The National Grocers Association has applauded the U.S. House of Representatives for passing the bipartisan Common Cents Act, legislation providing retailers clear legal authority and protections to round cash transactions to the nearest nickel, and urged the Senate to act swiftly on the measure.
The House passed the bill, H.R. 10167, by voice vote Sept. 14, moving Congress closer to resolving a legislative tangle that has left grocers rounding without federal protection for nearly a year. The chamber’s earlier version passed in July and the Senate approved its own companion in August, but because the two chambers acted on different bill numbers, neither reached the President; the new consolidated measure, introduced by Reps. Lisa McClain, R-Michigan, and Robert Garcia, D-California, in late August, folds the rounding framework together with Federal Reserve reporting requirements, a consumer-impact review and authority to test a lower-cost nickel composition, and now requires Senate passage to become law.
The U.S. Mint ended penny production last year, and Federal Reserve coin distribution centers nationwide have reported significant shortages, making it difficult for many retailers to provide exact change and prompting rounding practices without clear legal protections or guidance.
“Independent grocers serve communities and millions of shoppers nationwide each day, and the sudden shortage of pennies created significant operational hurdles and legal uncertainty for retailers large and small,” said Stephanie Johnson, NGA senior VP and head of government affairs. “NGA thanks Reps. McClain and Garcia for their leadership on the Common Cents Act and for recognizing the need for a clear, national framework as pennies fall out of circulation. We now urge the Senate to pass this important legislation and provide relief and certainty to independent grocers.”
Under the legislation’s rounding framework, cash totals ending in 1, 2, 6 or 7 cents would round down to the nearest nickel, while totals ending in 3, 4, 8 or 9 cents would round up, with rounding applying only to cash transactions, not card, check or electronic payments.
NGA represents the retail and wholesale community grocers of the independent sector, which generates more than $250 billion in sales and 1.1 million jobs.
Related: Common Cents Act: 4 Things Grocers Should Know About Nickel Rounding