SACRAMENTO – Governor Gavin Newsom today signed Senate Bill 1078 by Senator John Laird, coauthored by Assemblymember Gail Pellerin, legislation that allows the Santa Cruz Beach Boardwalk and other businesses to use existing gift cards printed before California’s cash-redemption threshold changed this year, while making sure consumers are informed of their right to redeem gift cards worth less than $15 for cash.

Last year, Laird authored SB 22, which increased California’s gift card cash-redemption threshold from less than $10 to less than $15. The change took effect April 1, 2026.

The Santa Cruz Seaside Company, which operates the Santa Cruz Beach Boardwalk, had already printed roughly one million gift cards with the old redemption language – about $250,000 in inventory and a two-year supply. Without a change in law, the Boardwalk will never be able to use the existing inventory.

“Last year, we increased the amount consumers can redeem from their gift cards for cash, helping people get the full value of their cards,” said Laird. “SB 1078 keeps that consumer protection in place while giving businesses a reasonable transition for cards printed before the law changed. It’s a commonsense fix that reduces unnecessary waste and costs for small and family-owned businesses while making sure consumers know their rights.”

SB 1078 allows businesses to use gift cards printed before April 1, 2026, through December 31, 2028, as long as they notify consumers at the point of sale that gift cards worth less than $15 can be redeemed for cash. Businesses must also keep records showing the cards were printed or manufactured before the new threshold took effect.

“The Santa Cruz Beach Boardwalk has been creating memories for generations of families for nearly 120 years,” said Assemblymember Gail Pellerin. “SB 1078 is a commonsense fix that allows the Boardwalk to continue using perfectly good gift cards it already has on hand, while preserving the protections consumers expect. I was proud to partner with Senator Laird on a practical solution that supports one of Santa Cruz’s most treasured institutions.”

“We appreciate Senator Laird working with us on a practical solution that protects consumers while addressing a real issue for the Boardwalk,” said Kris Reyes, spokesperson for the Santa Cruz Beach Boardwalk. “SB 1078 allows us to use cards we already have rather than throw them away, while continuing to fully honor the law and making sure our guests know they can redeem balances under $15 for cash.”

SB 1078 is sponsored by the Santa Cruz Seaside Company and will take effect January 1, 2027.