Informing the Legislature that on June 25, 2026, the Governor signed the following bill into law: SB3255 SD1 HD2 CD1 (ACT 159).

2026 Regular Session

Legalizes cash transaction rounding to the nearest five cents for cash payments and cash wages, with specific rounding rules and exclusions, effective July 1, 2026.

Received.

#act159

Summary of GM 1260 (Act 159), Hawaii – 2026

Purpose and Intent

The bill authorizes cash transaction rounding to address coin shortages caused by the U.S. Treasury’s cessation of minting the penny for general circulation.

Objective: allow businesses in Hawaii to round cash payments to the nearest five cents in certain cash transactions, ensuring smoother cash handling and change-making.

Key Provisions and Changes

New provision added to Hawaii Revised Statutes, Part I, Chapter 481B:

Section: cash transaction rounding (new §481B-).
Permitted rounding scenarios (for payments made with physical cash):
If the total ends in 1, 2, 6, or 7 cents, round down to the nearest amount divisible by five.
If the total ends in 3, 4, 8, or 9 cents, round up to the nearest amount divisible by five.
If the total ends in 1 or 2 cents, round up to five cents (special rule for these totals).
Exclusions:
Rounding does not apply to payments made by demand or negotiable instruments, electronic methods, checks, or card transactions.
Enforcement and remedies:
No private right of action to enforce this section (no private actions allowed).
No applicability of existing statute on certain payment-related penalties (not subject to 486-116).
Total transaction amount:
For rounding purposes, “total transaction amount” includes all fees, surcharges, and taxes.

Effective date:

The act takes effect on July 1, 2026.

Non-retroactivity:

The act states it does not affect rights, duties, penalties, or proceedings that matured or occurred before its effective date.

Who/What is Affected

Affects cash transactions only:

Retail sales and cash-based payments where customers pay with cash.
Wages paid in cash to employees (cash wages) may be subject to rounding under the same rules.

Excludes:

Transactions paid with checks, electronic transfers, or card-based payments.
Payments made by negotiable instruments or other non-cash methods.

Procedural and Timeline Aspects

Legislative history indicates passage through both chambers and final approval:

Passed Senate and House in May 2026 (Final Reading).
Signed into law by the Governor on June 25, 2026.
Effective date of July 1, 2026.

The document GM 1260 is an informational certificate to inform the Legislature that the Governor signed the bill into law on the specified date.

Practical Implications

Businesses that primarily handle cash can implement rounding to simplify cash transactions, avoid pennies, and reduce the need for penny coins.

Consumers paying with cash may see rounded totals resulting in either rounded-up or rounded-down amounts to the nearest five cents, consistent with the specified rules.

No legal action by individuals to enforce these provisions; enforcement mechanisms are limited to general compliance by businesses.

Summary of What It Does

Legalizes cash transaction rounding to the nearest five cents for cash payments, cash wages, and similar cash-based transactions, with clearly defined rounding rules and notable exemptions, effective July 1, 2026.