Corporate Executive Accountability Act

To amend title 18, United States Code, to establish criminal liability for negligent executive officers of major corporations, and for other purposes. 1. Short title This Act may be cited as the Corporate Executive Accountability Act 2. Criminal liability (a) In general Part I of title 18, United States Code, is amended by inserting after chapter 23 the following: 24 Corporations Sec. 451. Negligence of executive officers. 451. Negligence of executive officers (a) Definitions In this section— (1) the term covered corporation (2) the term executive officer (A) is described in section 240.3b–7 of title 17, Code of Federal Regulations, or any successor regulation thereto; and (B) by reason of the position of the individual in the corporation, has the responsibility and authority to take necessary measures to prevent or remedy violations. (b) Criminal liability (1) In general It shall be unlawful for an executive officer of a covered corporation to negligently permit or fail to prevent a violation of law described in paragraph (2). (2) Violations described A violation of law described in this paragraph is— (A) any criminal violation of Federal or State law for which the covered corporation was convicted or entered into a deferred or non-prosecution agreement; (B) any civil violation of Federal or State law— (i) for which the covered corporation was found liable or entered into a settlement agreement with any State or Federal agency; and (ii) that affects the health, safety, finances, or personal data of— (I) not less than 1 percent of the population of the United States; or (II) not less than 1 percent of the population of a State; or (C) any criminal or civil violation of Federal or State law, for which the covered corporation was convicted or found liable, as the case may be, that was committed while the covered corporation was operating under a civil or criminal judgment of any court, a deferred prosecution or non-prosecution agreement, or settlement with any State or Federal agency relating to a different criminal or civil violation. (c) Penalty Any executive officer who violates subsection (b) shall— (1) for a first offense, be fined in accordance with this title, imprisoned for not more than 1 year, or both; and (2) for a second or subsequent offense, be fined in accordance with this title, imprisoned for not more than 3 years, or both. . (b) Technical and conforming amendment The table of chapters in part I of title 18, United States Code, is amended by inserting after the item relating to chapter 23 the following: 24. Corporations 451 .

Summary: Corporate Executive Accountability Act This bill makes it unlawful for an executive officer of a corporation that generates more than $1 billion in annual revenue to negligently permit or fail to prevent violations of federal or state law. Specifically, such an executive officer is criminally liable for actions in which the corporation was (1) convicted or entered into a deferred or non-prosecution agreement for any crime; (2) found liable or entered into a settlement with a state or federal agency for the violation of any civil law if such a violation affects the health, safety, finances, or personal data of a certain population; or (3) convicted or found liable for a different criminal or civil violation that was committed while the corporation was acting under a judgment, agreement, or settlement. Additionally, the bill establishes penalties for violations. For a first offense, a violator is subject to a fine, a prison term of up to one year, or both. For a second or subsequent offense, a violator is subject to a fine, a prison term of up to three years, or both.