[House Report 106-134]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    106-134

======================================================================



 
 PROVIDING FOR THE CONSIDERATION OF H.R. 775, YEAR 2000 READINESS AND 
                           RESPONSIBILITY ACT

                                _______
                                

May 11, 1999.--Referred to the House Calendar and ordered to be printed

                                _______


    Mr. Dreier, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 166]

    The Committee on Rules, having had under consideration 
House Resolution 166, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                  summary of provisions of resolution

    The resolution provides for the consideration of H.R. 775, 
the ``Year 2000 Readiness and Responsibility Act,'' under a 
structured rule. The rule provides one hour of general debate 
divided equally between the chairman and ranking minority 
member of the Committee on the Judiciary.
    The rule makes in order as an original bill for the purpose 
of amendment the Committee on the Judiciary amendment in the 
nature of a substitute now printed in the bill modified by the 
amendments printed in part 1 of this report. The rule also 
makes in order only those amendments printed in part 2 of this 
report.
    The rule provides that amendments made in order may be 
offered only in the order printed in the report, may be offered 
only by a Member designated in the report, shall be considered 
as read, shall be debatable for the time specified in the 
report equally divided and controlled by the proponent and an 
opponent, shall not be subject to amendment, and shall not be 
subject to a demand for division of the question in the House 
or in the Committee of the Whole.
    The rule allows the Chairman of the Committee of the Whole 
to postpone votes during consideration of the bill, and to 
reduce voting time to five minutes on a postponed question if 
the vote follows a fifteen minute vote. Finally, the rule 
provides one motion to recommit with or without instructions.

                  SUMMARY OF AMENDMENTS MADE IN ORDER

Part 1--Amendments modifying the amendment on the nature of a 
        substitute

    To modify section 303 to correct a mistake introduced into 
the text of H.R. 775 when technical and conforming changes were 
made to the bill ordered reported by the Committee.
    To strike section 304(a) relating to the Year 2000 Recovery 
Fund.

Part 2--Amendments made in order under the rule

    Davis (VA)--(20 Minutes): Defines what types of damages are 
covered under the bill thereby giving uniformity to the 
legislation, and eliminates possible confusion by courts in 
states that allow for other types of monetary awards, such as 
restitution or discouragement of profit; and changes the 
effective date from February 22, 1999 to January 1, 1999.
    Moran (VA)--(20 Minutes): Exempts all claims, 
counterclaims, cross-claims, and third party claims that arise 
out of an underlying action for personal injury.
    Jackson-Lee--(20 Minutes): Adds clarifying language that 
states that the ``particularity'' requirement in section 101 
still allows the notification to be drafted using layman's 
terms without specialized and technical details.
    Scott--(20 Minutes): Strikes Section 304 relating to 
``Damages Limitation.''
    Nadler--(20 Minutes): Strikes the section of the bill that 
limits class action lawsuits.
    Lofgren/Conyers/Boucher--(60 Minutes): Amendment in the 
Nature of a Substitute. Provides for specific pleading 
requirements, a duty to mitigate damages, and limits class 
action claims to those involving material defects; specifies 
that contracts shall be fully enforceable and that defendants 
may raise the defense of impossibility or commercial 
impracticability, notwithstanding any changes in state law 
after January 1, 1999; provides that in tort and other non-
contractual cases, there shall be a reasonable apportionment of 
liability by co-defendants and limits plaintiffs from asserting 
claims for economic damages that are not covered by contract. 
Eliminates sections that (1) created an unprecedented defense 
for undefined conduct, namely, ``reasonable efforts''; (2) 
placed various limitations and dollar caps on the collection of 
punitive damages; (3) capped the liability of officers and 
directors; (4) federalized class actions; and (5) mandated a 
``loser pays'' mechanism.

 PART 1--TEXT OF AMENDMENTS MODIFYING THE AMENDMENT IN THE NATURE OF A 
                               SUBSTITUTE

    Page 22, line 17, insert ``sold by, leased by, rented by, 
or otherwise'' after ``was''.
    Page 23, strike lines 2 through 9 and redesignate the 
succeeding subsections accordingly.

        PART 2--TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE


1. An Amendment To Be Offered by Representative Davis of Virginia, or a 
                  Designee, Debatable for 20 Minutes.

    Page 4, add the following after line 23 and redesignate 
succeeding paragraphs accordingly:
          (2) Damages.--The term ``damages'' means punitive, 
        compensatory, and restitutionary relief.
    Page 8, line 18, strike ``February 22, 1999'' and insert 
``January 1, 1999''.
                              ----------                              


2. An Amendment To Be Offered by Representative Moran of Virginia, or a 
                  Designee, Debatable for 20 minutes.

    Page 9, strike lines 3 through 5 and insert the following:
    (c) Exclusion of Personal Injury Claims.--None of the 
provisions of this Act shall apply to any claim based on 
personal injury, including any claim asserted by way of claim, 
counterclaim, cross-claim, third-party claim, or otherwise, 
that arises out of an underlying action for personal injury.
    Page 9, insert the following after line 9:
    (e) Certain Other Actions.--A person who is liable for 
damages, whether by settlement or judgment, in a claim or civil 
action to which this Act does not apply by reason of subsection 
(c) and whose liability, in whole or in part, is the result of 
a year 2000 failure may pursue any remedy otherwise available 
under Federal or State law against the person responsible for 
that year 2000 failure to the extent of recovering the amount 
of those damages. Any such remedy shall not be subject to this 
Act.
                              ----------                              


 3. An Amendment To Be Offered by Representative Jackson-Lee of Texas, 
                or a Designee, Debatable for 20 minutes.

    Page 10, line 10, strike ``Except'' and insert the 
following: ``The notice under this subsection does not require 
descriptions of technical specifications or other technical 
details with respect to the material defect at issue. Except''.
                              ----------                              


4. An Amendment To Be Offered by Representative Scott of Virginia, or a 
                   Designee, Debatable for 20 Minutes

    Page 23, strike line 1 and all that follows through page 
25, line 8, and redesignate succeeding sections, and references 
thereto, accordingly.
                              ----------                              


5. An Amendment To Be Offered by Representative Nadler of New York, or 
                  a Designee, Debatable for 20 minutes

    Strike title IV and redesignate title V, sections therein, 
and references thereto, accordingly.
                              ----------                              


6. An Amendment To Be Offered by Representative Lofgren of California, 
or Representative Conyers of Michigan, or a Designee, Debatable for 60 
                                minutes

    Strike all after the enacting clause and insert the 
following:

SECTION. 1. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Y2K 
Readiness and Remediation Act''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings, purposes, and scope.
Sec. 3. Definitions.
Sec. 4. Preemption of State law.

                       TITLE I--COOLING OFF PERIOD

Sec. 101. Notice and opportunity to cure.
Sec. 102. Out of court settlement.

            TITLE II--SPECIFIC PLEADINGS AND DUTY TO MITIGATE

Sec. 201. Pleading requirements.
Sec. 202. Duty to mitigate damages.

         TITLE III--YEAR 2000 CIVIL ACTIONS INVOLVING CONTRACTS

Sec. 301. Contract preservation.
Sec. 302. Impossibility or commercial impracticability.

       TITLE IV--YEAR 2000 CIVIL ACTIONS INVOLVING TORT AND OTHER 
                          NONCONTRACTUAL CLAIMS

Sec. 401. Fair share liability.
Sec. 402. Economic losses.

                         TITLE V--EFFECTIVE DATE

Sec. 501. Effective date.

SEC. 2. FINDINGS, PURPOSES, AND SCOPE.

  (a) Findings.--Congress finds the following:
          (1) Many information technology systems, devices, and 
        programs are not capable of recognizing certain dates 
        in 1999 and after December 31, 1999, and will read 
        dates in the year 2000 and thereafter as if those dates 
        represent the year 1900 or thereafter or will fail to 
        process those dates.
          (2) If not corrected, the year 2000 problem described 
        above and the resulting failures could incapacitate 
        systems that are essential to the functioning of 
        markets, commerce, consumer products, utilities, 
        Government, and safety and defense systems, in the 
        United States and throughout the world.
          (3) It is in the national interest that producers and 
        users of technology products concentrate their 
        attention and resources in the time remaining before 
        January 1, 2000, on assessing, fixing, testing, and 
        developing contingency plans to address any and all 
        outstanding year 2000 computer date change problems, so 
        as to minimize possible disruptions associated with 
        computer failures.
          (4) The year 2000 computer date change problems may 
        adversely affect businesses and other users of 
        technology products in a unique fashion, prompting 
        unprecedented litigation and the delays, expense, 
        uncertainties, loss of control, adverse publicity, and 
        animosities that frequently accompany litigation could 
        exacerbate the difficulties associated with the Year 
        2000 date change and compromise efforts to resolve 
        these difficulties.
  (b) Purposes.--Based upon the power contained in article I, 
section 8, clause 3 of the Constitution of the United States, 
the purposes of this Act are--
          (1) to establish uniform legal standards that give 
        all businesses and users of technology products 
        reasonable incentives to solve year 2000 computer date-
        change problems before they develop;
          (2) to encourage the resolution of year 2000 computer 
        date-change disputes involving economic damages without 
        recourse to unnecessary, time consuming, and wasteful 
        litigation; and
          (3) to lessen burdens on interstate commerce by 
        discouraging insubstantial lawsuits, while also 
        preserving the ability of individuals and businesses 
        that have suffered real injury to obtain complete 
        relief.
  (c) Scope.--Except as provided in section 201(c) or other 
provisions of this Act, this Act applies only to claims for 
commercial loss.

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Person.--The term ``person'' means any natural 
        person and any entity, organization, or enterprise, 
        including any corporation, company (including any joint 
        stock company), association, partnership, trust, or 
        governmental entity.
          (2) Plaintiff.--The term ``plaintiff'' means any 
        person who asserts a year 2000 claim.
          (3) Defendant.--The term ``defendant'' means any 
        person against whom a year 2000 claim is asserted.
          (4) Contract.--The term ``contract'' means a 
        contract, tariff, license, or warranty.
          (5) Year 2000 civil action.--The term ``year 2000 
        civil action''--
                  (A) means any civil action of any kind 
                brought in any court under Federal, State, or 
                foreign law, in which--
                          (i) a year 2000 claim is asserted; or
                          (ii) any claim or defense is related 
                        to an actual or potential year 2000 
                        failure;
                  (B) includes a civil action commenced in any 
                Federal or State court by a department, agency, 
                or instrumentality of the United States 
                government or of a State government when acting 
                in a commercial or contracting capacity; but
                  (C) does not include any action brought by a 
                Federal, State, or other public entity, agency, 
                or authority acting in a regulatory, 
                supervisory, or enforcement capacity.
          (6) Year 2000 claim.--The term ``year 2000 claim'' 
        means any claim or cause of action of any kind, whether 
        asserted by way of claim, counterclaim, cross-claim, 
        third-party claim, or otherwise, in which the 
        plaintiff's alleged loss or harm resulted from an 
        actual or potential year 2000 failure.
          (7) Year 2000 failure.--The term ``year 2000 
        failure'' means any failure by any device or system 
        (including any computer system and any microchip or 
        integrated circuit embedded in another device or 
        product), or any software, firmware, or other set or 
        collection of processing instructions, however 
        constructed, in processing, calculating, comparing, 
        sequencing, displaying, storing, transmitting, or 
        receiving year 2000 date related data, including 
        failures--
                  (A) to administer accurately or account for 
                transitions or comparisons from, into, and 
                between the 20th and 21st centuries, and 
                between 1999 and 2000;
                  (B) to recognize or process accurately any 
                specific date, or to account accurately for the 
                status of the year 2000 as a leap year, 
                including recognition and processing of the 
                correct date on February 29, 2000.
          (8) Material defect.--
                  (A) In general.--The term ``material defect'' 
                means a defect in any item, whether tangible or 
                intangible, or in the provision of a service, 
                that substantially prevents the item or service 
                from operating or functioning as designed or 
                intended.
                  (B) Exclusions.--The term does not include 
                any defect that--
                          (i) has an insignificant or de 
                        minimis effect on the operation or 
                        functioning of an item;
                          (ii) affects only a component of an 
                        item that, as a whole, substantially 
                        operates or functions as designed; or
                          (iii) has an insignificant or de 
                        minimis effect on the efficacy of the 
                        service provided.
          (9) Economic loss.--The term ``economic loss''--
                  (A) means any damages other than damages 
                arising out of personal injury or damage to 
                tangible property; and
                  (B) includes damages for--
                          (i) lost profits or sales;
                          (ii) business interruption;
                          (iii) losses indirectly suffered as a 
                        result of the defendant's wrongful act 
                        or omission;
                          (iv) losses that arise because of the 
                        claims of third parties;
                          (v) losses that are required to be 
                        pleaded as special damages; or
                          (vi) items defined as consequential 
                        damages in the Uniform Commercial Code 
                        or an analogous State commercial law.
          (10) Personal injury.--The term ``personal injury'' 
        means physical injury to a natural person, including --
                          (i) death as a result of a physical 
                        injury; and
                          (ii) mental suffering, emotional 
                        distress, or similar injuries suffered 
                        by that person in connection with a 
                        physical injury.
          (11) State.--The term ``State'' means any State of 
        the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Northern Mariana 
        Islands, the United States Virgin Islands, Guam, 
        American Samoa, and any other territory or possession 
        of the United States, and any political subdivision 
        thereof.
          (12) Alternative dispute resolution.--The term 
        ``alternative dispute resolution'' means any process or 
        proceeding, other than adjudication by a court or in an 
        administrative proceeding, to assist in the resolution 
        of issues in controversy, through processes such as 
        early neutral evaluation, mediation, minitrial, and 
        arbitration.
          (13) Commercial loss.--The term ``commercial loss'' 
        means any loss or harm incurred by a plaintiff in the 
        course of operating a business enterprise that provides 
        goods or services for remuneration, if the loss or harm 
        is to the business enterprise.

SEC. 4. PREEMPTION OF STATE LAW.

  Except as otherwise provided in this Act, this Act supersedes 
State law to the extent that it establishes a rule of law 
applicable to a year 2000 claim that is inconsistent with State 
law.

                      TITLE I--COOLING OFF PERIOD

SEC. 101. NOTICE AND OPPORTUNITY TO CURE.

  (a) Notice of Cooling Off Period.--
          (1) In general.--Before filing a year 2000 claim, 
        except an action for a claim that seeks only injunctive 
        relief, a prospective plaintiff shall be required to 
        provide to each prospective defendant a verifiable 
        written notice that identifies and describes with 
        particularity, to the extent possible before 
        discovery--
                  (A) any manifestation of a material defect 
                alleged to have caused injury;
                  (B) the injury allegedly suffered or 
                reasonably risked by the prospective plaintiff; 
                and
                  (C) the relief or action sought by the 
                prospective plaintiff.
          (2) Commencement of action.--Except as provided in 
        subsections (c) and (e), a prospective plaintiff shall 
        not file a year 2000 claim in Federal or State court 
        until the expiration of the 90-day period beginning on 
        the date on which the prospective plaintiff provides 
        notice under paragraph (1).
  (b) Response to Notice.--Not later than 30 days after receipt 
of the notice specified in subsection (a), each prospective 
defendant shall provide each prospective plaintiff a written 
statement that--
          (1) acknowledges receipt of the notice; and
          (2) describes any actions that the defendant will 
        take, or has taken, to address the defect or injury 
        identified by the prospective plaintiff in the notice.
  (c) Failure to Respond.--If a prospective defendant fails to 
respond to a notice provided under subsection (a)(1) during the 
30-day period prescribed in subsection (b) or does not include 
in the response a description of actions referred to in 
subsection (b)(2)--
          (1) the 90-day waiting period identified in 
        subsection (a) shall terminate at the expiration of the 
        30-day period specified in subsection (b) with respect 
        to that prospective defendant; and
          (2) the prospective plaintiff may commence a year 
        2000 civil action against such prospective defendant 
        immediately upon the termination of that waiting 
        period.
  (d) Failure to Provide Notice.--
          (1) In general.--Subject to subsections (c) and (e), 
        a defendant may treat a complaint filed by the 
        plaintiff as a notice required under subsection (a) by 
        so informing the court and the plaintiff if the 
        defendant determines that a plaintiff has commenced a 
        year 2000 civil action--
                  (A) without providing the notice specified in 
                subsection (a); or
                  (B) before the expiration of the waiting 
                period specified in subsection (a).
          (2) Stay.--If a defendant elects under paragraph (1) 
        to treat a complaint as a notice--
                  (A) the court shall stay all discovery and 
                other proceedings in the action for the period 
                specified in subsection (a) beginning on the 
                date of filing of the complaint; and
                  (B) the time for filing answers and all other 
                pleadings shall be tolled during the applicable 
                period.
  (e) Effect of Waiting Periods.--In any case in which a 
contract, or a statute enacted before March 1, 1999, requires 
notice of nonperformance and provides for a period of delay 
before the initiation of suit for breach or repudiation of 
contract, the contractual period of delay controls and shall 
apply in lieu of the waiting period specified in subsections 
(a) and (d).
  (f) Sanction for Frivolous Invocation of The Stay 
Provision.--If a defendant acts under subsection (d) to stay an 
action, and the court subsequently finds that the assertion by 
the defendant that the action is a year 2000 civil action was 
frivolous and made for the purpose of causing unnecessary 
delay, the court may impose a sanction, including an order to 
make payments to opposing parties in accordance with Rule 11 of 
the Federal Rules of Civil Procedure or applicable State rules 
of civil procedure.
  (g) Computation of Time.--For purposes of this section, the 
rules regarding computation of time shall be governed by the 
applicable Federal or State rules of civil procedure.
  (h) Single Period.--With respect to any year 2000 claim--
          (1) to which subsection (c)(2) regarding commencement 
        of actions applies, or
          (2) to which subsection (d)(2) requiring stays 
        applies,
only one waiting period, not exceeding 90 days, shall be 
accorded to the parties.
  (i) Applicability of Statutes of Limitations.--Any applicable 
statute of limitations shall toll during the period during 
which a claimant has filed notice under subsection (a).

SEC. 102. OUT OF COURT SETTLEMENT.

  (a) Requests Made During Notification (Cooling Off) Period.--
At any time during the 90-day notification period under section 
101(a), either party may request the other party to use 
alternative dispute resolution. If, based upon that request, 
the parties enter into an agreement to use alternative dispute 
resolution, the parties may also agree to an extension of that 
90-day period.
  (b) Request Made After Notification Period.--At any time 
after expiration of the 90-day notification period under 
section 101(a), whether before or after the filing of a 
complaint, either party may request the other party to use 
alternative dispute resolution.
  (c) Payment Date.--If a dispute that is the subject of the 
complaint or responsive pleading is resolved through 
alternative dispute resolution as provided in subsection (a) or 
(b), the defendant shall pay any amount of funds that the 
defendant is required to pay the plaintiff under the settlement 
not later than 30 days after the date on which the parties 
settle the dispute, and all other terms shall be implemented as 
promptly as possible based upon the agreement of the parties, 
unless another period of time is agreed to by the parties or 
established by contract between the parties.

           TITLE II--SPECIFIC PLEADINGS AND DUTY TO MITIGATE

SEC. 201. PLEADING REQUIREMENTS.

  (a) Nature and Amount of Damages.--In any year 2000 civil 
action in which a plaintiff seeks an award of money damages, 
the complaint shall state with particularity to the extent 
possible before discovery with regard to each year 2000 claim--
          (1) the nature and amount of each element of damages; 
        and
          (2) the factual basis for the calculation of the 
        damages.
  (b) Material Defects.--In any year 2000 civil action in which 
the plaintiff alleges that a product or service was defective, 
the complaint shall, with respect to each year 2000 claim--
          (1) identify with particularity the manifestations of 
        the material defects; and
          (2) state with particularity the facts supporting the 
        conclusion that the defects were material.
  (c) Material Defects in Class Action Minimum Injury 
Requirement.--In any year 2000 civil action involving a year 
2000 claim that a product or service is defective, the action 
may be maintained as a class action in Federal or State court 
with respect to that claim only if--
          (1) the claim satisfies all other prerequisites 
        established by applicable Federal or State law; and
          (2) the court finds that the alleged defect in the 
        product or service was a material defect with respect 
        to a majority of the members of the class.
This subsection applies to year 2000 claims for commercial loss 
and to year 2000 claims for loss or harm other than commercial 
loss.
  (d) Motion to Dismiss; Stay of Discovery.--
          (1) Dismissal for failure to meet pleading 
        requirements.--In any year 2000 civil action, the court 
        shall, on the motion of any defendant, dismiss without 
        prejudice any year 2000 claim asserted in the complaint 
        if any of the requirements under subsection (a), (b), 
        or (e) is not met with respect to the claim.
          (2) Stay of discovery.--Subject to the 90-day single 
        period provisions of section 101(h), in any year 2000 
        civil action, all discovery and other proceedings shall 
        be stayed during the pendency of any motion pursuant to 
        this subsection to dismiss, unless the court finds upon 
        the motion of any party that particularized discovery 
        is necessary to preserve evidence or prevent undue 
        prejudice to that party.
          (3) Preservation of evidence.--
                  (A) In general.--
                          (i) Treatment of evidence.-- During 
                        the pendency of any stay of discovery 
                        entered under paragraph (2), unless 
                        otherwise ordered by the court, any 
                        party to the action shall treat the 
                        items described in clause (ii) as if 
                        they were a subject of a continuing 
                        request for production of documents 
                        from an opposing party under applicable 
                        Federal or State rules of civil 
                        procedure.
                          (ii) Items.--The items described in 
                        this clause are all documents, data 
                        compilations (including electronically 
                        stored or recorded data), and tangible 
                        objects that--
                                  (I) are in the custody or 
                                control of the party described 
                                in clause (i); and
                                  (II) are relevant to the 
                                allegations.
                  (B) Sanction for willful violation.--A party 
                aggrieved by the willful failure of an opposing 
                party to comply with subparagraph (A) may apply 
                to the court for an order awarding appropriate 
                sanctions.

SEC. 202. DUTY TO MITIGATE DAMAGES.

  Damages awarded for any year 2000 claim shall exclude any 
amount that the plaintiff reasonably should have avoided in 
light of any disclosure or information provided to the 
plaintiff by defendant.

         TITLE III--YEAR 2000 CIVIL ACTIONS INVOLVING CONTRACTS

SEC. 301. CONTRACT PRESERVATION.

  (a) In General.--Subject to subsection (b), in resolving any 
year 2000 claim each written contractual term, including any 
limitation or exclusion of liability or disclaimer of warranty, 
shall be strictly enforced, unless the enforcement of that term 
would contravene applicable State law as of January 1, 1999.
  (b) Interpretation of Contract.--In any case in which a 
contract under subsection (a) is silent with respect to a 
particular issue, the interpretation of the contract with 
respect to that issue shall be determined by applicable law in 
effect at the time that the contract was entered into.

SEC. 302. IMPOSSIBILITY OR COMMERCIAL IMPRACTICABILITY.

  (a) In General.--In any year 2000 civil action in which a 
year 2000 claim is advanced alleging a breach of contract or 
related claim, in resolving that claim applicability of the 
doctrines of impossibility and commercial impracticability 
shall be determined by applicable law in existence on January 
1, 1999.
  (b) Rule of Construction.--Nothing in this Act shall be 
construed as limiting or impairing a party's right to assert 
defenses based upon the doctrines referred to in subsection 
(a).

      TITLE IV--YEAR 2000 CIVIL ACTIONS INVOLVING TORT AND OTHER 
                         NONCONTRACTUAL CLAIMS

SEC. 401. FAIR SHARE LIABILITY.

  (a) General Rule.--Subject to subsection (d), in any year 
2000 civil action, the liability of each tort feasor or 
noncontractual defendant shall be joint and several, subject to 
the court's equitable discretion to determine, following upon a 
finding of proportional responsibility, that the liability of a 
tort feasor or noncontractual defendant (as the case may be) of 
minimal responsibility shall be several only and not joint.
  (b) Amount of Liability.--Each defendant that is severally 
liable in a year 2000 civil action shall be liable only for the 
amount of loss allocated to the defendant in direct proportion 
to the percentage of responsibility of the defendant 
(determined in accordance with subsection (c)) for such harm.
  (c) Determination of Responsibility.--
          (1) In general.--In any year 2000 civil action, the 
        court shall instruct the jury to answer special 
        interrogatories, or if there is no jury, make findings, 
        with respect to each defendant and plaintiff, and each 
        of the other persons claimed by any of the parties to 
        have caused or contributed to the loss incurred by the 
        plaintiff, including persons who have entered into 
        settlements with the plaintiff or plaintiffs, 
        concerning the percentage of responsibility of that 
        person, measured as a percentage of the total fault of 
        all persons who caused or contributed to the total loss 
        incurred by the plaintiff.
          (2) Contents of special interrogatories or 
        findings.--The responses to interrogatories, or 
        findings, as appropriate, under paragraph (1) shall 
        specify--
                  (A) the total amount of damages that the 
                plaintiff is entitled to recover; and
                  (B) the percentage of responsibility of each 
                person found to have caused or contributed to 
                the loss incurred by the plaintiff or 
                plaintiffs.
          (3) Factors for consideration.--In determining the 
        percentage of responsibility under this paragraph, the 
        trier of fact shall consider--
                  (A) the nature of the conduct of each person 
                alleged to have caused or contributed to the 
                loss incurred by the plaintiff; and
                  (B) the nature and extent of the causal 
                relationship between the conduct of each such 
                person and the damages incurred by the 
                plaintiff or plaintiffs.
  (d) Special Rules for Joint Liability.--
          (1) In general.--Notwithstanding subsection (a), in 
        any case the liability of a defendant to which 
        subsection (a) applies in a year 2000 civil action is 
        joint and several if the trier of fact specifically 
        determines that the defendant --
                  (A) acted with specific intent to injure the 
                plaintiff; or
                  (B) knowingly committed fraud.
          (2) Knowing commission of fraud described.--For 
        purposes of paragraph 1(B), a defendant knowingly 
        committed fraud if the defendant--
                  (A) made an untrue statement of a material 
                fact, with actual knowledge that the statement 
                was false;
                  (B) omitted a fact necessary to make the 
                statement not be misleading, with actual 
                knowledge that, as a result of the omission, 
                the statement was false; and
                  (C) knew that the plaintiff was reasonably 
                likely to rely on the false statement.
          (3) Recklessness.--For purposes of paragraph (1), 
        reckless conduct by the defendant does not constitute 
        either a specific intent to injure, or the knowing 
        commission of fraud, by the defendant.
  (e) Contribution.--A defendant who is jointly and severally 
liable for damages in a year 2000 civil action may recover 
contribution for such damages from any other person who, if 
joined in the original action, would have been liable for the 
same damages. A claim for contribution shall be determined 
based on the percentage of responsibility of the claimant and 
of each person against whom a claim for such contribution is 
made.
  (f) Statute of Limitations for Contribution.--An action for 
contribution under subsection (e) in connection with a year 
2000 civil action may not be brought later than six months 
after the entry of a final, nonappealable judgment in the year 
2000 civil action.

SEC. 402. ECONOMIC LOSSES.

  (a) In general.--Subject to subsection (b), a party to a year 
2000 civil action may not recover economic losses for a year 
2000 claim advanced in the action that is based on tort unless 
the party is able to show that at least one of the following 
circumstances exists:
          (1) The recovery of these losses is provided for in 
        the contract to which the party seeking to recover such 
        losses is a party.
          (2) If the contract is silent on those losses, and 
        the application of the applicable Federal or State law 
        that governed interpretation of the contract at the 
        time the contract was entered into would allow recovery 
        of such losses.
          (3) These losses are incidental to a claim in the 
        year 2000 civil action based on personal injury caused 
        by a year 2000 failure.
          (4) These losses are incidental to a claim in the 
        year 2000 civil action based on damage to tangible 
        property caused by a year 2000 failure.
  (b) Treatment of Economic Losses.--Economic losses shall be 
recoverable in a year 2000 civil action only if applicable 
Federal law, or applicable State law embodied in statute or 
controlling judicial precedent as of January 1, 1999, permits 
the recovery of such losses in the action.

                        TITLE V--EFFECTIVE DATE

SEC. 501. EFFECTIVE DATE.

  This Act and the amendments made by this Act shall take 
effect on the date of enactment of this Act.

                                  
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