AN ACT SETTING THE LIMITS OF CONTRACTOR LIABILITY UNDER STATE INFORMATION TECHNOLOGY PROCUREMENT CONTRACTS.
House committee substitute makes the following changes to the 2nd edition.
Amends GS 143B-1350(h1) concerning limitations of liability for IT procurement contracts, providing that when specified circumstances apply, the amount of liability for damages and any other losses relating to the loss of, unauthorized access to, or unauthorized disclosure of data can be raised no more than three times the value of the contract (previously, could not be raised more than five times the value of the contract). Makes clarifying changes to provisions that the limitation on liability for the contractor does not apply to intentional or willful misconduct, damage to personal property, or injuries to individuals. Also adds new language that the limitation on liability also does not apply to notification costs resulting from compliance with GS 132-1.10(c1), concerning disclosures of social security numbers and other personal information as specified.
Amends the effective date providing that when the bill becomes law, it also applies to contracts entered into, extended via the exercise of options, or otherwise, renewed, or amended on or after that date.
© 2021 School of Government The University of North Carolina at Chapel Hill
This work is copyrighted and subject to "fair use" as permitted by federal copyright law. No portion of this publication may be reproduced or transmitted in any form or by any means without the express written permission of the publisher. Distribution by third parties is prohibited. Prohibited distribution includes, but is not limited to, posting, e-mailing, faxing, archiving in a public database, installing on intranets or servers, and redistributing via a computer network or in printed form. Unauthorized use or reproduction may result in legal action against the unauthorized user.