Common Cents Act

This legislation, known as the "Common Cents Act," aims to modernize currency practices by ceasing the production of one-cent coins for general circulation. While existing pennies will remain legal tender , the Treasury will no longer mint new ones for everyday use, though they can still be produced as numismatic items. The bill also allows for modifications to the composition of the five-cent coin , potentially using an inner zinc layer and outer nickel layer, to reduce manufacturing costs, provided it minimally impacts coin-accepting machines. A key provision introduces a voluntary system for rounding cash transactions to the nearest five cents when exact change cannot be provided. Specifically, amounts ending in 1, 2, 6, or 7 cents are rounded down, while those ending in 3, 4, 8, or 9 cents are rounded up. Small transactions of $0.01 or $0.02 may be rounded up to $0.05. This rounding mechanism does not apply to non-cash transactions such as electronic transfers, checks, or credit cards. The bill includes provisions for rounding in favor of the customer in certain scenarios and mandates that employers, if they choose to round cash payments to employees, must round up to the nearest five cents. It also clarifies that adherence to these rounding provisions will not violate Federal, State, or Tribal laws, but explicitly states it does not excuse non-compliance with minimum wage or overtime requirements. To manage the transition, the Federal Reserve Board is required to submit a strategic plan and subsequent reports. These reports will outline how to limit disruptions in penny supply, evaluate the impact on low-income communities and the unbanked, and assess challenges related to implementing rounding practices. Finally, the bill establishes a formal process for discontinuing the minting of any coin for circulation, requiring comprehensive plans and congressional notification.