This bill establishes a framework for rounding cash transactions in New Jersey as businesses prepare for the potential phaseout of pennies following the federal government's cessation of penny production in November 2025. It outlines specific rounding rules based on the final digits of the transaction amount: amounts ending in $0.01 or $0.02 will be rounded down to the nearest tenth, amounts ending in $0.03 or $0.04 can be rounded up or down to the nearest $0.05, amounts ending in $0.06 or $0.07 will be rounded down to the nearest $0.05, and amounts ending in $0.08 or $0.09 can be rounded up or down to the nearest tenth. Importantly, these provisions apply only to cash transactions and do not affect payments made via checks, debit cards, credit cards, or other non-cash methods.

The bill also imposes civil penalties for businesses that fail to comply with the rounding requirements, with fines escalating from $1,000 for the first offense to $5,000 for subsequent violations. Each day a violation occurs is considered a separate offense, and penalties will be enforced through civil actions under the Penalty Enforcement Law of 1999. The bill aims to provide clarity and fairness for both businesses and consumers in light of the changing currency landscape. It is set to take effect 30 days after its enactment.