HR3074-119

What This Bill Does

The Common Cents Act reduces Federal coin-production costs by changing how the United States handles pennies and nickels. It requires the Secretary of the Treasury to stop producing one-cent coins for general circulation within one year, while still allowing the U.S. Mint to produce one-cent coins for numismatic collectors if sale receipts cover full production costs. Existing pennies and all other U.S. coins and currency remain legal tender. The bill also lets the Secretary prescribe a cheaper 5-cent coin composition with a zinc inner layer and nickel outer layer after testing and evaluation shows the composition reduces production costs. For cash transactions, it requires payments to be rounded to the nearest five cents, with one- and two-cent totals rounded up to five cents and noncash transactions exempt.

Who Benefits and How

The U.S. Mint benefits by avoiding ordinary penny production and by gaining authority to use a cheaper nickel composition if testing proves savings. Federal taxpayers benefit from reduced production costs for coins that cost more to make than their face value. Zinc manufacturers and processors benefit from potential demand for zinc-core 5-cent coins. Coin collectors and numismatic dealers benefit because collector pennies may still be produced and sold under the existing numismatic coin statute. Cash register vendors and point-of-sale software providers benefit from demand to update systems for five-cent cash rounding.

Who Bears the Burden and How

Retail businesses, restaurants, and other cash-intensive merchants must adapt cash drawers, receipts, point-of-sale systems, employee training, and pricing procedures for rounding rules. Cash-paying consumers may see individual transactions rounded up or down, although electronic payments are exempt. Copper mining companies and nickel suppliers could lose coin-metal demand as penny production ends and nickel composition changes. Payroll administrators paying cash wages must apply rounding rules when cash compensation changes hands. The Treasury Department must test nickel compositions, set the mix, stop ordinary penny production, and preserve legal-tender treatment.

Key Provisions

• Requires the Secretary of the Treasury to cease one-cent coin production for general circulation within one year.
• Preserves one-cent coins as legal tender and allows collector-only penny production when receipts cover full costs.
• Authorizes a 5-cent coin with a zinc inner layer and nickel outer layer if testing shows lower production costs.
• Establishes cash rounding rules for transaction totals ending in one through nine cents.
• Exempts noncash transactions from the rounding requirement.