Policy updates on cash transactions and carryout bags

Two policy areas under review this session could affect retail operations across Washington, including cash handling practices and carryout bag requirements.

HB 2334 would allow retailers to round the final total of cash purchases to the nearest five cents, reducing the need to handle pennies. The proposal responds to ongoing penny shortages and the fact that producing one-cent coins now costs more than their face value. Electronic payments would continue to be processed to the exact amount, so the change would apply only to cash transactions. Under the bill, totals ending in one, two, six, or seven cents would round down, while totals ending in three, four, eight, or nine cents would round up. The Washington Retail Association is monitoring the proposal and seeking clarification on audit compliance to ensure tax calculations remain accurate and that retailers have clear guidance related to existing consumer protection laws.

Several bills also address carryout bag policies, offering different approaches. SB 5965 and HB 2233 would ban plastic carryout bags starting January 1, 2027, and increase the paper bag fee from $0.08 to $0.20. HB 2284 proposes extending the current four-cent fee on thicker plastic bags, removing a scheduled expiration on thickness standards, and allowing compostable alternatives. SB 6030 would repeal bag thickness requirements and fees entirely, citing research from Washington State University showing a 50 percent reduction in plastic carryout bag use following the original $0.08 fee.

Except for SB 6030, these measures are scheduled for hearings in the Senate and House environment committees during the first week of the session.

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