Schwarzenegger terminates anti-offshoring bill

IDG News Service - A law that would have banned the state of California from contracting with companies that have work done outside the U.S. was vetoed by Gov. Arnold Schwarzenegger on Wednesday.
Schwarzenegger vetoed three separate bills that would have prohibited state agencies from using state funds to award outsourcing deals to companies that send work overseas. Sponsors of the bills argued that taxpayer money should go only to companies that planned to create work in the state of California, or at least in the U.S.
Under the bills, California state agencies would be prohibited from outsourcing work unless the contractor could certify that all the work would be performed inside the U.S. by U.S. workers.
Schwarzenegger disagreed in a statement posted online, saying that the state 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.
"In today's global economy, the best approach to creating and enhancing job growth in California is to provide a competitive business environment. In order to improve their competitiveness in a global market, California businesses cannot be penalized with punitive policies restricting their ability to make decisions on how to best perform and provide goods or services for state government and our consumers," Schwarzenegger said.
Assemblywoman Carol Liu, who represents several communities in Southern California, sponsored the bill. California currently is using call center workers in India for its food stamp and welfare programs, according to an article from the Los Angeles Times referenced on her Web site.
Vetoes can be overridden, but the California legislature has adjourned for the year, a spokeswoman for Liu said. Liu's office might pursue a similar measure next year, the spokeswoman said.