selling consumer goods exclusively through a membership model that requires payment by means of an affiliated mobile device application, (3) any transactions which the County is preempted from regulating by law (e.g., the sale of firearms, etc.), (4) professional services (e.g., doctors, lawyers, dentists, architects, etc.), and (5) parking facilities.
To provide businesses with the highest degree of advance notice, Staff suggests that the Board authorize an outreach campaign involving physical notifications or mailings to inform any businesses that may be impacted by the enactment of the proposed ordinance. If the Board authorizes such an outreach campaign, a corresponding budgetary allocation will be required to fund the effort; however, the cost of such a campaign is currently unknown.
FINANCIAL IMPACT
No financial impact.
LEGAL NOTE
The Board has the authority to discuss the proposed ordinance pursuant to Florida Statutes § 125.01.
recommendation
RECOMMENDATION
Not Applicable. This item presents an issue of pure public policy.