BAKERSFIELD, Calif. -- Gov. Schwarzenegger held a press conference in Bakersfield to highlight the proposal to extend and expand the $10,000 homebuyer tax credit to include the purchase of existing homes, in addition to new residences, for first-time homebuyers in his California Jobs Initiative, a legislative package that will create or retain at least 100,000 jobs.

Governor Schwarzenegger’s proposals to foster a more business-friendly economy and create new jobs will:
1. Give employers flexibility to better adapt to the changed economy by providing training and hiring incentives to make it easier for business to grow and expand in our state
2. Streamline regulations to get shovels in the ground - creating jobs and spurring economic activity
3. Extend The Home Buyer Tax Credit To Encourage Homeownership
4. Eliminate Sales Taxes On Green Tech Manufacturing Equipment To Increase Investment In California's Fastest Growing Economy
5. Eliminate Frivolous Lawsuits That Punish California's Small Businesses

The Governor will introduce a package of five bills for legislative approval, called the California Jobs Initiative, which will create or retain at least 100,000 jobs.

The Governor’s jobs package provides employers with a $3,000 reimbursement for hiring previously unemployed Californians – encouraging expansion and getting Californians to work.

Employers will also be able to take advantage of a reimbursement for the cost of training new employees, who were previously unemployed, underemployed or threatened with layoff.

These two incentives can save an employer up to the equivalent of what an employer pays for a new employee in state taxes in a year – keeping Californians in jobs and giving employers flexibility to better adapt to the changed economy.

The California Jobs Initiative will result in up 100,000 new or retained jobs created and to provide training to 140,000 individuals to qualify them to qualify for better jobs.

It will be funded by a loan from the Unemployment Compensation Disability Fund, which currently has a surplus sufficient to fund this program after covering claims and will not include general fund allocations. This allows a fund paid into-by workers to have a direct benefit to workers. Employers will be reimbursed after the ETP has confirmed nine months of continuous employment.

The Governor’s proposal would grant the Business, Housing, and Transportation Agency the right to select a specified number of projects that have completed environmental impact reviews (EIRs) and deem those projects as approved and not subject to legal challenge – expediting the ground breaking of these projects and creating jobs. Jumpstarting construction projects creates jobs and boost local economies.

Statewide, projects are ready to break ground but become delayed due to unnecessary litigation surrounding EIRs.

Too often, projects that have completed an EIR are delayed because of frivolous lawsuits challenging the validity of the EIR. The new NFL stadium in Los Angeles County is an example of such a project. Despite years of environmental review – and despite a design that makes the stadium the “greenest” in the country – the project was held up by needless lawsuits brought by a tiny group of individuals. Legislative intervention was necessary to get the project approved and put 18,000 Californians to work.

This proposal will not exempt projects from the California Environmental Quality Act (CEQA) and will expedite shovel-ready projects that have followed environmental

To continue encouraging homeownership among Californians, the Governor will propose to extend and expand the $10,000 homebuyer tax credit to include the purchase of existing homes in addition to new residences for first-time homebuyers.

The buyer must not be a dependant and must be purchasing a home that does not belong to a relative. Under the Governor’s proposal, the Franchise Tax Board will extend the credit to buyers who purchase homes until $200 million dollars in tax credits have been granted.

California leads the world in environmental technology. Our state is home to 10,209 clean tech companies and home base to the innovative minds and year-round sunshine that power the clean technology industry. To maintain our competitive edge, the Governor will continue to support a sales tax exemption on the purchase of manufacturing equipment for advanced transportation, renewable energy and other clean technology projects.

Assembly Bill 1111, co-sponsored by the Governor and the Treasurer and authored by Assemblymember Sam Blakeslee, will codify the existing authority of the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to exempt zero emission vehicle manufacturers from sales tax on the purchase of new manufacturing equipment.

This targeted sales tax exemption for the purchase of clean-tech manufacturing equipment would not cost the state precious tax dollars; it would increase revenue by expanding the number of clean technology manufacturing companies that locate in California.

Reforming The Legal Climate For California’s Businesses To foster an atmosphere where businesses can thrive, the Governor will propose a series of changes to regulations governing class action law suits, products liability suits and seek to cap punitive damage awards. Unfair and frivolous suits impact where companies locate or expand. California’s current litigation laws lead to large settlements with little value to consumers but become worth millions to lawyers at the expense of California businesses. Current statutes also impede growth by holding businesspersons liable for defective products - even if the seller had no knowledge or control over the defect - and allowing for punitive damage awards that are wildly unpredictable among similar cases.

The Governor will propose a set of statutory changes that will set forth clear guidelines for class action lawsuits improve California’s litigation climate by allowing defendants to appeal class action certifications and by requiring the plaintiff rather than the defendant to pay for notification to other potential class members. In addition, these reforms will provide for limitations on the scope of damages assessed against business persons for defective products and eliminate unreasonable and excessive noneconomic and punitive damages awards.

Information Provided By The Governor's Press Office