Finance and Administration, Dept. of

Plain English Breakdown

Checked against official source text during the last sync.

Tennessee Cash Transaction Rounding Act

This bill requires the Tennessee Department of Finance and Administration to create rules for rounding cash transactions to the nearest five cents and ensures compliance with these rules.

What This Bill Does

• Requires the department to make rules about how cash transactions are rounded to the nearest five cents.
• Sets standards to stop sellers from unfairly benefiting from rounding practices.
• Needs receipts to show subtotals, any adjustments due to rounding, and the total price clearly.
• Allows the department to enforce these rules using existing resources.
• Makes not following these rules a violation of Tennessee's Consumer Protection Act.

Who It Names or Affects

• The Department of Finance and Administration in Tennessee
• Businesses that handle cash transactions in Tennessee

Terms To Know

Uniform Administrative Procedures Act

A set of rules for creating and enforcing administrative regulations.

Consumer Protection Act

Laws that protect consumers from unfair business practices.

Limits and Unknowns

• The bill does not specify the exact penalties or enforcement methods.
• It is unclear how this will affect small businesses with limited resources.

Official Summary Text

This bill requires t
he department of finance and administration
to
promulgate rules governing cash transaction rounding. Such rules must
(i) r
equire rounding to the nearest five cents, through the establishment of specific rounding methodology;

(
ii
)
c
reate specific standards to prohibit rounding practices that systematically favor the seller; and

(
iii
)
r
equire receipts to clearly itemize
transaction subtotals, a
ny rounding adjustments
,
and
t
he total price for transactions.
The department must
enforce
such
requirements and ru
les promulgated through the use of existing funds, personnel, and other such resources.

This bill provides that f
ailure to comply with a cash transaction rounding rule promulgated under
this bill
constitutes a violation of the Tennessee Consumer Protection Act of 1977 and is subject to the penalties and remedies as provided in that Act, which includes, but is not limited to, restraining orders, injunctions, private rights of action, and damages.

Current Bill Text

HOUSE BILL 2492
By Powell

SENATE BILL 2498
By Kyle
SB2498
012674
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 47,
Chapter 18 and Title 67, relative to cash
transaction rounding.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 67, Chapter 1, Part 1, is amended by
adding the following as a new section:
(a) The department of finance and administration shall promulgate rules
governing cash transaction rounding. Such rules must:
(1) Require rounding to the nearest five cents ($0.05), through the
establishment of specific rounding methodology;
(2) Create specific standards to prohibit rounding practices that
systematically favor the seller; and
(3) Require receipts to clearly itemize:
(A) Transaction subtotals;
(B) Any rounding adjustments; and
(C) The total price for transactions.
(b) The rules promulgated under subsection (a) must be in accordance with the
Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(c) The department of finance and administration shall enforce the requirements
of this section and rules promulgated in accordance with this section through the use of
existing funds, personnel, and other such resources.
SECTION 2. Tennessee Code Annotated, Section 47-18-104(b), is amended by adding
the following as a new subdivision:

- 2 - 012674

Failure to comply with a cash transaction rounding rule promulgated under
Section 1 of this act.
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.