Gov. Urged to Veto Outsourcing Bans and Restrictions

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

Capitol Update, Sept. 10, 2004 Share this on FacebookTweet thisEmail this to a friend

AB 1829 (Carol Liu, D-La Canada Flintridge) prohibits a state agency or local government from contracting for services unless the contractor or subcontractor certifies that the service will be performed solely with workers within the United States. Exempted from the bill are the State Treasurer and any "seismic retrofit work."

SB 888 (Joseph Dunn, D-Santa Ana) prohibits the performance of any work involving "information that is essential to homeland security" at a worksite located outside of the United States unless expertise or materials necessary to perform the work is not available in the U.S. The bill defines "information essential to homeland security" as either (1) information necessary to enhance the capability of state and local jurisdictions to prepare for and respond to terrorist acts, including, but not limited to, acts of terrorism involving weapons of mass destruction and nuclear, radiological, incendiary, chemical, and explosive devices or (2) information relating to physical and information infrastructures, including, but not limited to, the telecommunications, energy, water, and transportation sectors.

CMTA believes these bills are harmful to California's economy, which is consistent with the findings of a recent study by the Public Policy Institute of California that was commissioned by Assembly democrats. The study found that outsourcing can actually help preserve existing California jobs, help create new ones, and that "outstating" jobs from California to other states within the U.S. is a bigger and more destructive phenomenon.

You can read AB 1829 at

You can read SB 888 at
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