Thursday, February 23, 2012
   
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New Laws Signed by the Governor to Help Create Jobs

California's economic challenges will ease when people find jobs. The cornerstone to rebuilding the economy is putting people back to work, and new jobs-related laws are now on the books! The Democratic majority in the Assembly supported new legislation to create jobs and fast-track projects that will streamline the ability to get unemployed workers back on the job.

Promoting American and Californian Products

AB 1097 allows state and local transportation agencies, when they are spending federal transit American Recovery and Reinvestment Act (ARRA) funds, to give hiring priority to contractors whose work exceeds federal "Buy America" standards.

Under the "Buy America" standard, nearly all of the iron, steel, and manufactured goods used in a project must be produced in the United States.

AB 1097 promotes domestic manufacturing and encourages California-based transit agencies to use more American products, thereby supporting and creating jobs in America and California. For more information about AB 1097 click here.

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Accelerating Job Creating Projects

SB 226 streamlines the approval process for certain urban building projects, and the law allows solar installation projects that will be placed on existing rooftops or parking lots to proceed without lengthy review.

SB 226 quickens the development of new urban housing and mixed-use projects in the Los Angeles, Sacramento, San Diego and San Francisco Bay Area regions, as well as projects in some smaller communities. The law helps create high-wage construction jobs, jobs in the solar industry, and affordable housing in major urban areas. For more information on SB 226 click here.


AB 427 lets the state and regional transit agencies redirect more than $300 million of unused transportation bond funds to ready-to-go projects that will employ workers right away.

In 2006, the voters approved Proposition 1B, a bond measure that provided $19.9 billion for various transportation projects and purposes. The bond gave $1 billion to different state and local agencies to pay for their transit safety, security and disaster response projects. Some of the recipient agencies, however, have not spent the money and do not have relevant transit projects that need funding.

As a result, AB 427 allows the state and transit agencies to identify where Proposition 1B transit security funds are stalled and redirect the stalled funds to projects that are ready-to-go. For more information about AB 427 click here.


AB 615 and the Budget Act of 2011 appropriate $76.2 million for the beginning work on a high-speed passenger train system in California.

In 2008, the voters approved the High-Speed Rail Bond Act (Proposition 1A), which provides $9.95 billion in bond funds for the planning and construction of a high-speed passenger train system and complementary improvements to other rail systems in California.

The construction and operation of a high-speed rail system in California will create tens of thousands of good, family-supporting jobs for Californians. The system will create as many as 100,000 construction-related jobs each year that the system is being built. The economic activity generated by the train could also create as many as 450,000 new statewide jobs over the next 25 years. For more information about AB 615 click here. For more information on the Budget Act of 2011 click here.


AB 900 allows, until 2015, some urban construction and clean energy projects to receive speedy court review if a project's governmental approval is challenged in court.

In order to be eligible for this faster court review, projects must create high-wage, highly skilled jobs and result in a minimum investment of $1 million in California. In addition, eligible projects may not cause any net additional greenhouse gas emissions.

This new law does not weaken or shorten the local environmental review done on a project; stakeholders will still have the same opportunity that they have always had to participate in a project's review. However, because this law shortens project delays caused by court challenges, the measure allows projects to break ground faster and provide jobs right away. For more information on AB 900 click here.


AB 1392 allows the state to quickly use $50 million in federal funds to install energy efficiency retrofits in state buildings.

The federal American Recovery and Reinvestment Act (ARRA) allocated a total of $226 million to California to help Californians increase energy efficiency, reduce energy costs, and cut reliance on imported energy. This money, however, must be spent by April 30, 2012, or the state could lose the funds.

AB 1392 allows California to spend the remaining ARRA energy funds before the deadline, and in a manner that benefits all Californians. The retrofits financed by the $50 million will improve public buildings and creates new jobs throughout the state. For more information about AB 1392 click here.


ABX1 13 and SB 16 expedite the development of renewable energy projects. The state's Department of Fish and Game (DFG) estimates that it will receive more than 300 requests to permit renewable energy projects this year. However, the Department hasn't had to adhere to any timeframe when reviewing these requests.

SB 16 sets deadlines for the processing of DFG permits for renewable energy projects. These deadlines include a requirement that DFG approve or reject a permit application within 60 days.

In addition, ABX1 13 allows wind and geothermal energy projects in the Mojave and Colorado Desert regions of the state, and projects that are eligible for federal American Reconstruction and Recovery Act funding, to use an alternative, and faster, DFG permitting process.

Combined, ABX1 13 and SB 16 will speed the development of job-rich renewable energy projects. Many of these projects will be built in areas that are currently experiencing high unemployment. For more information on ABX1 13 click here. For more information on SB 16 click here.

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Strengthening California's Retailers

AB 155 temporarily suspends, until July 1, 2012, California's new law that requires online companies, like Amazon.com, to pay California's sales tax. This suspension will give the federal government the opportunity to enact a national tax that would apply to ecommerce sales in all states. Should such a national tax not be established by July 1, 2012, California begins collecting taxes on large online retailers' internet sales.

The delay of California's online sales tax saves thousands of in-state jobs while Congress attempts to create a uniform, national online use tax policy. Establishment of such a policy would level the playing field between on-the-ground California retailers and online retailers that operate in other states. For more information on AB 155 click here.

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Educating Tomorrow's Workforce

SB 611 and SB 612 develop and train teachers to teach coursework that reflects the needs of growing and newly emerging sectors of the California economy.

SB 611 continues the University of California Curriculum Integration Institute (UCCII)'s work to combine rigorous high school academics with career education. The UCCII is tasked with developing and promoting high-school career-oriented, technical education courses that satisfy UC and California State University admission requirements.

SB 612 extends the operation of the California Subject Matters Projects (CSMPs), a statewide, professional development program for elementary, middle, and high school teachers and administrators. To date, the projects have trained over 94,000 teachers. SB 612 expands the CSMPs' teacher training to include career technical education. For more information on SB 611 click here. For more information on SB 612 click here.

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Connecting Workers to Good Paying Jobs

SB 698 encourages local workforce investment boards (LWIBs) to provide high quality employment services that connect workers to good paying jobs.

California's LWIBs are stationed throughout the state and manage federally-funded services for job-seekers and employers in the boards' local areas. All of the LWIBs run One-Stop Career Centers, which provide job training, job placement, and business services for their community. The LWIBs are also responsible for providing community leadership on workforce and economic development.

Although many LWIBs provide high quality services, LWIBs only have to comply with basic federal requirements, and do not have to adhere to any coherent state standards or goals. As a result, the quality and effectiveness of the 49 different LWIBs' services vary widely across the state.

SB 698 sets up an incentive program that rewards LWIBs that meet high performance criteria. Under this law, high performing LWIBs will be eligible to receive additional funding. For more information about SB 698 click here.

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Hosting the America's Cup – Jobs for the Bay Area

AB 664 helps the City of San Francisco finance waterfront improvements needed to host the America's Cup sailing competition.

In 2013, San Francisco plans to host the 34th America's Cup sailing match, a major worldwide sporting event. The event is projected to generate nearly 9,000 jobs, and $1.4 billion in spending, in the Bay Area.

Specifically, AB 664 allows San Francisco to use a specialized financing mechanism to pay for the construction of a cruise terminal along Pier 27 and to improve other publicly-held waterfront lands. For more information about AB 664 click here.

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Building the Stadium – Jobs for Los Angeles

SB 292 accelerates the construction of the proposed downtown Los Angeles football stadium and convention center project. In so doing, the law advances a project that will create over 23,000 jobs, including 12,000 full-time jobs – during the construction phase – and 11,000 additional permanent jobs at the convention center. The project also generates $60 million for the local economy.

SB 292 quickens the review of court challenges to the project, and the law requires the project to include strict air-quality and traffic reduction efforts. These air-quality and traffic reduction efforts will be some of the strongest such efforts ever required of a stadium project.

This law does not exempt the stadium project from environmental laws; it fast-tracks job creation while constructing a carbon-neutral stadium that encourages visitors to leave their cars at home. For more information about SB 292 click here.

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Keeping Media Productions in California

AB 55 and AB 1069 make it easier and more cost-effective to produce motion-picture, television, and commercial productions in California.

The motion picture and video industry directly employ almost 200,000 Californians, and purchase more than $15.4 billion worth of goods and services in California. When productions choose to leave the state and set up shop elsewhere, California's economy suffers.

AB 1069 continues to allow high-budget, California-based film and television productions to receive tax credits until July 1, 2015.

AB 55 lets motion-picture, television, and commercial productions use a simpler employee payroll and benefits accounting system. For more information about AB 55 click here. For more information on AB 1069 click here.

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Stabilizing Businesses

SB 617 requires that state agencies must prepare an economic impact analysis of any proposed regulation, or change of regulation, that could cost the state's businesses more than $50 million. The law also requires agencies to use various financial accounting best practices.

By requiring in-depth economic analyses of agencies' decisions, SB 617 gives businesses and employers more stability. For more information about SB 617 click here.

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Streamlining Workers' Compensation

AB 335, AB 378, AB 397, AB 1168, and AB 1426 streamline and reduce the costs of the workers' compensation system.

AB 335 helps employers and employees understand their workers' compensation rights and responsibilities by improving and simplifying the benefits notices and information that is provided to injured workers and employers.

AB 378 lowers workers' compensation costs by prohibiting a doctor from referring patients to pharmacies that the doctor has a financial interest in. The bill also establishes a fee schedule for compound drug dispensation.

AB 397 ensures that contractors have workers' compensation coverage. The law requires licensed contractors renewing their licenses to show evidence of workers compensation coverage or certify that they are exempt from coverage.

AB 1168 reduces employers' and insurers' workers' compensation costs by creating a fee schedule for vocational experts' services.

AB 1426 streamlines the workers' compensation process and reduces overlapping bureaucracy by doing away with the position of court administrator.

For more information about any of these bills click here: AB 335 - AB 378 - AB 397 - AB 1168 - AB 1426.

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Increasing Loans for Small Businesses

AB 901 and AB 981 encourage and help lenders award loans to small businesses.

This year, the California Capital Access Program (CalCAP) will receive $84 million in federal funds to help private financial institutions make capital loans to small businesses. This federal funding will allow CalCAP to insure small business loans that will altogether total almost $2 billion.

AB 901 and AB 981 expand the number and type of financial institutions that can participate in the CalCAP program.

AB 901 also extends the program to lenders who serve very small businesses in low- and moderate-income communities. This law will increase lending, and jobs, in high unemployment areas and other distressed communities. For more information about AB 901 click here. For more information on AB 981 click here.

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Removing Employment Barriers

AB 22 prohibits, in most circumstances, an employer from using a consumer credit report when making employment decisions.

Currently, 60% of employers research their job applicants' credit history. However, a recent study indicates that there is no correlation between credit history and job performance. In addition, credit reports often contain errors that could harm innocent job seekers.

During these difficult economic times, this law ensures that job seekers' credit histories will not hamper their efforts to get a job. For more information about AB 22 click here.

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