Penny production would stop for circulation; cash rounding would be optional

Treasury would stop making one-cent coins for general circulation but could keep making and issuing them as collectible items. Pennies minted and issued before enactment would stay valid for paying debts, taxes, and other charges. The stop on production for circulation would begin when the bill becomes law.

People and businesses could round eligible cash totals or change; rounding would generally be optional. The rules include taxes but do not cover noncash methods such as checks, cards, or electronic transfers. Amounts ending in 1, 2, 6, or 7 cents could round down, while those ending in 3, 4, 8, or 9 cents could round up; totals of one or two cents could rise to five cents. A business could also round in the customer's favor: up when paying the customer or down when the customer pays. If an employer chooses to round a cash payment to a worker, it would have to round up. Using the stated rules would not by itself violate federal, state, Tribal, or local rules, but it would not excuse breaking minimum wage, overtime, or paid-leave laws.

The Treasury Secretary could choose the amounts of zinc and nickel in a layered five-cent coin. The option covers a five-cent coin with zinc inside and nickel outside, weighing between 4 and 6 grams. Testing would have to show that the design lowers production costs and, as far as practical, causes little trouble for machines that accept coins.

The Federal Reserve Board would publish a penny-distribution plan and progress reports. Treasury would follow a separate process before stopping another circulating coin. The reporting duties cover nationwide penny distribution, while the notice process covers other coins being made for circulation when the bill becomes law. The plan would examine penny orders and deposits at commercial coin terminals, distribution problems, and effects on low-income people, older people, and people with limited or no bank access. Before stopping another coin being made for circulation when the bill becomes law, Treasury would have to give Congress 60 days' notice and provide a phaseout plan that considers effects on consumers and businesses. Treasury would have to brief the named congressional committees within 30 days after giving notice. The first report would be due within 90 days after enactment. Progress reports would follow within 6, 18, and 30 months after the first report.