HOUSE BILL No. 4743 May 27, 1999, Introduced by Reps. Woodward, Thomas, Lockwood, O'Neil, Schauer, Dennis, Bob Brown, Quarles, Daniels, DeHart, Gieleghem, Martinez, Jacobs, Scott and Lemmons and referred to the Committee on House Oversight and Operations. A bill to impose reporting duties on state vendors and state subcontractors; to prescribe the duties of certain state offi- cials; to prescribe penalties; and to repeal acts and parts of acts. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 1. This act shall be known and may be cited as the 2 "state vendor and subcontractor year 2000 reporting act". 3 Sec. 2. As used in this act: 4 (a) "Computer" means a high-speed data processing device 5 that performs logical, arithmetic, or memory functions by the 6 manipulations of electronic or magnetic impulses and includes all 7 input, output, processing, storage, or communication facilities 8 that are connected or related to the device. 9 (b) "Computer date failure" means a malfunction, including, 10 but not limited to, the malfunction of an electronic or 03225'99 DAM 2 1 mechanical device or the inability of a computer, a computer 2 network, a computer program, computer software, an embedded chip, 3 or a computer system to accurately store, process, receive, or 4 transmit data, that is caused directly or indirectly by the fail- 5 ure of a computer, a computer network, a computer program, com- 6 puter software, an embedded chip, or a computer system to accu- 7 rately or properly recognize, calculate, display, sort, or other- 8 wise process dates or times in the years 1999 and 2000 and 9 beyond. 10 (c) "Computer network" means an interconnection of 2 or more 11 computers or computer systems by satellite, microwave, line, 12 cable, wiring, or other communication medium with the capability 13 to transmit information among the computers or computer systems. 14 (d) "Computer program" means an ordered set of data-coded 15 instructions or statements that when executed by a computer cause 16 the computer system to process data or perform specific 17 functions. 18 (e) "Computer software" means a set of computer programs, 19 procedures, and associated documentation related to the operation 20 of a computer, computer system, or computer network. 21 (f) "Computer system" means a combination of a computer or a 22 computer network with the documentation, computer software, or 23 physical facilities supporting the computer or computer network. 24 (g) "Embedded chip" means a single or multiple microproces- 25 sor chip that operates in conjunction with software, including 26 software on the chip itself, and that in some way controls a 03225'99 3 1 device or equipment, including, but not limited to, a computer or 2 other electronic or mechanical device. 3 (h) "Employee" means a person performing work or service for 4 hourly or salary compensation but does not include a consultant 5 or other independent contractor. 6 (i) "State" means the state of Michigan and its agencies, 7 departments, commissions, courts, boards, councils, and statuto- 8 rily created task forces and includes every public university and 9 college of the state whether established as a constitutional cor- 10 poration or otherwise. 11 (j) "State subcontractor" means an individual, partnership, 12 corporation, association, other legal entity, or combination of 13 legal entities that has entered into a contractual relationship 14 with a state vendor to provide goods, services, or both to the 15 state vendor. State subcontractor does not include an employee 16 of the state vendor acting solely within the scope of his or her 17 employment. 18 (k) "State vendor" means an individual, partnership, corpo- 19 ration, association, other legal entity, or combination of legal 20 entities that has entered into a contractual relationship with 21 the state to provide goods, services, or both to the state. 22 State vendor does not include an employee of the state acting 23 solely within the scope of his or her employment. 24 Sec. 3. A state vendor under contract to the state at any 25 time during the period from the effective date of this act to 26 October 31, 1999 shall no later than October 31, 1999 provide all 03225'99 4 1 of the following information in writing to the department of 2 management and budget: 3 (a) Expressed as a percentage, and including action taken on 4 behalf of a state vendor by a third party: 5 (i) The state vendor's estimated progress toward completing 6 an inventory of its computers, computer networks, computer pro- 7 grams, computer software, embedded chips, and computer systems. 8 (ii) The state vendor's estimated progress toward completing 9 an investigation and assessment of its computers, computer net- 10 works, computer programs, computer software, embedded chips, and 11 computer systems to determine what actual or expected computing, 12 physical, enterprise, or systems complications have occurred or 13 may occur as a result of computer date failure. 14 (iii) The state vendor's estimated progress toward imple- 15 menting measures to prevent computer date failure. 16 (iv) The state vendor's estimated progress toward testing 17 measures it has implemented to prevent computer date failure. 18 (b) The state vendor's contingency plan, if any, if the 19 state vendor experiences a computer date failure. 20 (c) A description of each activity engaged in by the state 21 vendor in which it electronically transmits or receives data to 22 or from the state or in which a computer, computer network, or 23 computer system of the state vendor is otherwise linked electron- 24 ically with a computer, computer network, or computer system of 25 the state. 26 (d) If the state vendor has sold, leased, or otherwise 27 transferred a computer, computer network, computer program, 03225'99 5 1 computer software, embedded chip, or computer system to the state 2 under the contract, an assessment of what computing, physical, 3 enterprise, or systems complications it expects the state will or 4 may experience as a result of computer date failure of the com- 5 puter, computer network, computer program, computer software, 6 embedded chip, or computer system. 7 (e) The name, title, address, and telephone number of the 8 employee of the state vendor primarily responsible for compiling 9 the information provided under this section and the employee pri- 10 marily responsible for addressing complications resulting from a 11 computer date failure. 12 Sec. 4. A state subcontractor providing goods, services, or 13 both to a state vendor described in section 3 shall no later than 14 October 31, 1999 provide all of the following information in 15 writing to the department of management and budget: 16 (a) Expressed as a percentage, and including action taken on 17 behalf of a state subcontractor by a third party: 18 (i) The state subcontractor's estimated progress toward com- 19 pleting an inventory of its computers, computer networks, com- 20 puter programs, computer software, embedded chips, and computer 21 systems. 22 (ii) The state subcontractor's estimated progress toward 23 completing an investigation and assessment of its computers, com- 24 puter networks, computer programs, computer software, embedded 25 chips, and computer systems to determine what actual or expected 26 computing, physical, enterprise, or systems complications have 27 occurred or may occur as a result of computer date failure. 03225'99 6 1 (iii) The state subcontractor's estimated progress toward 2 implementing measures to prevent computer date failure. 3 (iv) The state subcontractor's estimated progress toward 4 testing measures it has implemented to prevent computer date 5 failure. 6 (b) The state subcontractor's contingency plan, if any, if 7 the state subcontractor experiences a computer date failure. 8 (c) A description of each activity engaged in by the state 9 subcontractor in which it electronically transmits or receives 10 data to or from the state or in which a computer, computer net- 11 work, or computer system of the state subcontractor is otherwise 12 linked electronically with a computer, computer network, or com- 13 puter system of the state. 14 (d) If the state subcontractor has sold, leased, or other- 15 wise transferred a computer, computer network, computer program, 16 computer software, embedded chip, or computer system to the state 17 or the state vendor under the contract, an assessment of what 18 computing, physical, enterprise, or systems complications it 19 expects the state will or may experience as a result of computer 20 date failure of the computer, computer network, computer program, 21 computer software, embedded chip, or computer system. 22 (e) The name, title, address, and telephone number of the 23 employee of the state subcontractor primarily responsible for 24 compiling the information provided under this section and the 25 employee primarily responsible for addressing complications 26 resulting from a computer date failure. 03225'99 7 1 Sec. 5. (1) A person who violates this act is responsible 2 for the payment of a civil fine of not more than $10,000.00. 3 (2) If the violation of this act described in subsection (1) 4 is a failure to provide information under section 3, in addition 5 to the fine prescribed by subsection (1), the person is also 6 responsible for the payment of a civil fine of $1,000.00 for each 7 day the person fails to provide the information. 8 (3) A default in the payment of a civil fine or costs 9 ordered under this section, or an installment of the fine or 10 costs, may be remedied by any means authorized under the revised 11 judicature act of 1961, 1961 PA 236, MCL 600.101 to 600.9948. 12 Enacting section 1. This act is repealed effective January 13 1, 2005. 03225'99 Final page. DAM