The bill put an end to a lawsuit by local residents who are campaigning against the building of the new stadium.
''This is the best kind of action state government can create -- action that cuts red tape, generates jobs, is environmentally friendly and brings a continued economic boost to California,'' Schwarzenegger said, as reported by the Associated Press.
The $800 million stadium is planned by developer Majestic Realty Co, which helped develop the Staples Center, the Los Angeles home of the NBA's Lakers and Clippers and the NHL's Kings.
