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.