Prohibiting deductions for credit card transaction processing fees from employee tips.

The bill number changed from H-0803.1 to H-1795.1, and the reading date was updated from January 27, 2025, to February 28, 2025.

The act's description was expanded to explicitly mention adding a new chapter to Title 19 RCW, creating a new section, prescribing penalties, and setting an effective date.

A new section was added defining critical payment industry terms such as 'acquirer bank,' 'authorization,' 'clearance,' 'debit card,' 'electronic payment transaction,' and 'processing fee.'

New requirements mandate that merchants transmit gratuity amounts to payment processors during the transaction to avoid fees, and provide a 180-day window for merchants to submit documentation to recover fees if they fail to do so initially.

New penalties were established, including a $1,000 civil penalty per transaction for payment networks that violate the fee prohibition and a requirement for issuers to refund overcharged fees.

The act now specifies an effective date of July 1, 2026, and includes a provision that the act becomes null and void if specific funding is not provided by June 30, 2025.