AB 1181 was approved by California Assembly on a 56 to 0 vote. Their vote concurs with changes by the Senate yesterday, which means the bill has been passed by the legislature.
The bill now goes to the governor for his consideration and signature as he chooses.
This bill will affect charities registered with the California AG’s Registry of Charitable Trusts or who soliciting funds from California citizens. It will require donated pharmaceuticals which are restricted by the donor for distribution outside the US to be valued at international prices instead of prices inside the US. There is frequently a dramatic difference between the price of a medicine inside the US and overseas.
Bill received no verbal opposition on the Assembly floor today. The only opposition on the Senate floor yesterday was a request by a CPA to postpone the bill until FASB can require this change in accounting on a national level. There was zero opposition to anything of substance.
The AG is authorized to issue regulations on the issue.
The effective date is January 1, 2021.
For those who have ears to hear in the CPA and charity communities, the time to fix the medicine valuation issue on our own has now run out.