"The Electronic Industries Alliance commends California Gov. Arnold Schwarzenegger for vetoing bills that would have degraded the long-term economic viability of California and impacted employees at all levels. In doing so, the Governor is casting a vote for free trade, better government and a better business climate for the Golden State.

"Governors who want to encourage innovation at the state level are creating business-friendly environments and embracing technology, open markets and free trade. The California bills in question would have reduced the issue of offshore outsourcing to a simplistic trade vs. jobs debate. As EIA noted earlier this year in our policy playbook, The Technology Industry at an Innovation Crossroads, policymakers must nurture innovation and create a more competitive business landscape at both the state and federal levels if they want to remain on the cutting-edge of technology and economic growth.

"Restrictions that prohibit governments from contracting out services unless all duties are performed by workers in the U.S. go against the principle of open markets. And limiting the ability of contractors to deliver the best services through the best contract bid is plain and simple protectionism. These bills, if passed, would have increased costs and sent a negative message to companies wishing to do business in California. Taxpayers and residents need economic growth and innovation, not protectionist measures."