Fiona McFarland bill addressing post-penny cash transactions clears first House committee

A proposal by Sarasota Republican Rep. Fiona McFarland establishing cash-rounding rules for Florida retailers now that the penny is no longer minted has cleared its first House committee stop.

The House Ways & Means Committee unanimously approved HB 951, advancing legislation that outlines how businesses should handle in-person cash transactions when exact change cannot be made using 1-cent coins.

The bill does not eliminate the penny or prohibit businesses from accepting it. Instead, it sets standardized rounding rules for cash purchases now that the 1-cent piece is no longer in production if retailers are unable to complete transactions to the exact cent.

New on Monday was an amendment that makes rounding “permissive,” outlines protocol for mixed-tender transactions, and gives a provision for secondary metal recyclers where they can round up to the nearest nickel.

“The bill, as filed, would have required rounding,” McFarland told committee members. “We’re going to make it permissive, allow the business to meet the customer where they are. So we are giving flexibility by changing a ‘must’ to a ‘may.’”

Under HB 951, cash transactions ending in 1 or 2 cents would be rounded down to end in zero while amounts ending in 3 or 4 cents would be rounded up to five cents. Transactions ending in 6 or 7 cents would be rounded down to five cents, and those ending in 8 or 9 cents would be rounded up to end in zero. Transactions already ending in zero or five cents would not be rounded.

Electronic transactions, including credit and debit card purchases, would not be affected. For mixed-tender transactions, the rounding requirement would apply only to the cash portion of the purchase.

The bill also specifies that sales tax must be calculated before rounding occurs, ensuring the amount of tax owed does not increase or decrease as a result of the adjustment. HB 951 would also amend Florida’s Deceptive and Unfair Trade Practices Act to clarify that rounding a consumer sale to the nearest nickel does not constitute a deceptive or unfair trade practice.

The Senate companion bill (SB 1074), sponsored by Pensacola Republican Sen. Don Gaetz, already cleared its first Senate committee stop on Jan. 21. Each bill now heads to their second of three committee stops necessary before hitting the legislative floor. If ultimately approved by the Legislature, the bill would take effect upon becoming law.

“This bill just makes cents,” McFarland said.