Lawmakers in Oregon have approved legislation that would allow businesses to round cash transactions to the nearest five cents, a move aimed at addressing the growing shortage of pennies.
The measure, known as House Bill 4178, passed the Oregon Senate with a 26–2 vote and now awaits the signature of Gov. Tina Kotek.
If enacted, the bill would permit businesses to round totals for cash purchases to the nearest nickel. Purchases ending in 1, 2, 6 or 7 cents would be rounded down, while those ending in 3, 4, 8 or 9 cents would be rounded up.
The legislation was requested by the Northwest Grocery Retail Association and is intended to give businesses guidance after the federal government stopped producing pennies last fall. Stores that choose to adopt the policy must apply it consistently and notify customers with clear signage.
Association president Amanda Dalton said retailers, particularly independent grocers, have been struggling to obtain pennies from banks despite customers still using them in transactions.
The bill applies only to transactions that include cash, meaning card-only purchases would not be rounded. Lawmakers also added amendments to ensure the measure complies with Oregon’s consumer protection and anti-discrimination laws, including a 2022 rule requiring businesses to accept cash.
Supporters say the lack of federal guidance on how to handle the penny shortage has forced states to develop their own policies. More than 20 states, including Washington and Idaho, are considering or adopting similar measures.
Advocates also say the shortage has created challenges for rural communities, small businesses and low-income residents who rely more heavily on cash transactions.
The bill includes a provision allowing government agencies to implement their own rounding systems for cash payments. If signed by the governor, the measure would take effect immediately because it carries an emergency declaration.
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