BILL NUMBER: SB 885	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 14, 2010
	AMENDED IN SENATE  MAY 28, 2010
	AMENDED IN SENATE  APRIL 5, 2010

INTRODUCED BY   Senator Corbett
   (Coauthors: Senators Hancock and Liu)

                        JANUARY 19, 2010

   An act to amend Section 1749.5 of the Civil Code, relating to gift
certificates.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 885, as amended, Corbett. Gift certificates: redemption.
   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. Existing law also provides that a gift certificate
with a cash value of less than $10 may be redeemed in cash, as
defined, for its cash value. Existing law prohibits the sale of a
gift certificate that contains a dormancy fee, subject to specified
exceptions.
   This bill would require that a gift certificate  sold after
January 1, 2012,  contain a statement that any gift certificate
with a cash value of less than $10 may be redeemed in cash for its
cash value. This bill would also delete the exceptions to the
prohibition on the sale of a gift certificate that contains a
dormancy fee.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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.
   (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. 
   (3) A statement shall be printed on the gift certificate in at
least 
    (3)     A gift certificate sold after
January 1, 2012, shall be printed with a statement in at least 
10-point font stating that any gift certificate with a cash value of
less than ten dollars ($10) is redeemable in cash for its cash value.
The statement may appear on the front or back of the gift
certificate, but shall appear in a location where it is visible to
any purchaser prior to the purchase of the gift certificate.
   (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) 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, provided that each contributor is
provided with a full refund of the amount that he or she 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).
   (f) 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.
   (g) 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.