Governor Vetoes Bill To Give Preference to California Workers

To the Members of the California State Senate:

I am returning Senate Bill 967 without my signature.

This bill would provide a 5 percent bid preference if 90 percent of a business’ employees performing work on a state contract exceeding $1 million are California residents. This bill also specifies that agencies accepting proposals for the distribution of funds pursuant to the federal American Recovery and Reinvestment Act of 2009 provide a 5 percent bid preference, regardless of contract amount.

While this bill seeks to create new jobs and stimulate the economy, it would cost the state hundreds of millions of dollars in bid preferences and administration at a time when the state is in a fiscal crisis. Additionally, reciprocity statutes, enacted by at least 36 other states, would add a percentage to bids submitted by California businesses bidding on contracts with those states, making it difficult for California businesses to contract with other states.

For these reasons, I am unable to sign this bill.

Sincerely,

Arnold Schwarzenegger