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AB 1973

Abortion: authorized procedures.

2025-2026 Regular Session Introduced by Cecilia Aguiar-Curry and 3 co-sponsors

AB 1973 clarifies California's legal framework governing business goodwill rights and protections in commercial transactions and disputes.

In committee: Hearing postponed by committee.
#abortion #authorizedprocedures
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Bill Summary · AB 1973

Legislative bill overview

AB 1973 addresses the legal treatment of business goodwill in California commercial transactions and disputes. The bill appears to establish or clarify protections and rights related to goodwill—the intangible value of an established business beyond its physical assets. Specific provisions are not yet publicly detailed as the bill is in early legislative stages.

Why is this important

Goodwill represents a significant portion of business value in sales, mergers, and dissolutions, affecting business owners, employees, and creditors. Clarifying goodwill rights reduces litigation costs and provides certainty for entrepreneurs entering commercial agreements. This is particularly relevant for California's diverse small business landscape and family business transitions.

Potential points of contention

  • Scope of goodwill protection: Whether the bill protects personal goodwill (tied to an individual owner) versus enterprise goodwill (tied to the business entity), which affects non-compete agreements and business succession planning
  • Non-compete enforceability: How goodwill protections interact with California's general ban on non-compete clauses, potentially creating exceptions
  • Valuation methodology: Whether the bill mandates specific approaches to calculating goodwill value in disputes, affecting litigation predictability and costs

Compiled from official sources — confirm details with the bill’s official record.

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