Local governments want to make it easier to raise your taxes by reducing the majority needed from voters from two-thirds to just 55%. If passed by the Legislature this month, ACA 1 could appear on the 2024 statewide ballot. In an op-ed in the Sacramento Business Journal, I warn that if this measure becomes law, it could be the final straw for many California family businesses, in addition to all the other taxes, fees, and regulations the state imposes. FBA will always continue fighting to protect California family businesses at the state Capitol and we are urging lawmakers to vote no. You can read it here. (subscription may be required).
Edelman’s annual Trust Barometer reported earlier this year that worldwide, business was the only institution – not government, not NGOs, not media – that was trusted by the 32,000 respondents from 28 countries. (Trust was defined as 60-100% trusting that sector.)
The trust in business generally was led by people’s support of family businesses. Fully 67% trusted family-owned businesses to do what’s right, compared to 58% for privately held companies, 55% for publicly traded firms, and just 50% for state-owned companies.
Family Business magazine’s editor-in-chief Amy Cosper recently provided some reasons she thought that was the case. To begin with, she said the fabric of family businesses is built on deeply ingrained values, unwavering commitment and doing the right thing.
Other trust-builders in family business include:
Stability: Family businesses often adopt a long-term perspective, focusing on legacy and generational continuity.
Authenticity: Family businesses thrive on personal relationships and genuine connections. Most are unapologetic and crystal about what they stand for.
Values: Family businesses are guided by core values and principles established by founders and embraced by generations and branches of a family tree.
Employee focus: Family businesses prioritize employees’ well-being, considering them a part of their extended family.
Community: Family businesses have deep-rooted connections within their local communities.
These attributes are why FBA believes public policy in California and elsewhere should support strong and healthy family businesses, not continue to make it harder for them to survive and be passed along to the next generation.
We have a new member, Professional Dynamics, Inc. of El Dorado Hills. The company was founded in 1981 by Betti Anders and is now managed by 2nd generation Kaleo Anders. For over 40 years, PDI has demonstrated the ability to reduce excessive treatment, indemnity, and litigation costs of Workers’ Compensation claims.
The company utilizes licensed nurses and utilization review physicians with an expertise in Workers’ Compensation to provide high-level managed care services to both injured workers and their employers, thereby facilitating an expedient recovery and return to employment.
A Sacramento County Superior Court judge recently rejected a lawsuit challenging the constitutionality of a law prohibiting local elected officials from voting on matters involving the people and companies who contribute to their campaigns. FBA is the lead plaintiff in the case.
In his ruling, Judge Richard K. Sueyoshi determined the law, which went into effect in January, does not violate either the state or federal constitutions. FBA and the other plaintiffs issued the following statement in response to the ruling:
The Coalition of Business Associations and Elected Officials is disappointed by the ruling against its challenge of SB 1439’s constitutionality.
This law will effectively bar small business owners from participating in the local political process. This is an infringement upon the first amendment right to freedom of speech and to petition the government. This right has historically been protected both federally and by the California Supreme Court.
Although Senator Glazer argues that this law will end ‘pay-to-play’ corruption by special interests, the only interests affected by SB 1439 are those of businesses. SB 1439 hypocritically does not apply to labor or union special interests, as they both have been carved out an exemption in the law’s language and therefore will be allowed to donate up to $5,500 without forcing the recusal of a vote from a local elected official.
Also of note is that SB 1439 does not apply to elected officials at the state level. Senator Glazer says he was motivated to author this legislation out of concern that $250 in aggregated contributions from representatives of a company threatens the ability of locally elected leaders to make fair and independent decisions that are in the best interest of their communities. We challenge Senator Glazer and others to lead by example and abide by the campaign contribution limits detailed in SB 1439 to similarly avoid any question or suggestion of ‘pay-to-play’ related to decisions they make which may impact small business or other so-called interest groups. As Senator Glazer said at his press conference today, his advice to local elected officials is simply, ‘Just don’t take the money.’
We remain concerned about the weaponization of this law by NIMBY organizations seeking to block new housing or competing business interests looking to prevent competitor business growth. While we consider future legal options to protect the important constitutional right to freedom of speech, we call upon the FPPC to monitor and report to the public on nefarious abuse of this law.
Minuteman Transport is the latest family business to join FBA. Located in the City of Industry east of Los Angeles, the company was founded by Peter Amundson in 1985. Minuteman is a refrigerated over-the-road freight carrier and warehousing company, serving customers in California, Nevada, and Arizona. It employs 45 people. The second generation is now involved in managing the company.
Two new companies recently joined FBA, the only organization exclusively focused on protecting the interests of family businesses in California
Cobex Construction Company was founded in 2017 by Vazgen Dallakyan, whose family emigrated from Armenia when he was a toddler seeking safety and freedom. The Roseville-based company does residential and commercial roofing, siding, solar, and windows in a 50-mile radius around Roseville. It has 30 employees and is based on the cornerstones of stress-free customer experiences, long-term customer relationships, quality workmanship, and transparency.
TABBA, LLC, is a commercial real estate brokerage in the City of Orange, specializing in Orange County properties. Founded by Allen and Carla Buchanan in 2022, the company has four employees.
