Plain English Breakdown
The official source material does not provide specific details on how businesses will handle donated gift certificates under the new rules, leaving this aspect uncertain.
Gift Certificates
This law updates how gift certificates with less than $15 in value can be redeemed and includes electronic versions.
What This Bill Does
- Makes a gift certificate worth less than $15 redeemable for cash instead of goods or services.
- Exempts certain donated gift certificates from the redemption requirement if they are given to nonprofits or charities.
- Expands the definition of 'gift certificate' to include electronic versions.
- These changes will take effect on April 1, 2026.
Who It Names or Affects
- People who buy and receive gift certificates
- Businesses that sell gift certificates
Terms To Know
- Gift Certificate
- A card or voucher given as a present, which can be used to buy goods or services from a specific store.
- Electronic Gift Card
- A digital version of a gift certificate that is stored on an app or website and can be used for purchases online or in stores.
Limits and Unknowns
- The law does not specify what happens to gift certificates worth between $10 and $15 before April 1, 2026.
- It is unclear how businesses will handle donated gift certificates under the new rules.