California voters have approved Proposition 34, a measure from an apartment trade group that aimed to restrict spending by the AIDS Healthcare Foundation, which has bankrolled several rent control initiatives and criticized the measure as unconstitutional revenge. The Associated Press called the initiative Wednesday evening. According to the California Secretary of State, the measure is ahead 50.
8% to 49.2%. As written, Proposition 34 applies to healthcare providers who have spent more than $100 million in any 10-year period on things besides direct patient care and have run multifamily housing with more than 500 “high-severity health and safety violations.
” If a healthcare provider meets that standard they would be required to spend 98% of their revenues from a federal prescription drug program on direct patient care. The measure was sponsored by the California Apartment Assn., whose campaign committee said the new rules could apply to multiple organizations and noted the initiative’s language did not name any specific group.
In the weeks before the election, much of the advertising in favor similarly did not name a specific healthcare provider, but emphasized Proposition 34 would save taxpayers money while also increasing spending on patient care. However, the apartment association did single out the AIDS Healthcare Foundation by name as a target during the campaign and no other health organization has such a well-publicized history of operating housing with health an.