It's Thursday. As Beacon Hill budget writers proverbially pinch pennies amid challenging conditions, one lawmaker is trying to tackle a more literal penny problem: Rounding era: What does exact change look like in a future with no pennies? Following the Trump administration's move to stop producing the increasingly worthless coins last year, a top Massachusetts lawmaker is pushing to clear up the confusion, as penny shortages begin to hit local stores. " This is actually more serious than I think anyone realized," state Rep. Tackey Chan, a Quincy Democrat who chairs the Legislature's consumer protection committee, told WBUR's Dan Guzman. - The backstory: Just over a year ago, President Trump announced that he had instructed the U.S. Mint to stop making pennies. It was a move that came after decades of debate and had broad support among economists and politicians on both sides of the aisle, even former President Obama. (The 1-cent coin famously cost 3.69 cents to make — which added up to a $85.3 million loss for the Mint in the 2024 fiscal year.) However, unlike Canada and other countries that put out specific guidance on how to round prices on cash transactions after getting rid of their 1-cent coins, the Treasury Department left it up to states to decide.
- The problem: It's still perfectly legal to use pennies. But soon after the final penny was minted this past November, penny shortages began cropping up around Massachusetts. That led to businesses implementing different rounding policies. Sometimes, the approach is inconsistent even within the same company. For example, some Dunkin' stores round your change up or down to the nearest nickel or dime. But others simply round the change they give to customers up to the nearest 5-cent increment.
- Why it matters: It's only a penny or two, after all! However, lower-income residents and people over the age of 55 tend to rely more on cash — and Chan argues "every penny adds up in people's lives." Massachusetts also has rules against treating cash and electronic payments differently that make the situation tricky to navigate for businesses. " What you have now is retailers and consumers are very confused about how to handle cash transactions," Chan said.
- What would his bill do? If passed, it would create a consistent standard for cash transactions in Massachusetts — modeled after Canada's approach. If the total (including taxes and fees) ends in 1, 2, 6 or 7 cents, the amount the consumer pays rounds down to 0 or 5; if it ends in 3, 4, 8, or 9, it rounds up. Credit cards and other payments would still be calculated to the exact cent.
- What's next: It's still early in the process. Chan says they're still working on raising awareness for the bill, though he already has the backing of state Sen. Paul Feeney, who chairs the Legislatures' financial services committee.
- Big picture: Chan hopes his effort leads to a national standard. "If enough states, including us, pass a law on this and start to create some consistency among ourselves, we will have a unified standard through the states, or it may stimulate Congress to take action, if there are some states that don't have it," Chan said.
Meanwhile on Beacon Hill: The House passed a pair of bills yesterday to regulate the use of artificial intelligence in political ads. One bill would require disclosures at the beginning and end of any political ad that uses AI. The other would ban ads with "deceptive audio or visual media" about a candidate or voting within 90 days of an election. The bills come after several recent local examples of AI-assisted political ads and deepfakes. The proposals now head to the Senate for consideration.
excerpt: Asked for a comment about the video, the Healey campaign directed State House News Service to the Massachusetts Democratic Party. "SlowZone Shortsleeve has to create alternative realities to pretend he has any shot in this race,"said Steve Kerrigan, chair of the state's Democratic Party. "He should stop lying to voters and tell them the truth — he will be a rubber stamp on President Trump's harmful agenda." SLOW ZONE SHORTSLEEVE CREATED THE MBTA DISASTERS THAT GOV. MAURA HEALEY WAS FORCED TO ADDRESS WITH PHIL ENG....EXPENSIVE FAILURES, INCLUDING APPOINTING EXPENSIVE OUT-OF-STATE EXPERTS WHO NEVER TRAVELLED TO THE COMMONWEALTH....AND HOW ABOUT THE NO-BID LUNCHROOM/BATHROOM THAT GOV. BAKER DISMISSED? THE GUY IS AN INCOMPETENT LOSER!
- In related news: WBUR's Tiziana Dearing spoke to MassLive tech columnist Scott Kirsner about the companies emerging in Massachusetts that aim to detect AI-created media and fraud. Read the highlights of the interview here.
Guilty: Former Worcester City Councilor Etel Haxhiaj was convicted yesterday on one of two charges stemming from an altercation with a police officer during the arrest of a local woman by federal immigration agents last spring. WBUR's Lisa Creamer reports that a jury found Haxhiaj guilty on a misdemeanor charge of assault on a police officer, while acquitting her on a charge of interfering with law enforcement. She was sentenced to six months of probation and 40 hours of community service P.S.— Looking for Valentine’s Day flowers and a way to support independent journalism? Order roses from Winston Flowers through WBUR. Delivery is available for both tomorrow and Saturday. Check out the options and place your order here. |
