1495-S AMS HONE S2637.2

SHB 1495  - S AMD TO LCCP COMM AMD (S-2224.4/11)252
     By Senator Honeyford

NOT ADOPTED 04/04/2011

     On page 1, line 24 of the amendment, after "product" strike all material through "act"

     On page 1, line 28 of the amendment, after "product" strike all material through "act"

     Beginning on page 1, line 30 of the amendment, after "product" strike all material through "act" on page 2, line 1

     On page 2, beginning of line 9 of the amendment, after "person" strike all material through "act" on line 10

     On page 2, beginning of line 12 of the amendment, after "person" strike all material through "act" on line 13

     On page 2, line 23 of the amendment, after "products" strike all material through "act"

     Beginning on page 2, line 24 of the amendment, strike all of sections 2 through 11 and insert the following:

"NEW SECTION.  Sec. 2   (1) The legislature recognizes that:
     (a) Manufacturers are a vital source of jobs and economic growth in the state;
     (b) Manufacturers in this state might suffer a loss of sales, market share, and jobs if they are forced to compete against companies that use stolen or misappropriated information technology because such illegal use can unfairly lower production costs and could result in that manufacturer gaining an unfair competitive edge;
     (c) The theft of American information technology is particularly rampant in foreign markets, with software piracy rates reaching as high as ninety percent in some countries, costing the United States economy jobs and economic growth; and
     (d) Manufacturers that use significant amounts of stolen or misappropriated information technology to reduce their costs should not be allowed to benefit from their illegal acts.
     (2) The legislature therefore directs the joint legislative audit and review committee to study the impacts of stolen or misappropriated information technology in this state. The joint legislative audit and review committee must analyze:
     (a) How existing state and federal laws relating to unfair trade practices currently address the harm that occurs when manufacturers use stolen or misappropriated information technology to gain an unfair competitive advantage over companies that play by the rules;
     (b) The impact restricting the use of stolen information technology would have on retailers, importers, manufacturers, and wholesalers, and the state's economy;
     (c) The piracy rate of information technology in the state;
     (d) The impact piracy has on manufactured goods in this state; and
     (e) Whether a state-by-state restriction versus a uniform federal restriction would have different impacts on the use of stolen information technology and the advantages and disadvantages to both approaches.
     (3) In conducting its study, the joint legislative audit and review committee must consult with manufacturers, retailers, technology companies, phone companies, car manufacturers, copyright attorneys, and other appropriate entities.
     (4) A report containing the joint legislative audit and review committee's findings and recommendations must be delivered to the legislature by December 1, 2012."

     Renumber the remaining section consecutively and correct any internal references accordingly.

SHB 1495  - S AMD TO LCCP COMM AMD (S-2224.4/11)
     By Senator Honeyford

NOT ADOPTED 04/04/2011

     On page 15, line 2 of the title amendment, after "RCW;" insert "creating a new section;"

EFFECT:  Removes the new causes of action against manufacturers and third parties, and instead requires the Joint Legislative Audit and Review Committee (JLARC) to study issues related to the use of stolen IT and report its findings and recommendations to the Legislature by December 1, 2012.

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