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Bill

HB 1026

Business Regulation - Rounding Cash Transactions - Authorization

2026 Regular Session Introduced by Pam Queen

Maryland bill authorizes retailers to round cash transaction totals to nearest five cents, streamlining penny-based transactions in increasingly cashless commerce.

Approved by the Governor - Chapter 515
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WeVote Research Nonpartisan
Bill Summary · HB 1026

Legislative bill overview

HB 1026 authorizes businesses in Maryland to round cash transactions to the nearest five cents, rather than requiring exact penny-for-penny transactions. This addresses the practical challenges retailers face when handling penny-denominated prices in an increasingly cashless economy where pennies are becoming less common in circulation.

Why is this important

As cash use declines and penny production costs remain high relative to their value, many retailers struggle with penny management and customer frustration over exact change requirements. This bill would streamline cash transactions and align Maryland with other states and countries that have implemented similar rounding policies, potentially reducing operational friction at checkout.

Potential points of contention

  • Consumer protection concerns: Critics may argue rounding up could systematically disadvantage customers, particularly low-income shoppers who rely on cash, resulting in cumulative financial losses across many transactions
  • Implementation ambiguity: The bill lacks detail on whether rounding applies uniformly (always up, always down, to nearest), which could create inconsistent pricing practices across retailers
  • Reduced cash transaction appeal: Businesses might use rounding as justification to discourage cash payments entirely, accelerating the shift toward digital payments and potentially excluding unbanked populations

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

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