Amended IN Senate April 10, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 22Introduced by Senator LairdDecember 02, 2024An act to amend Section 1749.5 of the Civil Code, relating to consumer protection.LEGISLATIVE COUNSEL'S DIGESTSB 22, as amended, Laird. Gift certificates.Existing law provides that a gift certificate, sold after January 1, 1997, is redeemable in cash or subject to replacement with a new gift certificate except that a gift certificate with a cash value of less than $10 is redeemable in cash for its cash value.This bill would instead make a gift certificate with a cash value of less than $25, adjusted annually for inflation based on the California Consumer Price Index and rounded to the nearest whole dollar amount, redeemable in cash for its cash value and would require an issuer of gift certificates to display at the cash register a notice of the right of the holder to redeem a gift certificate for cash pursuant to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1749.5 of the Civil Code is amended to read:1749.5. (a) It is unlawful for any person or entity to sell a gift certificate to a purchaser that contains any of the following:(1) An expiration date.(2) A service fee, including, but not limited to, a service fee for dormancy, except as provided in subdivision (e).(b) (1) (A) A gift certificate sold after January 1, 1997, is redeemable in cash for its cash value or subject to replacement with a new gift certificate at no cost to the purchaser or holder.(B) Notwithstanding paragraph (1), a gift certificate with a cash value of less than twenty-five dollars ($25), adjusted annually for inflation based on the California Consumer Price Index and rounded to the nearest whole dollar amount, is redeemable in cash for its cash value.(2) An issuer of gift certificates shall display at the cash register a notice of the right of the holder to redeem a gift certificate for cash pursuant to this subdivision.(c) A gift certificate sold without an expiration date is valid until redeemed or replaced.(d) This section does not apply to any of the following gift certificates issued on or after January 1, 1998, if the expiration date appears in capital letters in at least 10-point font on the front of the gift certificate:(1) A gift certificate that is distributed by the issuer to a consumer pursuant to an awards, loyalty, or promotional program without any money or other thing of value being given in exchange for the gift certificate by the consumer.(2) A gift certificate that is donated or sold below face value at a volume discount to an employer or to a nonprofit or a charitable organization for fundraising purposes if the expiration date on that gift certificate is not more than 30 days after the date of sale.(3) A gift certificate that is issued for perishable food products.(e) Paragraph (2) of subdivision (a) does not apply to a dormancy fee on a gift card that meets all of the following criteria:(1) The remaining value of the gift card is five dollars ($5) or less each time the fee is assessed.(2) The fee does not exceed one dollar ($1) per month.(3) There has been no activity on the gift card for 24 consecutive months, including, but not limited to, purchases, the adding of value, or balance inquiries.(4) The holder may reload or add value to the gift card.(5) A statement is printed on the gift card in at least 10-point font stating the amount of the fee, how often the fee will occur, that the fee is triggered by inactivity of the gift card, and at what point the fee will be charged. The statement may appear on the front or back of the gift card, but shall appear in a location where it is visible to any purchaser prior to the purchase thereof.(f) An issuer of gift certificates may accept funds from one or more contributors toward the purchase of a gift certificate intended to be a gift for a recipient if each contributor is provided with a full refund of the amount that the contributor paid toward the purchase of the gift certificate upon the occurrence of all of the following:(1) The funds are contributed for the purpose of being redeemed by the recipient by purchasing a gift certificate.(2) The time in which the recipient may redeem the funds by purchasing a gift certificate is clearly disclosed in writing to the contributors and the recipient.(3) The recipient does not redeem the funds within the time described in paragraph (2).(g) The changes made to this section by the act adding this subdivision shall apply only to gift certificates issued on or after January 1, 2004.(h) For purposes of this section, cash includes, but is not limited to, currency or check. If accepted by both parties, an electronic funds transfer or an application of the balance to a subscribers wireless telecommunications account is permissible.
Amended IN Senate April 10, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 22Introduced by Senator LairdDecember 02, 2024An act to amend Section 1749.5 of the Civil Code, relating to consumer protection.LEGISLATIVE COUNSEL'S DIGESTSB 22, as amended, Laird. Gift certificates.Existing law provides that a gift certificate, sold after January 1, 1997, is redeemable in cash or subject to replacement with a new gift certificate except that a gift certificate with a cash value of less than $10 is redeemable in cash for its cash value.This bill would instead make a gift certificate with a cash value of less than $25, adjusted annually for inflation based on the California Consumer Price Index and rounded to the nearest whole dollar amount, redeemable in cash for its cash value and would require an issuer of gift certificates to display at the cash register a notice of the right of the holder to redeem a gift certificate for cash pursuant to that provision.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
Amended IN Senate April 10, 2025
Amended IN Senate April 10, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 22
Introduced by Senator LairdDecember 02, 2024
Introduced by Senator Laird
December 02, 2024
An act to amend Section 1749.5 of the Civil Code, relating to consumer protection.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 22, as amended, Laird. Gift certificates.
Existing law provides that a gift certificate, sold after January 1, 1997, is redeemable in cash or subject to replacement with a new gift certificate except that a gift certificate with a cash value of less than $10 is redeemable in cash for its cash value.This bill would instead make a gift certificate with a cash value of less than $25, adjusted annually for inflation based on the California Consumer Price Index and rounded to the nearest whole dollar amount, redeemable in cash for its cash value and would require an issuer of gift certificates to display at the cash register a notice of the right of the holder to redeem a gift certificate for cash pursuant to that provision.
Existing law provides that a gift certificate, sold after January 1, 1997, is redeemable in cash or subject to replacement with a new gift certificate except that a gift certificate with a cash value of less than $10 is redeemable in cash for its cash value.
This bill would instead make a gift certificate with a cash value of less than $25, adjusted annually for inflation based on the California Consumer Price Index and rounded to the nearest whole dollar amount, redeemable in cash for its cash value and would require an issuer of gift certificates to display at the cash register a notice of the right of the holder to redeem a gift certificate for cash pursuant to that provision.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 1749.5 of the Civil Code is amended to read:1749.5. (a) It is unlawful for any person or entity to sell a gift certificate to a purchaser that contains any of the following:(1) An expiration date.(2) A service fee, including, but not limited to, a service fee for dormancy, except as provided in subdivision (e).(b) (1) (A) A gift certificate sold after January 1, 1997, is redeemable in cash for its cash value or subject to replacement with a new gift certificate at no cost to the purchaser or holder.(B) Notwithstanding paragraph (1), a gift certificate with a cash value of less than twenty-five dollars ($25), adjusted annually for inflation based on the California Consumer Price Index and rounded to the nearest whole dollar amount, is redeemable in cash for its cash value.(2) An issuer of gift certificates shall display at the cash register a notice of the right of the holder to redeem a gift certificate for cash pursuant to this subdivision.(c) A gift certificate sold without an expiration date is valid until redeemed or replaced.(d) This section does not apply to any of the following gift certificates issued on or after January 1, 1998, if the expiration date appears in capital letters in at least 10-point font on the front of the gift certificate:(1) A gift certificate that is distributed by the issuer to a consumer pursuant to an awards, loyalty, or promotional program without any money or other thing of value being given in exchange for the gift certificate by the consumer.(2) A gift certificate that is donated or sold below face value at a volume discount to an employer or to a nonprofit or a charitable organization for fundraising purposes if the expiration date on that gift certificate is not more than 30 days after the date of sale.(3) A gift certificate that is issued for perishable food products.(e) Paragraph (2) of subdivision (a) does not apply to a dormancy fee on a gift card that meets all of the following criteria:(1) The remaining value of the gift card is five dollars ($5) or less each time the fee is assessed.(2) The fee does not exceed one dollar ($1) per month.(3) There has been no activity on the gift card for 24 consecutive months, including, but not limited to, purchases, the adding of value, or balance inquiries.(4) The holder may reload or add value to the gift card.(5) A statement is printed on the gift card in at least 10-point font stating the amount of the fee, how often the fee will occur, that the fee is triggered by inactivity of the gift card, and at what point the fee will be charged. The statement may appear on the front or back of the gift card, but shall appear in a location where it is visible to any purchaser prior to the purchase thereof.(f) An issuer of gift certificates may accept funds from one or more contributors toward the purchase of a gift certificate intended to be a gift for a recipient if each contributor is provided with a full refund of the amount that the contributor paid toward the purchase of the gift certificate upon the occurrence of all of the following:(1) The funds are contributed for the purpose of being redeemed by the recipient by purchasing a gift certificate.(2) The time in which the recipient may redeem the funds by purchasing a gift certificate is clearly disclosed in writing to the contributors and the recipient.(3) The recipient does not redeem the funds within the time described in paragraph (2).(g) The changes made to this section by the act adding this subdivision shall apply only to gift certificates issued on or after January 1, 2004.(h) For purposes of this section, cash includes, but is not limited to, currency or check. If accepted by both parties, an electronic funds transfer or an application of the balance to a subscribers wireless telecommunications account is permissible.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 1749.5 of the Civil Code is amended to read:1749.5. (a) It is unlawful for any person or entity to sell a gift certificate to a purchaser that contains any of the following:(1) An expiration date.(2) A service fee, including, but not limited to, a service fee for dormancy, except as provided in subdivision (e).(b) (1) (A) A gift certificate sold after January 1, 1997, is redeemable in cash for its cash value or subject to replacement with a new gift certificate at no cost to the purchaser or holder.(B) Notwithstanding paragraph (1), a gift certificate with a cash value of less than twenty-five dollars ($25), adjusted annually for inflation based on the California Consumer Price Index and rounded to the nearest whole dollar amount, is redeemable in cash for its cash value.(2) An issuer of gift certificates shall display at the cash register a notice of the right of the holder to redeem a gift certificate for cash pursuant to this subdivision.(c) A gift certificate sold without an expiration date is valid until redeemed or replaced.(d) This section does not apply to any of the following gift certificates issued on or after January 1, 1998, if the expiration date appears in capital letters in at least 10-point font on the front of the gift certificate:(1) A gift certificate that is distributed by the issuer to a consumer pursuant to an awards, loyalty, or promotional program without any money or other thing of value being given in exchange for the gift certificate by the consumer.(2) A gift certificate that is donated or sold below face value at a volume discount to an employer or to a nonprofit or a charitable organization for fundraising purposes if the expiration date on that gift certificate is not more than 30 days after the date of sale.(3) A gift certificate that is issued for perishable food products.(e) Paragraph (2) of subdivision (a) does not apply to a dormancy fee on a gift card that meets all of the following criteria:(1) The remaining value of the gift card is five dollars ($5) or less each time the fee is assessed.(2) The fee does not exceed one dollar ($1) per month.(3) There has been no activity on the gift card for 24 consecutive months, including, but not limited to, purchases, the adding of value, or balance inquiries.(4) The holder may reload or add value to the gift card.(5) A statement is printed on the gift card in at least 10-point font stating the amount of the fee, how often the fee will occur, that the fee is triggered by inactivity of the gift card, and at what point the fee will be charged. The statement may appear on the front or back of the gift card, but shall appear in a location where it is visible to any purchaser prior to the purchase thereof.(f) An issuer of gift certificates may accept funds from one or more contributors toward the purchase of a gift certificate intended to be a gift for a recipient if each contributor is provided with a full refund of the amount that the contributor paid toward the purchase of the gift certificate upon the occurrence of all of the following:(1) The funds are contributed for the purpose of being redeemed by the recipient by purchasing a gift certificate.(2) The time in which the recipient may redeem the funds by purchasing a gift certificate is clearly disclosed in writing to the contributors and the recipient.(3) The recipient does not redeem the funds within the time described in paragraph (2).(g) The changes made to this section by the act adding this subdivision shall apply only to gift certificates issued on or after January 1, 2004.(h) For purposes of this section, cash includes, but is not limited to, currency or check. If accepted by both parties, an electronic funds transfer or an application of the balance to a subscribers wireless telecommunications account is permissible.
SECTION 1. Section 1749.5 of the Civil Code is amended to read:
### SECTION 1.
1749.5. (a) It is unlawful for any person or entity to sell a gift certificate to a purchaser that contains any of the following:(1) An expiration date.(2) A service fee, including, but not limited to, a service fee for dormancy, except as provided in subdivision (e).(b) (1) (A) A gift certificate sold after January 1, 1997, is redeemable in cash for its cash value or subject to replacement with a new gift certificate at no cost to the purchaser or holder.(B) Notwithstanding paragraph (1), a gift certificate with a cash value of less than twenty-five dollars ($25), adjusted annually for inflation based on the California Consumer Price Index and rounded to the nearest whole dollar amount, is redeemable in cash for its cash value.(2) An issuer of gift certificates shall display at the cash register a notice of the right of the holder to redeem a gift certificate for cash pursuant to this subdivision.(c) A gift certificate sold without an expiration date is valid until redeemed or replaced.(d) This section does not apply to any of the following gift certificates issued on or after January 1, 1998, if the expiration date appears in capital letters in at least 10-point font on the front of the gift certificate:(1) A gift certificate that is distributed by the issuer to a consumer pursuant to an awards, loyalty, or promotional program without any money or other thing of value being given in exchange for the gift certificate by the consumer.(2) A gift certificate that is donated or sold below face value at a volume discount to an employer or to a nonprofit or a charitable organization for fundraising purposes if the expiration date on that gift certificate is not more than 30 days after the date of sale.(3) A gift certificate that is issued for perishable food products.(e) Paragraph (2) of subdivision (a) does not apply to a dormancy fee on a gift card that meets all of the following criteria:(1) The remaining value of the gift card is five dollars ($5) or less each time the fee is assessed.(2) The fee does not exceed one dollar ($1) per month.(3) There has been no activity on the gift card for 24 consecutive months, including, but not limited to, purchases, the adding of value, or balance inquiries.(4) The holder may reload or add value to the gift card.(5) A statement is printed on the gift card in at least 10-point font stating the amount of the fee, how often the fee will occur, that the fee is triggered by inactivity of the gift card, and at what point the fee will be charged. The statement may appear on the front or back of the gift card, but shall appear in a location where it is visible to any purchaser prior to the purchase thereof.(f) An issuer of gift certificates may accept funds from one or more contributors toward the purchase of a gift certificate intended to be a gift for a recipient if each contributor is provided with a full refund of the amount that the contributor paid toward the purchase of the gift certificate upon the occurrence of all of the following:(1) The funds are contributed for the purpose of being redeemed by the recipient by purchasing a gift certificate.(2) The time in which the recipient may redeem the funds by purchasing a gift certificate is clearly disclosed in writing to the contributors and the recipient.(3) The recipient does not redeem the funds within the time described in paragraph (2).(g) The changes made to this section by the act adding this subdivision shall apply only to gift certificates issued on or after January 1, 2004.(h) For purposes of this section, cash includes, but is not limited to, currency or check. If accepted by both parties, an electronic funds transfer or an application of the balance to a subscribers wireless telecommunications account is permissible.
1749.5. (a) It is unlawful for any person or entity to sell a gift certificate to a purchaser that contains any of the following:(1) An expiration date.(2) A service fee, including, but not limited to, a service fee for dormancy, except as provided in subdivision (e).(b) (1) (A) A gift certificate sold after January 1, 1997, is redeemable in cash for its cash value or subject to replacement with a new gift certificate at no cost to the purchaser or holder.(B) Notwithstanding paragraph (1), a gift certificate with a cash value of less than twenty-five dollars ($25), adjusted annually for inflation based on the California Consumer Price Index and rounded to the nearest whole dollar amount, is redeemable in cash for its cash value.(2) An issuer of gift certificates shall display at the cash register a notice of the right of the holder to redeem a gift certificate for cash pursuant to this subdivision.(c) A gift certificate sold without an expiration date is valid until redeemed or replaced.(d) This section does not apply to any of the following gift certificates issued on or after January 1, 1998, if the expiration date appears in capital letters in at least 10-point font on the front of the gift certificate:(1) A gift certificate that is distributed by the issuer to a consumer pursuant to an awards, loyalty, or promotional program without any money or other thing of value being given in exchange for the gift certificate by the consumer.(2) A gift certificate that is donated or sold below face value at a volume discount to an employer or to a nonprofit or a charitable organization for fundraising purposes if the expiration date on that gift certificate is not more than 30 days after the date of sale.(3) A gift certificate that is issued for perishable food products.(e) Paragraph (2) of subdivision (a) does not apply to a dormancy fee on a gift card that meets all of the following criteria:(1) The remaining value of the gift card is five dollars ($5) or less each time the fee is assessed.(2) The fee does not exceed one dollar ($1) per month.(3) There has been no activity on the gift card for 24 consecutive months, including, but not limited to, purchases, the adding of value, or balance inquiries.(4) The holder may reload or add value to the gift card.(5) A statement is printed on the gift card in at least 10-point font stating the amount of the fee, how often the fee will occur, that the fee is triggered by inactivity of the gift card, and at what point the fee will be charged. The statement may appear on the front or back of the gift card, but shall appear in a location where it is visible to any purchaser prior to the purchase thereof.(f) An issuer of gift certificates may accept funds from one or more contributors toward the purchase of a gift certificate intended to be a gift for a recipient if each contributor is provided with a full refund of the amount that the contributor paid toward the purchase of the gift certificate upon the occurrence of all of the following:(1) The funds are contributed for the purpose of being redeemed by the recipient by purchasing a gift certificate.(2) The time in which the recipient may redeem the funds by purchasing a gift certificate is clearly disclosed in writing to the contributors and the recipient.(3) The recipient does not redeem the funds within the time described in paragraph (2).(g) The changes made to this section by the act adding this subdivision shall apply only to gift certificates issued on or after January 1, 2004.(h) For purposes of this section, cash includes, but is not limited to, currency or check. If accepted by both parties, an electronic funds transfer or an application of the balance to a subscribers wireless telecommunications account is permissible.
1749.5. (a) It is unlawful for any person or entity to sell a gift certificate to a purchaser that contains any of the following:(1) An expiration date.(2) A service fee, including, but not limited to, a service fee for dormancy, except as provided in subdivision (e).(b) (1) (A) A gift certificate sold after January 1, 1997, is redeemable in cash for its cash value or subject to replacement with a new gift certificate at no cost to the purchaser or holder.(B) Notwithstanding paragraph (1), a gift certificate with a cash value of less than twenty-five dollars ($25), adjusted annually for inflation based on the California Consumer Price Index and rounded to the nearest whole dollar amount, is redeemable in cash for its cash value.(2) An issuer of gift certificates shall display at the cash register a notice of the right of the holder to redeem a gift certificate for cash pursuant to this subdivision.(c) A gift certificate sold without an expiration date is valid until redeemed or replaced.(d) This section does not apply to any of the following gift certificates issued on or after January 1, 1998, if the expiration date appears in capital letters in at least 10-point font on the front of the gift certificate:(1) A gift certificate that is distributed by the issuer to a consumer pursuant to an awards, loyalty, or promotional program without any money or other thing of value being given in exchange for the gift certificate by the consumer.(2) A gift certificate that is donated or sold below face value at a volume discount to an employer or to a nonprofit or a charitable organization for fundraising purposes if the expiration date on that gift certificate is not more than 30 days after the date of sale.(3) A gift certificate that is issued for perishable food products.(e) Paragraph (2) of subdivision (a) does not apply to a dormancy fee on a gift card that meets all of the following criteria:(1) The remaining value of the gift card is five dollars ($5) or less each time the fee is assessed.(2) The fee does not exceed one dollar ($1) per month.(3) There has been no activity on the gift card for 24 consecutive months, including, but not limited to, purchases, the adding of value, or balance inquiries.(4) The holder may reload or add value to the gift card.(5) A statement is printed on the gift card in at least 10-point font stating the amount of the fee, how often the fee will occur, that the fee is triggered by inactivity of the gift card, and at what point the fee will be charged. The statement may appear on the front or back of the gift card, but shall appear in a location where it is visible to any purchaser prior to the purchase thereof.(f) An issuer of gift certificates may accept funds from one or more contributors toward the purchase of a gift certificate intended to be a gift for a recipient if each contributor is provided with a full refund of the amount that the contributor paid toward the purchase of the gift certificate upon the occurrence of all of the following:(1) The funds are contributed for the purpose of being redeemed by the recipient by purchasing a gift certificate.(2) The time in which the recipient may redeem the funds by purchasing a gift certificate is clearly disclosed in writing to the contributors and the recipient.(3) The recipient does not redeem the funds within the time described in paragraph (2).(g) The changes made to this section by the act adding this subdivision shall apply only to gift certificates issued on or after January 1, 2004.(h) For purposes of this section, cash includes, but is not limited to, currency or check. If accepted by both parties, an electronic funds transfer or an application of the balance to a subscribers wireless telecommunications account is permissible.
1749.5. (a) It is unlawful for any person or entity to sell a gift certificate to a purchaser that contains any of the following:
(1) An expiration date.
(2) A service fee, including, but not limited to, a service fee for dormancy, except as provided in subdivision (e).
(b) (1) (A) A gift certificate sold after January 1, 1997, is redeemable in cash for its cash value or subject to replacement with a new gift certificate at no cost to the purchaser or holder.
(B) Notwithstanding paragraph (1), a gift certificate with a cash value of less than twenty-five dollars ($25), adjusted annually for inflation based on the California Consumer Price Index and rounded to the nearest whole dollar amount, is redeemable in cash for its cash value.
(2) An issuer of gift certificates shall display at the cash register a notice of the right of the holder to redeem a gift certificate for cash pursuant to this subdivision.
(c) A gift certificate sold without an expiration date is valid until redeemed or replaced.
(d) This section does not apply to any of the following gift certificates issued on or after January 1, 1998, if the expiration date appears in capital letters in at least 10-point font on the front of the gift certificate:
(1) A gift certificate that is distributed by the issuer to a consumer pursuant to an awards, loyalty, or promotional program without any money or other thing of value being given in exchange for the gift certificate by the consumer.
(2) A gift certificate that is donated or sold below face value at a volume discount to an employer or to a nonprofit or a charitable organization for fundraising purposes if the expiration date on that gift certificate is not more than 30 days after the date of sale.
(3) A gift certificate that is issued for perishable food products.
(e) Paragraph (2) of subdivision (a) does not apply to a dormancy fee on a gift card that meets all of the following criteria:
(1) The remaining value of the gift card is five dollars ($5) or less each time the fee is assessed.
(2) The fee does not exceed one dollar ($1) per month.
(3) There has been no activity on the gift card for 24 consecutive months, including, but not limited to, purchases, the adding of value, or balance inquiries.
(4) The holder may reload or add value to the gift card.
(5) A statement is printed on the gift card in at least 10-point font stating the amount of the fee, how often the fee will occur, that the fee is triggered by inactivity of the gift card, and at what point the fee will be charged. The statement may appear on the front or back of the gift card, but shall appear in a location where it is visible to any purchaser prior to the purchase thereof.
(f) An issuer of gift certificates may accept funds from one or more contributors toward the purchase of a gift certificate intended to be a gift for a recipient if each contributor is provided with a full refund of the amount that the contributor paid toward the purchase of the gift certificate upon the occurrence of all of the following:
(1) The funds are contributed for the purpose of being redeemed by the recipient by purchasing a gift certificate.
(2) The time in which the recipient may redeem the funds by purchasing a gift certificate is clearly disclosed in writing to the contributors and the recipient.
(3) The recipient does not redeem the funds within the time described in paragraph (2).
(g) The changes made to this section by the act adding this subdivision shall apply only to gift certificates issued on or after January 1, 2004.
(h) For purposes of this section, cash includes, but is not limited to, currency or check. If accepted by both parties, an electronic funds transfer or an application of the balance to a subscribers wireless telecommunications account is permissible.