SB 1005 – Authorizes Local Agencies to Round Cash Transactions to the Nearest Five Cents

Existing law requires public agencies to accept specified methods of payment for certain obligations, including taxes, fees, charges, licenses, permits, public services, and other amounts owed to public agencies.

SB 1005 authorizes a local agency to round to the nearest five cents ($0.05) the amount of a payment made wholly or partly in cash to the agency, as well as a refund or other amount paid wholly or partly in cash by the agency. The authority is optional and applies to a local agency only if its governing body adopts, by majority vote, a resolution making the law applicable to the agency. SB 1005 took effect on September 18, 2026 as urgency legislation.

SB 1005 adds Section 6158 to the Government Code.