Bill would let state agencies round cash transactions amid penny shortage; committee refers measure

Chair Cleburne and proponents presented House File 4821 on April 9, 2026, describing two separate provisions: a framework to allow state agencies and entities acting on the state's behalf to round cash transactions when pennies are unavailable, and a change to make offering certain high-deductible health plans optional rather than mandatory for some state plans.

Presenters said the U.S. Treasury stopped penny production in late 2025 and that agencies are reporting depleted penny supplies. Assistant Commissioner Paul Moore of Minnesota Management and Budget told the committee cash transactions still occur at Driver and Vehicle Services, deputy registrars, the Department of Natural Resources (licenses and park passes), the Department of Revenue (in-person tax payments), and at MMB for state warrants. "Cash transactions are pretty pervasive across state agencies," he said.

The rounding framework in the bill would apply only to cash transactions and requires posting of rounding policies where transactions occur. Representative Quam raised technical-drafting questions about clauses governing 1¢ and 2¢ outcomes; Assistant Commissioner Moore and Chair Cleburne explained the intended treatment of single-cent amounts and how rounding applies to total transactions.

The bill also includes an MMB section that would change a statutory "must" to a "may," allowing the agency discretion not to offer separate high-deductible plans in the state health program, a change proponents said would yield modest administrative savings.

On a voice vote the committee re-referred House File 4821 to the general register. Members asked for clear statutory language on rounding and said they expect further scrutiny as the bill moves through the process.