It won't work in this case unless you convert the HIGC to a bunch of individual gift cards because "the terms exclude a gift card that can be used with multiple unaffiliated sellers of goods or services". This is posted on California's Department of Consumer Affairs site.

In practice, I've had trouble trying to redeem gift cards < $10 for cash under this law. Some stores are well versed in the law. Others have no idea how to process the transaction.

It's sort of like having your mag stripe only credit card refused overseas or getting charged DCC fees without your consent. You can feel free to get into an argument with the cashier while the line of impatient customers builds up behind you. And you can have the pleasure of doing that 50+ times for each $500 HIGC that you cash out for 50+ store GC for <$10.