[Congressional Record Volume 144, Number 147 (Thursday, October 15, 1998)]
[Senate]
[Pages S12643-S12644]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             Y2K CHALLENGE

  Mr. DeWINE. Mr. President, almost everyone has heard of the impending 
``Year 2000'' or ``Y2K'' problem, also commonly known as the 
``millennium bug.'' The problem itself is fairly simple. In the early 
years of computers, programmers set aside only two digits to denote the 
year in dates. To the ``minds'' behind computers and other technology-
driven devices, the year 2000 is indistinguishable from the year 1900. 
The problem is present in billions of lines of software as well as 
billions of small computer chips embedded in electronic devices used by 
Americans every day. Without the necessary checks to ensure that 
electronic devices can operate by January 1, 2000, the impact of this 
computer bug could be wide-ranging and even disastrous. Household 
gadgets like garage door openers or VCRs could break down. Traffic 
delays could be caused by non-complaint traffic lights. Stock exchanges 
and nuclear reactors could shut down.
  Although the problem is easy to describe, it has proven difficult and 
time-consuming to solve. To make the necessary corrections, each line 
of computer code must be hand-checked by a computer programmer, and all 
computer chips must be tested. In the United States alone, it is 
estimated that it will cost over $600 billion to correct the millions 
of lines of computer program code. Not only are these corrections 
expensive, the process of analyzing, correcting, testing and 
integrating software and hardware has become a heavy management burden 
on all levels of government as well as the private sector.
  Although the federal government has been working to meet the time 
constraints of the Y2K deadline, the General Accounting Office has 
found that problems still remain with computer systems at every federal 
agency they examined. Overall, it is estimated that the federal 
government must check at least 7,336 mission critical computer systems. 
Some larger systems, those used by the Internal Revenue Service, for 
example, have more than 60 lines of code per system. The Office of 
Management and Budget has established an interagency committee to 
facilitate federal efforts to instruct each federal agency on the best 
possible solutions.

  Some federal agencies are closer to achieving Y2K compliance than 
others. The Treasury Department's Financial Management Service, 
responsible for paying Social Security disability and retirement 
benefits, Veterans' benefits, and IRS refunds, installed two new Y2K 
compliant systems earlier this month. Treasury Department officials are 
confident they will be ready and checks will arrive on time.
  The Federal Aviation Administration is among the agencies furthest 
behind in this process. This is of particular concern to me. A recent 
survey by the Air Transport Association of America shows that 35 
percent of our nation's airports surveyed do not yet have a Y2K plan 
and that only 20 of 81 of our country's larger airports are on schedule 
to fix their Y2K problems. Although FAA officials testified that they 
will, in fact, be fully compliant by the end of June 1999, this will 
not give their administrators much time for testing the updated 
systems. The Transportation Department is prepared to shut down unsafe 
aviation systems domestically and will be working with the State 
Department to access the safety of international systems so they will 
be ready to stop flights to unsafe airports. Unless we can accelerate 
Y2K compliance at our airports, the rippling Y2K effect on air travel 
could make air travel inconvenient and costly to the American traveler.
  During this session of Congress, we have devoted a great deal of 
attention to the Y2K challenge. A special Senate Subcommittee on Y2K, 
headed by our colleague from Utah, Senator Robert Bennett, held several 
hearings to raise awareness of this problem and to discuss possible 
solutions. To expedite the federal government's efforts to correct

[[Page S12644]]

all agency computer systems, last year Congress provided $86 million to 
perform Y2K updates at the Federal Aviation Administration, the 
Treasury Department and the Health Care Financing Administration. This 
fall, Congress is expected to provide another $3.25 billion in 
emergency funding to ensure the federal government can fully meet the 
Y2K challenge.
  We also need to encourage companies, large and small, to meet this 
challenge. During congressional hearings, representatives from the 
private sector discussed hesitancy to disclose any information about 
their own Y2K progress. Companies are reluctant to work together based 
almost entirely on fears of potential litigation and legal liabilities. 
For example, in my state of Ohio, NCR, a world-wide provider of 
information technology solutions, has been working on Y2K solutions 
since 1996. NCR made valuable progress in research on its own 
preparedness for Y2K and in finding solutions to help other businesses 
prepare for the millennium. Unfortunately, they were hesitant to 
deliver these statements for fear that they would be sued. In order to 
encourage the private sector to share valuable information and 
experiences, these lines of communication need to be open. Congress 
recently passed legislation, S. 2392, to encourage companies to freely 
discuss potential Y2K problems, solutions, test results and readiness 
amongst themselves. This law will provide businesses the temporary 
protection from lawsuits regarding statements made about Y2K.

  As the chairman of the Antitrust, Business Rights and Competition 
Subcommittee, I am usually reluctant to support any exemption from our 
antitrust laws. As a general proposition it is very important that 
these laws apply broadly to all sectors of the economy to protect 
consumers and allow businesses to operate in an environment of fair and 
rigorous competition. However, I do support the narrow, temporary 
exemption passed by Congress as a part of our overall effort to address 
the Y2K problem.
  This exemption does not cover conduct such as price fixing or group 
boycotts. Even with these important limitations this antitrust 
exemption should provide significant protection for those who might 
otherwise be reluctant to pool resources and share information.
  S. 2392 is crucial to opening the lines of communication between 
companies, particularly those in the utility and telecommunications 
industries, which were cited by the Senate Y2K Subcommittee as its top 
priority for review. This legislation will be a giant step in 
implementing Y2K solutions. Not only will the bill promote discussion, 
it will also establish a single government website for access to Y2K 
information.
  Mr. President, both the supplemental spending and information sharing 
bills represent the kind of effort we need to meet the Y2K challenge. 
Without question, we are in an era of rapid communication and 
innovation, and the role computer technology plays in our daily lives 
is a constant reminder of this fact. Now, with this technology at risk 
of disrupting our lives as we usher in a new century and millennium, 
our ability to both communicate and to innovate will be put to the test 
over the next 14 months. It will take a combined effort from the public 
and private sector to pass this test.

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