Allows rounding for cash transactions.

2026-2027 Regular Session Introduced by Joe Lagana and 1 co-sponsor

Allows cash transactions to be rounded to the nearest 0.05 or 0.10 as pennies phase out, with penalties for violations and no effect on non-cash payments.

Referred to Senate Budget and Appropriations Committee

Purpose and intent

S 3977 would authorize, for cash transactions in New Jersey, a rounding scheme that businesses may apply at the point of sale when pennies are no longer in active production (following the federal phaseout of the penny expected in November 2025).

The bill aims to provide a clear, standardized method for rounding to ease cash handling and pricing as pennies become less used, while preserving that pennies remain legal tender. It also sets penalties for noncompliance.

Key provisions

Rounding rules (for cash transactions only, not for non-cash payments):

If the price ends in $.01 or $.02: round down to the nearest tenth of a dollar ($0.10).
If the price ends in $.03 or $.04: round to the nearest five-hundredths of a dollar ($0.05) (rounding up or down allowed).
If the price ends in $.06 or $.07: round down to the nearest five-hundredths of a dollar ($0.05).
If the price ends in $.08 or $.09: round up or down to the nearest tenth of a dollar ($0.10).

Non-cash transactions: The rounding provisions do not apply to checks, debit cards, credit cards, wire transfers, or any other non-cash payment methods.

Enforcement and penalties:

First offense: $1,000 civil penalty.
Second offense: $2,500 civil penalty.
Third and subsequent offenses: $5,000 per offense.
Each day a violation occurs is a separate offense.
Penalties are enforceable by civil action in a summary proceeding under the Penalty Enforcement Law of 1999; Superior Court jurisdiction applies.

Effective date: The act would take effect 30 days after enactment.

Who/what is affected

Primarily cash-bearing transactions at businesses that opt to implement rounding.

Businesses that choose to follow the rounding scheme are subject to the specified rounding rules and penalties for violations.

Consumers paying with cash will be affected in terms of rounded cash totals at the point of sale.

Procedural and timeline aspects

Introduced in the Senate and referred to the Senate Commerce Committee, with action history showing subsequent steps:

03/19/2026: Introduced in the Senate, referred to Senate Commerce Committee.
05/18/2026: Reported from Senate Committee with amendments; 2nd Reading; referred to Senate Budget and Appropriations Committee.

The act would become effective 30 days after enactment, assuming passage and signature.

Additional notes

The bill aligns with a broader policy discussion about how to handle cash transactions as the use of pennies diminishes.

It references guidance from the National Conference of State Legislatures to provide clarity and fairness for businesses and consumers.

The bill does not mandate rounding; it authorizes rounding as an option for cash transactions, with clear penalties for noncompliance.