02/02/1999 03:32 PM Senate STA

             SB  36-YEAR 2000 COMPLIANCE REQUIREMENT                                                                            
                                                                                                                                
VICE-CHAIR GREEN noted SB 36 was heard in committee during the                                                                  
previous week, but was held in order to get an opinion on a                                                                     
question posed by a committee member.                                                                                           
                                                                                                                                
MR. HODGINS explained SB 36 will require any new State of Alaska                                                                
government computer hardware or software purchases to be Y2K                                                                    
compatible.  He noted Senator Elton questioned whether the language                                                             
on page 1, line 11, could be interpreted to mean that a contractor,                                                             
who was hired to produce a brochure or publication, would have to                                                               
certify that he/she was Y2K compatible if his/her publisher was                                                                 
not.  According to the Division of Legal Services, if the state was                                                             
to become the owner of the software then it would have to be Y2K                                                                
compatible under SB 43, but if the product to be delivered was the                                                              
brochure, it would not.                                                                                                         
                                                                                                                                
SENATOR ELTON clarified that he was concerned that some                                                                         
professional service contracts require that the product be a disk                                                               
that contains an advertisement to be published in a newspaper.  He                                                              
questioned whether the contractor would have to prove his/her                                                                   
equipment was Y2K compatible.  The Division of Legal Services                                                                   
determined that the deliverable product is the published                                                                        
advertisement, therefore the contractor does not have to use Y2K                                                                
compatible equipment.  He stated he no longer had any concerns with                                                             
that language in the bill.                                                                                                      
                                                                                                                                
Number 418                                                                                                                      
                                                                                                                                
There being no further questions or testimony, SENATOR MACKIE moved                                                             
SB 36 out of committee with individual recommendations.  There                                                                  
being no objection, the motion carried.