Title: Corporate Executive Accountability Act
Policy area: Crime and Law Enforcement

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.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1010 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 1010

To amend title 18, United States Code, to establish criminal liability 
 for negligent executive officers of major corporations, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 3, 2019

  Ms. Warren introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To amend title 18, United States Code, to establish criminal liability 
 for negligent executive officers of major corporations, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Corporate Executive Accountability 
Act''.

SEC. 2. CRIMINAL LIABILITY.

    (a) In General.--Part I of title 18, United States Code, is amended 
by inserting after chapter 23 the following:

                       ``CHAPTER 24--CORPORATIONS

``Sec.
``451. Negligence of executive officers.
``Sec. 451. Negligence of executive officers
    ``(a) Definitions.--In this section--
            ``(1) the term `covered corporation' means a corporation 
        that generates more than $1,000,000,000 in revenue on an annual 
        basis; and
            ``(2) the term `executive officer' includes any individual 
        who--
                    ``(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''.
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