Bill Text: CA SB1272 | 2023-2024 | Regular Session | Amended

California Senate Bill 1272

Bill Title: Gift certificates.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2024-06-25 - Read second time. Ordered to third reading. [SB1272 Detail]

Download: California-2023-SB1272-Amended.html

Amended IN Assembly June 24, 2024

Amended IN Senate April 01, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1272

Introduced by Senator Laird

February 15, 2024

An act to amend ~~Section~~ Sections 1749.45 and 1749.5 of the Civil Code, relating to consumer protection.

LEGISLATIVE COUNSEL'S DIGEST

SB 1272, as amended, Laird. Gift certificates.

Existing law prohibits the sale of any gift certificate~~, as defined,~~ that contains an expiration date or service fee, except as specified. Existing law defines “gift certificate” to include gift cards, as specified. Existing law provides that any gift certificate sold after January 1, 1997, is redeemable in cash or subject to replacement with a new gift certificate. Existing law makes any gift certificate with a cash value of less than $10 redeemable in cash for its cash value.

This bill would define “gift certificate” to additionally include electronic gift cards and would instead make any gift certificate with a cash value of less than or equal to $25, as adjusted for inflation, redeemable in cash for its cash value.

Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 1749.45 of the Civil Code is amended to read:

1749.45.

(a) As used in this title, “gift certificate” includes gift ~~cards,~~ cards and electronic gift cards, but does not include any gift card usable with multiple sellers of goods or services, provided the expiration date, if any, is printed on the card. This exemption does not apply to a gift card usable only with affiliated sellers of goods or services.

(b) Nothing in this title prohibits those fees or practices expressly permitted by Section 17538.9 of the Business and Professions Code with respect to a prepaid calling card, as defined in that section, that is issued solely to provide an access number and authorization code for prepaid calling services.

SECTION 1.SEC. 2.

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) Any 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.

(2) Notwithstanding paragraph (1), any gift certificate with a cash value of less than or equal to twenty-five dollars ($25), as adjusted for inflation on January 1, 2026, and annually thereafter, based on the California Consumer Price Index and rounded to the nearest whole dollar amount, is redeemable in cash for its cash value.

(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) Gift certificates that are 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) Gift certificates that are donated or sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fundraising purposes if the expiration date on those gift certificates is not more than 30 days after the date of sale.

(3) Gift certificates that are 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 subscriber’s wireless telecommunications account is permissible.