-$cust_main->state( $conf->config('statedefault') || 'CA' )
- unless $cust_main->state || $cust_main->country ne 'US';
+my $statedefault = $conf->config('statedefault')
+ || ($countrydefault eq 'US' ? 'CA' : '');
+$cust_main->state( $statedefault )
+ unless $cust_main->state || $cust_main->country ne $countrydefault;