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Committee hears bill to allow cash rounding amid penny shortage and debates optional high‑deductible plan

Minnesota Senate Committee on State and Local Government · April 14, 2026
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Summary

Testimony explained a U.S. Mint pause in penny production has reduced coin circulation; a bill would authorize state agencies to round cash transactions to the nearest $0.05 and standardize posting requirements. A separate provision to make a high‑deductible health plan optional for some state employees drew debate and a motion to strike.

The committee considered a mixed bill that would authorize state agencies to round cash transactions to the nearest $0.05 and set a standard framework for rounding policies in response to coin shortages, and also contained a provision allowing the state to optionally stop offering a separate high‑deductible health plan for a small number of employees.

Paul Moore, assistant commissioner of accounting services at Minnesota Management and Budget, told the committee that the U.S. Mint stopped minting new pennies and that state agencies are reporting shortages. He said the bill’s symmetrical rounding framework would apply only to cash transactions and require agencies that round to post policies at points of transaction.

Testimony also came from the enterprise director overseeing employee insurance (transcribed as 'Gala' in the record), who said roughly 131,000 members are in state plans but only a small fraction are enrolled in the stand‑alone high‑deductible plan: about 264 employees in total and only 89 within certain compensation plans. Sponsors argued making the separate plan optional would reduce administrative burden; opponents said removing the option could cost employees money and urged preserving the plan.

Committee members debated amendments, including a proposal by Sen. Matthews to bias rounding "in favor of the taxpayer." That amendment was considered but not adopted; senators also debated whether combining rounding and the benefits provision presented a single‑subject issue. The committee adopted some technical amendments and moved the bill, as amended, toward general orders.