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Bill

H 5450

An Act regarding currency efficiency and non-digital tendering scarcity

194th Legislature (2025-2026) Introduced by Tackey Chan and 6 co-sponsors

Massachusetts would require cash transactions to be rounded to the nearest nickel when exact change isn’t possible, with disclosures and state guidance to standardize practices.

Bill reported favorably by committee and referred to the committee on House Ways and Means
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Bill Summary · H 5450

Overview

  • Bill: H.5450
  • Session: 194th (2025-2026)
  • Jurisdiction: Massachusetts
  • Title: An Act regarding currency efficiency and non-digital tendering scarcity
  • Summary: The bill would alter rounding rules for transactions paid with legal tender (cash) when the buyer cannot provide exact change. It introduces specific rounding directions based on the final cents of the total amount, requires disclosures to consumers, and directs state guidance to ensure proper implementation and notice.

Purpose and intent

  • To address “low valued legal tender scarcity” by providing a standardized rounding mechanism for cash payments when exact change cannot be provided.
  • Aims to improve currency efficiency in cash transactions and reduce the practical difficulty of making exact change.
  • Seeks to ensure sellers disclose rounding practices clearly to consumers and to harmonize guidance across relevant state agencies.

Key provisions and changes

  • Rounding rules for cash payments (Section 1):
    • If the total transaction amount (including taxes/fees) ends with final digits 1c, 2c, 6c, or 7c and the buyer cannot provide exact legal tender, the cents portion shall be rounded down to the nearest amount divisible by 5.
    • If the total ends with 3c, 4c, 8c, or 9c and the buyer cannot provide exact legal tender, the cents portion shall be rounded up to the nearest amount divisible by 5.
    • Special case: if the total ends with $0.01 or $0.02 and the buyer cannot provide exact change, the amount may be rounded up to $0.05.
    • Taxes/fees must be calculated on the pre-rounded sales price (i.e., rounding occurs after determining the base taxes/fees).
    • The rounding does not apply if exact change can be provided, or if the buyer uses non-cash forms of payment (electronic funds transfer, check, gift card, money order, credit card, etc.).
    • Clear and conspicuous disclosure of rounding is required.
  • Consumer protection and disclosures (Section 1):
    • Requiring sellers to disclose rounding practices clearly to buyers.
    • Limiting rounding to scenarios where cash is used and exact change cannot be provided.
  • Administrative guidance (Section 2):
    • The Office of Consumer Affairs and Business Regulation, in consultation with the Department of Revenue, must issue guidance to all sellers about required disclosures and the use of legal tender versus other payment methods.

Who/what is affected

  • Retailers and businesses that accept cash as payment for goods and services.
  • Consumers paying with legal tender (cash) in Massachusetts transactions.
  • State agencies: Office of Consumer Affairs and Business Regulation (OCABB) and the Department of Revenue (DOR) for guidance and enforcement.
  • Any taxes or fees basis remains calculated on the original sales price before rounding.

Procedural and timeline aspects

  • Filed and referred: May 22, 2026; reported favorably by the Committee on Consumer Protection and Professional Licensure May 26, 2026.
  • Next steps: Referred to the Committee on House Ways and Means for possible fiscal consideration and further action.
  • The act would take effect according to the bill’s enacted effective date (not specified in the text provided; would follow standard legislative drafting and any regulatory implementation timelines).

Potential impacts and considerations

  • Practical impact:
    • Cash transactions could see rounding adjustments that either reduce or increase the cash amount paid, depending on the final cents of the total.
    • Consumers without exact change may benefit from rounding down in certain cent-final scenarios, while some transactions may round up.
  • Transparency:
    • Mandatory disclosures aim to ensure customers understand when and how rounding occurs.
  • Administrative burden:
    • Requires state agencies to develop guidance, potentially standardizing seller practices across the state.
  • Economic implications:
    • Minor shifts in cash handling and potential effect on cash float for small businesses, though designed to be neutral in most cases due to rounding to the nearest nickel.

Notes

  • The bill explicitly allows non-cash payment methods to avoid rounding.
  • The guidance requirement ensures consistent compliance and consumer awareness.
  • Specific dollar thresholds and rounding logic are designed to balance cash convenience with fairness in pricing.

Compiled from official sources — confirm details with the bill’s official record.

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