The Senate has passed the Common Cents Act, a piece of legislation aimed at phasing out penny production and providing merchants with a standardised method to round cash transactions in the absence of pennies. This bill is now awaiting approval from President Donald Trump.
Significance for Merchants
This bipartisan bill marks a significant development for merchants who have been seeking clarity in processing cash transactions as pennies become less common. It grants a legal framework that allows them to round to the nearest nickel, although it does not impact electronic transactions.
The National Association of Convenience Stores (NACS) welcomed the bill, highlighting the importance of this guidance amid the declining circulation of pennies. Brennan Duckett, NACS’s director of regulatory and policy, expressed support in a press release, noting that Trump is expected to sign the bill soon.
Legislative Journey
The passage of the bill required two rounds of voting in both the House and the Senate. An amendment introduced in the Senate in August necessitated a second House vote earlier this month, followed by another Senate approval on Monday. The House version was backed by Representatives Lisa McClain from Michigan and Robert Garcia from California. Senators Cynthia M. Lummis and Kirsten Gillibrand sponsored the Senate version.
Industry Support
Dylan Jeon, vice president of government relations for the National Retail Federation, lauded the bill as a critical solution for retailers and urged prompt presidential approval. The bill promises much-needed consistency for businesses and consumers alike, and there is a strong push for it to be enacted without delay.
Additional Provisions
The legislation stipulates the final production of regular pennies, although they will continue as collectibles. The Treasury Department estimates an annual savings of $56 million from ceasing penny creation. Additionally, the bill calls for the department to consider more cost-effective materials for nickel coins, specifically replacing copper with zinc, to curb production expenses.
Massachusetts Senator Elizabeth Warren added an amendment that obliges the Treasury Department to notify Congress of any currency discontinuation and formulate a transition plan, prompting the subsequent legislative votes.
Senator Lummis expressed gratitude to her supporters via social media following the Senate’s ratification, signaling bipartisan cooperation and a stride toward improved financial practices.
Reporting based on coverage first published by retaildive.com.