California voters will decide on 14 ballot measures this November — five put on the ballot by the Legislature and the remainder by outside groups. After careful consideration, the Family Business Association of California’s board of directors has taken positions on all but two based on the impact the measures would have on California’s family businesses.
Proposition 1. The Veterans and Affordable Housing Bond Act of 2026. This is an $11.75 billion general obligation bond to subsidize rental housing. While we need more housing in the state, we do not need more debt and who knows where the money will ultimately go. No position
Proposition 2. Save for California’s Future Act. This constitutional amendment from Democratic leaders would allow the state to deposit up to 20% of its general fund tax revenue into its rainy day fund each year, instead of the current 10%. The state could also spend some tax revenue to pay down its $20 billion federal unemployment insurance debt. Support
Proposition 3. The measure seeks to make permanent a temporary income tax up to 12% — on high earners that voters approved in 2012. The tax applies to household income over $721,000 for couples and over $360,000 for individuals. The tax generates between $5-15 billion each year for K-12 schools and community colleges. It is set to expire in 2031. Opposed
Proposition 4. This measure would give California governments the authority to set up public financing systems for state and local political candidates. Public campaign financing has been banned in California since 1988. State lawmakers approved the measure last year to send it to voters this November. Opposed
Proposition 5. Governs the recall of state officers. After a recall, this constitutional amendment would eliminate the election to pick a successor immediately, such as when Gov. Arnold Schwarzenegger replaced the recalled Gov. Gray Davis, instead leaving the post vacant until it’s filled in a separate election. It would also allow the recalled official to run for the office again. No position
Proposition 37. Creates a loan program for middle-income buyers of qualified new homes. This would create a $25 billion mortgage loan program for home buyers who make less than 200% of the area median income. The measure would offer fixed-rate mortgages for up to 17% of the purchase price on homes priced under $1.5 million. Home buyers must pay at least 3% of their down payment. As this is a revenue bond, not a general obligation bond, Support
Proposition 38. This would allow the state to borrow $8.4 billion in debt to research immune system-based technologies for treating conditions including cancer, heart disease and Alzheimer’s. The money would be divided between a University of California-affiliated nonprofit and a grant for public or nonprofit institutions. Any resulting technology and drugs from the research would be sold at 20% below the national average. Too expensive. Opposed
Proposition 39. This constitutional amendment would require voters to present government-issued ID when voting in person or the last four digits of their ID number when voting by mail. Support
Proposition 40. This measure would apply a one-time 5% wealth tax on the assets of roughly 200 California billionaires, to be paid over five years. Ninety percent of the revenue would go to pay for healthcare for low-income Californians and 10% toward education and food assistance programs. Opposed
Proposition 41. This measure in response to the billionaire tax proposal would require state audits of programs funded by new taxes. It would also apply revenue from new taxes to the state’s spending cap, which requires that spiking revenue go back to taxpayers or toward education. That would effectively cancel out the wealth tax proposal. If voters approve both measures, the one with more votes will prevail. Support
Proposition 42. This measure is also aimed at undercutting the wealth tax proposal. It would prevent new taxes on personal property, which would offset the wealth tax. If both pass, the one with more votes prevails. Support
Proposition 43. This would raise the threshold for citizen-driven special tax ballot initiatives to pass from a simple majority to two-thirds, making it harder to impose or increase taxes. The measure, placed on the ballot at the last minute by state lawmakers, reflects a deal state leaders struck with Howard Jarvis Taxpayers Association and the Business Roundtable. Support
Proposition 44. This measure would require federally qualified health centers to spend 90% of revenue on direct patient care and services that aid in providing care to low-income and underserved people. Clinics that don’t comply would be fined; the money would go into a state-operated account for worker training and staffing. While this only pertains to health centers, it is another invasion by government controlling how a business is run. Opposed
Proposition 45. This would amend the state’s landmark California Environmental Quality Act to create deadlines for environmental reviews of most housing, transportation, water, health and clean energy projects to speed up permitting and limit the court’s ability to stop or delay developments. Support
FBAC, the only organization lobbying at the state Capitol on behalf of family owned businesses, welcomes Universal Service Recycling as our newest member.
The company has been family owned and operated since 1996. It began as a one-yard operation in Stockton but now has locations in Stockton, Sacramento, Modesto, and Merced serving all or parts of 9 counties.
The company, founded by William Mendonca, is now the largest privately held metal recycler serving the Central Valley and is managed by the first and second generations. It employs about 100 people. Learn more https://bit.ly/485PCyC
The Sacramento Business Journal has posted an op-ed by FBAC Chairman Ken Monroe highlighting the need to enact further reforms to the Private Attorneys General Act (PAGA). The piece is behind the SBJ’s paywall, but if you’re not a subscriber here’ are the first few paragraphs:
Last June, the business community, legislators, trial lawyers and Gov. Gavin Newsom reached an agreement to reform California’s onerous Private Attorneys General Act.
PAGA, as it is universally called, was signed into law by former Gov. Gray Davis after he was recalled in 2003. It allows individual employees to file suits on behalf of the state over allegations that labor laws have been violated.
Over the years, it became a gold mine for trial lawyers who file thousands of lawsuits against employers while providing little benefit to employees.
Unfortunately, while some of last year’s reforms have been positive — employees now receive more of any settlement, while employers have an expanded right to cure any violations — it hasn’t stopped the deluge of PAGA lawsuits. In fact, California is on pace to have more than 9,000 PAGA lawsuits this year, more than before the reforms went into effect.
Clearly, further reforms are needed now.
Monroe said it was encouraging that the state’s Labor and Workforce Development Agency has caused a particularly egregious law firm to refile more than 130 suits, and said the best solution is for the state to finally provide funding to the agency to enforce labor laws in a timely fashion. Absent that, he suggested compensating private lawyers at the same rate as state attorneys to remove the windfall financial incentives.
PAGA is one of the biggest problems affecting family businesses in California and FBAC will continue its efforts to really reform the law once and for all.
FBAC is proud to announce BMO as the Central Valley Regional Sponsor, strengthening FBAC’s ability to support and advocate for family-owned businesses throughout the region.
With deep roots serving family-owned businesses, BMO brings a shared commitment to helping businesses thrive across generations. As a regional sponsor, BMO will play a key role in supporting FBAC’s mission to advance the long-term interests of family businesses in California through education, advocacy, and community engagement.
“BMO is committed to supporting family businesses in California to help build stronger communities and drive economic progress,” says Mauricio Romero, Managing Director and Sacramento and Central Valley Market Executive at BMO. “We’re excited to partner with the Family Business Association of California to do what BMO does best — providing the expertise, resources, and financial tools to help our customers, clients and the communities we serve grow and thrive.”
FBAC looks forward to working with BMO to create meaningful opportunities for engagement and support throughout 2025 and beyond.
“We are thrilled to welcome BMO as the newest Regional Sponsor of the Family Business Association of California,” said Ken Monroe, FBA Chair, and CEO at Holt of California. “BMO’s commitment to supporting family-owned businesses aligns perfectly with our mission to protect and promote the interests of family enterprises throughout the state. Their sponsorship enhances our ability to advocate for our members and provide valuable resources to help them thrive.”
For more information on FBAC and sponsorship opportunities, visit www.myfba.org.
About BMO Financial Group
BMO Financial Group is the eighth-largest bank in North America by assets, with total assets of $1.5 trillion as of January 31, 2025. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.
About Family Business Association of California
The Family Business Association of California (FBAC) is a nonprofit 501(c)(6) organization and the only association in the state dedicated exclusively to advocating for family-owned businesses at the California State Capitol. FBA champions pro-family business legislation, opposes harmful policies, and ensures that the voice of family enterprises is heard in Sacramento. As the backbone of California’s economy, family businesses benefit from FBA’s robust legislative advocacy, weekly news updates, economic insights, and peer-to-peer engagement opportunities.
Electric security fences like this one from AMAROK can now be permitted much more quickly.
FBAC, our Statewide Sponsor AMAROK, and other installers of electric fences won a great victory at the Capitol last year when our sponsored bill AB 2371 was signed into law. AMAROK installs 10-foot-high electric fences inside the fence of an outdoor storage facility. These electric fences aren’t lethal, but it is virtually impossible to get past them.
The bill was needed because the average time it took to get a permit in California for this simple concept was 372 days. Some local governments dragged the process out for as much as five years. Our bill provided that, if certain requirements were met, these fences could be installed without going through the permitting process.
With some good lobbying, the bill had unanimous support in both houses of the Legislature and was signed into law by the Governor on an urgency basis, so it went into effect on September 14, 2024. Since that time, in just five months, 450 fences have been installed and another 50 are in the pipeline. Approval times have dropped from that 372-day average to an average of just 16 days!
If this kind of reform could be done in more areas, it would really improve the business environment in our state. Kudos to AMAROK and our lobbying team for a job well done.
