The Family Business Association of California (FBA) represents family businesses at the legislature and in the courts to help overcome regulatory and economic obstacles and ensure they maintain freedom to operate with as little government intervention as possible.
We are a proactive voice for family businesses in California and identify opportunities for and threats against family businesses, thereby providing a voice for solving the problems they face.
We are active in the California Assembly and Senate on a daily basis, where we support or oppose legislation based on the effect it would have on family businesses. The following are just a few of the many legislative goals we have mapped out for action.
Change of Ownership
The most important aspect of a family business is that it passes from generation to generation. Family business owners dream of the day when they can pass on what they’ve built on to their heirs. But that change in ownership could, depending on the circumstances and size of the business, trigger government reassessments and lead to increased tax burdens for family businesses.
AB 1040 was introduced during the 2015-2016 session of the Legislature. Had this bill passed, it would have broadened the definition of a “single transaction” transfer, potentially resulting in more family businesses being hit with real estate reassessments and a higher tax burden due to a transfer of ownership. Through the efforts of our organization and our many allies, AB 1040 was defeated, preserving the ability for family businesses to pass ownership on to their heirs without being subjected to undue hardship.
Fighting Unnecessary Regulations
SB 878, also known as the Fair Scheduling Act , would have required grocers, retailers and restaurants to adopt convoluted guidelines in order to change the schedules of hourly workers. Failure to follow these guidelines would have enabled any affected employee to sue, in addition to requiring businesses to compensate employees for shifts not worked or pay them a higher rate for new shifts. This would have been problematic for a number of reasons:
- The bill would have reduced the freedom business owners and management have over their own operations.
- It could have potentially invited legal battles that many family businesses would struggle to finance or settle.
- Complex regulatory changes that affect routine operations often put an unfair burden on family businesses, especially if they have limited resources to handle those required changes.
FBA and our business partners defeated SB 878, ensuring these damaging restrictions won’t be forced on unsuspecting family business owners.
FBA also was involved in killing a split-roll real estate tax effort that would have cost California businesses $9 billion per year and tax reform that would have placed a sales tax on services. FBA won on two legislative efforts to help reduce meritless ADA lawsuits, reforms to employee tracking requirements, and formation of a group to find solutions to cargo theft. Although it was a tough year overall, without the voice of California’s family owned businesses at the Capitol, it would have been worse.
Please contact FBA to learn more about becoming a member of our Association