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California Hospital Executive Compensation Limit Initiative (2016)
| California Hospital Executive Compensation Limit Initiative | |
|---|---|
 | |
| Election date November 8, 2016 | |
| Topic Healthcare | |
| Status Not on the ballot | |
| Type State statute | Origin Citizens |
| Voting on Healthcare |
|---|
|
| Ballot Measures |
| By state |
| By year |
| Not on ballot |
| Local Measures |
The Hospital Executive Compensation Limit Initiative (#15-0111) was not put on the November 8, 2016, ballot in California as an initiated state statute.
The measure would have prohibited hospitals from providing severance packages or annual compensation in an amount that exceeds what the president of the United States receives, which is currently $450,000 per year. Hospitals would have to publicly disclose any executives receiving compensation above this amount.[1]
Proponents filed a similar initiative for the ballot in 2014, but petitioners withdrew it.
This measure caused division between the Service Employees International Union-United Healthcare Workers West, a backer of the proposal, and the California Hospital Association (CHA), an opponent of the initiative.[2]
Text of measure
Ballot title
The official ballot title was as follows:[3]
| “ | Hospitals. Executive Compensation. Initiative Statute.[4] | ” |
Ballot summary
The official ballot summary was as follows:[3]
| “ | Prohibits hospitals, hospital groups, hospital-affiliated medical foundations and physicians groups, and health care districts 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 all executives receiving compensation or severance packages above this amount. 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 of nonprofit corporations.[4] | ” |
Full text
The full text of the measure could be found here.
Fiscal impact
Note: The fiscal impact statement for a California ballot initiative authorized for circulation is jointly prepared by the state's legislative analyst and its director of finance. The statement was as follows:[3]
| “ | State administrative costs in the low millions of dollars annually to enforce the measure, with authority to recover costs through fees assessed on specified hospitals.[4] | ” |
Support
The initiative was backed by the SEIU-UHW West.[5] The California Democratic Party executive board also decided to support the measure.[6]
Opposition
The California Hospital Association (CHA) opposed this initiative.[2]
The CHA released a statement when the initiative was first filed saying, "Artificially imposing a cap on compensation will result in a loss of qualified executives and undermine the ability of hospitals to meet the challenges ahead."[2]
Path to the ballot
- See also: California signature requirements
- Benjamen L. Tracey, Nathan Jon Selzer and George M. Yin submitted a letter requesting a title and summary on November 20, 2015.[1]
- A title and summary were issued by California's attorney general's office on January 25, 2016.[3]
- 365,880 valid signatures are required for qualification purposes.
- In May 2016, signatures were submitted for the initiative by supporters, according to the California secretary of state.[7]
- Supporters had until July 25, 2016, to collect the required signatures.
- Supporters withdrew the measure on June 29, 2016.[8]
State profile
| Demographic data for California | ||
|---|---|---|
| California | U.S. | |
| Total population: | 38,993,940 | 316,515,021 |
| Land area (sq mi): | 155,779 | 3,531,905 |
| Race and ethnicity** | ||
| White: | 61.8% | 73.6% |
| Black/African American: | 5.9% | 12.6% |
| Asian: | 13.7% | 5.1% |
| Native American: | 0.7% | 0.8% |
| Pacific Islander: | 0.4% | 0.2% |
| Two or more: | 4.5% | 3% |
| Hispanic/Latino: | 38.4% | 17.1% |
| Education | ||
| High school graduation rate: | 81.8% | 86.7% |
| College graduation rate: | 31.4% | 29.8% |
| Income | ||
| Median household income: | $61,818 | $53,889 |
| Persons below poverty level: | 18.2% | 11.3% |
| Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in California. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here. | ||
Presidential voting pattern
- See also: Presidential voting trends in California
California voted for the Democratic candidate in all seven presidential elections between 2000 and 2024.
More California coverage on Ballotpedia
- Elections in California
- United States congressional delegations from California
- Public policy in California
- Endorsers in California
- California fact checks
- More...
See also
Related measures
Footnotes
- ↑ 1.0 1.1 California Secretary of State, "Full text," accessed January 29, 2016
- ↑ 2.0 2.1 2.2 Healthcare Dive, "How a California initiative aims to cap hospital executives' pay," January 28, 2016
- ↑ 3.0 3.1 3.2 3.3 California Secretary of State, "Initiatives and Referenda Cleared for Circulation," accessed January 29, 2016
- ↑ 4.0 4.1 4.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ mynewsLA.com, "Signature gathering OK’d for initiative limiting health care execs’ pay," January 27, 2016
- ↑ Times of San Diego, "http://timesofsandiego.com/politics/2016/06/20/california-democratic-party-supports-legalizing-marijuana/," June 20, 2016
- ↑ California Secretary of State, "1770. Hospitals. Executive Compensation. Initiative Statute. Raw Count," May 17, 2016
- ↑ California Secretary of State, "Initiatives Failed to Qualify," accessed June 30, 2016
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