Sponsored by:
Senator ROBERT W. SINGER
District 30 (Monmouth and Ocean)
Senator JOSEPH A. LAGANA
District 38 (Bergen)
SYNOPSIS
Allows rounding for cash transactions.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain cash transactions and supplementing Title 56 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. If a business accepts cash transactions and chooses to round up or down when calculating amounts due at the point of sale, the following provisions apply:
(1) A cash transaction where the price ends in one-hundredth or two-hundredths ($.01 or $.02) of a dollar shall be rounded down to the nearest tenth of a dollar.
(2) A cash transaction where the price ends in three-hundredths or four-hundredths ($.03 or $.04) of a dollar shall be rounded up or down to the nearest five-hundredths of a dollar.
(3) A cash transaction where the price ends in six-hundredths or seven-hundredths ($.06 or $.07) of a dollar shall be rounded down to the nearest five-hundredths of a dollar.
(4) A cash transaction where the price ends in eight-hundredths or nine-hundredths ($.08 or $.09) of a dollar shall be rounded up or down to the nearest tenth of a dollar.
b. The provisions of subsection a. of this section shall not apply to transactions where a check, debit card, credit card, wire transfer, or any other non-cash form of payment is used in a transaction.
2. Any business that violates the provisions of this bill shall be subject to a civil penalty of $1,000 for the first offense, $2,500 for the second offense, and $5,000 for the third and each subsequent offense. Each day on which a violation occurs shall constitute a separate and distinct offense. A penalty imposed pursuant to this section shall be collected in a civil action by a summary proceeding under the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.). The Superior Court shall have jurisdiction of proceedings for the enforcement of the penalty provided by this section.
3. This act shall take effect 30 days after enactment.
STATEMENT
This bill establishes the rounding requirements, for businesses that choose to follow them, for cash transactions in response to the end of the production of pennies by the federal government in November of 2025. While pennies will still circulate, the bill intends to assist businesses in preparation for a phaseout in the use of the penny for cash transactions. As noted by the National Conference of State Legislatures, guidance issued by states on this issue will provide critical clarity and fairness for businesses and subsequently, consumers. Penalties are also established in the bill for businesses who adopt the rounding requirements but violate their provisions.