In November, California voters will be asked to make a decision on a series of issues including Proposition 34.
The prop would limit how certain healthcare providers spend revenues from a federal prescription drug program. Among those who would be impacted by the bill is the AIDS Healthcare Foundation -- which serves two million people worldwide and has a clinic in San Francisco.
“Prop 34 ensures federal money meant for patients gets to patients,” Nathan Click, of the Yes on Prop 34 campaign, said.
The measure, sponsored by the California Landlords Association, applies to healthcare providers who have spent more than $100 million in any 10-year period on things other than direct patient care.
Also to those who have run multi-family housing complexes with more than 500 high severe health and safety violations.
Under the bill, those who violate the new law could lose their tax-exempt status.
Jacki Schechner with the AIDS Healthcare Foundation said the proposition unfairly targets her organization.
“Prop 34 is a revenge initiative sponsored by the California Apartment Association which represents corporate landlords,” Schechner said. “They have put this proposition on the ballot to kneecap the AHF because of their support of rent control.”
But Click disagrees.
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“We have a broad coalition of patient groups and labor unions who want to make sure that patient money goes toward,” Click said. “That includes The ALS Association and San Francisco Hep B Free.”
The AIDS Healthcare Foundation said that if Prop 34 passes, it will harm patients.
“Tens of thousands of clients in California would be impacted, people who get HIV care would not be able to do so,” Schechner said. “We offer free STD testing and that would go away and we would be stripped of our nonprofit status.”
Consumer Watchdog, and the National Organization for Women, are among those joining the fight against Prop 34.
While state Assemblymember Evan Low, and the California Chronic Care Coalition, are among those supporting the prop.
Now it's up to voters to decide whether it will become law.
If approved, Prop 34 would also allow the state to permanently negotiate Medi-Cal drug prices on a statewide basis.
