L.D.
Lots of school districts have that sort of policy. Dallas ISD only lets teachers accept $50 of goods/services/gifts or less from one individual/group per year. So if a student gives you a $25 gift card for Christmas and another $25 at end of year, and then some candles and cookies for Valentines Day, you are technically in violations of the Ethics policy.
I taught in a school with a few wealthy students and many poor students. I felt relieved when the policy was announced - some students would give $50-$100 gift cards for Christmas, and then other students would give you a $2 bottle of lotion (BOTH of which I appreciated - but I always wondered if they compared gifts and some students felt bad).
Also, after a parent has given you $100 in gifts, and then bought another $100 or more worth of supplies for you classroom - when they come to you at the end of the year asking for MORE extra credit assignments for their child who earned a poor grade (long after the grading deadline was over) it made it harder to say no. When they ask why their student couldnt participate in XYZ event (which they did not qualify for) as an alternate, it makes it harder to say no. In short, it makes it harder to not make exceptions.
So, I do agree with the intent but think its strange that the state is legislating it, and not individual school districts. I definitely agree that they should have much better things to spend their time legislating than this.