Gov. Hobbs Enacts Arizona Penny Rounding Law at Checkout
Arizona Governor Katie Hobbs has signed House Bill 2938, introducing a new rounding system for cash transactions. This law mandates that if a business cannot provide exact change in pennies, the total amount will be rounded to the nearest five cents. The change comes as a response to the declining availability of the one-cent coin.
Details of the Rounding Law
Under this new law:
- Totals ending in 1 or 2 cents will be rounded down to the nearest 5 cents.
- Totals ending in 3 or 4 cents will be rounded up to the nearest 5 cents.
- Amounts that end in 0 or 5 cents will remain unchanged.
Reason for Implementation
The Greater Phoenix Chamber has endorsed the bill, stating it provides clarity for both consumers and businesses. With the U.S. government halting the production of pennies, Arizona faced operational challenges in cash transactions.
The cost of producing one penny is currently 3.7 cents, according to the U.S. Mint. This financial inefficiency has contributed to a nationwide penny shortage, making exact cash transactions increasingly difficult for consumers and retailers.
Future of Currency in Arizona
The U.S. Treasury plans to circulate approximately 114 billion existing pennies for as long as possible, but they will still be accepted as payment, even under the new law. Meanwhile, a federal bill is under consideration that aims to standardize rounding practices across the country.
Reactions and Next Steps
Rep. Lisa McClain, a supporter of the federal bill, believes that uniform policies will help avoid confusion among states. The proposed legislation has progressed through the House Financial Services Committee but still awaits a vote in Congress.
In conclusion, the Arizona Penny Rounding Law aims to streamline cash transactions amidst changing currency practices, while also addressing the inconvenience faced by consumers and businesses due to a lack of available pennies.
