The "Common Cents Act" aims to change the specifications of 5-cent coins and cease production of one-cent coins. Additionally, it introduces rules for cash transaction rounding and establishes measures for the acceptance of penny orders and deposits at commercial coin terminals. The Act also addresses the discontinuation of the circulation of coins by requiring the Secretary of the Treasury to notify and provide a plan for discontinuation to the appropriate committees. Lastly, it includes definitions of terms used in the Act, such as "covered committees" and "financial institution."
That's the summary of the bill.
Common Cents Act
This bill ends the production of the penny for general circulation, requires rounding to an amount divisible by five for the payment or transfer of cash, and allows the nickel to be composed of different material.
The Department of the Treasury must stop producing the penny, except to meet collector needs. The penny shall continue to be legal tender.
Any person selling goods or services in a cash transaction, entering into other transfers of cash, or paying cash wages to an employee must round the payment up or down in accordance with the bill.
The bill also allows Treasury to discontinue the minting for circulation of any coin if Treasury follows procedures as outlined by the bill, including providing notice and a briefing to Congress.
The Federal Reserve Board must periodically report on a strategic plan for the acceptance of penny orders and deposits at commercial coin terminals that provide services under agreements with Federal Reserve banks.
Finally, the bill allows for a different material composition of the nickel. In addition to being made from an alloy of copper and nickel, the nickel may also be clad with an inner core of zinc and an outer layer of nickel.
