[Congressional Record Volume 172, Number 130 (Friday, August 7, 2026)]
[Senate]
[Pages S4586-S4588]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6766. Mr. MORENO (for Ms. Lummis (for herself and Mrs.
Gillibrand)) proposed an amendment to the bill S. 1525, to direct the
Secretary of the Treasury to stop minting the penny, to require cash
transactions to be rounded
[[Page S4587]]
up or down to the nearest 5 cents, and for other purposes; as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Common Cents Act''.
SEC. 2. SPECIFICATIONS OF 5-CENT COINS AND CEASING PRODUCTION
OF ONE-CENT COINS.
Section 5112 of title 31, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (5), by striking ``weighs 5 grams.'' and
inserting the following: ``weighs--
``(A) 5 grams, with respect to such coin that is an alloy
of copper and nickel; or
``(B) between 4 and 6 grams, with respect to such coin as
described in subsection (c).''; and
(B) in paragraph (6)--
(i) by striking ``except as provided under subsection (c)
of this section,''; and
(ii) by striking ``and weighs 3.11 grams'';
(2) in subsection (b)--
(A) in the sixth sentence--
(i) by inserting ``either'' before ``an alloy''; and
(ii) by inserting ``or a composition described in
subsection (c)'' before the period;
(B) by inserting ``with respect to such coins that are an
alloy of copper and nickel'' after ``nickel required''; and
(C) by striking ``Except'' through ``zinc'' and inserting
``The one-cent coin is composed of copper and zinc'';
(3) by amending subsection (c) to read as follows:
``(c) 5-cent Coin.--
``(1) In general.--The 5-cent coin may be a coin with an
inner layer of zinc and an outer layer of nickel.
``(2) Composition.--The Secretary may prescribe the
composition of zinc and nickel in the 5-cent coin, subject to
testing and evaluation that such composition--
``(A) reduces the cost incurred to produce such coin; and
``(B) to the greatest extent practicable, has a minimal
adverse impact on machines designed to accept coins.''; and
(4) by adding at the end the following:
``(bb) Ceasing Production of One-cent Coin.--
``(1) In general.--Notwithstanding any other provision of
law, the Secretary shall cease production of one-cent coins
for general circulation, but may continue to produce and
issue one-cent coins for sale as numismatic items.
``(2) No effect on legal tender.--Any one-cent coin that is
minted and issued on any date before the date of the
enactment of this subsection shall remain legal tender for
all debts, public charges, taxes, and dues.''.
SEC. 3. CASH TRANSACTION ROUNDING.
(a) In General.--Any person, including a financial
institution, selling goods or services in a cash transaction
or entering into any other transaction that results in a
payment or transfer of cash between the parties to the
transaction may, if exact change cannot be provided at that
time of such transaction, round the covered amount in the
following manner:
(1) Rounding down.--Except as provided in paragraph (2)(B),
in any case in which the covered amount ends with 1 cent, 2
cents, 6 cents, or 7 cents as the final digit, the amount of
cents in the sum may be rounded down to the nearest amount
divisible by 5 for any person seeking to make payment with
cash.
(2) Rounding up.--
(A) In general.--In any case in which the covered amount
ends with 3 cents, 4 cents, 8 cents, or 9 cents as the final
digit, the amount of cents in the sum may be rounded up to
the nearest amount divisible by 5 for any person seeking to
make payment with cash.
(B) Small transactions.--In any case in which the covered
amount totals $0.01 or $0.02, such amount may be rounded up
to $.05 for any person seeking to make payment with cash.
(b) Additional Authority to Round.--With respect to a
person, including a financial institution, conducting a cash
transaction with a customer of the person, the amount of
cents in the sum of the transaction may be rounded, if such
rounding is in favor of the customer, as follows:
(1) Up to the nearest amount divisible by 5, if the person
is paying the customer in cash.
(2) Down to the nearest amount divisible by 5, if the
customer is paying the person in cash.
(c) Employer Payments to Employees.--
(1) In general.--With respect to an employer providing a
cash payment to an employee in an amount that is not
divisible by 5 cents, if the employer chooses to round the
amount of cents in such payment, the employer shall round the
amount of cents in such payment up to the nearest amount
divisible by 5 cents.
(2) No rounding requirement.--Nothing in this subsection
may be construed to require rounding by an employer described
in paragraph (1) who provides a cash payment to an employee
in an exact amount.
(d) Application.--Subsections (a), (b), and (c) shall not
apply to any transaction for which payment is made by any
demand or negotiable instrument, electronic fund transfer,
check, gift card, money order, credit card, or other like
instrument or method.
(e) Rule of Construction.--Nothing in this Act may be
construed to require any person to round a payment as
described in subsections (a) or (b).
(f) Covered Amount Defined.--In this section, the term
``covered amount'' means--
(1) the total transaction amount, including taxes; or
(2) in the case of a person selling goods or services in a
cash transaction or entering into any other transaction that
results in a payment or transfer of cash between the parties
to the transaction, the amount of change due to the customer
if the customer provides a cash payment that exceeds the
total transaction amount, including taxes.
SEC. 4. TREATMENT OF FEDERAL, STATE, AND TRIBAL LAW WITH
RESPECT TO CASH TRANSACTION ROUNDING.
(a) Federal Law.--Any person selling goods or services in a
cash transaction, including a financial institution, entering
into any other transaction that results in a payment or
transfer of cash between the parties to the transaction shall
not be in violation of any Federal requirement, law,
regulation, or standard based on the adherence to the cash
rounding provisions described in section 3.
(b) State and Tribal Law.--Any person selling goods or
services in a cash transaction, including a financial
institution, entering into any other transaction that results
in a payment or transfer of cash between the parties to the
transaction shall not be in violation of any requirement,
law, regulation, or standard of a State, Tribe, or a
political subdivision of a State based on the adherence to
the cash rounding provisions described in section 3.
(c) Rule of Construction.--Nothing in this Act or of any
order thereunder shall excuse noncompliance with any Federal,
State, Tribal, or local law, regulation, ordinance, or
requirement establishing a minimum wage, providing for
overtime pay requirements, or providing for paid leave.
SEC. 5. STRATEGIC PLAN AND REPORT ON COIN TERMINAL OPERATIONS
AND COIN DISTRIBUTION STABILITY.
(a) Strategic Plan and Report.--Not later than 90 days
after the date of the enactment of this Act, the Board of
Governors of the Federal Reserve System shall submit to the
covered committees and make publicly available a report that
outlines a strategic plan for the acceptance of penny orders
and deposits at commercial coin terminals providing services
under agreements with the Federal reserve banks nationwide,
including--
(1) a description of the Board's approach to limiting
disruptions in penny supply and maintaining the stability of
and efficiency of the coin distribution system, to the
greatest extent practicable;
(2) an evaluation of such coin terminals where the Federal
reserve banks no longer accept penny deposits or penny
orders;
(3) an assessment of whether processing penny deposits or
penny orders at such coin terminals could mitigate any
challenges related to ceasing the production of the penny,
including challenges related to the implementation of
rounding practices;
(4) an assessment by the Secretary of the Treasury, which
the Secretary shall conduct and deliver to the Board not less
than 60 days after the date of enactment of this Act--
(A) on the impact of penny supply and demand disruptions,
and rounding practices for check cashing, on low-income
communities, older consumers, debanked, unbanked, and
underbanked individuals, including feedback from State or
local entities; and
(B) that includes recommendations to the Congress to
address any adverse impacts identified under subparagraph
(A); and
(5) any additional considerations the Board determines
relevant to maintaining penny distribution stability.
(b) Evaluation.--
(1) In general.--Not later than 6 months after submission
of the report required under subsection (a), the Board of
Governors of the Federal Reserve System shall submit to the
covered committees and make publicly available a report that
evaluates the progress of implementing the strategic plan
described in subsection (a), including--
(A) any material changes to the plan; and
(B) any identified or emerging stress in the penny
distribution system.
(2) Successive reports.--The Board of Governors of the
Federal Reserve System shall submit to the covered committees
and make publicly available 2 additional reports that
evaluate the progress described in paragraph (1) on dates
that are not later than--
(A) 18 months after the submission of the report required
under subsection (a); and
(B) 30 months after the submission of the report required
under subsection (a).
SEC. 6. DISCONTINUATION OF CIRCULATION OF COINS.
Section 5111 of title 31, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (3), by striking ``and'' at the end;
(B) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(5) may discontinue the minting for circulation of any
coin that is described in paragraph (1) (and that is minted
for circulation, as of the date of enactment of this
paragraph) only in accordance with the procedures described
in subsection (e).''; and
(2) by adding at the end the following:
``(e) Discontinuation.--
``(1) Definition.--In this subsection, the term `covered
committees' means--
``(A) the Committee on Banking, Housing, and Urban Affairs
of the Senate; and
[[Page S4588]]
``(B) the Committee on Financial Services of the House of
Representatives.
``(2) Requirements.--The Secretary of the Treasury may not
discontinue the minting for circulation of a coin described
in subsection (a)(5) unless the Secretary--
``(A) not later than 60 days before that discontinuation,
and in coordination with the Director of the United States
Mint, submits to the covered committees notice regarding that
discontinuation, which shall include--
``(i) a description of the reasoning for that
discontinuation, including fiscal and operational
considerations; and
``(ii) a comprehensive plan for phasing out the circulating
coin, taking into consideration--
``(I) the potential impacts of that discontinuation on
consumers and businesses; and
``(II) the potential economic impacts of that
discontinuation; and
``(B) not later than 30 days after the date on which the
Secretary submits the notice required under subparagraph (A),
provides a briefing to the covered committees regarding the
plan for implementing that discontinuation.''.
SEC. 7. DEFINITIONS.
In this Act:
(1) Covered committees.--The term ``covered committees''
means--
(A) the Committee on Financial Services of the House of
Representatives; and
(B) the Committee on Banking, Housing, and Urban Affairs of
the Senate.
(2) Financial institution.--The term ``financial
institution'' means any person, other than an individual, the
business of which is engaging in financial activities in
section 4(k) of the Bank Holding Company Act of 1956 (12
U.S.C. 1843(k)).
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