FBA is the lead plaintiff in a major court case designed to ensure that our members’ free speech rights and ability to support good government in their communities is protected.
The suit seeks to overturn SB 1439, a bill passed with little debate last year that has major implications. Under SB 1439, receiving a $251 campaign contribution would disqualify a local elected official from voting on any issue relating to whomever they received the contribution from - be it an individual or company. This would even apply to newly hired individuals that did not previously work for, or have any affiliation with, the company at the time of their individual contribution.
Making and receiving campaign contributions is an exercise of a constitutional right of free speech.
This law will also have a direct effect on many of our members’ ability to operate and expand their businesses. For example, if a business wants to expand its operations, they often seek zoning changes or conditional use permits that must be approved by the city council or the board of supervisors. Many restaurants operate under conditional use permits. And farmers and ranchers almost always require special use permits for activities such as agricultural processing facilities. These can be controversial even though the zoning permits them, so elected officials often have to make the final decision.
Accordingly, it would be risky for any family business owner to ever contribute to candidates for local office because it’s always possible that six or eight months down the road an issue will come up that would require elected officials to be involved.
It would also have a chilling effect on many family businesses that you wouldn’t think would be affected. Businesses that do engineering, accounting, legal and other work in the development sector may find themselves cut off from future work if they make contributions to local elected officials. Because their contributions, no matter how small, would be considered part of a prime contractor’s aggregated contributions, the contractor might have to bar them from future work simply because they exercised their constitutional rights.
FBA is pleased to announce that Breault Asphalt Maintenance has joined the Association. The company was founded in 2004 in Sacramento by siblings Jim Breault and Katie Little and operates in Northern California and Nevada with 13 employees. The company specializes in asphalt repair, sealcoating, parking lot striping, ADA upgrades, and concrete repair for commercial properties.
UCD is a premier retail, grocery, commercial, and residential manufacturer for some of the largest organizations in the world. From turning creative retail concepts into prototypes, to cost-effectively executing full-scale retail rollouts, UCD delivers flexible solutions at every stage of the process. The company was founded in 1999 by Daniel Hayes and his son is now very involved in the management of the company. They are located in Elk Grove and have 105 employees.
Californians for Fair Pay and Employer Accountability, the “Stop Small Business Shakedowns” committee, was established to find solutions for reforming the state’s Private Attorneys General Act (PAGA), either in the Legislature, through the courts, or on the ballot. The committee has filed an amicus brief at the California Supreme Court in the case Adolph v. Uber Technologies, LLC. FBA and other coalition members – prominent statewide associations – are deeply concerned that an overly broad interpretation of PAGA in this case would deal yet another blow to California companies already struggling to survive under the threat of PAGA lawsuits. A broad ruling could go beyond the Legislature’s intent and would not provide any meaningful benefit for California employees. It would, however, increase extortion opportunities for trial lawyers who look to leverage technical errors where there has been no harm to employees. Combating the widespread abuse of PAGA is a top priority of FBA.
At the 10th annual Meeting of Members, the Family Business Association of California adopted the following public policy goals for 2023.
State tax issues – FBA will remain diligent in the debate to maintain fair and equitable business and personal taxes in California:
Continue our leadership role to maintain prohibition on Estate Tax in California.
Continue to oppose efforts to enact a wealth tax.
Be wary of all proposals to increase business and personal taxes.
Regulatory and lawsuit relief continues to be a top priority for FBA members but regulations surrounding labor relations and human resource management provide additional challenges to our members. FBA will focus on opposing legislation and regulations that impact labor and our workforce and support the ballot initiative for relieffrom PAGA lawsuits against family businesses. Also, continue work to broaden AB 5 of 2019 to exempt more types of contractors who should not be employees and soften the blow from this onerous legislation.
Workforce development - identifying a qualified and available source of labor is an increasing challenge. FBA will work to support workforce development opportunities that help provide a trained workforce.
Explore opportunities to introduce legislation that would benefit family businesses, encourage more to stay in California, and recognize the value of family businesses to California’s economy.
Publicize FBA policy, legislative and regulatory positions.
FBA will work to achieve coverage of our positions and opinions in the news media.
Continue to explore opportunities to assist the transfer of ownership and property between family members and through successive generations and oppose efforts to make that more difficult.
Continue to build relationships with key legislators, new legislators and new administration officials and:
Produce the 11th Annual Family Business Day and Legislative Conference.
Meet one-on-one with key legislators, new legislators, and officials in the Governor’s Office to educate them on the importance of family businesses and the issues that are critical to family businesses.
Encourage FBA members to call on their legislators and engage employees in both education and advocacy to illustrate the impacts state government has on family businesses and their employees.
Participate in coalitions, public events, and hearings advancing the importance of the family business model and family business issues.
