ACU Urges House To Advance Common Cents Act As Penny Production Ends
By CU Today Staff —
WASHINGTON—America's Credit Unions is urging House leaders to approve the Common Cents Act (H.R. 3704), arguing the legislation would provide needed certainty for credit unions, businesses and consumers as the U.S. phases out production of the penny.
In a letter to House leadership, Chief Advocacy Officer Kathleen Coulombe said maintaining a reliable coin supply remains critical to the payments system, particularly for members and small businesses that continue to rely on cash transactions. The organization also called on the Federal Reserve to work with the NCUA and other federal banking regulators to clarify interim cash-rounding practices.
According to the letter, the guidance should address whether rounding should occur on the total bill rather than individual items, whether sales tax should be calculated before or after rounding, and what receipt disclosures should be recommended, including use of a separate rounding-adjustment line.
The Common Cents Act would establish a national framework for rounding cash transactions, clarify how federal, state and Tribal laws apply to rounding, and require the Federal Reserve to develop a strategic plan and provide periodic reports on coin terminal operations and the stability of the nation's coin distribution system. America's Credit Unions said it, the American Association of Credit Union Leagues and state leagues have been working with both Congress and the Federal Reserve to seek clarity following the end of penny production.
Originally reported by CU Today.