BILL NUMBER: AB 2473	CHAPTERED  09/27/02

	CHAPTER  997
	FILED WITH SECRETARY OF STATE  SEPTEMBER 27, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 27, 2002
	PASSED THE ASSEMBLY  AUGUST 28, 2002
	PASSED THE SENATE  AUGUST 27, 2002
	AMENDED IN SENATE  AUGUST 20, 2002
	AMENDED IN SENATE  AUGUST 12, 2002
	AMENDED IN SENATE  JUNE 18, 2002
	AMENDED IN ASSEMBLY  MAY 2, 2002
	AMENDED IN ASSEMBLY  APRIL 30, 2002

INTRODUCED BY   Assembly Member Simitian

                        FEBRUARY 21, 2002

   An act to add Section 1749.6 to the Civil Code, relating to gift
certificates.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2473, Simitian.  Gift certificates:  bankruptcy.
   Existing law generally provides that it is unlawful for any person
or entity to sell a gift certificate to a purchaser containing an
expiration date, and provides that a gift certificate sold without an
expiration date is valid until redeemed or replaced.
   This bill would provide that a gift certificate constitutes value
held in trust by the issuer of the gift certificate on behalf of the
beneficiary of the gift certificate, and that the value represented
by the gift certificate belongs to the beneficiary, or his or her
legal representative to the extent provided by law, and not to the
issuer.  The bill would require the issuer of a gift certificate who
is in bankruptcy to continue to honor a gift certificate issued prior
to the date of the bankruptcy filing.  The bill would prohibit the
terms of a gift certificate from making its redemption or other use
invalid in the event of a bankruptcy.  The bill would specify that it
does not alter the terms of a gift certificate or require an issuer
to perform specified acts.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1749.6 is added to the Civil Code, to read:
   1749.6.  (a) A gift certificate constitutes value held in trust by
the issuer of the gift certificate on behalf of the beneficiary of
the gift certificate.  The value represented by the gift certificate
belongs to the beneficiary, or to the legal representative of the
beneficiary to the extent provided by law, and not to the issuer.
   (b) An issuer of a gift certificate who  is in bankruptcy shall
continue to honor a gift certificate issued prior to the date of the
bankruptcy filing on the grounds that the value of the gift
certificate constitutes trust property of the beneficiary.
   (c) (1) This section  does not alter the terms of a gift
certificate.  The terms of a gift certificate may not make its
redemption or other use invalid in the event of a bankruptcy.
   (2) This section  does not require, unless otherwise required by
law, the issuer of a gift certificate to:
   (A) Redeem a gift certificate for cash.
   (B) Replace a gift certificate that has been lost or stolen.
   (C) Maintain a separate account for the funds used to purchase the
gift certificate.
   (d) (1) This section does not create an interest in favor of the
beneficiary of the gift certificate in any specific property of the
issuer.
   (2) This section does not create a fiduciary or quasi-fiduciary
relationship between the beneficiary of the gift certificates and the
issuer, unless otherwise provided by law.
   (3) The issuer of a gift certificate has no obligation to pay
interest on the value of the gift certificate held in trust under
this section, unless otherwise provided by law.