House prepares to consider penny clarity bill
The House is expected to consider updated, bipartisan legislation addressing the end of penny production as early as today. In a letter sent to House leaders Monday, America’s Credit Unions wrote in support of the bill.
The Common Cents Act (H.R. 3074) would:
- Establish a national framework for cash transaction rounding;
- Provide clarity regarding the treatment of federal, state, and Tribal laws on rounding;
- Require the Federal Reserve Board to develop a strategic plan and periodic reporting on coin terminal operations and the stability of the nation's coin distribution system.
“Maintaining a reliable coin supply is an important component of the broader payments ecosystem, particularly for members and small businesses that continue to rely on cash transactions,” America’s Credit Unions' letter reads, also encouraging the Fed to work with the NCUA and federal banking agencies to “clarify acceptable interim rounding practices for cash transactions, whether rounding should occur at the total bill rather than at the item level, whether sales tax should be calculated before or after rounding, and the types of receipt disclosures that are recommended, including the use of a separate rounding adjustment line.”
Working together, America’s Credit Unions, the American Association of Credit Union Leagues, and all State Leagues have engaged the Fed on the need for clarity following the end of penny production, in addition to previous engagement with Congress.