SB 1078 California Senate · 2025-2026 Regular Session

Gift certificates: cash redemption.

Summary

Existing law, commencing April 1, 2026, makes a gift certificate with a cash value of less than $15 redeemable in cash for its cash value. This bill would authorize the issuer of a gift certificate that contains printed language on the certificate stating a cash redemption threshold that is lower than the amount described above to sell the gift certificate until December 31, 2028, if certain requirements are met, including that the gift certificate was manufactured or printed before April 1, 2026, and the issuer of the gift certificate displays at specified point-of-sale devices, a notice stating that a gift certificate with a cash value of less than $15 is redeemable in cash for its cash value, as provided.

Issues: ✓ Criminal Justice

Bill status passed both 4 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Aug 2026

Senate Passage

Apr 2026

Assembly Passage

Aug 2026

Governor

Introduced Feb 13, 2026 Last action Aug 30, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

02/13/26 - Introduced → 06/10/26 - Amended Assembly · 4 edits · Jun 10, 2026

MODERATE

The Assembly amended SB 1078 to add a new provision amending Civil Code Section 51.1, which would require parties in civil rights appellate cases to serve their briefs not only on the State Solicitor General but also on the Director of the Civil Rights Department. The original Santa Cruz County transactions and use tax authorization (up to 0.5% through December 31, 2030) was retained unchanged. The fiscal committee designation was changed from 'no' to 'yes,' indicating the bill now requires fiscal review.

Scope change

The bill's scope expanded from solely authorizing a local transactions and use tax for Santa Cruz County to also amending state civil rights procedure by adding a service requirement on the Director of the Civil Rights Department in appellate civil rights cases statewide.

REQUIREMENT

New Section 1 amends Civil Code Section 51.1 to require each party in a civil rights appellate case (involving Sections 51, 51.5, 51.7, 51.9, or 52.1) to serve a copy of their brief or petition and brief on the Director of the Civil Rights Department, in addition to the State Solicitor General. A brief cannot be accepted for filing unless proof of service shows service on both. Parties who fail to comply get a reasonable opportunity to cure before sanctions, and the court must allow the Attorney General and Civil Rights Department Director additional time to file a brief.

TECHNICAL

The fiscal committee designation was changed from 'no' to 'yes,' meaning the bill now requires review by the Assembly Fiscal Committee.

The vote requirement notation was clarified from '2/3' to '2/3 majority.'

SCOPE

The bill's short title and legislative digest were expanded to reflect the new civil rights service of process provision alongside the original Santa Cruz tax authorization.

06/10/26 - Amended Assembly → 08/21/26 - Amended Assembly · 6 edits · Aug 21, 2026

MODERATE

SB 1078 was substantially reworked between versions. The entire Santa Cruz County transactions and use tax authorization (up to 0.5 percent, voter-approved, through 2030) was removed and replaced with a new gift certificate transition provision allowing issuers to continue selling certificates with cash redemption thresholds below $15 until December 31, 2028, subject to notice and recordkeeping requirements. The bill also dropped its urgency status, changed the required vote from two-thirds to simple majority, and removed Assembly Member Addis as a coauthor.

SCOPE

The entire Santa Cruz County transactions and use tax authorization (new Revenue and Taxation Code Section 7294.7) was deleted. This had allowed the county to levy a tax of up to 0.5 percent for general and special purposes with voter approval, exempt from the statewide 2 percent combined rate cap, through December 31, 2030.

A new Civil Code Section 1749.52 was added creating a transition period for gift certificates. Issuers may continue selling gift certificates that state a cash redemption threshold lower than $15 until December 31, 2028, provided the certificate was manufactured or printed before April 1, 2026, the issuer displays a notice in at least 24-point font at each point-of-sale device stating that certificates under $15 are redeemable in cash, and the issuer maintains records of manufacture or print dates.

ENFORCEMENT

A penalty shield was added: an issuer complying with the new gift certificate section cannot be subject to civil or criminal penalties solely because the certificate contains a lower cash redemption threshold than required by existing law.

TECHNICAL

The urgency statute declaration (immediate effect) was removed, meaning the bill will now take effect on January 1 of the following year rather than immediately upon passage.

Assembly Member Addis was removed as a coauthor; only Assembly Member Pellerin remains. The fiscal committee answer changed from 'no' to 'yes.'

REQUIREMENT

The required legislative vote changed from a two-thirds majority to a simple majority, reflecting the removal of the local tax measure that had triggered the higher threshold.

Floor votes · Senate Apr 16, 2026 · Assembly Aug 28, 2026

How they voted

29–9

Passed · 2 other

Total votes 40

Apr 16, 2026

D Democratic30

29 Yea 1

96% Yea

R Republican10

9 Nay 1

90% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Aug 30, 2026

Upper · Passed

Assembly amendments concurred in. (Ayes 40. Noes 0.) Ordered to engrossing and enrolling.

upper

Aug 28, 2026

Introduced

In Senate. Concurrence in Assembly amendments pending.

upper

Aug 28, 2026

Lower · Passed

Read third time. Passed. Ordered to the Senate.

lower

Aug 27, 2026

Lower · Passed

From committee: Do pass. (Ayes 10. Noes 0.) (August 27).

lower

Aug 24, 2026

Committee

Re-referred to Com. on P. & C.P. pursuant to Assembly Rule 77.2.

lower

Aug 21, 2026

Lower · Passed

Read third time and amended.

lower

Aug 13, 2026

Lower · Passed

From committee: Do pass. (Ayes 11. Noes 4.) (August 13).

lower

Jun 23, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (June 23). Re-referred to Com. on APPR.

lower

Jun 15, 2026

Committee

Re-referred to Com. on JUD. pursuant to Assembly Rule 96.

lower

Jun 10, 2026

Lower · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. GOV.

lower

May 4, 2026

Committee

Referred to Coms. on L. GOV. and REV. & TAX.

lower

Apr 16, 2026

Senate · Passed

Senate Vote: pass (29-9-2)

senate

Apr 16, 2026

Upper · Passed

Read third time. Urgency clause adopted. Passed. (Ayes 29. Noes 9. Page 3916.) Ordered to the Assembly.

upper

Apr 8, 2026

Upper · Passed

From committee: Do pass. (Ayes 4. Noes 1. Page 3795.) (April 8).

upper

Mar 18, 2026

Upper · Passed

From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 5. Noes 2. Page 3601.) (March 18). Re-referred to Com. on REV. & TAX.

upper

Feb 26, 2026

Committee

Referred to Coms. on L. GOV. and REV. & TAX.

upper

Feb 13, 2026

Introduced

Introduced. Read first time. To Com. on RLS. for assignment. To print.

upper

1 primary · 1 co-sponsor