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House Advances Bill That Would Settle Penny Issue
Newser • • business
Key Points:
- The House approved the Common Cents Act, which proposes ending penny production and allowing cash transactions to be rounded to the nearest five cents; the bill now moves to the Senate.
- Under the bill, totals ending in 1, 2, 6, or 7 cents would be rounded down, while those ending in 3, 4, 8, or 9 cents would be rounded up, with existing pennies remaining valid.
- Supporters, including the National Restaurant Association, argue that the federal standard is necessary due to penny shortages causing legal risks for businesses unable to provide exact change.
- The bill also permits the production of a more cost-effective nickel, provided it remains compatible with vending machines.
