This bill amends the Management and Budget Act of 1984 by adding a new section, 261h, which establishes specific conditions under which the state department may contract with vendors for commercial-off-the-shelf software products. According to the new provisions, the department is prohibited from entering into contracts with vendors if the vendor needs to write software code to meet the requirements of the state agency and if either of the following conditions is met: the labor costs associated with the contract exceed the base price of the product, or the vendor cannot demonstrate more than one successful implementation of the product.

Additionally, the bill defines "commercial-off-the-shelf product" as a software product that is ready-made and available for sale, lease, or license to the general public. This legislative change aims to ensure that the state only engages with vendors who can provide proven, cost-effective solutions without the need for extensive customization.

Statutes affected:
House Introduced Bill: 18.1101, 18.1594