FOR IMMEDIATE RELEASE
October 8, 2025

Proposed Initiative Enters Circulation: Limits Compensation For Health Care Executives, Managers, And Administrators. Initiative Statute

Sacramento, Calif. – California Secretary of State Dr. Shirley N. Weber, Ph.D., announced that the proponents of a new initiative were cleared to begin collecting petition signatures on October 7, 2025.

The Attorney General prepares the legal title and summary that is required to appear on initiative petitions. When the official language is complete, the Attorney General forwards it to the proponent(s) and to the Secretary of State, and the initiative may be circulated for signatures. The Secretary of State then provides a calendar of deadlines to the proponent(s) and to county elections officials. The Attorney General’s official title and summary for the measure is as follows:

LIMITS COMPENSATION FOR HEALTH CARE EXECUTIVES, MANAGERS, AND ADMINISTRATORS. INITIATIVE STATUTE. Prohibits certain hospitals and medical entities from paying executives, managers, and administrators more than $450,000 in total annual compensation (salary, paid time off, bonuses, stock options, company vehicle, etc.) or severance payments; compensation limit increases up to 3.5% annually based on Consumer Price Index. Requires annual reporting of all executives, managers, and administrators receiving compensation or severance packages exceeding limit. Authorizes enforcement by Attorney General or taxpayer litigation. Penalties for violations include fines, revocation of tax-exempt status, and appointment of Attorney General representative to board of directors of nonprofit corporations. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: State cost as much as several million dollars annually to enforce the new limit on pay for administrators at affected hospitals and physician groups, mostly covered by fees charged to the affected entities. (25-0009A1.)

The Secretary of State’s tracking number for this measure is 1985 and the Attorney General's tracking number is 25-0009A1.

The proponents of the measure, Shelbi N. Augustus and Jonathan Everhart, must collect signatures of 546,651 registered voters (five percent of the total votes cast for governor in the November 2022 general election) in order for the measure to become eligible for the ballot. The proponents have 180 days to circulate petitions for the measure, meaning the signatures must be submitted to county elections officials no later than April 6, 2026. The address for the proponents is c/o George M. Yin, Kaufman Legal Group, 445 S. Figueroa Street, Suite 2400, Los Angeles, CA 90071. The proponents may also be contacted at gyin@kaufmanlegalgroup.com and (213) 452-6565.

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