[Congressional Record Volume 144, Number 118 (Wednesday, September 9, 1998)]
[Extensions of Remarks]
[Page E1666]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 FIXING THE YEAR 2000 COMPUTER PROBLEM

                                 ______
                                 

                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                      Wednesday, September 9, 1998

  Mr. HAMILTON. Mr. Speaker, I would like to insert my Washington 
Report for Wednesday, August 26, 1998 into the Congressional Record. 

                 Fixing The Year 2000 Computer Problem

       Much has been written in recent months about the so-called 
     Year 2000 computer problem. The difficulty arises because the 
     computer software coded to mark the years uses only two 
     digits. If the appropriate adjustments are not made when New 
     Years 2000 rolls around, many of these systems will jump back 
     to the year 1900, causing disruptions in government and 
     private sector operations, here and abroad.
       Not many people talk to me about their fears of chaos in 
     the world's computer systems in the year 2000. I suspect that 
     most people don't take those fears too seriously and simply 
     believe that the technicians can solve it. But with the year 
     2000 now only about five hundred days away, it has become 
     clear that the United States needs to move more quickly to 
     address the problem. Federal and state governments as well as 
     businesses are making progress, but more needs to be done if 
     we are to avoid significant disruptions in our economy.


                              The problem

       The Year 2000 problem, also known as Y2K or the Millennium 
     bug, has become an important issue in the past few years. The 
     cause of the concern is that many computers store dates using 
     two-digit numbers rather than four: 98 for 1998 and 00 for 
     2000. This makes 2000 indistinguishable from 1900, causing 
     date sensitive systems to malfunction or stop working 
     completely. Government agencies, private sector businesses, 
     and individuals all face significant problems if their 
     computer systems are not Y2K compliant. The breakdowns could 
     be minor, but they could also disable air traffic control 
     systems, financial networks, power grids, hospitals, home 
     appliances and many other computer systems.
       The Year 2000 problem can be fixed by the time-consuming 
     and costly process of checking each program for potential 
     errors. Millions of lines of software code must be renovated 
     for every computer system. In addition, billions of embedded 
     chips currently in use must be inspected for Y2K compliance, 
     and an estimated 1-5% of those chips will probably have to be 
     replaced. No universal solution can be created to fix each 
     system, and nobody knows how much it will cost to solve the 
     problem. One estimate is that U.S. businesses will spend $50-
     300 billion and that the U.S. government will have to spend 
     $5-30 billion to fix its computers. The worldwide bill for 
     this massive repair effort may come between $300-600 billion. 
     Correcting the problem will be further complicated by the 
     fact that computer systems are increasingly interconnected--
     so that even if, for example, a major business fixes its 
     computers, those very systems could break down as they 
     interact with customers, clients and suppliers whose systems 
     have not been fixed.


                         governmental response

       The federal government has taken an active role in Y2K 
     repairs for its own systems. Federal agencies maintain many 
     computer systems that manage large databases, conduct 
     electronic monetary transactions, and control numerous 
     interactions with other computer systems. The primary focus 
     is to fix all of the 7,300 ``mission-critical'' systems 
     necessary to continue these activities. A recent report 
     concluded that 55% of the repair work is complete, but 
     progress varies greatly by agency. The Social Security 
     Administration expects to be ready for the year 2000 by 
     January 1999 to ensure that Social Security checks continue 
     to go out on time. Other agencies are expected to be on a 
     tight schedule to meet the year 2000 deadline, and still 
     others will probably not make it.
       State and local governments are generally acting more 
     slowly in response to the Y2K problem. Some states have begun 
     planning Y2K conversions, but last year only 19 were 
     beginning to implement the plans. Many localities are not 
     emphasizing Y2K repairs, either for a lack of resources or 
     awareness. Experts warn that state and local computer 
     systems, even if repaired, may not be compatible with federal 
     systems or may contaminate Y2K compliant systems with non-Y2K 
     compliant data. In 1997, state and federal officials met to 
     develop a set of standard practices to minimize risks 
     involved in intergovernmental data exchanges. Several local 
     government associations have also launched an awareness 
     campaign to aid lagging localities.


                        Private sector response

       Businesses will also have to become Y2K compliant if they 
     are to avoid disruptions in their operations and transactions 
     with governments and other private entities. The federal 
     government is working actively with certain critical 
     industries, including transportation, communications, health 
     care, and financial institutions, to meet government 
     standards in Y2K compliance. The Federal Reserve Board is 
     preparing for the worst case scenario but is expecting most 
     major banks to be Y2K compliant by the new millennium.
       Current estimates suggest that 85% of industrial software 
     will be fixed or replaced by the year 2000, at a total cost 
     of at least $300 billion. Congress is considering several 
     measures to help the private sector address the Y2K problem. 
     One bill seeks to promote open sharing of information about 
     Y2K solutions by protecting those businesses that share 
     information in good faith from lawsuits. Another measure 
     would seek to limit the liability that a company can face if 
     its products are not year 2000 compliant.


                       Effect on private citizens

       The Y2K problem also may present difficulties for the 
     average citizen. Many electronic devices, including 
     automobiles, cameras, televisions, and cellular phones, are 
     not expected to cause problems. There may, however, be 
     problems, with fax machines, pagers, telephones, video 
     recorders, and especially personal computers. The Y2K 
     compatibility of personal computer software varies by the 
     program, so consumers are advised to call the manufacturer to 
     find out about specific programs and insist on in-store tests 
     when purchasing new software. Experts also suggest that 
     consumers keep accurate records of finances and investments 
     in the event that a computer error occurs at your bank or the 
     IRS.


                               Conclusion

       The federal government has been slow to recognize the 
     seriousness of the problem. Initial warnings came in 1989 
     that the world was headed for a computer crisis, but it was 
     not until the mid-1990s, after much prompting from Congress, 
     that many federal agencies began to move, first from an 
     awareness of the problem, then to an assessment of it, and 
     now to the correction of it. The federal government will not 
     be able to guarantee that every computer can be fixed on 
     time, but it is beginning to manage the risks. The government 
     and industry have many improvements to make before the year 
     2000. While the task is large and tedious, our computers must 
     be Y2K compliant for the electronics aspects of life to 
     continue as normal.

     

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