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CAPITOL UPDATE #34 – August 22, 2024

August 21, 2024

Golden State Republican Women
Janet Price, President

        Submitted by the GSRW Legislative Analyst Committee        
Valerie Evans,
Lou Ann Flaherty and Elaine Freeman, 
  

PROPOSITION 33

California Proposition 33, Prohibit State Limitations on Local Rent Control Initiative

California Proposition 33, the Prohibit State Limitations on Local Rent Control Initiative, is on the ballot in California as an initiated state statute on November 5, 2024.

A “yes” vote supports: 

·        repealing the Costa-Hawkins Rental Housing Act (1995), thereby allowing cities and counties to limit rent on any housing and limit the rent for first-time tenants and 

·        adding language to state law to prohibit the state from limiting “the right of any city, county, or city and county to maintain, enact or expand residential rent control.”

 

A “no” vote opposes repealing Costa-Hawkins Rental Housing Act, which prohibits rent control on single-family homes and houses completed after February 1, 1995.

 

PROPOSITION 33This measure expands local government’s authority to enact rent control on residential property.  Current state law (the Costa-Hawkins Rental Act of 1995) generally prevents cities and counties from limiting the initial rental rate that landlords may charge to new tenants in all types of housing, and from limiting rent increases for existing tenants in (1) residential properties that were first occupied after February 1, 1995 (2) single-family homes; and (3) condominiums. 

This measure would repeal that state law and would prohibit the state from limiting the right of cities and counties to maintain, enact or expand residential rent-control ordinances.  This measure also abolishes the state’s ban on vacancy control.  Vacancy control prohibits rental housing providers from adjusting rents to market rates when a tenant moves out.

A YES vote repeals the Costa-Hawkins Rental Housing Act of 1995, allowing cities and counties to limit rent on any housing and limit the rent for first-time tenants and adding language to state law to prohibit the state from limiting “the right of any city, county, or city and county to maintain, enact or expand residential rent control”

A NO vote opposes repealing Costa-Hawkins Rental Housing Act, which prohibits rent control on single family homes and houses completed after 2/1/1995 sponsored by AIDS Healthcare Foundation.

IT SHOULD BE NOTED THAT THIS MEASURE WAS PLACED ON THE BALLOT IN TWO PRIOR ELECTIONS (2018 & 2020) AND TURNED DOWN BY THE VOTERS.

SUPPORTERS: Justice for Renters, AIDS Healthcare Foundation, California Nurses Assoc., Coalition for Humane Immigrant Rights, Housing is a Human Right and Veteran’s Voices, Senator Bernie Sanders, California Democratic Party, Huntington Beach Councilmember Tony Strickland

OPPOSITION: Californians for Responsible Housing, Californians to Protect Affordable Housing, California Apartment Association.

PROPOSITION 34

California Proposition 34, Require Certain Participants in Medi-Cal Rx Program to Spend 98% of Revenues on Patient Care Initiative 

 

California Proposition 34, the Require Certain Participants in Medi-Cal Rx Program to Spend 98% of Revenues on Patient Care Initiative (#23-0021), is on the ballot in California as an initiated state statute on November 5, 2024.

A “yes” vote supports: 

·        requiring health care providers that spent over $100 million in any 10-year period on anything other than direct patient care and operated multifamily housing with over 500 high-severity health and safety violations to spend 98% of revenues from the federal discount prescription drug program on direct patient care;

·        penalizing violators of the initiative with loss of tax-exempt status and licenses to operate health insurance plans, pharmacies, and clinics; and

·        permanently authorizing Medi-Cal RX in state law.

 

A “no” vote opposes this initiative to penalize health care providers who spend revenues from the federal discount prescription drug program on purposes other than direct patient care.

 

PROPOSITION 34 – Restricts spending by health care providers meeting specified criteria to spend 95% of revenues from federal discount prescription drug programs on direct patient care.  Applies only to health care providers that: spent over $100,000,000 in any ten-year period on anything other than direct patient care, and operated multifamily housing with over 500 high-severity health and safety violations

Penalizes noncompliance by revoking health care licenses and tax-exempt status.  Permanently authorizes state to negotiate Medi-Cal drug prices on statewide basis.      

IT APPEARS AT THIS TIME, THERE IS ONLY ONE AGENCY THAT FITS THESE QUALIFICATIONS AND THAT IS AIDS HEALTHCARE FOUDATION.

A YES vote requiring health care providers that spent over $100 million in any 10 year period on anything other than direct patient care and operated multifamily housing with over 500 high severity health and safety violations to spend 98% of revenues from federal discount prescription drug program on direct patient care. 

It penalizes violators of the initiative with loss of tax exempt status and licenses to operate health insurance plans, pharmacies, and clinics; and permanently authorizing Mei-Cal RX in state law.

A NO vote opposes this initiative to penalize health care providers who spend revenues from the federal discount prescription drug program on purposes other than direct patient care.

This is an interesting measure.  It would establish a new category of entities called prescription drug price manipulators.  If an entity is classified as a prescription drug price manipulator, the entity would have to meet other requirements annually to maintain its tax exempt status and licensure as health insurance plans, pharmacies and clinics.

Prop 3 would also permanently authorize the state to implement Medi-Cal Rx program.  Governor Newsom first established the program in 1/1/19 via executive order.

SUPPORTERS – Protect Patients Now, California Apartment Assoc, Republican Party of California, State Assembly Member Evan Low (D), ALS Association and San Francisco Women’s Cancer Network.

OPPOSITION – AIDS Healthcare Foundation and Housing is a Human Right


Legislative Portal links – Express your support or opposition to a bill or directly to the Legislative committee currently reviewing it (as an individual, not as a member of RW or GSRW) click here, or the bill’s author – click here, enter your bill # and look for tab at top of the bill page labeled “Comments to Author”.

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