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Home My WebLink About2024-20 - Adding Chapter 5.98 (Acceptance of Cash by Brick-And-Mortar Businesses) to the Newport Beach Municipal CodeORDINANCE NO. 2024-20 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADDING CHAPTER 5.98 (ACCEPTANCE OF CASH BY BRICK -AND -MORTAR BUSINESSES) TO THE NEWPORT BEACH MUNICIPAL CODE WHEREAS, Section 200 of the City Charter, of the City of Newport Beach ("City"), vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the City Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges or procedures granted or prescribed by any law of the State of California; WHEREAS, the City strives to be a welcoming, inclusive place that allows all residents and visitors to participate in the Newport Beach economy; WHEREAS, a key aspect of participation in economic life is the ability to purchase goods and services; WHEREAS, for many consumers, especially visitors to Newport Beach, the ability to engage in consumer transactions depends on the ability to pay for goods and services in cash; WHEREAS, existing federal law provides that United States coins and currency, including, but not limited to, federal reserve notes, are legal tender for all debts, public charges, taxes, and dues; WHEREAS, legitimate concerns exist concerning tracking of credit card purchases, privacy of purchases tied to electronic means, and access to banking; WHEREAS, some businesses in Newport Beach have refused to allow people to purchase goods and services with cash, thereby excluding people from participating in the City's economic life; and WHEREAS, the City Council desires to amend the Newport Beach Municipal Code to ensure that residents and visitors are not excluded from participating in the Newport Beach economy and can purchase goods and services from brick -and -mortar businesses located in the City that are open to the public. Ordinance No. 2024-20 Page 2 of 6 NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The Table of Contents for Title 5 of the Code is hereby amended in its entirety and shall read as follows: Title 5 BUSINESS LICENSES AND REGULATIONS* Chapters: 5.04 General Provisions 5.08 License Fee Categories 5.11 Special Regulations 5.12 Vehicles for Hire 5.14 Ambulance Regulations 5.15 Regulation of Newport Beach Police Official Tow Services 5.17 Taxicabs 5.20 Pawnbrokers, Secondhand Dealers and Junk Dealers 5.25 Operator License for Establishments Offering Alcoholic Beverages for On -Site Consumption in Combination With Late Hours, Entertainment, and/or Dance 5.28 Live Entertainment Establishments 5.32 Cafe Dances 5.36 Hotel Registration 5.42 Solicitation 5.43 State Video Franchises 5.44 Cable Communications Franchises 5.46 Regulation of Commercial Film Production 5.48 Direct Alarm Monitoring System 5.49 Burglary —Robbery Alarm Systems 5.50 Massage Establishments 5.60 Paramedic Service User Fees 5.70 Newspaper Racks and Stands 5.80 Retail Sale of Firearms 5.90 Escort Service 5.95 Short Term Lodging Permit 5.96 Adult Oriented Business 5.97 Sidewalk Vending Program 5.98 Acceptance of Cash by Brick -and Mortar Businesses Ordinance No. 2024-20 Page 3 of 6 * Enforcement of regulations by Finance Director —See Chapter 2.12. Soliciting business in prohibited manner —See Chapter 5.42. Registration of rented or sold bicycles —See Chapter 12.56. Section 2: Chapter 5.98 is hereby added to the Newport Beach Municipal Code and shall read as follows: Chapter 5.98 ACCEPTANCE OF CASH BY BRICK -AND -MORTAR BUSINESSES Sections: 5.98.010 Definitions. 5.98.020 Brick -and -Mortar Businesses Required to Accept Cash. 5.98.030 Exceptions. 5.98.040 Enforcement and Penalties. 5.98.010 Definitions. For the purposes of this chapter, the following words and phrases shall have the meaning set forth in this section: "Brick -and -mortar business" shall mean any place of business operating at a fixed, permanent physical premises in the City, which is open to the public, that offers for sale to the public for consumption or use, on or off the premises, food or beverages, any consumer service, or goods, merchandise, products, clothes, shoes, or commodities. "Cash" shall mean United States coins and currency, including federal reserve notes. Cash does not include foreign currency, any paper instrument other than a federal reserve note, including, but not limited to, any check, bond, or promissory note, or any foreign metal coin. "Consumer service(s)" shall mean any services that are offered to individuals at the brick -and -mortar business premises including, but not limited to, personal services, entertainment, fitness, tanning, printing and business services, pet care, nail care, haircuts, beauty treatments, tailoring of clothes, dry cleaning, car washing, shoe repair, tutoring, and automobile maintenance/repair. Consumer services shall not include Ordinance No. 2024-20 Page 4 of 6 services provided by doctors, dentists, physical therapist, and nurses, services provided at a person's residence, such as, construction, home repair, plumbing, cleaning, and landscaping, or professional services. "Professional service(s)" shall mean any service that requires specialized education, knowledge, labor, judgment, and skill and is predominantly mental or intellectual, such as those services provided by accountants, architects, attorneys, engineers, financial advisers, insurance agents, interior designers, management consultants, other consultants, and software developers. 5.98.020 Brick -and -Mortar Businesses Required to Accept Cash. A. Except as set forth in Section 5.98.030, every brick -and -mortar business within the City must accept payment in cash, if offered, for any transaction involving the purchase of food or beverages, any consumer service, or goods, merchandise, products, clothes, shoes, or commodities, if the person seeking to engage in that transaction is physically present at the place of business. B. Except as set forth in Section 5.98.030, a brick -and -mortar business may not charge a fee or place any other condition on its acceptance of cash as required by subsection (A). 5.98.030 Exceptions. A. Suspected Counterfeit Currency. A brick -and -mortar business may refuse to accept cash that the business reasonably suspects to be counterfeit. B. Large Denominations. A brick -and -mortar business may refuse to accept cash in any denomination larger than a fifty -dollar note but shall otherwise accept any combination of federal reserve notes and metal coins in connection with any transaction. C. Single Transactions above $5,000. Where a single transaction involves the purchase of one or more goods and/or services, the total price of which (including tax) exceeds $5,000, a brick -and -mortar business shall accept cash that is proffered as payment for any amount up to $5,000 but may refuse to accept cash as payment for the remainder of the amount due. Ordinance No. 2024-20 Page 5 of 6 D. Online, Phone, and Mail Transactions. It shall not be a violation of Section 5.98.020 for a brick -and -mortar business to refuse to accept cash if the person is not physically present and the transaction is conducted completely online, by phone, or mail. E. Pay Stations and Vending Machines. It shall not be a violation of Section 5.98.020 for a brick -and -mortar business to refuse to accept cash for transactions for parking at a parking pay station/meter, or purchases from vending machines including, but not limited to, transactions involving pre -paid card dispensing machines. 5.98.40 Enforcement and Penalties. A. No Worker Liability. The owner or owner(s) of any brick -and -mortar business shall be liable for ensuring that the business and its employees and independent contractors comply with the obligations set forth in this chapter. No employee or independent contractor working at a brick -and -mortar business shall be held liable for any violation of this chapter. B. Any violation of this chapter shall be an infraction. Section 3: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 4: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 5: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Ordinance No. 2024-20 Page 6 of 6 Section 6: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. Section 7: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective March 31, 2025. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 10th day of September, 2024, and adopted on the 24t" day of September, 2024, by the following vote, to -wit: AYES: Mayor O'Neill Mayor Pro Tern Stapleton, Councilmember Blom, Councilmember Grant Councilmember Kleiman, Councilmember Weigand NAYS: ABSENT: Councilmember Avery ATTEST: WILL O'NEILL, MAYOR T /I ►_ /'N® LEILANI I. BROWN, PITY CLERK APPROVED AS TO FORM: ��fiORN�P CITY ATTORNEY'S OFFICE - Aff", ..."C �� AARON C. HARP, ITY ATTORNEY STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing ordinance, being Ordinance No. 2024-20 was duly introduced on the loth day of September, 2024, at a regular meeting, and adopted by the City Council at a regular meeting duly held on the 24th day of September, 2024, and that the same was so passed and adopted by the following vote, to wit: AYES: Mayor Will O'Neill, Mayor Pro Tern Joe Stapleton, Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember Erik Weigand NAYS: None ABSENT: Councilmember Brad Avery IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 25'h day of September, 2024. SEW P�� Leilani I. Brown, MM !— City Clerk City of Newport Beach, California Wig, " �ql CERTIFICATE OF PUBLICATION STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that Ordinance No. 2024-20 has been duly and regularly published according to law and the order of the City Council of said City and that same was so published in The Daily Pilot, a newspaper of general circulation on the following dates: Introduced Ordinance: September 14, 2024 Adopted Ordinance: September 28, 2024 In witness whereof, I have hereunto subscribed my name this day of October, 2024. Leilani 1. ': . City