Store Research

Assembly Bill 1054 (Goldsmith-1997)

Chapter 472, Statutes of 1997

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The Concurrence in Senate Amendments analysis of Assembly Bill 1054 as last amended on July 22, 1997 prepared by the Assembly Committee on Consumer
Protection, Governmental Efficiency, and Economic Development summarized the bill as follows:

. . . Allows specified gift certificates to contain expiration dates and changes the validity rules for gift certificates sold without an expiration date.
(See Exhibit #13, page 1)

The Senate Committee on Judiciary analysis of Assembly Bill 1054 as amended July 14, 1997 contained a more detailed description of the measure, as follows:

This bill would permit expiration dates on gift certificates that are for food products. This bill also would permit an expiration date on gift certificates that are sold below face value at a volume discount to an employer or to nonprofit and charitable organizations for fundraising purposes if the certificates expire within 30 days. The date would have to be printed in 10 point type on the front.
(See Exhibit #9, pages 1 and 2)

The Office of Senate Floor Analyses produced a Special Consent Calendar analysis of Assembly Bill 1054 as amended July 22, 1997 which discussed the rationale for the amendments proposed by Assembly Bill 1054:

. . . The author states that retailers need to be able to put an expiration date on gift certificates for food products in order to close the books on specific transactions, for instance, when an employer buys holiday turkey gift certificates for employees. Typically, the employer deposits a portion of the total potential cost with the retailer, then settles up after the holiday period. The author also states that expiration dates on certificates sold to schools and charitable organizations in volume at a discount for resale, such as scrip sold by retailers and movie theaters, are necessary so that the organizations can promote future sales to the same people. No school or charitable organizations have expressed an interest in this bill. The sponsor states that gift certificates covered by this bill are less than five percent of the total sold.
(See Exhibit #12b, page 3)

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