The Overview

If you sell California gift cards printed before April 1, 2026 with a cash-redemption threshold below $15, you can keep selling them through December 31, 2028, as long as you post a notice at your point-of-sale devices that customers can cash out balances under $15, under a law Gov. Gavin Newsom signed on Sept. 20. KTLA reported in 2023 that a California enforcement action against Taco Bell centered on allegations that customers were denied cash redemption of gift-card balances below $10. California's cash-redemption rule has been in effect since April 1, 2026, and a new law lets issuers sell older printed cards through 2028 if they meet disclosure requirements. The sell-through window runs about 27 months, through Dec. 31, 2028. ​

What the Law Does

The law carves out a temporary exception to California's gift-certificate cash-redemption rule, which took effect April 1, 2026. Under that rule, any gift certificate with a remaining cash value under $15 must be redeemable in cash. Sellers of older printed cards, those manufactured or printed before April 1, 2026 that carry a printed cash-redemption threshold lower than $15, may continue selling them through Dec. 31, 2028, provided they post a notice at point-of-sale devices telling customers that any gift certificate with a cash value under $15 can be redeemed in cash.

Legislative Status

Sen. John Laird (D-CA-17) and Asm. Gail Pellerin (D-CA-28) are both Democrats from California. The Senate passed the bill on third reading April 16, 29 yes to nine no, with yes votes representing about 76 percent of those voting. The Assembly passed it 77–0 on Aug. 28, and the Senate concurred in Assembly amendments 40–0 on Aug. 30, making the final votes unanimous in both chambers.

Laird said the law is "a commonsense fix that allows the Boardwalk to continue using its existing gift cards while ensuring consumers are aware of their right to cash out gift cards under $15," according to a release from his office published on the Senate District 17 website. Bill author Sen. John Laird said SB 1078 lets the Santa Cruz Beach Boardwalk keep using its existing gift cards while ensuring consumers know they can cash out gift cards under $15.

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