Cash payments: calculation.

The definition of 'legal tender' was narrowed from 'all coins and currencies of the United States' to 'all metal coins and paper currencies of the United States,' explicitly excluding digital or electronic forms of currency.

New definitions were added for 'installment payment,' 'person' (a broad definition covering individuals, corporations, partnerships, government entities, etc.), 'tax, fee, or surcharge' (with specific exclusions under the Revenue and Taxation Code), and 'total transaction price.'

The definition of 'merchant' changed from requiring 'face-to-face, in-person sales' to 'selling goods or services at a physical location in this state,' which removes the face-to-face requirement but adds a physical-location-in-state requirement.

The exemption for non-cash payment methods now explicitly includes cryptocurrency and clarifies that the exemption applies only when the full amount is paid entirely by those methods.

The rounding requirement now applies to 'the portion of the total transaction price paid with legal tender' rather than the entire transaction price. The language was also changed from 'for those individuals seeking to pay with legal tender' to 'for payments made in whole with legal tender.'

A new provision requires that refunds paid in whole or in part with legal tender be rounded in the same manner as the original transaction price.

A new provision addresses mixed payments: if a transaction is paid with both legal tender and another method, only the portion paid with legal tender is rounded, and this rounding does not alter the amount processed through noncash payment systems.

A new section (1789.63) requires that rounding adjustments be disregarded for the computation of any applicable tax, fee, or surcharge, and authorizes the California Department of Tax and Fee Administration to promulgate regulations on this point.

The minimum transaction threshold below which rounding does not apply was lowered from four cents to two cents.

A new section (1789.64) prohibits collecting more than the rounded amount and subjects violations to the same remedies, penalties, inspection authority, and enforcement procedures as overcharging under Business and Professions Code Section 12024.2, effectively making it a criminal offense.

Regulatory authority to implement the act was shifted from the Commissioner of Financial Protection and Innovation to the Treasurer.

An effective date of July 1, 2027 was added, along with a severability clause.

The state-mandated local program designation changed from 'no' to 'yes' because the bill now expands a crime, triggering potential reimbursement obligations under the California Constitution (though the bill states no reimbursement is required).

The act was renamed from 'Californians for California Common Cents Act' to 'California Common Cents Act.'

The definition of 'merchant' was narrowed from 'any person, corporation, or partnership engaged in the business of the sale of goods or services' to 'any person engaged in the business of selling goods or services at a physical location in this state.' This excludes online-only merchants and non-California businesses.

A new sentence was added to the definition of 'person' stating that it does not include the state, any county, city and county, municipality, district, or other political subdivision of the state. This explicitly exempts government entities from the bill's requirements.

The rounding mechanism in Section 1789.62(a) was restructured. The old version used a two-step process (first calculate the sum including taxes/fees, then round). The new version directly states: if the total transaction price ends in 1, 2, 6, or 7 cents, round down; if it ends in 3, 4, 8, or 9 cents, round up. The result is the same but the language is simpler.

A standalone provision stating that 'any tax imposed by the state or a local government shall not apply to gains or losses resulting from rounding' was removed. This protection is already covered by Section 1789.63, which disregards rounding adjustments for all tax, fee, and surcharge computations.

Section 1789.64(c) was expanded from exempting 'the calculation, reporting, or remittance of taxes' to 'the calculation, reporting, or remittance of taxes, fees, or surcharges' administered by the California Department of Tax and Fee Administration. This broadens the scope of what is excluded from the overcharge prohibition.

The fiscal note changed 'State-mandated local program' from 'no' to 'yes,' acknowledging that the bill's expansion of a crime (the overcharge prohibition) imposes costs on local agencies that trigger state reimbursement obligations under the California Constitution.

Senator Caballero was added as a coauthor of the bill.

Section 1789.64(c): Corrected a typo where 'taxes taxes' appeared; now reads simply 'taxes, fees, or surcharges administered by the California Department of Tax and Fee Administration.'

Legislative counsel's digest: Removed '(Coauthor: Senator Caballero)' from the digest header line.

Section 1789.61(d) 'Person' definition: Removed the redundant inclusion of 'this state, any county, city and county, municipality, district, or other political subdivision of the state' from the list of entities included in 'person,' since they are immediately excluded in the next sentence. Net legal effect is unchanged.

Preemption language expanded from 'notwithstanding any other law' to 'notwithstanding any other laws, regulations, or standards of the state or local government,' explicitly overriding local ordinances and standards that might conflict with the rounding requirement.

New subdivision (d) added as a safe harbor: merchants acting in compliance with the rounding section cannot be found in violation of any state or local requirements, laws, regulations, or standards. This shields merchants from local enforcement actions.

The small-transaction exemption threshold was lowered from 'four cents or less' to 'two cents or less,' meaning transactions totaling three or four cents are now subject to rounding instead of being exempt.

Rounding provisions now explicitly state that rounding applies to 'the sum or the final cash amount returned to the customer,' clarifying that change given back can also be rounded, not just the total price on the register.

The calculation step now enumerates specific fees and surcharges included in the rounding base: electronic recycling fee, tire fee, and 911 surcharge, in addition to sales and use tax. Previously it only referenced 'applicable taxes, including sales and use tax.'

The act title was changed from 'Californians for Common Cents Act' to 'Californians for California Common Cents Act,' adding the word 'California' to distinguish it from similar legislation in other states.

The regulatory authority's title was updated from 'Commissioner of Financial Protection and Innovation' to 'Commissioner of Financial Protection and Innovation Treasurer,' likely reflecting a departmental name change.