This bill establishes a framework for rounding cash transactions for businesses that choose to implement such practices, in light of the anticipated phaseout of the penny by the federal government in November 2025. The bill outlines specific rounding rules based on the last two digits of the transaction amount, such as rounding down amounts ending in $.01 or $.02 to the nearest tenth of a dollar, and rounding up amounts ending in $.03 or $.04 to the nearest five-hundredths of a dollar. It clarifies that these rounding provisions do not apply to non-cash transactions, such as those made with checks or credit cards.

Additionally, the bill includes penalties for businesses that fail to comply with the rounding requirements, imposing fines that escalate with repeated offenses. A first violation incurs a $1,000 penalty, which increases to $2,500 for a second offense and $5,000 for subsequent violations. Each day of non-compliance is treated as a separate offense, and penalties will be enforced through civil action. The bill also allows for voluntary rounding-up donation programs, ensuring consumers can opt in or out of such initiatives. The act is set to take effect 30 days after its enactment.