[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 96 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 96

To regulate commerce between and among the several States by providing 
 for the orderly resolution of disputes arising out of computer-based 
problems related to processing data that includes a 2-digit expression 
                          of the year's date.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 19, 1999

  Mr. McCain introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To regulate commerce between and among the several States by providing 
 for the orderly resolution of disputes arising out of computer-based 
problems related to processing data that includes a 2-digit expression 
                          of the year's date.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Y2K Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Y2K action.--The term ``Y2K action'' means a civil 
        action commenced in any Federal or State court for a cause of 
        action arising out of a Y2K failure but does include an action 
        to recover damages for personal injury (excluding emotional 
        harm) or wrongful death.
            (2) Y2K failure.--The term ``Y2K failure'' means a systems 
        product failure caused by the inability of a computer system, 
        program, or software's failure to accurately store, process, 
        provide, or receive data containing the year-2000 date.
            (3) Y2K-compliant.--The term ``Y2K-compliant'' means--
                    (A) with respect to an information technology 
                product, that the product does not have a Y2K failure; 
                and
                    (B) with respect to a business, that none of that 
                business's information technology products that 
                materially affects the business's capacity to deliver 
                goods and services has a Y2K failure.
            (4) Information technology product.--The term ``information 
        technology product'' means a computer, a computer program, or 
        computer software, or product using a computer program, chip, 
        or computer software.

SEC. 3. APPLICABILITY; PREEMPTION.

    (a) Applicability to Y2K Actions.--This Act applies to any Y2K 
action, commenced after the date of enactment of this Act, brought in a 
Federal or State court.
    (b) Scope of Preemption.--This Act supersedes any State law 
regarding recovery for harm caused by a Y2K failure only to the extent 
that this Act establishes a rule of law applicable to any such recovery 
which is inconsistent with State law. Any issue arising under this Act 
that is not governed by any such rule of law shall be governed by 
applicable State or Federal law.
    (c) Actions for Personal Injury.--This Act does not apply to a 
civil action brought for personal injury to the extent that the action 
is based on physical injury.

SEC. 4. EXCLUSIVE REMEDIES.

    (a) In General.--The remedies provided by this Act are the 
exclusive remedies available to a plaintiff in a Y2K action, except as 
may be otherwise provided in a contract to which the plaintiff and the 
defendant are parties.
    (b) Defendant's Opportunity To Fix Problem.--A Y2K action may not 
proceed to trial until--
            (1) the plaintiff has notified the defendant in writing, 
        describing the Y2K failure with particularity; and
            (2) the plaintiff has afforded the defendant the 
        opportunity, including reasonable access to computers and 
        computer software affected by the Y2K failure described in the 
        notice, to fix the problem.

SEC. 5. DAMAGES.

    (a) Economic Loss.--Except as otherwise provided in this section, 
damages awarded in a Y2K action are limited to economic loss.
    (b) Other Damages.--
            (1) In general.--Damages in a Y2K action (including 
        punitive damages) other than for economic loss may not exceed 
        the greater of--
                    (A) 3 times the amount awarded for economic loss; 
                or
                    (B) $250,000.
            (2) Special rule.--In the case of a defendant--
                    (A) who--
                            (i) is sued in his or her capacity as a 
                        individual; and
                            (ii) whose net worth does not exceed 
                        $500,000; or
                    (B) that is an unincorporated business, a 
                partnership, corporation, association, unit of local 
                government, or organization with fewer than 25 full-
                time employees,
        paragraph (1) shall be applied by substituting ``$50,000'' for 
        ``$250,000'' in subparagraph (B).
    (c) Punitive Damages.--No amount shall be awarded a plaintiff in a 
Y2K action for punitive damages--
            (1) except to the extent authorized by State law; and
            (2) unless the plaintiff proves that the economic damages 
        suffered resulted from conscious and flagrant disregard, rather 
        than mere negligence, on the part of the defendant.
    (d) Good Faith Limitation.--Damages in a Y2K action may not be 
awarded, except for economic loss, against any defendant who 
demonstrates that the defendant exercised due diligence and reasonable 
care to prevent or remedy the Y2K failure according to generally 
accepted standards of care and effort in the business activity in which 
the defendant was engaged.

SEC. 6. SEVERAL LIABILITY.

    The liability of more than 1 defendant in a Y2K action may be 
several but may not be joint.

SEC. 7. APPOINTMENT OF SPECIAL MASTERS FOR Y2K ACTIONS.

    Any District Court of the United States in which a Y2K action is 
pending may appoint a special master to hear the matter and to make 
findings of fact and conclusions of law in accordance with Rule 53 of 
the Federal Rules of Civil Procedure.

SEC. 8. LIABILITY RULES APPLICABLE TO PRODUCT SELLERS, RENTERS, AND 
              LESSORS.

    (a) General Rule.--
            (1) In general.--In any Y2K action, an information 
        technology product seller other than a manufacturer shall be 
        liable to a claimant only if the claimant establishes--
                    (A) that--
                            (i) the information technology product that 
                        allegedly caused the harm that is the subject 
                        of the complaint was sold, rented, or leased by 
                        the information technology product seller;
                            (ii) the information technology product 
                        seller failed to exercise reasonable care with 
                        respect to the information technology product; 
                        and
                            (iii) the failure to exercise reasonable 
                        care was a proximate cause of harm to the 
                        claimant;
                    (B) that--
                            (i) the information technology product 
                        seller made an express warranty applicable to 
                        the information technology product that 
                        allegedly caused the harm that is the subject 
                        of the complaint, independent of any express 
                        warranty made by a manufacturer as to the same 
                        information technology product;
                            (ii) the information technology product 
                        failed to conform to the warranty; and
                            (iii) the failure of the information 
                        technology product to conform to the warranty 
                        caused harm to the claimant; or
                    (C) that--
                            (i) the information technology product 
                        seller engaged in intentional wrongdoing, as 
                        determined under applicable State law; and
                            (ii) such intentional wrongdoing was a 
                        proximate cause of the harm that is the subject 
                        of the complaint.
            (2) Reasonable opportunity for inspection.--For purposes of 
        paragraph (1)(A)(ii), an information technology product seller 
        shall not be considered to have failed to exercise reasonable 
        care with respect to an information technology product based 
        upon an alleged failure to inspect the information technology 
        product--
                    (A) if the failure occurred because there was no 
                reasonable opportunity to inspect the information 
                technology product; or
                    (B) if the inspection, in the exercise of 
                reasonable care, would not have revealed the aspect of 
                the information technology product which allegedly 
                caused the claimant's harm.
    (b) Special Rule.--
            (1) In general.--An information technology product seller 
        shall be liable as a manufacturer of an information technology 
        product for harm caused by the information technology product 
        if--
                    (A) the manufacturer is not subject to service of 
                process under the laws of any State in which the action 
                may be brought; or
                    (B) the court determines that the claimant would be 
                unable to enforce a judgment against the manufacturer.
            (2) Statute of limitations.--For purposes of this 
        subsection only, the statute of limitations applicable to 
        claims asserting liability of an information technology product 
        seller as a manufacturer shall be tolled from the date of the 
        filing of a complaint against the manufacturer to the date that 
        judgment is entered against the manufacturer.
    (c) Rented or Leased Products.--Any person engaged in the business 
of renting or leasing an information technology product (other than a 
person that is an information technology product manufacturer or a 
seller liable as a manufacturer under paragraph (1)) shall be subject 
to liability in a Y2K action, but any person engaged in the business of 
renting or leasing an information technology product shall not be 
liable to a claimant for the acts of another solely by reason of 
ownership of such information technology product.

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