Assemblymember Ward Introduces “Common Cents” Legislation to Standardize Symmetrical Rounding on Cash Transactions

• Anthony Reyes
• (916) 319-2078
• [email protected]

SACRAMENTO, CA - Assemblymember Chris Ward (D-San Diego) introduced AB 1793 to implement symmetrical rounding on cash transactions. This bill, prompted by the U.S. Mint halting production of the copper penny, first minted in 1793, aims to ensure a smooth and transparent adoption of rounding to the nearest nickel at the register.

Due to the rising costs of zinc and copper, a single penny cost 3.69 cents to produce and distribute in 2025. As a result, the federal government has discontinued penny production. Already, retailers have noted a disruption to the penny supply, with shortages necessitating rounding on cash transactions. AB 1793 addresses the current ambiguity by standardizing symmetrical rounding procedures. The last digit of the final, post-tax price will determine whether a cashier should round up or down to the nearest nickel-those ending in 1, 2, 6, or 7 cents will round down, while 3, 4, 8, or 9 cents will round up.

"AB 1793 clarifies for both consumers and businesses how to implement cash rounding now that the United States no longer makes pennies," said Assemblymember Ward. "By legalizing symmetrical rounding on the full purchase price, this bill discourages strategic pricing and provides clear guidelines for businesses."

Upon eliminating its own one-cent coin in 2013, Canada's clear rounding guidelines facilitated a smooth transition for retailers and shoppers alike. Symmetrical rounding was successfully implemented nationwide, bolstering consumer trust and preventing disruptions to business. Rounding the final, post-tax prices prevented strategic pricing for cash users and avoided impacting sales tax calculations. As the United States prepares to phase out the penny, AB 1793 begins California's cash rounding rollout with transparency and fairness in mind.

"The end of penny production requires a 'common cents' solution for California," said Assemblymember Ward. "Every penny counts."