AB1793: Cash payments: calculation.

Amended IN Senate June 25, 2026 Amended IN Assembly April 07, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1793 Introduced by Assembly Members Ward and Rogers February 10, 2026 An act to add Title 1.6H (commencing with Section 1789.60) to Part 4 of Division 3 of the Civil Code, relating to cash payments. LEGISLATIVE COUNSEL'S DIGEST AB 1793, as amended, Ward. Cash payments: calculation. Federal law establishes United States coins and currency as legal tender for all debts, public charges, taxes, and dues, and authorizes the Secretary of the Treasury to mint and issue a one-cent coin. Existing state law generally regulates the use of credit cards, debit cards, gift certificates, and other forms of payment for goods and services in this state. Existing law prohibits a person from overcharging for a commodity. A violation of this provision is a crime. This bill would enact the California Common Cents Act to require a merchant, for a the portion of the total transaction price paid with legal tender, to determine the total transaction price of goods or services by rounding to the nearest amount of cents divisible by 5, as specified. The bill would define “legal tender” as all metal coins and paper currencies of the United States. The bill would authorize the Treasurer to promulgate regulations to implement the act, including regulating exemptions or exclusions from the act’s requirements. The bill would require any rounding adjustment to be disregarded for the purposes of the computation of any applicable tax, fee, or surcharge, or the measure thereof, and authorize the California Department of Tax and Fee Administration to promulgate regulations to implement this requirement. The bill would prohibit a person from collecting from a purchaser an amount greater than the amount permitted under these provisions and would subject a violation of this prohibition to the same remedies as the prohibition against overcharging for a commodity, as provided. The bill would make its provisions operative on July 1, 2027. The bill would make its provisions severable. By expanding a crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO YES Bill Text The people of the State of California do enact as follows: SECTION 1. Title 1.6H (commencing with Section 1789.60) is added to Part 4 of Division 3 of the Civil Code, to read: TITLE 1.6H. California Common Cents Act 1789.60. This title shall be known, and may be cited, as the “California Common Cents Act.” 1789.61. For the purposes of this title, the following terms shall have the following meanings: apply: (a) “Installment payment” means a sum of money due as one of multiple payments over a period of time pursuant to a contract of sale entered into by and between the merchant and the purchaser. (b) “Legal tender” means all metal coins and paper currencies of the United States. (a) (c) “Merchant” means any person, corporation, or partnership person engaged in the business of the sale of selling goods or services. services at a physical location in this state. (b) “Legal tender” means all coins and currencies of the United States. (d) “Person” includes any individual, firm, partnership, joint venture, limited liability company, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, assignee for the benefit of creditors, trustee, trustee in bankruptcy, syndicate, this state, any county, city and county, municipality, district, or other political subdivision of the state, or any other group or combination acting as a unit. (e) “Tax, fee, or surcharge” does not include any taxes, penalties, additions to tax, fees, interest, or other charges, imposed pursuant to Part 10 (commencing with Section 17001) of, Part 10.2 (commencing with Section 18401) of, or Part 11 (commencing with Section 23001) of, Division 2 of the Revenue and Taxation Code. (f) “Total transaction price” means either of the following: (1) The total amount of consideration received by the merchant for the sale of goods or services in a single transaction, including any applicable taxes, fees, or surcharges, or tax, fee, or surcharge reimbursement. (2) An installment payment made in a single transaction. 1789.62. (a) Notwithstanding any other laws, regulations, or standards of the state or local government and except as provided in subdivision (b), a merchant doing business in this state shall determine the total transaction price of goods or services in the following manner: (1) Calculate the sum of goods and services, making any subtraction for a discount or deduction and then any addition for applicable taxes, fees, and surcharges, including a sales and use tax, electronic recycling fee, tire fee, and 911 surcharge, in accordance with all applicable law. (2) (A) (1) If a mill, the total transaction price ends with one cent, cent ($0.01), two cents, cents ($0.02), six cents, cents ($0.06), or seven cents is at the end of the resulting sum from paragraph (1), that sum or the final cash amount returned to the customer ($0.07), it shall be rounded down to the nearest amount of cents divisible by five for those individuals seeking to pay payments made in whole with legal tender. (B) (2) If the total transaction price ends with three cents, cents ($0.03), four cents, cents ($0.04), eight cents, cents ($0.08), or nine cents is at the end of the resulting sum from paragraph (1), that sum or the final cash amount returned to the customer ($0.09), it shall be rounded up to the nearest amount of cents divisible by five for those individuals paying payments made in whole with legal tender. (b) The total price of goods or services shall not be calculated pursuant to subdivision (a) for the following transactions: (b) The rounding requirements pursuant to subdivision (a) shall not apply if either of the following applies: (1) The sum of goods and services total transaction price is two cents ($0.02) or less. fewer. (2) Payment A payment for the full amount of the total transaction price is made entirely by any demand or negotiable instrument, electronic fund transfer, money order, credit card, debit card, electronic payment, cryptocurrency, or other like instrument. (c) Any tax imposed by the state or a local government shall not apply to gains or losses resulting from rounding. (d) (c) Any merchant selling goods or services shall not be in violation of any state or local requirements, laws, regulations, or standards based on any lawful action taken in compliance with this section. (d) Any refund issued by a merchant to a customer with respect to the sale of goods or services that is paid in whole or in part with legal tender shall be rounded in the same manner as the total transaction price pursuant to this section. (e) (1) If a payment for the total transaction price is made with a combination of legal tender and any other method or methods, the merchant shall round the portion of the total transaction price equivalent to the amount paid with legal tender in the same manner as the total transaction price pursuant to this section. (2) Any rounding made pursuant to this subdivision shall not alter or affect the exact amount authorized, cleared, or settled through any noncash payment system. 1789.63. The Treasurer may promulgate regulations to implement this title, including, but not limited to, authorization of exemptions or exclusions from this title. 1789.63. Notwithstanding any other law, any rounding adjustment pursuant to Section 1789.62 shall be disregarded for purposes of the computation of any applicable tax, fee, or surcharge, tax, fee, or surcharge reimbursement, or the measure thereof. 1789.64. (a) A person shall not, in connection with a retail transaction subject to cash rounding under Section 1789.62, collect from a purchaser an amount greater than the amount permitted after application of the rounding requirements. (b) A violation of this section is subject to the same remedies, penalties, inspection authority, and enforcement procedures applicable to a violation of Section 12024.2 of the Business and Professions Code. (c) This section does not apply to the calculation, reporting, or remittance of taxes administered by the California Department of Tax and Fee Administration. (d) For purposes of this section, “overcharge” means an amount collected in excess of the amount permitted after application of the rounding requirements pursuant to Section 1789.62. 1789.65. The California Department of Tax and Fee Administration may promulgate regulations to implement Section 1789.63. 1789.66. This title shall become operative July 1, 2027. 1789.67. The provisions of this title are severable. If any provision of this title or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.