Committee backs bill allowing cash transactions to be rounded to the nearest nickel; pennies remain legal tender

A House committee recommended approval of a bill (LC 620427S) that would allow retailers handling cash to round transaction totals to the nearest nickel under prescribed cent-value rules.

Representative Barrett, the bill sponsor, told the committee the measure responds to the federal administration’s cessation of penny production and is modeled on other states’ approaches. Barrett explained the mechanics: when a cash total ends in 1, 2, 6 or 7 cents the retailer may round down to the nearest nickel; when it ends in 3, 4, 8 or 9 cents the retailer may round up to the nearest nickel. The bill does not apply to electronic transactions, and sales tax is calculated on the actual sales price before rounding.

A lawmaker asked what consumer protections and disclosure requirements would accompany rounding; Barrett said the bill does not mandate signage or disclosure and that those measures could be considered in future legislation. Counsel and witnesses clarified pennies remain legal tender and that businesses may continue to accept exact change. The committee also discussed mixed‑tender transactions and small-business impacts in rural areas.

A member moved a "do pass" recommendation for LC 620427S, the motion was seconded, and the chair declared the motion carried by voice vote. The transcript does not contain a roll-call tally of votes.