It appears that California taxes residents on income from any state. However, there is a way that the states deal with this. If your son enters the 1099-MISC on the federal return, it will show up on both states.
Then have your son enter his nonresident state (Oregon) first. This will presumably generate a tax bill. Then enter his California information. The California return will look for tax bills from other states (I don't think he'll have to enter it, but watch for questions on this), and then use Oregon's tax bill to create a credit against California taxes.
This is how most states avoid "double taxation".
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