BILL NUMBER: AB 1054	CHAPTERED
	BILL TEXT

	CHAPTER   472
	FILED WITH SECRETARY OF STATE   SEPTEMBER 25, 1997
	APPROVED BY GOVERNOR   SEPTEMBER 24, 1997
	PASSED THE ASSEMBLY   SEPTEMBER 8, 1997
	PASSED THE SENATE   AUGUST 29, 1997
	AMENDED IN SENATE   JULY 22, 1997
	AMENDED IN SENATE   JULY 14, 1997
	AMENDED IN ASSEMBLY   MAY 30, 1997
	AMENDED IN ASSEMBLY   MAY 20, 1997
	AMENDED IN ASSEMBLY   MAY 1, 1997

INTRODUCED BY  Assembly Member Goldsmith

                        FEBRUARY 27, 1997

   An act to amend Section 1749.5 of the Civil Code, and to amend
Section 1520.5 of the Code of Civil Procedure, relating to gift
certificates, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1054, Goldsmith.  Gift certificates.
   (1) Under existing law, it is unlawful for any person or entity to
sell a gift certificate to a purchaser containing an expiration
date, except for gift certificates distributed to a consumer for
promotional purposes without any money or other thing of value being
given in exchange.
   This bill would also exempt from the prohibition specified gift
certificates issued after January 1, 1998, that are sold below face
value, as specified, or that are issued for a food product.  It also
would revise the existing exemption to make it applicable to
specified gift certificates distributed by the issuer after January
1, 1998, to a consumer pursuant to an awards, loyalty, or promotional
program, as specified.
   (2) Existing law provides that a gift certificate sold without an
expiration date is valid continuously except when refunded or
replaced with a new gift certificate.
   This bill would recast this provision to provide that a gift
certificate sold without an expiration date is valid until redeemed
or replaced.
   (3) Existing law provides that certain tangible personal property
which remains unclaimed for more than 3 years after it is payable
escheats to the state, whereupon the proceeds thereof are deposited
in the Abandoned Property Account in the Unclaimed Property Fund, a
continuously appropriated account.  Existing law provides that gift
certificates subject to the prohibition described in (1) are not
subject to escheat.
   This bill would provide that the provisions relating to escheat
apply to certain gift certificates having an expiration date, thereby
making an appropriation by expanding the proceeds of property
deposited in the Abandoned Property Account in the Unclaimed Property
Fund.
   Appropriation:  yes.


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) On or after January 1, 1997, it is unlawful for any
person or entity to sell a gift certificate to a purchaser containing
an expiration date.  Any gift certificate sold after that date shall
be 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) A gift certificate sold without an expiration date is valid
until redeemed or replaced.
   (c) This section shall 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 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 a food product.
  SEC. 2.  Section 1520.5 of the Code of Civil Procedure is amended
to read:
   1520.5.  Section 1520 shall not apply to gift certificates subject
to Title 1.4A (commencing with Section 1749.5) of Part 4 of Division
3 of the Civil Code.  However, Section 1520 shall apply to any gift
certificate having an expiration date and that is given in exchange
for money or other thing of value.