[House Document 105-306]
[From the U.S. Government Publishing Office]



105th Congress, 2d Session - - - - - - - - - - - House Document 105-306


 
 EMERGENCY FUNDING FOR YEAR 2000 (Y2K) COMPUTER CONVERSION ACTIVITIES

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 A REQUEST TO CONGRESS TO CONSIDER EXPEDITIOUSLY THE REQUEST FOR $3.25 
  BILLION IN FY 1998 CONTINGENT EMERGENCY FUNDING FOR YEAR 2000 (Y2K) 
                     COMPUTER CONVERSION ACTIVITIES





 September 11, 1998.--Referred to the Committee on Appropriations and 
                         ordered to be printed


                                           The White House,
                                     Washington, September 2, 1998.
The Speaker of the House of Representatives.
    Sir: I ask Congress to consider expeditiously the enclosed 
request for $3.25 billion in FY 1998 contingent emergency 
funding for year 2000 (Y2K) computer conversion activities.
    My FY 1999 Budget requested more than $1 billion for known 
requirements associated with Y2K computer conversion. In 
addition, the budget anticipated that requirements would emerge 
over the course of the year and included an allowance to 
provide flexible funding to address emerging needs. In fact, 
additional needs for immediate one-time funding have been 
arising, as anticipated. As more is learned about how to 
address the Y2K problem, it will be essential to make the 
necessary resources available quickly.
    I support the Senate Appropriations Committee's action to 
create a contingent emergency funding provision for Y2K 
computer conversion requirements. This is consistent with my 
budget. This supplemental request would create a funding 
mechanism that is consistent with the Senate Appropriations 
Committee's action to provide the resources and the flexibility 
necessary to respond to critical unanticipated requirements.
    The details of this request are set forth in the enclosed 
letter from the Director of the Office of Management and 
Budget. I concur with his comments and observations.
            Sincerely,
                                                William J. Clinton.
    Enclosure.

                 Estimate No. 13, 105th Cong. 2nd Sess.

                 Executive Office of the President,
                           Office of Management and Budget,
                                 Washington, DC, September 2, 1998.
The President,
The White House.
    Submitted for your consideration is a request for an FY 
1998 supplemental appropriation that would provide $3.25 
billion in contingent emergency funding to address needs 
associated with year 2000 (Y2K) computer conversion activities.
    As you have directed, your Administration is committed to 
ensuring that computer systems Government-wide correctly 
process the year 2000. The FY 1999 Budget requested more that 
$1 billion for Y2K computer conversion. In addition, the budget 
anticipated that additional requirements would emerge over the 
course of the year and included an allowance for emergencies 
and other unanticipated needs. As we learn more about how to 
address the critical Y2K problem, ensuring Government-wide 
compliance will require flexibility to respond to unanticipated 
requirements. To the extent such unanticipated requirements are 
identified, it will be essential to make that funding available 
quickly. Accordingly, this proposal for a contingent emergency 
funding mechanism would provide the resources and the 
flexibility necessary to respond quickly to unanticipated Y2K 
conversion requirements.
    The funds would be made available only upon your 
transmittal of official budget requests to Congress designating 
the specific amounts requested as emergency requirements 
pursuant to section 251(b)(2)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended. This 
proposed supplemental would also require that OMB prepare and 
submit reports to Congress on the proposed allocation and plan 
for each affected Department and Agency to achieve year 2000 
compliance for technology information systems before funds 
could be released to the affected Departments or Agencies.
    The Senate Committee version of the FY 1999 Treasury and 
General Government Appropriations Bill contains a similar 
contingent emergency funding provision for Y2K computer 
conversion requirements that is consistent with the allowance 
included in your budget request. The proposed FY 1998 
supplemental is being requested now so that the emergency 
funding can be enacted promptly, thereby avoiding the risk of 
any interruption in Y2K work by the agencies and their 
contractors. This would ensure that the critical funding would 
be available promptly and avoid any delays or disruptions in 
agency efforts to address this problem in fiscal year 1999.
    I have carefully reviewed this proposal and am satisfied 
that it is necessary at this time. Accordingly, I join the 
Chair of the President's Council on year 2000 conversion in 
recommending that you transmit the proposal to Congress.
            Sincerely,
                                            Jacob J. Lew, Director.
    Enclosure.


                      FY 1998 SUPPLEMENTAL REQUEST

         Executive Office of the President--Unanticipated Needs

Information Technology Systems and Related Expenses (Including Transfer 
                               of Funds)

    For emergency expenses related to year 2000 conversion of 
Federal information technology systems, and related expenses, 
$3,250,000,000, to remain available until September 30, 2001. 
Provided further, That the funds made available shall be 
transferred, as necessary, by the Director of the Office of 
Management and Budget to all affected Federal Departments and 
Agencies for expenses necessary to ensure the information 
technology that is used or acquired by the Federal Government 
meets the definition of Year 2000 compliant under Federal 
Acquisition Regulations (concerning accurate processing of 
date/time data, including calculating, comparing, and 
sequencing from, into, and between the twentieth and twenty-
first centuries, and the years 1999 and 2000 and leap year 
calculations) and to meet other criteria for the year 2000 
compliance as the head of each Department or Agency considers 
appropriate. Provided further, That none of the funds provided 
under this heading may be transferred to any Department or 
Agency until the Director of the Office of Management and 
Budget has submitted to the House and Senate Committees on 
Appropriations and the Senate Special Committee on the Year 
2000 Technology Problem a proposed allocation and plan for that 
Department or Agency to achieve year 2000 compliance for 
technology information systems. Provided further, That the 
transfer authority provided in this paragraph is in addition to 
any other transfer authority contained elsewhere in this or any 
other Act: Provided further, That funds provided under this 
heading shall be in addition to funds available in this or any 
other Act for year 2000 compliance by any Federal Department or 
Agency: Provided further, That the $3,250,000,000 shall be 
available only to the extent that an official budget request 
that includes designation of the entire amount of the request 
as an emergency requirements as defined in the Balanced Budget 
and Emergency Deficit Control Act of 1985, as amended, is 
transmitted by the President to Congress: Provided further, 
That the $3,250,000,000 is designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of such 
Act.
    This request would provide the resources and the 
flexibility necessary for the President to respond quickly to 
unanticipated requirements associated with year 2000 (Y2K) 
computer conversion activities.
    The FY 1999 Budget requested more than $1 billion for Y2K 
computer conversion. In addition, the budget anticipated that 
additional requirements would emerge over the course of the 
year and included an allowance for emergencies and other 
unanticipated needs. It is expected that ensuring Government-
wide Y2K compliance will require flexibility to respond to 
unanticipated requirements. To the extent such unanticipated 
requirements are identified, this request for contingent 
emergency funding will enable the resources to be made 
available quickly.

                                
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