STAND. COM. REP. NO. 1338-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 3255

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 3255, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CURRENCY,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require merchants to accept cash payments for in-person transactions; and

(2) Allow rounding for certain cash transactions.

Your Committee received testimony in support of this measure from the Hawaiʻi Restaurant Association; Retail Merchants of Hawaiʻi; Hawaii Food Industry Association; Chamber of Commerce Hawaii; Kapolei Chamber of Commerce; ABC Stores; and one individual. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Hawaii Bankers Association; Council on State Taxation; Hawaii Financial Services Association; and Maui Chamber of Commerce.

Your Committee finds that the United States Treasury has ceased minting the penny for general circulation, resulting in a shortage of pennies for many businesses throughout the State. This shortage has disrupted routine cash transactions and created operational challenges for retailers and other businesses that rely on exact change, particularly those that continue to accept cash as a form of payment. To address this issue, and maintain fairness for consumers while simplifying transactions in an environment where pennies are no longer widely available, this measure authorizes the use of symmetrical rounding, wherein a transaction total is rounded to the nearest five cents for cash payments.

Your Committee has amended this measure by:

(1) Deleting the requirement for merchants to accept cash payments for in-person transactions;

(2) Clarifying that the total transaction amount includes fees, surcharges, and taxes;

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3255, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3255, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair