In the nature of a substitute.

The Common Cents Act aims to stop the production of the one-cent coin for general circulation and establish a system for rounding cash transactions.

Key Changes and Additions:

• One-Cent Coin: The Secretary of the Treasury must stop producing pennies for general circulation, though they may still be made for sale as numismatic items. Pennies minted before this act remain legal tender.
• Five-Cent Coin: The amendment updates the specifications for the 5-cent coin, allowing for a composition of zinc and nickel to reduce production costs.
• Cash Rounding: Because exact change may not be available, the act allows cash transactions to be rounded to the nearest 5 cents.
  • 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 who choose to round cash payments to employees must round up to the nearest 5 cents.
  • These rounding rules do not apply to electronic transfers, checks, credit cards, or gift cards.
• Legal Protections: People and financial institutions following these rounding rules will not be in violation of Federal, State, or Tribal laws. However, this does not excuse any failure to comply with minimum wage, overtime, or paid leave laws.
• Reporting and Oversight: The Federal Reserve Board must create a strategic plan and provide reports on coin distribution stability and the impact of these changes on low-income, older, and unbanked individuals.
• Future Discontinuations: The act sets a process for the Secretary of the Treasury to discontinue other circulating coins, requiring notice and a comprehensive phase-out plan to be submitted to specific House and Senate committees.