On Tuesday, the House of Representatives passed the Common Cents Act, which would introduce rounding guidelines for cash transactions when exact change is unavailable and would legally end penny production other than for sale as numismatic or collection items.
For small-amount transactions worth $0.01 or $0.02, the amount may be rounded up to $0.05 for those seeking to pay with cash.
The U.S., under President Donald Trump, bid the penny goodbye last year, as the cost to make one cent is nearly 3.7 times its face value. But while the government has stopped manufacturing new pennies for circulation, the Treasury Department said the Federal Reserve will still recirculate roughly 114 billion pennies “for as long as possible.”
The National Restaurant Association argues that many restaurant operators, out of fear of possible litigation, have opted to round down costs to the nearest nickel when exact change wasn’t available. A prolonged period of rounding down could cost restaurants up to $168 million yearly, the association added.
Industry groups lauded the passage of the Common Cents Act, a bipartisan effort sponsored by Reps. Robert Garcia (D, Calif.) and Lisa McClain (R, Mich.). The bill now heads to the Senate.
Sean Kennedy, chief advocacy officer at the National Restaurant Association, said in a statement that the bill’s passage could reduce “unnecessary friction between restaurants and the guests they serve” and inject “a degree of uniformity into the most basic transactions involved in running a restaurant.”
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