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Assembly committee advances bill letting local governments round cash payments if pennies disappear
Summary
The Assembly Local Government Committee on a voice vote moved SB 1005 out as amended. The bill would authorize local agencies to adopt rounding to the nearest 5¢ for in-person cash transactions if pennies are unavailable, after a required local public process.
The Assembly Local Government Committee on Thursday advanced SB 1005, the "Public Entities Navigating the Need for Immediate Efficient Small Change Act" (Pennies Act), which would give local governments explicit authority to adopt a rounding policy for in-person cash payments if pennies are no longer available.
Senator Caballero, the bill’s author, told the committee the measure responds to a federal action that stopped production of the U.S. penny and has left many local treasurers unable to provide exact change. "SB 1005 gives local government the authority to determine whether to adopt a system for rounding to the nearest 5¢," the author said, adding the bill creates a local public hearing process before any rounding is implemented and is intended to "save taxpayers money."
Karen Lang of the California Association of County Treasurers and Tax Collectors testified in support, saying banks alerted county treasurers they could no longer provide pennies after the Mint stopped production and that current law does not permit rounding for cash transactions. "This is really only in the scenario where someone is paying in cash," Lang said, arguing local agencies need clear legal footing and that a local resolution must authorize any change.
Representatives from several local governments and statewide associations — including the City of Camarillo, the State Treasurer’s office (represented in support), the California Association of Recreation and Park Districts, the California Special Districts Association, and the Urban Counties of California — spoke in support, describing operational burdens when exact change cannot be made.
There was no primary opposition in the room. After accepting amendments, the committee made and carried a motion to pass SB 1005 as amended (motion by Mr. Tass; second by Ms. Pacheco). The secretary called the roll and the committee recorded the measure as passed, announced in the transcript as 6-0.
Next steps: SB 1005 was moved out of the Local Government Committee as amended and, as discussed, requires any local adoption of rounding rules to follow a local public process and a resolution by the local governing body.
