Schwarzenegger terminates anti-offshoring bill

A law that would have banned the State of California from contracting with companies that did work outside the U.S. was vetoed by Governor Arnold Schwarzenegger on Wednesday.

In all, Schwarzenegger vetoed three separate bills that would have prohibited state agencies from using state funds to award outsourcing deals to companies that had work done overseas. Sponsors of the bills argued that taxpayer money should only go to companies that planned to create work in the state of California, or at least the U.S. Under the bills, California state agencies would be prohibited from outsourcing work unless that contractor could certify that all the work would be performed inside the U.S. by U.S. workers.

Schwarznegger disagreed in a statement posted on his Web site, saying that California needs to remain part of the global economy in order to fully recover from the recession that harmed many of the technology-rich state's residents.

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IDG News Service

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