by John Frith | Mar 1, 2023 | Blog, Legislation, Press Releases, Top News
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 has joined with several influential business associations to seek to overturn this poorly thought-out law. You can read our joint memo to the Legislature here.
You can read news articles about the suit in CalMatters, the Sacramento Bee, the Orange County Register, and the San Joaquin Valley Sun.
by John Frith | Apr 20, 2022 | Blog, Press Releases, Top News
AB 2611, FBA’s sponsored bill to define a California-based family-owned business was approved by the Assembly Monday on a vote of 71-0 and referred to the Senate for further action. The bill is needed to create a standard definition of what a family business is. Currently, there are at least six definitions of small businesses across California codes, and creating a standard is essential when making economic development decisions such as tax policies, grant programs, and employee training incentives.
If approved by the Senate and signed into law by the Governor, California would be the first state in the nation to statutorily recognized a family-owned business in a way that decision-makers are able to consider the unique strengths and challenges of operating these businesses when considering future actions.
Our thanks to Assembly Member Tom Daly, D-Anaheim, for carrying the measure.
by John Frith | Apr 7, 2022 | Blog, Press Releases, Top News
Great news! The Assembly Business and Professions Committee on April 5 unanimously passed AB 2611, FBA’s sponsored bill to create in statute a definition of a family-owned business. A uniform clear definition will provide many benefits, including that it would provide one definition that can be referenced by local municipalities that want to promote family-owned businesses within their local jurisdictions. You can read more about the bill here.
Thanks to the bill’s author, Assembly Member Tom Daly of Anaheim, committee Chair Marc Berman of Palo Alto, Vice Chair Heath Flora of Ripon, and the other committee members for voting for our measure.
The measure is now pending before the full Assembly.
by John Frith | Dec 21, 2021 | Blog, Press Releases, Top News
Two businesses recently joined the Family Business Association of California, the only organization in the state that focuses exclusively on issues affecting California’s 1.4 million family businesses.
Ming’s Recycling Corporation recycles 230,000 tons of aluminum cans, plastic, fiber, and non-ferrous metals every year. Founded in 1989 by Ming Luong, the Sacramento-based company employs 110 people and operates a second location in Hayward. Luong’s son, Kenny, is the current president and his brother, Kevin, gave up his practice as an orthopedic surgeon in 2006 to join the company as marketing director and CFO.
Joining as an associate member is The Policy and Taxation Group, a company formed in 2013 to fight the federal death tax and educate the public about estate and fight taxes and generation-skipping issues that can seriously affect the ability of family businesses to remain family-owned into the next generation. The group is based in Anaheim Hills.
FBA Executive Director Robert Rivinius welcomed the new members and said they will further enhance the Association’s ability to educate state policymakers about the importance of family businesses.
“California’s family businesses employ an estimated 7 million people statewide and are important foundations of their communities, yet the state continues to add requirements that make it harder for these Main Street businesses to succeed,” Rivinius said. “There is strength in numbers, and we appreciate the support that these two companies will make to our mission.”
by John Frith | Nov 15, 2021 | Blog, Press Releases, Top News
The Family Business Association of California has named Assemblywoman Cottie Petrie-Norris as its Outstanding Legislator for 2021 for her strong support of family businesses and efforts to improve California’s business climate.
Petrie-Norris, a Democrat, represents coastal Orange County. A businesswoman and community leader, she chairs the Accountability and Administrative Review Committee and the Select Committee on Small Business and Entrepreneurship. FBA Executive Director Robert Rivinius said Petrie-Norris has carved out a solid position as a business-oriented lawmaker who understands the needs of family businesses.
“Assemblywoman Petrie-Norris was a successful businesswoman before entering politics, and as a lawmaker she has demonstrated that she wants to help businesses grow and create jobs,” Rivinius said. “She is a founding member of the California Problem Solvers Caucus, which includes Democrats, Republicans and independents from both the Assembly and Senate who are determined to put partisanship aside and find solutions to our problems.”
Petrie-Norris addressed FBA’s Legislative Conference in May and urged family business owners to reach out to their lawmakers and educate them on how legislative proposals could have disastrous impacts on small- and medium-sized businesses. She later invited Rivinius to testify before the Select Committee on steps the state could take to support businesses.
She has also earned solid ratings from business groups such as the California Chamber of Commerce and the Howard Jarvis Taxpayers Association.
“It is an honor to be recognized by the Family Business Association as the Outstanding Legislator of the Year,” Petrie-Norris said. “Making up nearly 1.4 million businesses, family businesses are a critical driver of California’s economy. I look forward to continuing to work together to remove barriers to success and cultivate opportunities for innovation and growth for California businesses.”
Petrie-Norris grew up in San Diego County and is a graduate of Yale University. Prior to being elected to the Assembly, she had a successful career in finance and technology. She has helped build businesses and lead teams at Fortune 500 corporations, small companies and start-ups.
She lives in Laguna Beach with her husband, Colin, their two sons, Dylan and Hayden, and their rescue dog,
Flounder.
by John Frith | Sep 22, 2020 | Ballot Initiatives, Blog, Press Releases
FBA has taken positions on four ballot initiatives that will have an impact on family businesses.
- No on Prop 15 — an $11-12 billion tax increase at the worst possible time. Public employee unions always want more money. The property tax on property owned 10 years or more could double or triple if Prop 15 passes.
- No on Prop 19 — the California Association of Realtors want to see more people sell their homes and accomplish this with a $1-2 billion tax on parents transferring homes to their children.
- No on Prop 21 — rent control is just bad public policy, period!
- Yes on Prop 22 — FBA views any change to AB 5 as positive and many of our members use app- based delivery services. People should be free to decide if they want to be employees or contractors, not have the state decide for them.
If you would like more information on any of the 12 initiatives on the November ballot contact Robert Rivinius.
