Clinic Spending Initiative Qualifies for November Ballot

RIVERSIDE (CNS) - Southern California voters and residents across the
state will decide in November whether nonprofit community health clinics should
be required to spend at least 90% of their revenue on patient care and other
program services under a ballot initiative that became eligible Monday for the
2026 general election.
  

California Secretary of State Shirley N. Weber announced Monday that
supporters of the initiative submitted enough valid petition signatures to
qualify the measure for the Nov. 3 statewide ballot.
  

The initiative would require ``nonprofit Federally Qualified Health
Centers'' -- community clinics serving medically underserved populations -- to
devote at least 90% of their revenue toward services advancing their charitable
mission rather than administrative or overhead costs.
  

Under the proposal, the California Department of Public Health could
waive the spending requirement in exceptional circumstances. The measure also
would authorize the state attorney general to issue guidance defining
qualifying expenditures and impose financial penalties for clinics that fail to
comply.
  

The measure would allow refunds if the clinics come into compliance
within five years.
  

The proposal additionally would authorize criminal charges for false
reporting or schemes intended to artificially inflate spending ratios.
  

State officials estimated enforcement of the measure could cost up to
the low tens of millions of dollars annually, with much of the expense offset
by fees and penalties imposed on affected clinics.
  

The measure qualified for the ballot through a random sampling process
after election officials determined the projected number of valid
signatures exceeded the threshold required under state law.
  

Secretary of State officials said the initiative will be formally
certified for the ballot June 25 unless supporters withdraw it before that
date.
  

The measure was proposed by Shawna Brown and Sean Fleming.
  

More information can be found at
https://www.sos.ca.gov/elections/ballot-measures/how-qualify-initiative/.
  

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