SALEM, Ore.— Cash transactions in Oregon could soon be rounded to the nearest nickel under legislation headed to the desk of Gov. Tina Kotek, a change supporters say is needed after the federal government stopped minting pennies last year.
House Bill 417878, which passed the Oregon Senate on a 26-2 vote Thursday, would allow businesses to round cash purchases to the nearest five cents. Purchases ending in 1, 2, 6 or 7 cents would be rounded down, while those ending in 3, 4, 8 or 9 cents would be rounded up.
The measure was requested by the Northwest Grocery Retail Association and sponsored by the House Rules Committee, according to reporting by Oregon Live. Supporters say it is intended to provide clarity for businesses as pennies become increasingly scarce following the federal government’s decision last fall to stop producing them.
Under the bill, stores that adopt the policy would be required to apply rounding consistently and post notices informing customers of the change.
Retailers Struggle to Get Pennies
Amanda Dalton, president and lobbyist for the Northwest Grocery Retail Association, told lawmakers that many retailers are already struggling to obtain pennies from banks.
“Especially for our independent grocers, I’m getting a lot of phone calls,” Dalton told the Senate Rules Committee, according to Oregon Live. “The penny’s still in circulation, but they have been told the last couple of months from their banks that they’re no longer providing them. So, while we have customers bringing pennies in, we’re having struggles providing the cash.”
Because the legislation applies only to transactions involving cash or a mix of cash and card, lawmakers also amended certain consumer protection and discrimination statutes, including a 2022 Oregon law requiring businesses to accept cash.
Supporters say the legislation is meant to create a consistent statewide policy after the federal government ended penny production without issuing clear guidance on how businesses should handle cash transactions.
Dalton told lawmakers that at least 20 other states, including Washington and Idaho, are considering or implementing similar policies.
CU Rep Testifies
Pam Leavitt, who represents the GoWest Credit Union Association, said earlier during testimony before the House Rules Committee that the lack of clear rules has disproportionately affected rural communities, small businesses and low-income consumers who rely more heavily on cash transactions.
Consistent guidelines and clear communication about rounding policies would help improve transparency for those consumers, she said.
What Critics Say
The proposal also drew criticism from the Council on State Taxation, a Washington, D.C.-based nonprofit trade association. In written testimony, tax counsel Dylan Waits argued the bill overlooks cash payments made to non-storefront businesses such as plumbers or electricians and questioned whether requiring customer notification signs would add unnecessary costs for businesses.
Dalton acknowledged those concerns during legislative testimony but said the short legislative session limited how much could be addressed in the current bill.
“I think the point is valid,” Dalton said, according to Oregon Live. “The request from us would be let’s try to move it forward and if we can keep fixing it, we can. We would like to get it right but I don’t know if we have time to get it right for everybody.”
She added that consumer advocates pushed for the requirement that stores notify customers of any rounding policy.
“We don’t always love additional signs at our point of sale or at the front of our grocery stores, but we are willing to agree to that and we do think that’s a consumer-friendly approach,” Dalton said, according to Oregon Live.
Amendment Added
One amendment added to the legislation would also allow state and local government agencies to establish their own rounding policies for cash transactions.
“State and local governments also receive cash payments, and we certainly make change,” Marjorie Taylor, legislative director for the Oregon Department of Revenue, told lawmakers. “We appreciate the provisions of the measure that allow us to establish rounding policies that are appropriate for our organizations.”
Because the bill includes an emergency declaration, it would take effect immediately if signed by the governor, Oregon Live reported.
