OLYMPIA—In response to the federal government’s recent decision to stop minting pennies, Representative April Berg (D-Mill Creek) introduced House Bill 2334 to establish clear rules for cash transactions in Washington state. While the federal government has ceased production of the one-cent coin, it has not provided guidance or laws on how businesses should handle cash totals that would traditionally require pennies.
“This federal change has left states and businesses in a difficult position,” said Berg. “Without clear guidance, cash-only businesses have been unsure of how to handle rounding, which can create confusion and errors in transactions. HB 2334 solves this problem by putting clear rules into state law.”
The bill establishes asymmetrical rounding for cash payments, rounding to the nearest nickel. Totals ending in 1 or 2 cents round down to 0; totals ending in 3, 4, 6, or 7 cents round to 5; and totals ending in 9 or 9 cents round up to 10. This approach ensures fairness for consumers and simplicity for businesses. Electronic payments, credit cards, and other non-cash transactions are unaffected.
HB 2334 also directs state departments to issue clear rules for transactions combining cash and other payment methods, providing consistency and clarity for all Washington businesses.
“By codifying rounding in state law, we can prevent confusion, reduce small transaction errors, and help businesses transition smoothly,’ Berg said.
HB 2334 is now under consideration in the Washington State Legislature. The 2026 legislative session convenes on January 12 and will run for 60 consecutive days.