Pub. Contract Code, § 12112.1 · Chapter 3. Acquisition of Information Technology Goods and Services
Pub. Contract Code, § 12112.1
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) Software license contracts allowing the use of the software for a specified time period with recurring payments may be paid in advance subject to the procedures, terms, and conditions that the controlling department, as specified in Section 12100, deems necessary to protect the state’s interests.
(b) If an agreement combines the purchase of software with contracted personnel, this section may be applied only to the software purchase and payment in advance for contracted personnel is prohibited. “Contracted personnel” includes, but is not limited to, consulting services, instructor-led training, and other personal services.
(c) A single payment for a lifetime license is permitted.
(d) Advance payments authorized under this section shall not exceed three years.
(e) Procedures, terms, and conditions shall address, at minimum, all of the following:
(1) Annual advance payment provisions for multiyear agreements.
(2) Encouraging suppliers to develop higher levels of service and support.
(3) Financial risk, including supplier’s financial stability.
(4) The supplier’s prior record of performance.
(5) Reassignment of licenses within the contract term.
(6) A cancellation clause to protect the state’s interests.
(f) Acquisitions shall be accomplished in accordance with this chapter.
Notes and commentary — not statutory text
History
Added by Stats. 2026, Ch. 84, Sec. 34. (SB 172) Effective July 13, 2026.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PCC§ionNum=12112.1.
- Text hash
- sha256 633f5c7f0ced844828cb97c07c6c3a8db93581a825d47f0faa13bf49a1b48c42
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
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Public Contract Code
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