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Home/Bills/SB 1005California · 2025–2026 Regular Session
Senate BillChaptered/SignedGovernment

SB 1005: Local agency: payment: rounding amount.

California · Senate · 2025–2026 Regular Session · last verified September 20, 2026

What SB 1005 does, verified September 20, 2026

This bill allows local government agencies to round the amount of cash payments to the nearest $0.05. To be eligible, the governing body of the local agency must adopt a resolution making the provisions applicable. The bill defines terms for its purposes, but the specific details of the definition are not provided. The bill aims to simplify payment processing for local agencies by allowing them to round cash payments.

Bill journey
✓IntroducedComplete
✓In CommitteeComplete
✓First Chamber FloorComplete
✓Second ChamberComplete
✓GovernorComplete
6ChapteredCurrent
Last action: Chaptered by Secretary of State. Chapter 321, Statutes of 2026. (2026-09-18)Alert me
Recent actions21 total · showing 5
Sep. 18, 2026Chaptered by Secretary of State. Chapter 321, Statutes of 2026.
Sep. 18, 2026Approved by the Governor.
Aug. 21, 2026Enrolled and presented to the Governor at 3 p.m.
Aug. 17, 2026Assembly amendments concurred in. (Ayes 40. Noes 0.) Ordered to engrossing and enrolling.
Aug. 17, 2026Urgency clause adopted.
Full action history, 16 earlier actionsConnect Plus
Latest bill textEnrolled version, August 19, 2026 · 566 words

Enrolled August 19, 2026
Passed IN Senate August 17, 2026
Passed IN Assembly August 13, 2026
Amended IN Assembly July 02, 2026
Amended IN Assembly June 04, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill
No. 1005


Introduced by Senator Caballero
(Coauthor: Senator Arreguín)
(Coauthor: Assembly Member Ward)

February 09, 2026


An act to add Section 6158 to the Government Code, relating to local government, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


SB 1005, Caballero. Local agency: payment: rounding amount.
Existing law requires a public agency to accept specified methods of payment for designated obligations.
This bill would authorize a local agency to round the amount of any payment made wholly or partly in cash to the local agency, or any refund or other amount tendered wholly or partly in cash by the local agency, to the nearest $0.05. The bill would apply to a local agency only if the governing body of the local agency adopts, by majority vote, a resolution to make its provisions applicable to the local agency. The bill would define terms for its purposes.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3 Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:


SECTION 1.

Section 6158 is added to the Government Code, to read:

6158.

(a) As used in this section:
(1) “Local agency” has the same meaning as defined in Section 54951.
(2) “Payment” means any tax, fee, or charge paid to the local agency, or other funds tendered to the local agency for any license, permit, or public service, or in payment of any trust deposit, and includes any payment set forth in subdivision (b) of Section 6159.
(b) A local agency may round the amount of any payment made wholly or partly in cash to the local agency, or any refund or other amount tendered wholly or partly in cash by the local agency, to the nearest five cents ($0.05).
(c) This section shall apply to a local agency only if the governing body of the local agency adopts, by majority vote, a resolution to make this section applicable to the local agency.
(d) The Legislature finds and declares that authorizing local agencies to round transactions made wholly or partly in cash to the nearest five cents ($0.05) serves a public purpose, and is of benefit to the state and local agencies, by facilitating the conduct of public business if the United States Mint ceases to produce pennies, notwithstanding the potential reduction or elimination of the production of pennies by the United States Mint.

SEC. 2.

This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
The shortage of United States pennies has reached unprecedented levels, creating immediate operational challenges for tax collection offices and other local government agencies across California. Without the ability to provide accurate change for cash transactions, public-facing agencies are increasingly unable to process routine payments efficiently, generating public frustration, slowing service delivery, and eroding confidence in cash-based government transactions. Counties are encountering these challenges now, well in advance of the timelines initially anticipated, requiring an urgent legislative action before the disruption becomes more widespread.
Text of SB 1005 as enrolled, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions
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