Official Summary Text
HB2938 - 572R - Senate Fact Sheet
Assigned to
RAGE
������������������������������������������������������������������������������������������������������������������������ AS
ENACTED
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
ENACTED
AMENDED
FACT SHEET FOR
H.B. 2938/S.B. 1108
cash transactions; mandatory rounding method
Purpose
An emergency measure effective March 12, 2026, that requires sellers to
apply the Swedish rounding method in cash transactions if one-cent coins are
not available or utilized at a point of sale.
Background
The U.S. penny, officially known as the cent, was created by the U.S.
Mint shortly after its establishment in 1792. The penny is the lowest
face-value physical unit of U.S. currency currently in circulation. Under
federal law, the U.S. Secretary of the Treasury has the authority to mint and
issue pennies in amounts necessary to meet the needs of the United States. In
2025, the U.S. Mint was instructed to stop making pennies and on November 12,
2025, the last penny was produced for general circulation (
U.S.
Mint
; 31 U.S.C. ��
5111
and
5112
).
The Weights and Measures Division of the Arizona Department of
Agriculture (Division) is established to promote fairness in Arizona commerce
involving weighing or measuring for commercial purposes. Duties of the Division
include: 1) maintaining Arizona's standards of weight and measure based on
national standards maintained by the federal government; 2) licensing weighing
and measuring devices used in Arizona; 3) conducting a wide variety of
inspection programs to protect the marketplace; 4) auditing measuring devices; and
5) enforcing related statutes, rules, and regulations (
A.R.S. Title 3, Chapter 19
).
Statute outlines trade and commerce practices in general and for
particular industries and transactions, including practices that are deemed
unlawful (
A.R.S. Title 44
).
There is no anticipated fiscal impact to the state General Fund
associated with this legislation.
Provisions
1.
Requires
a seller, if one-cent coins are not available or are not used by the seller at
a point of sale, to apply Swedish rounding to the total transaction amount to
the nearest five-cent increment as follows:
a)
rounded down if the amount ends in one or two cents;
b)
rounded up if the amount ends in three or four cents;
c)
rounded down if the amount ends in six or seven cents or
d)
rounded
up if the amount ends in eight or nine cents.
2.
Applies Swedish rounding to a final total transaction amount of a cash
transaction after taxes, fees and other charges are calculated.
3.
Exempts, from Swedish rounding, a transaction that is paid by credit
card, debit card, electronic funds transfer, mobile payment application or
other non-cash payment.
4.
Requires a seller that is subject to Swedish rounding to post a notice
that is visible to customers at the point of sale stating:
cash transactions
are rounded to the nearest five-cent increment pursuant to state law
.
5.
Prohibits a seller from applying a rounding method other than Swedish
rounding.
6.
Requires a seller to calculate and remit all taxes and fees that are
imposed by a state or municipal taxing authority based on the sales price
before the cash transaction was rounded.
7.
Requires the Swedish rounding requirement to be enforced by the
Division.
8.
Allows the Division to issue warnings and orders and impose civil
penalties relating to the Swedish rounding requirement.
9.
States that a seller is not in violation of any other state or municipal
requirement, law, regulation or standard if the action is based in compliance
with rounding requirements.
10.
States
that the Swedish rounding requirement is intended to operate consistently with
federal law that governs U.S. coinage and legal tender.
11.
States that the Swedish
rounding requirement does not:
a)
declare any coin or currency invalid as legal tender;
b)
require acceptance or refusal of any specific denomination of U.S. coin
or currency; or
c)
preempt,
conflict with or supersede any provision of federal law regulation.
12.
Contains
a statement of legislative intent.
13.
Makes
conforming changes.
14.
Becomes
effective on March 12, 2026.
Amendments Adopted by
Committee
1.
Removes the exemption of the sale of an individual item from Swedish
rounding.
2.
Requires a seller to calculate and remit all taxes and fees that are
imposed by a state or municipal taxing authority based on the sales price
before the cash transaction was rounded.
3.
States that a seller is not in violation of any other state or municipal
requirement, law, regulation or standard if the action is based in compliance
with rounding requirements.
4.
Adds
a statement of legislative intent.
5.
Makes
conforming changes.
Amendments
Adopted by Committee of the Whole
�
Adds an emergency clause.
House Action
����������������������������������������������������������
Senate
Action
COM�������������� 2/10/26����� DPA��� 11-0-0-0������������ RAGE������������ 2/11/26����� DPA���������� 6-0-1
3
rd
Read��������� 2/26/26����������������� 52-1-7���������������� 3
rd
Read��������� 2/26/26������������������������� 28-1-1
�������������������������������������������������������������������������������� (H.B.
2938 was substituted for S.B. 1108 on 3
rd
Read)
Signed by the
Governor 3/12/26
Chapter 5
Prepared by Senate Research
March 30, 2026
JT/HD/ci
Current Bill Text
Read the full stored bill text
Chapter 0005 - 572R - H Ver of HB2938
House Engrossed
mandatory rounding
method; cash transactions
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 5
HOUSE BILL 2938
AN
ACT
amending title 44, chapter 38, article 1,
arizona revised statutes, by adding section 44-7952; relating to cash
transactions.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1.
Heading change
The chapter heading of title 44,
chapter 38, Arizona Revised Statutes, is changed from "BUSINESSES EXEMPT
FROM MASK MANDATE" to "BUSINESSES GENERALLY".
Sec. 2. Title 44, chapter 38, article 1,
Arizona Revised Statutes, is amended by adding section 44-7952, to read:
START_STATUTE
44-7952.
Cash transactions; mandatory rounding of transaction totals;
notice; enforcement
A. If one-cent coins are not
available or are not used by a seller at a point of sale, the seller shall
apply swedish rounding to a total transaction amount that rounds the total
transaction amount to the nearest five-cent increment.� If a total
transaction amount ends:
1. In one or two cents, the total
TRANSACTION amount is rounded down to the nearest multiple of five cents.
2. In three or four cents, the total
TRANSACTION amount is rounded up to the nearest multiple of five cents.
3. In six or seven cents, the total
TRANSACTION amount is rounded down to the nearest multiple of five cents.
4. In eight or nine cents, the total
TRANSACTION amount is rounded up to the nearest multiple of five cents.�
B. Swedish rounding applies to a
final total TRANSACTION amount of a cash transaction after taxes, fees and
other charges are calculated.
C. Swedish rounding does not apply to
a transaction that is paid by a credit card, debit card, electronic funds
transfer, mobile payment application or other non-cash payment method.
D. A seller that is subject to this
section shall post a notice that is visible to customers at the point of sale
stating "cash transactions are rounded to the nearest five-cent
increment pursuant to state law".
E. A seller may not apply a rounding
method other than swedish rounding.
F. A seller shall calculate and remit
all taxes and fees that are imposed by a state or municipal taxing authority
based on the sales price before the cash transaction was rounded.
G. This section shall be enforced by
the weights and measures services division of the arizona department of
agriculture pursuant to title 3, chapter 19.� the division may issue warnings
and orders and impose civil penalties in addition to other enforcement
measures.
H. A seller is not in violation of
any state or municipal requirement, law, regulation or standard if the action
is based on compliance with this section.
I. This section is intended to
operate consistently with federal law that governs united states coinage and
legal tender.
J. This section does not:
1. Declare any coin or currency
invalid as legal tender.
2. Require acceptance or refusal of
any specific denomination of the united states coin or currency.
3. Preempt,
conflict with or supersede any provision of federal law regulation.
END_STATUTE
Sec. 3.
Legislative intent
The legislature intends that section
44-7952, Arizona Revised Statutes, as added by this act, protects
businesses and governmental agencies in this state.
Sec. 4.
Emergency
This act is an emergency measure that
is necessary to preserve the public peace, health or safety and is operative
immediately as provided by law.
APPROVED BY THE GOVERNOR MARCH 13, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MARCH 13, 2026.