Authorizes Bonds for Immunology Medical Research. Initiative Statute.

“PROP. 38 is designed to pay for itself WITH NO NET COST TO THE STATE OR TAXPAYERS.”

Seen in: Official Voter Information Guide, argument in favor of Proposition 38

The Analyst estimates an increased state cost of $500 million to $600 million a year for about 20 years to repay the bond. The Analyst adds that the state "could" recover part or all of that cost in later decades if funded research produces discoveries that generate revenue, and that the amount of revenue is uncertain. The measure directs 10 percent of licensing royalties to the General Fund until the bonds are repaid. A net cost of zero is a possible outcome, not an estimated one.

“Any cure or immunotherapy developed through PROP. 38 must be provided to California patients at a 20% DISCOUNT.”

Seen in: Official Voter Information Guide, argument in favor of Proposition 38

The Attorney General's summary says funding recipients must sell technology and drugs derived from research in California for 20 percent below the national average price. Context: the benchmark is the national average price, and the requirement applies to recipients of the funds.

“According to the Legislative Analyst’s Office, the bonds authorized by this measure would obligate taxpayers to $500 million in annual debt payments for about 25 years.”

Seen in: Official Voter Information Guide, argument against Proposition 38

The Analyst's estimate is an increased state cost of $500 million to $600 million annually for about 20 years, not about 25 years. The argument also omits the Analyst's note that the state could recover part or all of the cost if funded research generates revenue.