California Corporate Crime Reporting Obligations Initiative (2008)
|Not on Ballot|
| This measure did not or |
will not appear on a ballot
The objective of the initiative was to require that executives and managers of corporations or limited liability companies report, in writing, any violation by company involving financial fraud, consumer protection, health and safety, environmental protection or labor.
Specifically, it would have:
- Established criminal penalties (jail up to one year and/or fine up to $100,000) for failure to report within 15 days after actual knowledge of violation acquired.
- Defined manager as having both management authority and significant responsibility for an aspect of business.
- Defined actual knowledge as information that would convince a reasonable person in same situation that violation exists.
James C. Harrison
Margaret R. Prinzing
Remcho, Johansen & Purcell, LLP
Estimated fiscal impact of the measure
Fiscal impact estimate as provided by California's Legislative Analyst office:
Probably minor local and state enforcement and prosecution costs, partly offset by increased fine revenue.