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Panel hears first reading of bill to round cash transactions if pennies are phased out
Summary
House Bill 281 would implement symmetrical rounding rules for cash transactions when pennies are unavailable; staff said the change affects only cash transactions without exact change and suggested a simple printable sign for retailers. Committee set the bill aside and will consider amendments with a May 4 deadline.
The House State Affairs Committee received a first hearing on House Bill 281 on April 30, a proposal to adopt symmetrical rounding for cash transactions if pennies are no longer minted or widely available. Melody Welterdink, staff to Representative Sadler, said the bill would apply only to cash transactions when exact change is unavailable and described the standard rounding method being proposed (1–2 cents down, 3–4 up to 5, 6–7 down to 5, 8–9 up to the next 10).
Welterdink told the committee the bill responds to federal steps to stop penny production and a U.S. Mint supply shortage; she said many transactions are now digital but that 10–20% of purchases remain in cash. Committee members suggested creating a printable graphic retailers could post at check stands to alert customers to rounding rules. Staff said such a graphic would be inexpensive and that businesses in Anchorage and Eagle River have already shown interest in signing up to participate.
Representative Hemschute and others voiced support and drew parallels to other jurisdictions that eliminated pennies, including Canada. Committee members questioned a finance referral; staff responded the referral may be because the topic deals with money rather than because the bill imposes costs on the state. Chair Kerrick set HB 281 aside for later consideration; an amendment deadline on other bills was set for May 4, and the committee plans future action.
