Requires certain providers to spend 98% of revenues from federal discount prescription drug program on direct patient care. Authorizes statewide negotiation of Medi-Cal drug prices. Fiscal Impact: Increased state costs, likely in the millions of dollars annually, to enforce new rules on certain health care entities. Affected entities would pay fees to cover these costs. Supporters: The ALS Association; California Chronic Care Coalition; Latino Heritage Los Angeles Opponents: National Org. for Women; Consumer Watchdog; Coalition for Economic Survival; AIDS Healthcare Foundation; Dolores Huerta

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.