Senator Laird's gift certificate legislation raises the minimum cash redemption threshold from $10 to $25 for California consumers, while introducing annual inflation adjustments based on the state's Consumer Price Index. The measure requires gift certificate issuers to display notices at cash registers informing customers of their right to receive cash for certificates falling below the threshold amount.

The bill maintains existing consumer protections that prohibit expiration dates and most service fees on gift certificates, while preserving exemptions for promotional items, charitable fundraising certificates, and perishable food products. Under the amended rules, dormancy fees may only be charged on reloadable cards with balances under $5 after 24 months of inactivity, provided the fee does not exceed $1 per month and proper disclosure requirements are met. The legislation defines acceptable forms of cash redemption to include currency, checks, and, when mutually agreed upon, electronic funds transfers or wireless account credits.