HomeMy WebLinkAboutRESO7624RESOLUTION NO. 7624
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
EXPRESSING OPPOSITION TO
PROPOSITION 211, THE SECURITIES FRAUD LITIGATION INITIATIVE
WHEREAS, Proposition 211, an initiative measure referred to by its sponsors as the
"Retirement Savings and Consumer Protection Act", appears on the November 5, 1996 General
Election ballot; and
WHEREAS, Congress passed tough consumer protection laws that curbed securities lawyers
from filing abusive suits in federal court; and
WHEREAS, California would be the only state in the nation to effectively overturn federal
law and could become a haven for frivolous lawsuits clogging California's already overburdened
courts; and
WHEREAS, passage of Proposition 211 would discourage businesses from locating in
California and help drive California's publicly traded companies out of state; and
WHEREAS, slower economic growth could deprive the state treasury of $3.4 billion to $5
billion -in tax revenue over the next 10 years; and
WHEREAS, California is just emerging from a statewide recession largely due to the
strength of its bio-tech and high-tech industries which are crucial to the state's economic survival;
and
WHEREAS, Stanford Research Park alone accounts for 15 percent of the City of Palo Alto's
tax -based revenue and Proposition 211 threatens the millions of dollars in. critical City services
which are supported by that revenue; and
WHEREAS, money wasted on frivolous securities lawsuits takes company resources away
from research and development, including discovering new cures, treatments and drugs to fight
disease; and
WHEREAS, Proposition 211 would create new liability for small businesses, including
business lawyers, CPAs, banks, stockbrokers, public relations firms and financial planners; and
WHEREAS, new personal liability for directors and corporate officers would make it
difficult for growing businesses to attract the experience and talent needed to compete; and
WHEREAS, government officials, such as the Orange County treasurer held accountable for
bad investments resulting in the county's bankruptcy, would be exempt from liability within the
measure's provisions.
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Palo Alto is on
record in opposition to Proposition 211 and urges voters to reject this proposal on the November 5,
1996 ballot.
INTRODUCED AND PASSED: September 9, 1996
AYES: ANDERSEN, FAZZINO, HUBER, KNISS, MCCOWN, SCHNEIDER, SIMITIAN, WHEELER
NOES:
ABSENT: ROSENBAUM
ABSTENTIONS:-
•ArIE T:
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APOV fs • ORM:
ty Attorney