RCRC, in coalition with the California Association of County Treasurers and Tax Collectors, is co-sponsoring Senate Bill 1005 authored by Senator Anna Caballero (D-Merced). This measure seeks to provide clear authority for public agencies to round when receiving cash payments or issuing change when conducting cash transactions with the public.
Specifically, SB 1005 will 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.
On February 9, 2025, President Trump ordered the Treasury Secretary, Scott Bessent, to stop producing new pennies at U.S. Mints. The last penny produced for general circulation was minted at the U.S. Mint in Philadelphia on November 12, 2025.
County Treasurers began receiving notifications from their commercial banking institutions in October 2025 that once those banks cannot access pennies from the U.S. mint, that they will no longer fulfill orders from public agency banking clients who need pennies for their operations in order to make correct change for taxpayers and residents who prefer to make their payments to government agencies in cash.
Local public agencies do not presently have clear statutory authority to round cash transactions to the nearest five cents. Counties rely on their banking relationships to obtain the cash and coin needed for government transactions.
RCRC supports SB 1005 because it will authorize rounding when accepting payments or issuing cash refunds or change, ensuring transactions can still be completed smoothly when customers, taxpayers, and residents choose to pay in cash.
SB 1005 was introduced on February 9th and has been referred to the Senate Local Government Committee.
For additional information, contact RCRC Senior Policy Advocate Sarah Dukett.