Assembly privacy committee advances bill allowing temporary use of gift cards with outdated disclosures

A California State Assembly privacy committee voted to advance SB 1078 (cited in the transcript as "SB 10 78"), a technical fix that would allow businesses acting in good faith to continue using gift cards printed with older redemption disclosures for a limited period if customers are notified at the point of sale.

Senator Laird presented the bill to the committee and framed it as a narrowly tailored solution that preserves consumer rights while preventing businesses from discarding large inventories of cards printed before an earlier change to the cash‑redemption threshold. "This bill allows businesses who are acting in good faith to issue gift cards that have outdated disclosures for a limited time if the consumer is accurately notified of their right to redeem the card for cash at the point of sale," the senator said during the hearing.

Chris Reyes, director of strategic development and external affairs for the Santa Cruz Seaside Company, told the committee his employer operates the Santa Cruz Beach Boardwalk and holds a large inventory of reloadable "My Boardwalk" cards printed with the prior "under $10" redemption language. Reyes said those cards total about 1,000,000 preprinted cards and represent roughly $250,000 in printing cost; he described a two‑year transition window in the bill. "SB 10 78 creates a narrow temporary safe harbor allowing businesses to use gift certificates that have outdated disclosures for a limited time in this case that limited time is 2 years," Reyes said.

Sabrina Demayo Lockhart, CEO of the California Attractions and Parks Association, also voiced industry support, saying attractions and parks would be helped by the temporary transition. Committee members noted the bill does not alter consumers' right to redeem cards with balances under the updated threshold, which was raised to $15 by prior legislation earlier this year.

The committee passed the bill in a recorded voice roll call after a brief delay to secure a quorum. With the committee's approval, the bill moves to the next stage of the Assembly's process.