From POLITICO:

SACRAMENTO — A California state senator has formally asked state Attorney General Xavier Becerra to investigate whether the powerhouse AIDS Healthcare Foundation is fraudulently misusing savings from a federal drug-discount program designed to help poor patients.

The request comes from state Sen. Ben Hueso (D-Chula Vista), who has urged an investigation into the politically powerful organization that has dumped upwards of $60 million into state ballot drives since 2012, according to Hueso’s letter obtained by POLITICO.

Hueso in his letter complains that the organization has dumped tens of millions of dollars into measures that have fueled high-priced California ballot wars on a range of issues, a number of them unconnected with health care. Many clearly do not relate to Congress’ intent that 340B revenue be used “to stretch (scarce) federal resources as far as possible, reaching more eligible patients and providing more comprehensive services,’’ Hueso wrote.

He said the expenditures demand an investigation by the AG as to whether 340B benefits “are being properly applied to California’s most vulnerable populations.”

The measures backed by AHF in recent years have covered issues ranging from use of condoms in adult films to rent control and affordable housing development.

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