On June 28, 2019, the Senate Judiciary Committee made some minor changes to AB 1181. In one sentence, the bill under consideration would require charities to recognize gifts in kind at the fair value in the location where the items will likely be distributed if the items have a geographic restriction.
Comment at the legislature’s website says:
From committee chair, with author’s amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.
I am not quite sure how to read that, but think it means the author made some changes, probably at the suggestion of the committee chair, the bill was technically put back to the committee after that change, the committee made additional changes and the bill was technically put back to the committee again.
All that to say there were minor changes to the proposed bill.
Based on the “compare versions” tab at the website, changes made at this point include:
- Adding GASB to previously mentioned FASB as the source of GAAP for reporting to the state (17510.5 (a))
- Excluding from the requirement to use end market fair value any noncash donations from federal or state agencies when the agencies provide a value for those grants (17510.5 (c))
- Further clarifying the definition of fair value (17510.5 (d)(2) ), which now reads:
(2) “Fair value” means the price that the receiving charitable organization would receive if it sold the noncash contribution. contribution in the end recipient market.
Looks to me like those are minor clarifications without substantive change.
I don’t understand the legislative process. For example, I’m not quite sure what the “read second time” means, but do know that is a key step in moving legislation forward.