California "Charitable Hospital Executive Compensation Act" Initiative (2014)
|Not on Ballot|
| This measure did not or |
will not appear on a ballot
The initiative would have:
- Prohibited nonprofit hospitals, hospital groups, hospital-affiliated medical foundations and physicians groups from paying annual compensation (salary, perks, paid time off, bonuses, stock options, etc.) or providing severance packages to executives, managers and administrators in an amount exceeding the salary and expense allowance of the President of the United States.
- Required annual public disclosure of the ten highest-paid executives and the five largest severance packages.
- Authorized the Attorney General of California to monitor and enforce the initiative's provisions.
- Provided penalties for violation of the initiative's provisions, including fines, revocation of a hospital's tax-exempt status and the appointment of a representative of the state's Attorney General to a hospital's board of directors.
Supporters of the initiative referred to it as the "Charitable Hospital Executive Compensation Act of 2014."
The SEIU and the California Hospital Association (CHA) negotiated a deal that resulted in the union withdrawing the ballot initiative and the "Fair Healthcare Pricing Act" Initiative. The CHA, in exchange, approved a new “code of conduct” that may make union organizing easier.
Text of measure
- "Prohibits nonprofit hospitals, hospital groups, and hospital-affiliated medical foundations and physicians groups from paying annual compensation (salary, perks, paid time off, bonuses, stock options, etc.) or providing severance packages to executives, managers, and administrators in an amount exceeding the salary and expense allowance of the President of the United States(currently $450,000). Requires annual public disclosure of ten highest-paid executives and five largest severance packages. Authorizes Attorney General monitoring and enforcement or taxpayer litigation. Penalties for violation include fines, revocation of tax-exempt status, and appointment of Attorney General representative to board of directors."
Fiscal impact statement:
- "State administrative costs in the low millions of dollars annually to enforce the measure, with authority to recover costs through fees assessed on nonprofit hospitals."
- California Hospital Association
- See also: Polls, 2014 ballot measures
The SEIU, an initiative proponent, commissioned a poll to gauge the public’s responsiveness to the initiative. One question asked was, “What do you think is a fair salary for a CEO of a nonprofit hospital in California?” The initiative would cap pay at $450,000. Of the respondents, 77% thought a “fair salary” was $450,000 or less. The following poll data represents the responses:
|California "Charitable Hospital Executive Compensation Act" Initiative (2014)|
|Poll||Less than $200,000||$200,000 – $450,000||$450,000 – $600,000||$600,000 – $1,000,000||$1,000,000 – $3,000,000||$3,000,000 or More||Unsure||Margin of Error||Sample Size|
|SEIU (Commissioned by)|
Reported March 4, 2014
|Note: The polls above may not reflect all polls that have been conducted in this race. Those displayed are a random sampling chosen by Ballotpedia staff. If you would like to nominate another poll for inclusion in the table, send an email to firstname.lastname@example.org|
Path to the ballot
- Rebecca Malberg and Stanley Lyles submitted a letter requesting a title and summary on November 8, 2013.
- A title and summary were issued by the Attorney General of California's office on January 3, 2014.
- 504,760 valid signatures are required for qualification purposes.
- Supporters had until June 2, 2014 to collect and submit the required number of signatures. Filing sufficient signatures by that date would have allowed the initiative to compete on the November 4, 2014 ballot.
- The Secretary of State’s suggested signature filing deadline for the November 4, 2014 ballot was April 18, 2014.
- On May 6, 2014, the SEIU withdrew the initiative due to a deal with the California Hospital Association.
- Los Angeles Times, "Hospitals and union make deal to avoid ballot measure fight," May 6, 2014
- California Healthline, "Union Says It's on Track To Qualify Ballot Initiatives on Hospital Costs," February 12, 2014
- California Healthline, "CHA Mounts Challenge to Proposed Hospital-Related Ballot Initiatives," February 13, 2014
- San Francisco Gate, "Poll: Lot of early love for ballot measure capping CEO pay," March 4, 2014
- San Francisco Business Times, "Hospital Association, SEIU union set to announce agreement likely to take measures off California ballot," May 6, 2014