A provision in HB191 will require Maryland retailers to accept cash for essential goods during specific hours—and violations carry significant fines.
Most Maryland retail owners haven't heard of it yet, but a buried provision in HB191 will reshape how they handle payments starting next fall. The law requires merchants selling essential goods to accept cash—no surcharge, no exceptions—during daytime hours, with penalties up to $500 per violation for non-compliance.
Here's what you need to know.
Effective October 1, 2026, any small retail establishment in Maryland that sells food, water, beverages, hygiene products, health products, or fuel must accept cash at face value for in-person transactions between $0 and $300. The requirement applies only during daytime hours: 6 a.m. to 10 p.m.
The provision appears in Section 14-1330(C) of HB191 and applies specifically to "essential consumer goods"—a category that covers most convenience stores, grocery stores, gas stations, and pharmacies.
The key constraint: you cannot charge a surcharge or fee for paying with cash. The price advertised is the price you accept in cash.
If your business falls into any of these categories, the rule applies:
The rule does not apply to transactions over $300 or to sales made outside the 6 a.m.–10 p.m. window. It also does not require you to accept cash for online or phone orders—only in-person transactions.
This provision directly affects three operational areas:
Cash handling: You'll need adequate till capacity, secure storage, and reliable cash-counting procedures. If you've minimized cash handling to reduce theft or labor, you may need to reverse course.
Staffing:
You'll need trained personnel available during all operating hours to process cash transactions, make change accurately, and reconcile drawers—adding labor costs and training requirements.Compliance risk: Violations carry civil fines up to $500 per incident. Repeat violations increase to $1,000. For a busy store processing hundreds of transactions daily, the exposure is substantial.
You have roughly 18 months to prepare. The law takes effect October 1, 2026. That window is enough time to audit your current cash infrastructure, assess staffing needs, and make necessary changes—but only if you start planning now.
If you operate multiple locations, each store's compliance is tracked separately, so violations at one location don't shield others.
Review your current cash-handling procedures and staffing model. Identify gaps between what you do today and what the law requires. If you accept mostly card payments or operate cashless, you'll face the largest adjustment.
The Maryland Retailers Association and other trade groups have published detailed guidance on compliance requirements and best practices for cash management under the new rule.
This summary reflects the text of HB191, Section 14-1330(C), effective October 1, 2026. Retailers should consult legal counsel for questions about their specific operations.