California Corporate Accountability Act (2008)

Not on Ballot
This measure was not put on an election ballot

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.

Proponents

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.

External links

• Fiscal Impact Statement
• Ballot Summary