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.”
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.
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.
The Family Business Association of California today issued the following statement expressing disappointment in Gov. Gavin Newsom’s decision to support Proposition 15, the measure on the November ballot that would create an $11.5 billion tax increase on businesses.
“The Family Business Association is composed of family-owned businesses that have been investing in California for decades. Our members have a long-term view. We create jobs and opportunities for thousands of Californians. COVID-19 has hit us hard. Global, offshore competition has narrowed our margins. Asking us to now pay in many cases two or three times the amount in property taxes that we have historically paid means higher wages will be deferred and what limited job growth there is will stop and any new jobs likely will be created in other states. Proposition 15 is a terrible idea, especially during these difficult times. We are very disappointed by Governor Newsom’s endorsement of this proposition that will seriously harm our businesses and our employees’ job security.”
The Family Business Association of California, the only organization advocating exclusively for California’s thousands of family businesses, has named Sen. Jim Nielsen, R-Tehama, as its Outstanding Legislator for 2019.
FBA Executive Director Robert Rivinius said the veteran lawmaker was selected because he’s always been a strong advocate for family businesses.
Robert Rivinius, left, and Sen. Jim Nielsen.
“Sen. Nielsen grew up in a family business and has always been a strong advocate for family businesses during his years in the Legislature,” Rivinius said. “We need more lawmakers who understand the unique issues facing family businesses and who recognize how important family businesses are to the state’s economy and the fabric of our communities, and we thank him for his support.”
Nielsen said he was proud to receive the recognition.
“California needs strong family businesses because they’re the cornerstones of their communities and the foundation of our state’s economy,” Nielsen said. “I want to thank the leaders and members of FBA. It is an honor to be recognized.”
Nielsen was first elected to the Senate in 1978, serving until 1990. He returned to the Legislature in 2008 as a member of the Assembly and was elected to the Senate in 2012. He represents all or portions of Butte, Colusa, Glenn, Placer, Sacramento, Sutter, Tehama and Yuba counties. He serves as Vice Chair of the Budget & Fiscal Review and Elections & Constitutional Amendments committees and is a member of the Governmental Organization, Governance & Finance and Veterans Affairs committees.
He has been recognized by numerous taxpayer and small business groups for his leadership on state budget issues and for his unrelenting fight against profligate government spending. He is also a leader in protecting and strengthening private property rights and for reforming state regulations and out-of-control spending.
Founded in 2012, the Family Business Association of California is the only organization working exclusively at the Capitol to educate lawmakers and regulators about the importance of family businesses to the state’s economy and to their communities and to advocate positions on legislation and regulations. FBA has also taken the lead to defeat recent proposals to impose a state inheritance tax, which would make it much more difficult to keep businesses family-owned from generation to generation.
Senate Richard Pan, D-Sacramento, has agreed to carry legislation sponsored by FBA that will provide a definition for family businesses in California.
SB 483 will be amended to assist state and local governments in identifying family businesses that meet the requirements. This bill will define California family-owned businesses as:
companies domiciled in California
in operation for 10 years or more
and owned and controlled by related persons or a partnership of related persons that have passed the business through a generation or have a plan for future generational succession.
Sen. Richard Pan
This standardized definition of “family owned business” will provide one definition of family businesses across codes and policies.
Family-owned businesses have unique characteristics that distinguish them from other businesses; however, there is currently no standardized definition of a family-owned business. Having a standard definition across state and local jurisdictions will allow policy makers the opportunity to reference one definition across jurisdictions and codes as policies are considered.
During the last legislative session, for example, tax policy was considered in legislation that inadvertently removed the “surviving widow exemption” that excludes these intra-family property transfers from reassessment.
In response, the entire definition of a family business had to be amended into the proposal. The absence of a uniform definition creates difficulty in determining the exact measure of their contribution and leaves policy makers without accurate data when implementing specific policy issues such as tax and estate succession.
Senator Pan will be amending the legislation soon with FBA’s proposed definition that is substantially similar to AB 1260 (Medina) from 2014 that passed both houses of the Legislature unanimously but was vetoed by former Governor Jerry Brown. With the new Governor and administration, FBA has initiated conversations with the hope Governor Gavin Newsom will approve the measure if it makes it to his desk.
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.
