The Corporate Accountability Act
(07-0046) did not appear on the November 4, 2008
statewide ballot in California
as an initiated state statute
. Supporters were required to submit a minimum of 433,971 valid signatures
by March 3, 2008, but failed to do so. In mid-March 2008, the California Secretary of State
announced that the measure had failed to qualify for the November 2008 ballot.
The initiative would have created a new legal basis to address illegal actions by corporations or key individuals within corporations. Specifically, it would have:
- Expanded existing corporate liability by allowing designated challenges to be brought by individuals or organizations whose investments, pensions, retirement funds or savings suffer a loss.
- Made corporations liable for any financial benefit acquired from the sale of securities during the period of illegal activity.
- Required responsible executives to pay penalties equaling all compensation received during the period of illegal activity.
- Mandated penalties be paid into fund providing repayment to victims of corporate fraud.
James C. Harrison
Margaret R. Prinzing
Remcho, Johansen & Purcell, LLP
Fiscal impact estimate
Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government:
Probably no state administrative cost. Potential unknown additional penalty revenue for corporate fraud restitution payments.