BILL NUMBER: AB 1260	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 4, 2013

INTRODUCED BY   Assembly Member Medina

                        FEBRUARY 22, 2013

   An act to add Section  14633   27  to
the Government Code, relating to businesses.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1260, as amended, Medina. California  family owned
  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.  
   Existing law provides various definitions for various purposes.

   This bill would define a California  family owned
  family-owned  business  for purposes of the
Government Code  .
   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:

   (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.  
   (a) In 2007, California was home to 1.4 million family-owned
businesses, which employed nearly 7 million people.  
   (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.  
   (d) 
    (c)  California family owned businesses continually
demonstrate extraordinary commitment to the communities in which they
operate because they are headquartered in the state. California
 family owned   family-owned  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  family owned 
 family-owned  businesses in order to preserve free
competitive enterprise and support family owned enterprises.
  SEC. 3.  Section  14633   27  is added to
the Government Code, to read:
    14633.   27.    For the purposes of
this code,  "California  family owned  
family-owned  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  , 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, is
exercised by family members on the management of the business
 , 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  .
   (b) The business is able to demonstrate continuity across
generations or the intent for continuity across generations.