In the nature of a substitute.

The Common Cents Act is an amendment intended to stop the production of the one-cent coin for general circulation and establish new rules for cash transactions.

Changes and Additions

• Coin Production: It directs the Secretary of the Treasury to stop minting pennies for general circulation, though they can still be made as numismatic items. It also updates the specifications and allows for new compositions of the 5-cent coin to reduce production costs.
• Cash Rounding: It allows people and financial institutions to round cash transactions to the nearest 5 cents if exact change is unavailable. It specifies that:
  • Amounts ending in 1, 2, 6, or 7 cents may be rounded down.
  • Amounts ending in 3, 4, 8, or 9 cents may be rounded up.
  • Amounts of $0.01 or $0.02 may be rounded up to $0.05.
  • Employers rounding cash payments to employees must round up.
• Legal Protections: It states that following these rounding provisions does not violate Federal, State, or Tribal laws, though it does not excuse violations of minimum wage, overtime, or paid leave laws.
• Reporting and Oversight: It requires the Board of Governors of the Federal Reserve System to create a strategic plan and submit multiple reports regarding coin distribution stability and the impact of penny discontinuation on various populations, including low-income and unbanked individuals.
• Future Discontinuations: It sets a process for the Secretary of the Treasury to discontinue any other circulating coins, requiring notice and a briefing to the covered committees.