AB 1260, as introduced, Medina. California family owned business.
Existing law creates the Department of General Services that provides centralized services, including, but not limited to, planning, acquisition, construction, and maintenance of state buildings and property; purchasing; printing; architectural services; administrative hearings; and accounting services.
This bill would define a California family owned business.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares the following:
2(a) The participation by all citizens in the affairs of the State of
3California in every possible way serves a public purpose and
4benefits the state.
5(b) It is essential that opportunity be provided for full
6participation in our free enterprise system by California family
7owned business enterprises.
8(c) California’s 1.4 million family owned businesses employ
9nearly 7 million people, invest more in their employees in terms
P2 1of training and benefits, promote more women to high-level
2management positions, and are less likely to lay off employees or
3downsize in
tough economic times.
4(d) California family owned businesses continually demonstrate
5extraordinary commitment to the communities in which they
6operate because they are headquartered in the state. California
7family owned businesses have been shown to engage in high levels
8of local, community-based philanthropic giving, and are strong
9stewards of the environment by virtue of their long-term
10perspective and sense of duty to past, present, and future
11generations within the state.
It is the intent of the Legislature to enact legislation
13that would aid, counsel, assist, and protect, to the maximum extent
14feasible, the interests of California family owned businesses in
15order to preserve free competitive enterprise and support family
16owned enterprises.
Section 14633 is added to the Government Code, to
18read:
“California family owned business” means a business
20that is independently owned and operated as a privately held
21enterprise by members of a family or a partnership of families that
22maintains its principal office in California, has been in business
23for more than 10 years, and meets both of the following
24requirements:
25(a) Strategic influence is exercised by family members on the
26management of the business, including, but not limited to, being
27active in the management, continuing to shape the culture of the
28business, or serving as board members or advisors.
29(b) The business is able to demonstrate continuity across
30generations or the intent for continuity across
generations.
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