SACRAMENTO, Calif. — California Governor Arnold Schwarzenegger has vetoed a bill that would have incorporated card industry data security standards into state law.

Sources familiar with the veto said that the Governor cited possible increased expenses to California small businesses as a reason for the veto, but his office has not yet made available a statement accompanying the veto.

The measure passed both houses of the legislature by enough of a margin that supporters may be able to override the veto.

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