[Congressional Record Volume 144, Number 96 (Friday, July 17, 1998)]
[House]
[Pages H5848-H5849]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                                Y2K BUG

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from California (Mr. Dreier) is recognized for 5 minutes.

[[Page H5849]]

  Mr. DREIER. Mr. Speaker, some computers and electronic systems will 
have difficulty adjusting to the dates beginning in the year 2000. This 
is the oft-mentioned ``Y2K'' bug. This problem is caused by a long-time 
custom in electronic industries to use 2-digit dates. Thus, 1980 was 
simply ``80'', 1990 was ``90'', and 1998 is ``98.'' However, that 
system does not work when we get to January 1, 2000. At that time, many 
machines will think it is January 1, 1900.
  There are enormous national interests at stake as we prepare to deal 
with the technical challenge of the year 2000. Critical national 
infrastructures may be threatened, including many government services, 
banking and financial services, energy and power, telecommunications, 
transportation, and vital human services such as hospitals.
  It is not surprising that Federal Government agencies include 
millions of computer and electronic systems. Led by the gentleman from 
California (Mr. Horn), the chairman of the House Committee on 
Government Reform's Subcommittee on Government Management, Information, 
and Technology, the Republican Congress has pushed long and hard to 
whip Federal agencies into action to address Y2K problems.
  Although the Federal Government faces a major Y2K challenge, the 
private sector challenge from the year 2000 transition is far greater. 
Recent congressional testimony from the Board of Governors of the 
Federal Reserve System estimated costs at roughly $50 billion, and many 
estimates go far beyond that staggering figure. And those are U.S. 
costs alone. Actually, this is an international problem, and we must 
recognize that.
  Mr. Speaker, while I am not an alarmist, I believe it is prudent for 
Congress to immediately consider legislation to help the private sector 
deal with Y2K problems. It is clear that two legislative reforms would 
effectively encourage computer-related companies and the private sector 
clients that they serve to avoid Y2K problems and reduce the impact on 
the public by, first, a limited modification of Federal liability law 
and, second, a targeted anti-trust exemption for firms working together 
to deal with Y2K problems. These reforms make up H.R. 4240, legislation 
that I introduced just yesterday called the Y2K Liability and Anti-
Trust Reform Act.

  The press is already reporting that some unscrupulous lawyers are 
planning and filing multi-billion-dollar Y2K lawsuits to reap monetary 
rewards from America's pain. It is clearly in the national interest to 
have companies focused on fixing Y2K problems rather than being frozen 
by the fear of lawsuits.
  Earlier this week, the Clinton administration proposed a pop-gun 
response to this potentially immense problem. The President proposed to 
provide a small degree of liability protection to encourage companies 
to share information on how to solve Y2K problems. Mr. Speaker, far 
more than that is needed.
  With just 17 months remaining before January 1, 2000, one of our core 
principles on Y2K policy must be to focus all relevant talent and 
energies on avoiding the problems. While the President's proposal falls 
short, the liability provisions in H.R. 4240 are the best way to 
achieve that goal.
  While talk is nice, the Y2K Liability and Anti-Trust Reform Act 
provides a real incentive for companies to solve Y2K problems before 
computer systems fail and the American people suffer.
  My legislation requires computer-related companies to take 
responsibility for products they have developed and sold. They must 
make fixes available to customers for their non-Y2K compatible hardware 
and software, and those fixes must be available cost-free for products 
sold after December 31, 1994. I am confident that freed from the fear 
of multi-billion-dollar lawsuits that the enormously creative and 
successful American high-technology industries can respond to this 
challenge.
  Companies that use computer and electronic systems must also take 
responsibility for fixing Y2K problems before things go wrong. 
Remember, Mr. Speaker, it is the American people that lose when a 
company adopts a strategy based on the plan to simply sue someone when 
things go wrong.
  Companies that use computer and electronic systems gain a similar 
degree of liability protection if they make all reasonable efforts to 
fix the Y2K problems in their systems, run a test by July 1, 1999, and 
notify all customers and the President's Y2K Commission of the 
prospects for their own Y2K failures by August 1, 1999.
  Right now, as the clock ticks towards the year 2000, too much 
private-sector energy is being wasted on legal liability strategies 
rather than finding and fixing potential failures. The liability 
provisions in H.R. 4240 will create a real incentive for companies to 
focus on finding and fixing problems, because there will be a tangible 
reward, some freedom from aggressive Y2K lawsuits.

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