Commission backs repeal of San Francisco's cash-acceptance mandate, 6-1

The Small Business Commission voted 6-1 to support Board of Supervisors legislation that would repeal Article 55 of the Police Code, which currently requires most brick-and-mortar businesses in San Francisco to accept cash.

Melanie Mathewson, legislative aide to Supervisor Mandelmann, told commissioners the repeal would not ban cash but would restore choice to small business owners who say handling cash increases robbery risk, insurance costs, and employee safety concerns. Mathewson cited the Office of Financial Empowerment's Bank on San Francisco program, saying the city's unbanked rate has declined since the City's outreach efforts began.

Commissioners probed data and equity risks. Commissioner Cornett noted concerns raised by advocates such as the NAACP that requiring businesses to accept cash addresses exclusion of unbanked customers, and asked whether the increase in storefront burglary since 2019 was specifically tied to cash robberies; Mathewson said she did not have breakdowns by cash versus merchandise theft and would follow up.

Commissioner Herbert moved to support the repeal and President Huey seconded. On roll call six commissioners voted to support the repeal and Vice President Zazunas opposed, leaving the commission in favor by 6-1.

Mathewson and commissioners discussed outreach and technical support through the Office of Financial Empowerment for people who are unbanked and flagged related operational issues, such as CRV buyback sites and the need to ensure some merchants would continue to keep cash depending on their clientele.