Tennessee bill addresses penny transactions

A bill moving through the General Assembly will help businesses adapt when pennies are no longer in circulation.The U.S. Mint stopped producing pennies in November. While the coin was worth just 1 cent, it took 3.5 cents to make a penny.
State legislatures are responsible for determining how businesses can make exact change for cash transactions if pennies are unavailable.
The House of Representatives approved a bill by Murfreesboro Republican Charlie Baum that would round transactions to the nearest nickel.
House Bill 1744 says that transactions of 1 to 5 cents or 5 to 6 cents could be rounded down to the nearest 5-cent interval. Anything 3 cents or more, or between 7 and 9 cents, would be rounded up to the closest 5-cent interval, according to the bill. Retailers are not mandated to round to the nearest nickel, but the bill offers them protection if they are challenged.
“By having this permissive rounding system in our code, private companies can rely on it and they will not be liable under the 1977 Consumer Act,” Baum said when presenting the bill to the House.
The 1977 Consumer Act was passed by the General Assembly to protect consumers from unfair and deceptive business practices.
The bill only applies to cash transactions. Businesses would be required to remit the exact amount of taxes as recorded, even if some cash transactions were rounded up or down, according to the bill.
All blank pennies were made at the Greenville manufacturer Artazn, said David Hawk, a Republican representing that district.
“It has been a job issue for my district in particular, that the penny has gone away,” Hawk said.
The House passed the bill 88-1. The Senate Labor and Commerce Committee approved that chamber’s version of the bill. It is on the Senate Calendar for Monday.

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