Bans on Outsourcing Gain Momentum

By Loretta Macktal, Executive Assistant to the Vice President, Government Relations

Capitol Update, Aug. 13, 2004 Share this on FacebookTweet thisEmail this to a friend

The powerful Appropriations committees in both houses passed broad legislative proposals to severely limit the practice of outsourcing.

AB 1829 (Liu, D-Pasadena) bans companies from having contracts with a state agency or local government unless they certify that all work associated with the contract will be completed within the United States.

SB 888 (Dunn, D-Santa Ana) would prohibit the performance of any "work" involving "information" that is essential to "homeland security" from being performed outside the United States. The bill is filled with terms that are vaguely defined. Many industries in the United States rely on research & development conducted in other countries. SB 888 would, among other things, limit California’s ability to utilize research (from medicine to infrastructure) from outside the country.

CMTA opposes these bills. They are protectionist proposals that will drive up costs (in the midst of continued state budget shortfalls) by limiting available competition. They may provoke retaliation from California’s trading partners and could very easily have a negative impact on trade and job growth in California.

Both bills now move to the floors of each house where they will be debated in the remaining 2 weeks of this legislative session.
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