A bill (AB 1428) has been introduced in the California Assembly that would apply to a “business” that uses prepaid cards to make refunds to customers located in California.  The bill would require such a business to allow the customer to choose whether to get the refund by prepaid card, check, or a refund back to the original form of payment.

For purposes of this requirement, a “business” is defined as “a proprietorship, partnership, corporation, or other form of commercial enterprise” but does not include “a retail establishment or restaurant.”  The term “customer” is not defined.  As a result, the bill could be read to apply to refunds to business entities.