California Bill Would Require Retailers, Restaurants to Cash Out Gift Cards

Critics of California’s notoriously high tax burden like to quip that state government views businesses as an ATM. Now, state officials want to actually require California retailers to function as ATMs for customers. Senate Bill 1272 would effectively convert gift cards into generic cash cards, causing businesses to provide cash for any request of $25 or less. Because restaurants would be on the hook with the new requirements, the California Restaurant Association (CRA) testified against SB 1272 last week in the Senate Judiciary Committee. The legislation goes before the full Senate next. “Don’t we have bigger fish to fry than this?” asked Bill Higgins, chef-owner of the Whippersnapper restaurant in San Rafael. “I would think trying to help small business would be a bigger issue, trying to stop businesses from closing.”...