H.R. 3074: Common Cents Act

This bill, officially known as the Common Cents Act, proposes two main changes to U.S. currency management:

Elimination of the Penny

The first major component of the bill is to stop the production of one-cent coins, commonly known as pennies. The Secretary of the Treasury would be required to cease minting these coins within one year of the bill's enactment. However, there is an exception that allows for the production of pennies specifically for numismatic purposes, which means those intended for coin collectors. Any pennies produced would need to cover their production costs through the sale price.

Importantly, this part of the bill clarifies that although the production of pennies would stop, all coins, including existing one-cent coins, will still be considered legal tender for any debts or transactions as required by law.

Cash Transaction Rounding

The second significant change introduced by the bill involves regulations on cash transactions. When goods or services are sold for cash, or when cash is used for employee wages, the total amount that customers need to pay would be rounded either up or down to the nearest five cents, depending on the last digit of the total amount:

• If the total ends in 1 cent, 2 cents, 6 cents, or 7 cents, it would be rounded down to the nearest 5 cents.
• If it ends in 3 cents, 4 cents, 8 cents, or 9 cents, it would be rounded up to the nearest 5 cents.

The bill also includes a few exceptions to this rounding rule. For example, if a transaction total is $0.01 or $0.02, it will be rounded up to $0.05. Furthermore, rounding rules would not apply to transactions conducted via electronic payment methods, checks, or other similar payment forms.

This rounding provision will take effect one year after the bill is enacted.

Conclusion

Overall, the Common Cents Act aims to simplify cash transactions and reduce costs associated with producing pennies, while ensuring existing coins remain valid for transactions.

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