BILL NUMBER: AB 1791 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Buchanan
( Coauthor: Assembly Member
Gatto )
FEBRUARY 21, 2012
An act to amend Section 12106 add Chapter
3.1 (commencing with Section 12114) to Part 2 of Division 2 of
the Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 1791, as amended, Buchanan. Public contracts: state contracts:
information technology goods and services.
computer software.
Existing law requires the Department of General Services to
maintain policies and procedures governing the acquisition and
disposal of information technology goods and services. Existing law
authorizes the Department of General Services to adopt rules and
regulations as are necessary to govern the acquisition and disposal
of information technology goods and services.
This bill would require state agencies executing or amending a
contract with any contractor or supplier to require that contractor
or supplier to certify, as provided, that it does not use unlawful
computer software in its business operations. This bill would require
a state agency and any contractor or supplier to resolve disputes
regarding failure to certify or false certification, as provided.
Existing law requires the Department of General Services to
maintain policies and procedures governing the acquisition and
disposal of information technology goods and services. Existing law
authorizes the Department of General Services to adopt rules and
regulations as are necessary to govern the acquisition and disposal
of information technology goods and services.
This bill would make a technical, nonsubstantive change to those
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) The State of California recognizes the critical importance of
information technology to the economic growth and competitiveness of
all industry sectors.
(b) The information technology industry is one of the most vibrant
sectors of California's economy, employing 880,000 California
workers in 2009 and generating $76 billion in annual wages.
(c) The illegal use of unlicensed computer software reduces the
profitability of California's information technology and other
industries and their ability to create jobs and generate tax revenues
for the state. Studies show that reducing software piracy worldwide
by 10 percentage points would create $142 billion in new economic
activity and 500,000 new high-tech jobs.
(d) Software theft is particularly pervasive in countries with a
poor record of enforcing intellectual property rights and other laws
against unfair and unethical business practices.
(e) In countries with weak rule of law, companies routinely use
large quantities of unlicenced computer software, often worth
millions of dollars, which unfairly reduces their business costs and
results in an unfair competitive advantage. This unfair advantage
translates into decreased sales, reduced market share, and fewer jobs
in California.
(f) When government contractors or suppliers unfairly reduce their
costs by stealing computer software, they harm competition in
California to the detriment of companies that lawfully acquire the
software they use.
(g) The State of California procures billions of dollars in goods
and services and awards hundreds of contracts annually and should
ensure that any tax dollars spent on procurements and contracts go to
businesses that conduct themselves within the parameters of the law.
SEC. 2. Chapter 3.1 (commencing with Section
12114) is added to Part 2 of Division 2 of the Public
Contract Code , to read:
CHAPTER 3.1. CERTIFICATION OF LAWFUL COMPUTER SOFTWARE USE
12114. It shall be the policy of the State of California that
contractors and suppliers shall use only lawful computer software in
their business operations.
12115. State agencies, in executing or amending a contract with a
contractor or supplier, shall require the contractor or supplier to
certify that it does not use unlawful computer software in its
business operations.
12116. If a contractor or supplier fails to make the
certification described in Section 12115, or if the state agency
determines that a contractor or supplier has made a false declaration
or certification pursuant to Section 12115, the parties shall deal
in good faith and attempt to resolve the dispute informally. If the
dispute persists, the contractor or supplier may submit to the state
agency a new certification pursuant to Section 12115 that shall be
fully supported by factual information and shall include a written
statement signed by an authorized person indicating that the
supporting data is accurate and complete.
12117. The Department of General Services shall add a provision
setting forth the certification requirement described in Section
12115 to the Patent, Copyright, and Trade Secret Indemnity provisions
of the General Provisions for Non-IT Commodities and to the Patent,
Copyright, and Trade Secret Indemnity provisions of the IT General
Provisions.
12118. For purposes of this chapter, "state agency" means each
agency, department, board, commission, and office of the executive
branch.
12119. The invalidity of any portion of this chapter shall not
affect the validity of the remainder thereof.
SECTION 1. Section 12106 of the Public Contract
Code is amended to read:
12106. The Department of General Services may, in addition to
fulfilling the mandatory requirements enumerated in Section 12102,
adopt rules and regulations as are necessary for the purposes of this
chapter.