The Assembly Local Government Committee advanced SB 1005 on June 3, sending forward a bill that would give cities, counties and special districts a legal pathway to round cash payments to the nearest five cents when pennies are unavailable.
According to the committee materials, the bill by Sen. Cavallero would allow local agencies to adopt a rounding policy through local approval and public process. Supporters said the measure would provide a practical fix for agencies that otherwise might have to issue checks or absorb administrative costs when exact change cannot be made in cash transactions.
The committee moved SB 1005 on a 6-0 do-pass-as-amended recommendation, and the item was later recorded as 10-0. Testimony in support came from county treasurers and tax collectors, the City of Camarillo, the California State Treasurer’s office, the California Special Districts Association, and local government associations including the Urban Counties of California, the California State Association of Counties and the League of California Cities.
The committee transcript also noted penny-production changes tied to a 2025 executive order by President Trump. The available summary does not spell out the final amendment language in full.
