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An ordinance amending Title 5 of the Metropolitan Code of Laws to add a new section authorizing the rounding of certain cash payments to the Metropolitan Government due to the discontinuation of United States one-cent coin production.
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WHEREAS, the United States Government has discontinued the minting of one-cent coins, colloquially called “pennies”, resulting in reduced circulation and availability; and,
WHEREAS, the limited availability of one-cent coins makes it difficult for the Metropolitan Government and payors to tender or return exact change for in-person cash transactions; and,
WHEREAS, Public Chapter 602 of the Public Acts of the 114th Tennessee General Assembly, which authorizes the rounding of transactions up or down due to the discontinuation of the one-cent coin, applies only to private entities; and,
WHEREAS, establishing a similar cash-rounding procedure for the Metropolitan Government will promote administrative convenience and provide a consistent method for handling transactions when there is not exact change; and,
WHEREAS, it is in the best interests of the Metropolitan Government to adopt an efficient rounding policy to address potential shortages of one-cent coins.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That Title 5 of the Metropolitan Code of Laws be amended by adding the following as a new section:
5.04.011 - Cash transaction rounding.
A. Unless otherwise provided by applicable law, all transactions that result in an in-person payment of cash to the metropolitan government shall be rounded in the following manner if the payor cannot pay in exact change and one-cent coins are insufficiently available when change is due:
1. If the total transaction amount ends in digits that include one cent ($0.01), two cents ($0.02), six cents ($0.06), or seven cents ($0.07), the amount of cents shall be rounded down to the nearest five-cent ($0.05) interval.
2. If the total transaction amount ends in digits that include three cents ($0.03), four cents ($0.04), eight cents ($0.08), or nine cents ($0.09), the amount of cents shall be rounded up to the nearest five-cent ($0.05) interval.
3. For transactions involving multiple forms of payment, rounding shall apply only to the portion of the total transaction amount paid in cash.
4. For purposes of this section, “total transaction amount” shall mean the entire amount due for the transaction, inclusive of taxes, fees, or other similar costs, when the entire amount is collected at the time of payment.
B. This section does not apply to transactions paid in full by check, negotiable instrument, electronic funds transfer, money order, credit card, debit card, electronic payment, or any other non-cash payment system.
C. Any department, office, board, commission, or agency of the Metropolitan Government that collects cash payments:
1. Shall not refuse cash as a form of payment or require any alternative form of payment unless required by applicable law.
2. Shall post a notice reasonably visible to customers at the point of sale or collection stating that cash transactions will be rounded pursuant to this section.
Section 2. That cash rounding pursuant to this ordinance shall not alter or affect the exact sales price or service fee of any good or service. All taxes, fees, and other similar costs shall be calculated based on the exact amount prior to any rounding.
Section 3. That cash rounding down shall not create a debt owed to the Metropolitan Government by the payor, nor shall rounding up create a debt owed by the Metropolitan Government to a payor who elects to pay in cash. If required, the Director of Finance is authorized to allocate amounts from appropriated revenues as reasonably necessary to carry out the provisions of this ordinance.
Section 4. That the Director of Finance is further authorized to adopt policies, rules, and regulations necessary to implement this ordinance.
Section 5. That the sections, paragraphs, sentences, clauses, phrases, and words of this ordinance are hereby declared to be severable. If any such section, paragraph, sentence, clause, phrase, or word is declared unconstitutional or otherwise invalid by a court of competent jurisdiction, such invalidity shall not affect the remaining portions of this ordinance.
Section 6. That this ordinance shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.