Amended in Assembly April 30, 2013

Amended in Assembly April 4, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1260

Introduced by Assembly Member Medina

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(Principal coauthor: Assembly Member V. Manuel Pérez)

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February 22, 2013

An act to add Section 27 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.

Existing law provides various definitions for various purposes.

This bill would define a California begin delete family-owned end delete begin insert family owned end insert 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) In 2007, California was home to 1.4 million begin delete family-owned end delete
begin insert family owned end insert businesses, which employed nearly 7 million people.

(b)  begin delete Family-owned business end delete begin insert Both large and small family owned
businesses end insert have been recognized through numerous academic
studies as having unique characteristics. Those studies verify that
begin delete family-owned end delete begin insert family owned end insert 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.

(c) 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 27 is added to the Government Code, to read:

27.  

For the purposes of this code, “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, 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.

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