California Government Code

§ 12100.31

GOV § 12100.31 Effective Jan 1, 2023Div. 3 · Title 2 · Part 2 · Ch. 1.6 · Art. 6.6

Statute text

The Legislature finds and declares all of the following:

(a)California’s small businesses continue to contend with the pressures of the aging baby boomer business owners who are at or near retirement and desperately looking for an exit. According to national surveys, 79 percent of business owners want to retire within 10 years, 60 percent in less than 5 years, and 33 percent in less than 3 years. However, only 15 percent of businesses successfully transition to the next generation in the family, and only 20 percent of commercial listings actually sell. Nearly 360,000 California businesses, employing 3.9 million workers, are at risk because their owners are nearing retirement.

(b)Rather than closing for good or selling to large, out-of-state buyers, small business owners can find willing buyers in the people who work alongside them every day: their employees. Doing so would anchor essential production and services in communities, protect livelihoods, avert layoffs, and save the state money.

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Legislative history

Added by Stats. 2022, Ch. 733, Sec. 1. (SB 1407) Effective January 1, 2023.