California § 6010.9

§ 6010.9.

(a) “Sale” and “purchase,” for the purposes of this part, do not include the design, development, writing, translation, fabrication, lease, or transfer for a consideration of title or possession, of custom computer software, other than a basic operational program, either in the form of written procedures or in the form of tangible storage media on which, or in which, the custom computer software is recorded, or any required documentation or manuals designed to facilitate the use of the custom computer software so transferred. (b) As used in this section: (1) “Basic operational program” has the meaning defined in Section 995.2. (2) “Computer” means an electronic device, including word processing equipment, that is programmable and includes a processor (CPU) and internal memory. (3) “Computer software” means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task. (4) (A) “Custom computer software” means computer software prepared to the special order of a single customer and includes those services represented by separately stated charges for modifications to existing prewritten computer software that are prepared to the special order of the customer. (B) “Custom computer software” does not include prewritten computer software that is held or existing for general or repeated sale or lease, even if the prewritten computer software was initially developed on a custom basis or for in-house use. Modification to existing prewritten computer software to meet the customer’s needs is custom computer software only to the extent of the modification. (c) The amendments made to this section by the act adding this subdivision shall become operative on January 1, 2027.