Georgia, Other States Formalizing “Penny” Policies

 As fallout continues from the discontinuation of circulating U.S. 1-cent pieces, state governments are formalizing policies that address the shortage of “pennies” in commerce. One of the latest legislative efforts on the matter played out under the dome of the Georgia State Capitol Building. The Georgia Assembly recently passed a House bill that formally allows merchants to round totals up or down to the nearest nickel, making it easier to facilitate transactions involving cash amid a shortfall of circulating cents. 

According to commoncentsact.com, a site billed as a “penny transition resource,” 13 states currently offer official guidance on how merchants should navigate transactions that may involve 1-cent coins. Fourteen states have legislation or other related policies pending. Meanwhile, 23 states and the District of Columbia offer no guidance on the matter. 

However, even in localities that lack formal penny policies, it’s common practice for merchants to round cash transactions up or down to the nearest nickel. This much aside, there are still tens of billions of 1-cent coins in circulation or presently hoarded in bottles, jars, and piggy banks; these coins could eventually be filtered back into circulation, helping mitigate the effects of any current “penny shortages.”