Wednesday, June 18, 2014

California - Donor Disclosure Law Enacted; Hospital Executive Salary Cap Ballot Initiative Fails

Donor Disclosure Law.  On May 14, 2014, California Governor Jerry Brown signed into law S.B. 27, which requires large donations from nonprofits and other "multi-purpose" (MPOs) organizations to be disclosed beginning July 1.  In addition, the California Fair Political Practices Commission is required to post the names of the top 10 contributors on its website.  The bill's intended effect is to shed light on “dark money” in political campaigns and referendums by eliminating a now common practice of nonprofit and other organizations contributing significant dollars into such campaigns without disclosure of the original donors.  According to the Los Angeles Times, the legislation was advanced after "conservative groups from Arizona poured $15 million into California in 2012 to fight Proposition 30, Gov. Jerry Brown's tax hike, and support an ultimately unsuccessful move to curb unions' political power."

Hospital Executive Pay Ballot Initiative.  A ballot initiative to cap the executive compensation of nonprofit hospital executives failed to qualify for the November 2014 ballot.  The Charitable Hospital Executive Compensation Act of 2014 would have instituted an annual compensation limit (including bonuses and other benefits) for such execs to the salary and expense account of the President of the United States (currently, $450,000).  In addition, the 10 highest-paid executives and 5 largest severance packages would have been required to be publicly disclosed annually.  According to the Los Angeles Times, the proposed ballot initiative was dropped by the SEIU-United Healthcare Workers West Union in a deal struck with the California Hospital Association and a majority of California's 430 hospitals.

 

Nicholas Mirkay

http://lawprofessors.typepad.com/nonprofit/2014/06/california-donor-disclosure-law-enacted-hospital-executive-salary-cap-ballot-initiative-fails.html

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