October 2, 2026 - SACRAMENTO, CA. - Governor Gavin Newsom has signed Assembly Bill 1793, the California Common Cents Act, authored by Assemblymember Chris Ward (D-San Diego), establishing a fair and consistent system for rounding cash transactions as pennies become increasingly scarce.

Beginning July 1, 2027, AB 1793 requires cash transaction totals to be rounded to the nearest five cents. Transactions ending in one, two, six, or seven cents will round down, while those ending in three, four, eight, or nine cents will round up. Electronic and card payments will remain unchanged.

“As penny shortages become increasingly common following the end of penny production in 2025, California needs a fair and transparent approach that protects everyone at the register,” said Assemblymember Chris Ward. “The California Common Cents Act creates a simple statewide standard of symmetrical rounding, ensuring consumers are treated fairly while giving businesses the clarity they need to adapt their POS systems.”

The law also prohibits merchants from overcharging consumers through cash rounding and ensures rounding does not change the calculation of applicable taxes, fees, or surcharges.

AB 1793 takes effect July 1, 2027.

Source: Assemblymember Chris Ward