With the new year, of course, came new laws. One of the more significant ones was one which furthers California's consumer identity--You're now able to get a redemption on gift cards that are $10 or less.

As the San Jose Mercury writes:

On Jan. 1, consumers will be able to redeem gift cards for cash if the balance is less than $10, thanks to a new law sponsored by state Sen. Ellen Corbett, D-San Leandro.

Currently, gift cards worth less than five dollars can be subjected to dormancy fees and a store can refuse to give the remaining value back in cash no matter how small the value.

Richard Holober, Executive Director of the Consumer Federation of California, which is based in San Mateo, said, 'Consumers should be aware that any dormant gift cards they have worth less than $10 can be redeemed for cash starting Tuesday.'

Holober said, 'As long as the card was bought 1997 or later, you'll get your cash back. After all, the retail store or restaurant chain was already paid for the full value of the gift card.'

The new law, SB 250, makes California the most consumer-friendly state in the nation when it comes to gift card laws. Vermont allows cash back for up to $1, while Washington and Montana laws give money back up to $5.

This means that if you wanted to, you could see some rewards using credit cards that give you X percent rewards.

For instance, with 10% you could buy a $10 gift card at an art store, buy a wooden pencil (let's say worth 10 cents), redeem the $9.90 card for cash, and see 90 cents in profit.

Just a thought. Anyway, there are a couple provisions to this law:

1. If the card can be used to buy goods or services from multiple unrelated stores, such as an American Express™, MasterCard™, or Visa™ gift card, it is not covered by this California law.

2. Cards can have a redemption date, by which the recipient must use the card (or else receive a full refund of the amount paid for the card).

3. Although gift cards cannot charge a service fee, they can charge a dormancy fee for non-use.

4. This California law does not apply to prepaid calling cards, cards distributed to consumers without charge under an awards, loyalty or promotional program; cards sold below face value at a volume discount to be used for fundraising purposes if the expiration date is 30 days or less after the date of sale; or cards issued for food products or grocery items.