Amended in Assembly April 4, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1260

Introduced by Assembly Member Medina

February 22, 2013

An act to add Section begin delete 14633 end delete begin insert 27 end insert to the Government Code, relating to businesses.

LEGISLATIVE COUNSEL’S DIGEST

AB 1260, as amended, Medina. California begin delete family owned end delete begin insert family-owned end insert business.

begin delete

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.

end delete begin insert

Existing law provides various definitions for various purposes.

end insert

This bill would define a California begin delete family owned end delete begin insert family-owned end insert business begin insert for purposes of the Government Code end insert .

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares the following:

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(a) The participation by all citizens in the affairs of the State of
California in every possible way serves a public purpose and
benefits the state.

(b) It is essential that opportunity be provided for full
participation in our free enterprise system by California family
owned business enterprises.

(c) California’s 1.4 million family owned businesses employ
nearly 7 million people, invest more in their employees in terms
of training and benefits, promote more women to high-level
management positions, and are less likely to lay off employees or
downsize in tough economic times.

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(a) In 2007, California was home to 1.4 million family-owned
businesses, which employed nearly 7 million people.

end insert begin insert

(b) Family-owned business have been recognized through
numerous academic studies as having unique characteristics.
Those studies verify that family-owned businesses invest more in
their employees in terms of training and benefits, promote more
women to high-level management positions, and are less likely to
lay off employees or downsize in tough economic times.

end insert begin delete

(d)

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begin insert (c) end insert  California family owned businesses continually demonstrate
extraordinary commitment to the communities in which they
operate because they are headquartered in the state. California
begin delete family owned end delete begin insert family-owned end insert businesses have been shown to engage
in high levels of local, community-based philanthropic giving, and
are strong stewards of the environment by virtue of their long-term
perspective and sense of duty to past, present, and future
generations within the state.

SEC. 2.  

It is the intent of the Legislature to enact legislation
that would aid, counsel, assist, and protect, to the maximum extent
feasible, the interests of California begin delete family owned end delete begin insert family-owned end insert
businesses in order to preserve free competitive enterprise and
support family owned enterprises.

SEC. 3.  

Section begin delete 14633 end delete begin insert 27 end insert is added to the Government Code,
to read:

begin delete 14633. end delete
begin insert 27. end insert   

begin insert For the purposes of this code, end insert “California begin delete family owned end delete
begin insert family-owned end insert business” means a business that is independently
owned and operated as a privately held enterprise by members of
a family or a partnership of families that maintains its principal
office in California, has been in business for more than 10 years,
and meets both of the following requirements:

(a) Strategic influence begin insert , including, but not limited to, being active
in the management, continuing to shape the culture of the business,
or serving as board members or advisors, end insert is exercised by family
members on the management of the business begin delete , including, but not
limited to, being active in the management, continuing to shape
the culture of the business, or serving as board members or
advisors end delete .

(b) The business is able to demonstrate continuity across
generations or the intent for continuity across generations.