HB 2388
An Act providing for rounding of certain payment sums paid by physical legal tender.
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- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This act, titled the Pennsylvania Common Cents Act, aims to standardize the rounding of payments made with physical legal tender. Specifically, it requires political subdivisions, Commonwealth agencies, municipal authorities, and public utilities to round down amounts ending in 1 cent, 2 cents, 6 cents, or 7 cents to the nearest five cents, and round up amounts ending in 3 cents, 4 cents, 8 cents, or 9 cents to the nearest five cents. Microtransactions of 1, 2, 3, or 4 cents will be rounded up to the nearest nickel. The act excludes payments made through methods other than physical legal tender, such as checks or credit cards.
Key provisions
- Political subdivisions, Commonwealth agencies, municipal authorities, and public utilities must round down payments ending in 1, 2, 6, or 7 cents to the nearest multiple of 5.
- Political subdivisions, Commonwealth agencies, municipal authorities, and public utilities must round up payments ending in 3, 4, 8, or 9 cents to the nearest multiple of 5.
- Microtransactions of 1, 2, 3, or 4 cents must be rounded up to the nearest nickel.
- The act does not apply to payments made using methods other than physical legal tender.
- Definitions of key terms, including ‘Commonwealth agency,’ ‘municipal authority,’ and ‘physical legal tender,’ are provided.
- A section outlines the act’s impact on account crediting.
- The act clarifies that taxes are calculated before rounding.
- A one-year timeframe is established for entities to adopt the new rounding procedures.
Who is affected
Sponsors
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Primary sponsor
Nathan Davidson
Cosponsors
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