Gift certificates.

Senator Laird's consumer protection legislation raises the minimum cash redemption value for gift certificates from $10 to $25 while expanding oversight to include electronic gift cards under California's existing gift certificate regulations.

The bill requires retail locations that issue gift certificates to display notices informing customers of their cash redemption rights. It maintains current prohibitions on expiration dates and most service fees, while preserving exceptions for promotional cards, charitable fundraising certificates valid for 30 days or less, and perishable food certificates. Under specified conditions, dormancy fees may still apply to cards with remaining balances under $5 after 24 months of inactivity, provided fee details appear in 10-point font on the card.

For implementation purposes, the legislation defines "cash" to encompass currency, checks, and, when mutually agreed upon, electronic transfers or wireless account credits. The provisions apply to gift certificates issued after January 1, 2004, aligning digital and physical gift card requirements under a unified regulatory framework.