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Bill
Notes

S. 1525 — what changed

Common Cents Act

From Introduced in Senate to Engrossed in Senate. 2 sections amended and 4 added between Introduced in Senate and Engrossed in Senate.

Sec. 2 Specifications of 5-cent coins and ceasing production of one-cent coins

added Section 5112 of title 31, United States Code, is amended—

(1)
added in subsection (a)—
(a)
removed Elimination— Except as provided in subsection (b), and notwithstanding any other provision of law (including section 5112(a)(6) of title 31, United States Code), beginning on a date that is not later than 1 year after the date of enactment of this Act, the Secretary of the Treasury shall cease minting and issuing one-cent coins.
(b)
removed Exception—
(A)
changed In general— On and after the date described in subsection (a), the Secretary of the Treasury shall continue to mint paragraph (5), by striking “weighs 5 grams.” and issue one-cent coins as appropriate solely to meet the needs of numismatic collectors of inserting the one-cent coin.following:

added “(A) 5 grams, with respect to such coin that is an alloy of copper and nickel; or

added “(B) between 4 and 6 grams, with respect to such coin as described in subsection (c).”

(B)
changed Sale— Any one-cent coin minted and issued under this subsection shall be sold in accordance with section 5132(a) of title 31 United States Code, and any other provisions of law governing numismatic coins.paragraph (6)—
(i)
added by striking “except as provided under subsection (c) of this section,”; and
(ii)
added by striking “and weighs 3.11 grams”;
(3)
removed Net receipts— The net receipts from the sale of a one-cent coin minted and issued under this subsection shall equal or exceed the total cost of production, including variable costs and the appropriate share of fixed costs of production, as determined by the Secretary of the Treasury.
(2)
changed No effect on legal tender— All coins and currencies of the United States, including one-cent coins, regardless of when coined, printed, minted, or issued, shall continue to be legal tender for all debts, public and private, public charges, taxes, duties, and dues, in accordance with law.subsection (b)—
(A)
added in the sixth sentence—
(i)
added by inserting “either” before “an alloy”; and
(ii)
added by inserting “or a composition described in subsection (c)” before the period;
(B)
added by inserting “with respect to such coins that are an alloy of copper and nickel” after “nickel required”; and
(C)
added by striking “Except” through “zinc” and inserting “The one-cent coin is composed of copper and zinc”;
(3)
added by amending subsection (c) to read as follows:

added “(c) 5-cent coin

added “(1) In general—The 5-cent coin may be a coin with an inner layer of zinc and an outer layer of nickel.

added “(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—

added “(A) reduces the cost incurred to produce such coin; and

added “(B) to the greatest extent practicable, has a minimal adverse impact on machines designed to accept coins.”

(4)
added by adding at the end the following:

added “(bb) Ceasing production of one-cent coin

added “(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.

added “(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)
changed In general— Notwithstanding any other provision of law, any person Any person, including a financial institution, selling goods or services in a cash transaction, 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, or paying cash wages to an employee as compensation shall round the payment covered amount in the following manner:
(1)
changed Rounding down— In Except as provided in paragraph (2)(B), in any case in which the total transaction amount, including any taxes, covered amount ends with 1 cent, 2 cents, 6 cents, or 7 cents as the final digit, the amount of cents in the sum shall may be rounded down to the nearest amount divisible by 5 for any person seeking to make payment with legal tender.cash.
(2)
added Rounding up—
(A)
added 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)
added 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.
(2)
removed Rounding up— In any case in which the total transaction amount, including any taxes, ends with 3 cents, 4 cents, 8 cents, or 9 cents as the final digit, the amount of cents in the sum shall be rounded up to the nearest amount divisible by 5 for any person seeking to make payment with legal tender.
(b)
changed Exception—Additional authority to round— Subsection (a) shall not apply With respect to a transaction—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)
changed in which Up to the total transaction amount, including any taxes, totals $0.01 or $0.02, in which case that transaction nearest amount shall be rounded up to $.05 for any divisible by 5, if the person seeking to make payment with legal tender; oris paying the customer in cash.
(2)
changed for which payment is made Down to the nearest amount divisible by any demand or negotiable instrument, electronic fund transfer, check, gift card, money order, credit card, or other similar instrument or method.5, if the customer is paying the person in cash.
(c)
added Employer payments to employees—
(1)
added 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)
added 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)
added 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)
added 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)
added Covered amount defined— In this section, the term “covered amount” means—
(1)
added the total transaction amount, including taxes; or
(2)
added 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.
(c)
removed Effective date— This section shall take effect on the date that is 1 year after the date of enactment of this Act.

Sec. 4 Treatment of Federal, State, and Tribal law with respect to cash transaction rounding

added
(a)
added 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)
added 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)
added 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

added
(a)
added 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)
added 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)
added an evaluation of such coin terminals where the Federal reserve banks no longer accept penny deposits or penny orders;
(3)
added 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)
added 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)
added 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)
added that includes recommendations to the Congress to address any adverse impacts identified under subparagraph (A); and
(5)
added any additional considerations the Board determines relevant to maintaining penny distribution stability.
(b)
added Evaluation—
(1)
added 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)
added any material changes to the plan; and
(B)
added any identified or emerging stress in the penny distribution system.
(2)
added 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)
added 18 months after the submission of the report required under subsection (a); and
(B)
added 30 months after the submission of the report required under subsection (a).

Sec. 6 Discontinuation of circulation of coins

added

added Section 5111 of title 31, United States Code, is amended—

(1)
added in subsection (a)—
(A)
added in paragraph (3), by striking “and” at the end;
(B)
added in paragraph (4), by striking the period at the end and inserting “; and”; and
(C)
added by adding at the end the following:

added “(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).”

(2)
added by adding at the end the following:

added “(e) Discontinuation

added “(1) Definition—In this subsection, the term covered committees means—

added “(A) the Committee on Banking, Housing, and Urban Affairs of the Senate; and

added “(B) the Committee on Financial Services of the House of Representatives.

added “(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—

added “(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—

added “(i) a description of the reasoning for that discontinuation, including fiscal and operational considerations; and

added “(ii) a comprehensive plan for phasing out the circulating coin, taking into consideration—

added “(I) the potential impacts of that discontinuation on consumers and businesses; and

added “(II) the potential economic impacts of that discontinuation; and

added “(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

added

added In this Act:

(1)
added Covered committees— The term covered committees means—
(A)
added the Committee on Financial Services of the House of Representatives; and
(B)
added the Committee on Banking, Housing, and Urban Affairs of the Senate.
(2)
added 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)).