Under the Dome

North Carolina close to setting liability limits for IT contractors

Proposed limits on computer companies’ liability to the state for contracted services passed the state House 105-2 Thursday, and are headed to the Senate for final approval.

Senate Bill 792 would limit liability to twice the amount of the contract most of the time, and up to three times the contract amount if state administrators make a special case.

The N.C. Chamber supports liability limits, and called SB 792 “an important pro-jobs bill” in a post on its website earlier this month.

The state has recently signed some big contracts for IT services, and it has had big problems with those contractors. The contract for a computer system to pay health care providers’ Medicaid bills spurred legislative hearings on its problems. The same contractor, Computer Sciences Corp., reported in 2013 that it lost a thumb drive containing personal information on 50,000 providers nationwide.

The liability limits for companies would extend to data breaches.

Lynn Bonner: 919-829-4821, @Lynn_Bonner