BILL NUMBER: AB 1260	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 30, 2013
	AMENDED IN ASSEMBLY  APRIL 4, 2013

INTRODUCED BY   Assembly Member Medina
    (   Principal coauthor:   Assembly Member
  V. Manuel Pérez   ) 

                        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  family-owned
  family owned  business.
   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) In 2007, California was home to 1.4 million 
family-owned   family owned  businesses, which
employed nearly 7 million people.
   (b)  Family-owned business  Both large and
small family owned businesses  have been recognized through
numerous academic studies as having unique characteristics. Those
studies verify that  family-owned   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.
   (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 27 is added to the Government Code, to read:
   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.
   (b) The business is able to demonstrate continuity across
generations or the intent for continuity across generations.