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Bill requiring state contractors to certify lawful use of computer software reaches policy committee

A bill that would require state contractors and suppliers to sign contracts certifying that the company does not use unlawful computer software in its business operations will level the playing field for contractors doing business with the state, Assemblymember Joan Buchanan, the bill’s author, said in an interview today.

While the Department of General Services already maintains a policy requiring that state contractors use only legally licensed software, Buchanan’s AB 1791 will make clear California’s stance on the matter.

"This bill essentially codifies that [DGS policy], Buchanan explained. "So while it’s a current practice, we believe that it’s an important value statement for the state of California," she said, noting the importance of proper licensing to the technology industry based in the San Francisco Bay Area and even the entertainment industry in Southern California.

The legislation came out of talks about software piracy with Microsoft, Buchanan said. Piracy has already been a major concern in the entertainment industry, and after discussing the matter with leaders in state technology, Buchanan decided to author the bill. The legislation includes background about the problems associated with pirated software, stating that reducing piracy worldwide by only 10 percent would create $142 billion in economic activity and create an estimated 500,000 jobs.

In addition to the economic benefits, the law will prevent unfair advantages for some businesses seeking contracts with the state, according to Buchanan.

"I’ve worked closely with the tech industry in a number of different areas &hellipand I think we need to do all we can to make sure that everyone in the industry and other companies is competing on a level playing field," she said.

The bill states that state contractors will be contractually obligated to certify that the company does not use unlawful computer software in its business operations. If contractors do not meet the obligation, the bill states that the parties will deal in good faith to resolve the dispute informally.

Buchanan introduced the bill in February. The bill was amended in late March and referred the legislation to the Committee on Business, Professions and Consumer Protection last week.