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CALIFORNIA GOES AFTER TEXAS FOR NEW BUSINESS STARTUPS

7/28/2016

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​(I'm in the conference room of the California Governor's Mansion on H Street in Sacramento with Governor Jerry Brown and Secretary of State Alex Padilla)

CALIFORNIA GOVERNOR JERRY BROWN:

"Alex, we need a bold move.  More than ever we need to make California the most business friendly state.  I heard Texas crowing again about how many new business registrations they had.  And I'm tired of hearing about Toyota moving to Texas."

CALIFORNIA SECRETARY OF STATE ALEX PADILLA:

"We're with you governor.  Over the last month, our team has met to brainstorm ways to get new businesses.  I've got a great idea for you that we are ready to test immediately."

BROWN:

"Alex, we're not cutting taxes"

PADILLA:

"No Governor, our program is not about cutting taxes or services.  In Texas, it costs $300, upfront, to register a new business.  Let's test paying new businesses $300 to register in California.  We would have no fee up front, and then in 90 days pay them $300 via funds transfer (which enablers electronic payment of taxes after we verify that they are open for business.  Let's test it, here in Sacramento.  We'll get feedback from the owners, adjust as needed, mine data, run P and L's and earn if we can expand."

BROWN:

"And we've got a great story to tell.  I like it.  Let's get it started. And get with communications to get the word out tomorrow to all state employees.  I'll have word to all elected officials by noon tomorrow."

PADILLA:

"Yes sir.  My staff is ready to start the program on Monday."

BROWN:

"Great.  And have several one-line marketing slogans to me by 10 tomorrow.  Something like "California, where we invest $300 in each new business startup."

PADILLA:

"I'm on it.  See you tomorrow at 10:00."

BROWN:

"Can't wait to see what Texas does.  Great to have them responding to us." 
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