Prop 34 explained: The fight over new rules for how some nonprofits spend prescription drug money

What happens when you make health care landlords and add *** dash of revenge. You get prop 34. Let me explain. The proposition aims to prevent abuse of *** federal prescription drug discount program. It would require providers that make money off the program to spend 98% of those funds on direct patient care. Like expanding health care services for the poor. Supporters say this will keep health and non profits from using the money on questionable things like building luxury apartments or buying up rental properties. Los Angeles Based Aids Healthcare Foundation is one of the providers and maybe the only one that would be impacted. They say this measure is illegal because the law bans measures that target *** specific group for retribution and plan to challenge it in court. That's why they call it *** revenge proposition because of their advocacy for rent control measures like prop 33 which begs the question, who is behind prop 34 groups that represent landlords, property managers and developers? Are you still following along? Opponents of prop 34 agree that spending rules should be tightened on the federal program but that it would be better done through the California legislature. They also say only *** few health care providers will actually face restrictions on spending based on very specific criteria there. You have it prop 34 C, check out our other videos and go to KCR a.com.

Proposition 34 asks California voters to approve new rules for some health care providers and how they use the money they make from selling discounted prescription drugs. The rules specifically apply to health care providers that spent $100 million within 10 years on costs outside of direct patient care and have operated apartments with 500 health and safety violations. It requires them to spend 98% of the prescription drug revenues on direct patient care. Leer en español.Under the proposition, if those providers who meet that criteria don't follow the rules, they would be penalized by having their health care licenses and tax-exempt status revoked. State officials estimate it could cost taxpayers millions of dollars a year to enforce this proposal. This proposal represents another battle between the AIDS Healthcare Foundation and the California Apartment Association, who are also going head-to-head on Prop 33. Who supports it? The ALS Association, California Chronic Care Coalition, and Latino Heritage Los Angeles. "Proposition 34 will protect patients and ensure public healthcare dollars actually go to patients who need it," the groups said in a statement. "Prop. 34 will close a loophole that allows corporations to spend this money on things like buying stadium naming rights and multi-million-dollar CEO salaries."How much money has the supportive campaign raised? As of Sept. 9, the latest state campaign finance data shows it raised $25.3 million, the bulk of that— $25 million— from the California Apartment Association. Who opposes it? National Organization for Women, Consumer Watchdog, Coalition for Economic Survival, AIDS Healthcare Foundation and Dolores Huerta. "This initiative is a wolf in sheep's clothing," the groups said in a statement. "It has only one purpose: to prevent AIDS Healthcare Foundation (AHF) from promoting rent control. It claims to protect patients, but its real intent is to stop AHF from putting tenant protections on the ballot." How much money have opponents raised to fight it? As of Sept. 9, opponents have raised $535,764. All of it is from the AIDS Healthcare Foundation. Learn more here.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter

Proposition 34 asks California voters to approve new rules for some health care providers and how they use the money they make from selling discounted prescription drugs.

The rules specifically apply to health care providers that spent $100 million within 10 years on costs outside of direct patient care and have operated apartments with 500 health and safety violations. It requires them to spend 98% of the prescription drug revenues on direct patient care.

Leer en español.

Under the proposition, if those providers who meet that criteria don't follow the rules, they would be penalized by having their health care licenses and tax-exempt status revoked. State officials estimate it could cost taxpayers millions of dollars a year to enforce this proposal.

This proposal represents another battle between the AIDS Healthcare Foundation and the California Apartment Association, who are also going head-to-head on Prop 33.

Who supports it?

The ALS Association, California Chronic Care Coalition, and Latino Heritage Los Angeles.

"Proposition 34 will protect patients and ensure public healthcare dollars actually go to patients who need it," the groups said in a statement. "Prop. 34 will close a loophole that allows corporations to spend this money on things like buying stadium naming rights and multi-million-dollar CEO salaries."

How much money has the supportive campaign raised?

As of Sept. 9, the latest state campaign finance data shows it raised $25.3 million, the bulk of that— $25 million— from the California Apartment Association.

Who opposes it?

National Organization for Women, Consumer Watchdog, Coalition for Economic Survival, AIDS Healthcare Foundation and Dolores Huerta.

"This initiative is a wolf in sheep's clothing," the groups said in a statement. "It has only one purpose: to prevent AIDS Healthcare Foundation (AHF) from promoting rent control. It claims to protect patients, but its real intent is to stop AHF from putting tenant protections on the ballot."

How much money have opponents raised to fight it?

As of Sept. 9, opponents have raised $535,764. All of it is from the AIDS Healthcare Foundation.

Learn more here.

See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter

Prop 34 explained: The fight over new rules for how some nonprofits spend prescription drug money

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