Business and Commerce - As enacted, authorizes a private entity that is engaged in business with the public and accepts cash payments to round off all figures used in the transaction amount to the nearest nickel, if exac, the official text

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                          PUBLIC CHAPTER NO. 602

                                               HOUSE BILL NO. 1744

                                       By Representatives Baum, Powell

                                     Substituted for: Senate Bill No. 181 0

                                                 By Senator Reeves

          AN ACT to amend Tennessee Code Annotated, Title 9; Title 45; Title 47, Chapter 50;
Title 47, Chapter 18 and Title 67, relative to cash transactions.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 47-18-111 (a), is amended by adding
the following as a new, appropriately designated subdivision:

                    ( ) Rounding a cash transaction to the nearest nickel if the penny is no longer in
          production;

          SECTION 2. Tennessee Code Annotated, Title 47, Chapter 50, is amended by adding
the following as a new section:

                    (a) If a private entity, or its employees or contractors, is engaged in business
          with the public and accepts cash· payments, or a financial institution provides currency in
          exchange for a payment instrument received, but does not have exact change available
          during a cash transaction, then the entity may, in lieu of calculating the total transaction
          amount to the nearest penny, round off all figures used in the total transaction amount to
         the nearest nickel, subject to the following conditions:

                              (1) If the total amount ends in one cent ($0.01) or more, but less than
                   three cents ($0.03), then the entity may round down to the nearest five-cent
                    interval;

                              (2) If the total amount ends in three cents ($0.03) or more, but less than
                   five cents ($0.05), then the entity may round up to the nearest five-cent interval;

                              (3) If the total amount ends in more than five cents ($0.05), but less than
                    eight cents ($0.08), then the entity may round down to the nearest five-cent
                    interval; and

                              (4) If the total amount ends in eight cents ($0.08) or more, but less than
                   ten cents ($0.10), then the entity may round up to the nearest five-cent interval.

                    (b) For purposes of subsection (a) 1 the hundredths place is used to determine
          the cents in which a total amount ends.

                    (c) Rounding to the nearest nickel does not apply to transactions conducted
          electronically. For mixed-tender transactions, rounding to the nearest nickel applies only
          to the portion of the transaction paid in cash. Rounding under this section does not alter
          or affect the exact amounts authorized, cleared, or settled through any non-cash
          payment system.

                    (d) This section does not affect the rounding rule in§ 67-6-504(h) for computing
          the sales tax due in a transaction and does not relieve private entities from the duty to

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          calculate sales tax to the penny and remit to the department of revenue the exact
          amount of sales tax shown on an invoice or receipt

          SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.
                    HOUSE BILL NO. 1744

PASSED:  March 2. 2026

                                             TON, SPEAKER
                                         EPRESENTATIVES

                                                RANDY MCNALL
                                         AKER OF THE SENATE

r:ch ~ APPROVED this
                    day of (V)µ          2026

                    • w_

BILL LEE, GOVERNOR