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California's Democratic Governor Gavin Newsom has vetoed a bill banning caste discrimination.
Advocates had argued the bill would protect people of South Asian descent who had been treated unfairly.
Mr Newsom said the state already banned discrimination based on religion, origin and other characteristics.
"Because discrimination based on caste is already prohibited under these existing categories, this bill is unnecessary," he said in a statement.
The caste system in India, which dates back more than 3,000 years, divides Hindu society into rigid hierarchical groups.