AB 1430 Summary

• Adds Section 27 to the Government Code to define "California family owned business" for any provision that explicitly references this definition

• Defines a California family owned business as a privately held business owned by one individual or related persons that maintains its principal executive office in California, has operated for more than 10 continuous years, and is controlled by owners domiciled in California holding majority equity and voting interests

• Defines "related persons" to include individuals related by common ancestor up to four generations, spouses, domestic partners, and specified family relationships including siblings, cousins, aunts, uncles, and adopted or foster children

• Requires businesses to demonstrate intent to continuously operate as family owned through current multi-person related ownership, previous transfers between related persons, or written agreements for future transfers between related persons

• Establishes legislative findings recognizing that California's 1.4 million family owned businesses employed 7 million people as of 2007 and contribute to communities through philanthropic giving, employee benefits, and environmental stewardship