On October 1, 2025, Governor Gavin Newsom signed California Senate Bill 22 into law. The bill introduces several changes to California’s gift certificate legal framework, most notably increasing the mandatory cash redemption threshold to $15.
The new law expands the definition of “gift certificate” to include electronic gift certificates. Gift certificates that can be used with multiple unaffiliated sellers of goods or services remain excluded from the definition of “gift certificate.”
Effective April 1, 2026, California Civil Code Section 1749.5 increases the mandatory cash redemption threshold for gift certificates from $10 to $15, making California’s cash redemption threshold the highest among all U.S. states. The law provides a limited exception for gift certificates donated to a nonprofit or charitable organization, provided that the gift certificate has a disclaimer that the card is not redeemable for cash.
Retailers that sell gift certificates must prepare for the April 1, 2026 effective date by reviewing and updating their gift certificate program policies to reflect the new $15 cash redemption threshold and ensure that electronic gift certificate are included in compliance measures.
While retailers must comply with California’s updated $15 cash redemption threshold, it is unclear whether FinCEN will continue to recognize a nationwide $15 threshold under its existing de minimis exemption framework. In response to the proliferation of gift card cash back laws, FinCEN issued an opinion in 2016 which permitted retailers to apply the highest state-mandated cash redemption threshold across all states for gift card programs. However, that opinion specifically referenced California’s then-current $10 threshold. Because the opinion was tied to the statutory landscape at the time, there is no assurance that FinCEN will interpret the new $15 threshold as qualifying for nationwide application.
Bailey Cavalieri’s Unclaimed Property team will continue to monitor the impact of California Senate Bill 22 and will provide updates as new guidance (including any FinCEN guidance) or compliance obligations emerge.