Today's Law As Amended

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AB-1791 Public contracts: state contracts: computer software.(2011-2012)

As Amends the Law Today

 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.
(d) A 2012 Orange County Business Council study found that California lost $1.6 billion in economic activity, nearly 20,000 jobs, and $700 million in tax revenue in 2011 due to software piracy.
(e) When government contractors 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.
(f) 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 procurement and contracts go to businesses that conduct themselves within the parameters of the law.
(g) It shall be the policy of the State of California that it does business with contractors that comply with applicable copyright laws in their use of computer software.

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
 For purposes of this chapter:
(a) “Contractor” shall not include a subcontractor or supplier to the contractor.
(b) “State agency” means each agency, department, board, commission, and office of the executive branch.
 The Department of General Services shall add a provision to state contracts that requires a contractor to certify that it has appropriate systems and controls in place to ensure that its use of computer software complies with applicable copyright laws. This certification applies only to the contractor’s use of computer software and shall not apply to products supplied to the state pursuant to the contract.
 Contracts between state agencies and contractors shall include a provision that requires the contractor to certify that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of the contract for the acquisition, operation, or maintenance of computer software in violation of copyright laws.
 A certification pursuant to Section 12115 or 12116 shall not be considered false or fraudulent to the extent software use in violation of applicable copyright laws arises from causes beyond the control and without the fault or negligence of the contractor.
 If there is a dispute regarding the contractor’s certification pursuant to Section 12115 or 12116, the dispute provisions of the contract shall apply. The dispute provisions set forth in the contract shall be the sole avenue for challenging a certification made pursuant to Section 12115 or 12116.
 The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.