[Congressional Record Volume 144, Number 111 (Friday, August 7, 1998)]
[Extensions of Remarks]
[Page E1608]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


         INTRODUCTION OF THE YEAR 2000 READINESS DISCLOSURE ACT

                                 ______
                                 

                           HON. DAVID DREIER

                             of california

                    in the house of representatives

                        Thursday, August 6, 1998

  Mr. DREIER. Mr. Speaker, by now most Americans know about the Year 
2000 computer problem and understand that if preventive steps aren't 
taken, computer failures may cause serious problems. To mitigate the 
severity of the problem, Congress must not only act to ensure that the 
Federal Government's mission critical computers can function on January 
1, 2000, but that the private sector can use all of the tools at its 
disposal to prevent unnecessary Year 2000 computer failures. Today I've 
joined with a number of colleagues from both sides of the aisle to 
introduce a modest, targeted measure to do just that.
  I want to commend the President for calling attention to an important 
part of the Year 2000 problem for private sector firms. Many companies 
are afraid that the information they share about their Year 2000 
readiness and their efforts to become Year 2000-compliant will later be 
used against them in civil suits. While the President submitted a bill 
intended to encourage information-sharing by preventing some of this 
information from being used in subsequent suits, his proposal is 
crafted so narrowly that it really won't make any difference. The 
bipartisan ``Year 2000 Readiness Disclosure Act,'' which I introduced 
today, gives companies the liability protection they need to make 
statements about Year 2000 compliance efforts, knowing that they're not 
just pouring gasoline onto some litigation bonfire.
  The Year 2000 Readiness Disclosure Act is by no means the last word 
on the subject. I look forward to working with the administration and 
committees of jurisdiction to make it better. In particular, I would 
support language to clarify that firms working together to minimize 
Year 2000 problems and promote Y2K compliance are not in violation of 
antitrust laws. Furthermore, starting this fall and moving into next 
year, it's critical that Congress address the problem of liability for 
Year 2000 failures themselves. Legal analysts are already anticipating 
that the total litigation burden for Year 2000 failure suits will climb 
into the hundreds of billions of dollars. Congress and the President 
need to work together to make sure that companies are concentrating on 
preventing Year 2000 failures, not protecting themselves from wasteful 
suits after they've occurred.
  While I'm not an alarmist, Year 2000 failures have the potential to 
have a significant impact on the economy of the United States and the 
world. Just as a stitch in time saves nine, Congress can prevent a lot 
of headaches down the road by passing legislation that's carefully 
crafted to encourage companies to share information now.

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