02/18/1999 08:58 AM Senate FIN

                                                                                                                                
SENATE BILL NO. 36                                                                                                              
"An Act relating to state procurement of certain                                                                                
computer-related contracts."                                                                                                    
                                                                                                                                
Mark Hodgins, staff for Senator Jerry Ward, testified for                                                                       
the bill.  He said it would affect all computers and                                                                            
software purchased by the state in the future.                                                                                  
                                                                                                                                
He said that when the bill was heard in the Senate State                                                                        
Affairs Committee there were some questions about page 1                                                                        
lines 11 and 12 regarding product brochures requested.  The                                                                     
Division of Legal Services determined that it would not                                                                         
affect the bill.                                                                                                                
                                                                                                                                
Senator Loren Leman wanted to know if this would create an                                                                      
implied demand to change the state's hardware or software.                                                                      
He spoke of many stand-alone computers that were probably                                                                       
functioning adequately for the needed tasks they performed                                                                      
even though they were not Y2K compliant.  Mr. Hodgins                                                                           
responded that this bill would only affect items to be                                                                          
delivered after passage of the bill.  Anything already                                                                          
owned by the state would not be affected.                                                                                       
                                                                                                                                
Senator Gary Wilken questioned the necessity of the bill.                                                                       
He felt that the state was already taking appropriate                                                                           
measure to prevent the purchase of non-Y2K compliant                                                                            
equipment.  By the time the bill went into affect, the                                                                          
deadline would be very close.  Mark Hodgins said he had                                                                         
contacted Vern Jones, Chief Procurement Officer in the                                                                          
Department of Administration, who brought up the same                                                                           
point. However, Mr. Jones said he had no problem with bill.                                                                     
While seemed like duplication, by setting the requirement                                                                       
into statute, the state would have some recourse in case                                                                        
non-compliant equipment was ordered.                                                                                            
                                                                                                                                
Tape: SFC - 99 #31, Side B    9:48 AM                                                                                           
                                                                                                                                
Mark Hodgins pointed out that certain policy directions did                                                                     
not always reach all departments as quickly as the                                                                              
Legislature would like.                                                                                                         
                                                                                                                                
Co-Chair John Torgerson gave a scenario for consideration.                                                                      
He said that the value of equipment not Y2K compatible                                                                          
would sharply decline.  Some departments might wish to                                                                          
purchase some of this low-priced equipment to use for                                                                           
applications where the compliance was not necessary. Would                                                                      
this bill prohibit them from making those purchases, he                                                                         
wondered.                                                                                                                       
                                                                                                                                
Mark Hodgins responded that it would prevent them.  But he                                                                      
was not sure the state had ever gone back and bought                                                                            
obsolete equipment.  He figured departments would wish to                                                                       
purchase equipment that could be used for multiple                                                                              
applications.                                                                                                                   
                                                                                                                                
Senator Dave Donley suggested a sunset date be added to the                                                                     
bill so the law would not be on the books years after its                                                                       
usefulness.                                                                                                                     
                                                                                                                                
Co-Chair John Torgerson asked why isn't there wasn't an                                                                         
immediate effective date because the matter was so serious.                                                                     
Mark Hodgins noted that neither a sunset nor an effective                                                                       
date was included in the bill.  He felt these would be two                                                                      
amendments that would be appropriate.                                                                                           
                                                                                                                                
Senator Al Adams wanted to know the penalty for not                                                                             
complying with this law.  Mark Hodgins did not know the                                                                         
specific penalties but said it would be a very specific                                                                         
policy direction to departments.                                                                                                
                                                                                                                                
Co-Chair John Torgerson asked if this would apply to state                                                                      
funded public facilities such as libraries. Mark Hodgins                                                                        
was not sure.  Co-Chair John Torgerson said it was staff                                                                        
from a library that told him they would like to purchase                                                                        
older machines for patrons to use and they would not need                                                                       
to be Y2K compliant.                                                                                                            
                                                                                                                                
Senator Loren Leman asked if it was the chair's intent to                                                                       
move the bill from committee today.  Co-Chair John                                                                              
Torgerson said no.  He wanted the committee to work on                                                                          
inserting a sunset date.                                                                                                        
                                                                                                                                
Senator Loren Leman suggested on line 7 and 11, an                                                                              
amendment to insert the words "new" and "each".  This might                                                                     
allow departments to purchase the cheaper, non-compliant                                                                        
equipment for nonessential applications.                                                                                        
                                                                                                                                
Co-Chair John Torgerson directed Senator Gary Wilken to                                                                         
work on drafting a committee substitute to address the                                                                          
issues discussed.