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 |Add To My Favorites |Track Bill | Version: 10/01/25 - Chaptered
 09/17/25 - Enrolled
 09/02/25 - Amended Assembly
 07/02/25 - Amended Assembly
 04/10/25 - Amended Senate
 12/02/24 - Introduced

 SB-22 Gift certificates.(2025-2026)

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 Date Published: 10/02/2025 09:00 PM

SB22:v94#DOCUMENTBill Start

 Senate Bill

 No. 22

 CHAPTER 207

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

 [
 Approved by

 Governor
 October 01, 2025.

 Filed with

 Secretary of State
 October 01, 2025.
 ]

LEGISLATIVE COUNSEL'S DIGEST

SB 22, 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. For purposes of these provisions, existing law defines “gift certificate” to include gift cards.

This bill would, instead, make a gift certificate with a cash value of less than $15 redeemable in cash for its cash
 value, exempt from that redemption provision certain gift certificates that are donated to a nonprofit or a charitable organization, as provided, and make these provisions operative on April 1, 2026. The bill would expand the definition of “gift certificate” to include electronic gift cards. The bill would also make conforming changes.

Digest Key

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

Bill Text

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 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.

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 ten dollars
 ($10) is redeemable in cash for its cash value.

(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, provided 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