Senate Commerce Committee Statement to Senate, No. 3977 — State of New Jersey (May 18, 2026)

Summary

The Senate Commerce Committee of the State of New Jersey, in a statement dated May 18, 2026, reports favorably and with committee amendments Senate Bill No. 3977. As amended, the bill sets rounding requirements for cash transactions, for businesses that choose to follow them, in response to the end of the production of pennies by the federal government in November of 2025. Under the amendments, a price ending in $.03 or $.04 is rounded up to the nearest five-hundredths of a dollar, and one ending in $.08 or $.09 is rounded up to the nearest tenth of a dollar. Penalties apply to businesses that adopt the requirements but violate them. Voluntary round-up donation programs with opt-in and opt-out rights are not prohibited.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
3977

with
committee amendments

STATE
OF NEW JERSEY

DATED: MAY 18,
2026

The Senate Commerce Committee reports favorably and
with committee amendments Senate Bill No. 3977.

As
amended, this bill establishes the rounding requirements, for businesses that
choose to follow them, for cash transactions in response to the end of the
production of pennies by the federal government in November of 2025. While
pennies will still circulate, the bill intends to assist businesses in
preparation for a phaseout in the use of the penny for cash transactions. As
noted by the National Conference of State Legislatures, guidance issued by
states on this issue will provide critical clarity and fairness for businesses
and subsequently, consumers. Penalties are also established in the bill for
businesses who adopt the rounding requirements but violate their provisions.

As
amended, nothing in the bill will be construed to prohibit a program that
rounds a purchase or transaction up as a donation; provided that the program is
voluntary, and the consumer has the right to opt in to and opt out of the
donation.

COMMITTEE AMENDMENTS :

The committee amended the bill to provide that:

(1) in a cash transaction where the price ends in
three-hundredths or four-hundredths ($.03 or $.04) of a dollar, the transaction
will be rounded up to the nearest five-hundredths of a dollar;

(2) in a cash transaction where the price ends in
eight-hundredths or nine-hundredths ($.08 or $.09) of a dollar, the transaction
will be rounded up to the nearest tenth of a dollar; and

(3) nothing in the bill will be construed to prohibit
a program that rounds a purchase or transaction up as a donation; provided that
the program is voluntary, and the consumer has the right to opt in to and opt
out of the donation.

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