Former Representative Jim Kolbe (R-Az) sponsored the Legal Tender Modernization Act, which would have phased out the penny by specifying that cash transactions be averaged to the nearest five cents. This rounding is done such that it favors neither the customer nor the retailer. The proposed legislation would not remove the penny from circulation, but it would have provided a means for the penny to gradually fall out of use. We support such legislation as a reasonable way to phase out the use of the penny.
Unfortunately, there is no current legislation in the United States to retire the penny, although Australia and New Zealand have retired their one-cent piece without any problems.