Now that California Senate Bill 'SB 250' has been signed into law, will this create compliance problems for donor collection centers that issue gift cards as an incentive to the donor?

A colleague was wondering if others were aware of California Senate Bill 'SB 250'? This senate bill would amend Section 1749.5 of the civil code relating to gift certificates and gift cards. It was introduced in February 2007 and is making its way through the California legislature. According to the current version of the draft bill, "This bill would allow any gift certificate with a cash value of less than $10 to be redeemed in cash, as defined, for its cash value." The inquiring colleague is concerned that many donor centers currently issue gift cards as an incentive to the donor. If this bill becomes law, she wonders how the new law might impact donor incentive programs. She asks "Can this bill co-exist with the 12/12/2005 FDA Compliance Policy Guide on donor incentives?"

SEE UPDATE BELOW

ADDENDA Oct. 17, 2007

1. The colleague who informed the e-Network Forum is amazed that no one responded to this discussion. The e-Network Forum will be interested to learn that SB250 was signed into law by the Governor on Oct. 13, 2007. This will become law in California.

ADDENDA Nov. 7, 2007

2. Dr. Paul Holland (attribution used with permission) comments that, in his opinion, the passage of SB 250 implies that, if a gift card of less than $10 is given as a donor incentive, the incentive would satisfy the FDA definition of payment for blood since gift cards worth less than $10 can be converted to cash. Thus, any blood donor given a gift card worth less than $10 would be considered a "Paid Donor", requiring such a label on the donated unit.

ADDENDA Nov. 15, 2007

3. A Compliance Officer at a blood collection agency in Southern California asks the following question regarding gift certificate/gift cards “of less than $10 to be redeemed in cash, as defined, for its cash value." "Businesses that sponsor our blood drives usually give out gift certificates or gas cards worth $10 to blood donors. With the passage of SB 250, these gas cards or other gift cards that started with a higher amount but now have a remaining balance of less than $10 can now be redeemed in cash. I would like to know what steps other blood banks that use gift cards as donor incentives are planning to take. Are they planning to completely eliminate gift cards of any amount which can be redeemed in cash?"

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Ira A. Shulman, MD
CBBS e-Network Forum Editor & Moderator

W. Tait Stevens, MD
CBBS e-Network Forum Assistant Editor & Moderator