HR 192 IH

To establish judicial and administrative proceedings for the resolution of year 2000 processing failures.

January 6, 1999

Mr. MANZULLO (for himself, Mr. DELAY, and Mr. DREIER) introduced the following bill; which was referred to the Committee on the Judiciary

To establish judicial and administrative proceedings for the resolution of year 2000 processing failures.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Year 2000 Consumer Protection Plan Act of 1999'.

SEC. 2. DEFINITIONS.

(1) COVERED ACTION- The term `covered action' means a civil action of any kind, whether arising under Federal or State law, except for an action brought by a Federal, State, or other public entity, agency, or authority acting in a regulatory, supervisory, or enforcement capacity.

(2) END USER- The term `end user' means a party in possession of and using software or hardware.

(3) EXPRESS WRITTEN CONTRACT- The term `express written contract' means terms with respect to which confirmatory memoranda of the parties agree or which are otherwise set forth in writing intended by the parties as a final expression of their agreement with respect to such terms as are included therein and which may be explained or supplemented--

(A) by course of dealing or usage of trade or by course of performance; and

(B) by evidence consistent additional terms unless the court finds the writing to have been intended also as a complete and exclusive statement of the terms of the agreement.

(4) YEAR 2000 PROCESSING- The term `year 2000 processing' means the processing (including calculating, comparing, sequencing, displaying, or storing), transmitting, or receiving of date data from, into, and between the 20th and 21st centuries, and during the years 1999 and 2000, and leap year calculations.

SEC. 3. JUDICIAL AND ADMINISTRATIVE PROCEEDINGS.

(a) IN GENERAL- Any covered action, wherever brought, seeking damages caused by a year 2000 processing failure, disruption, or error and any arbitration or mediation proceedings brought as a result of the initiation of such action shall be governed by this Act.

(b) PROCEDURE- When a person files a complaint in a court seeking damages caused by a year 2000 processing failure, disruption, or error, the clerk of the court shall refer the complaint to a mandatory arbitration proceeding.

(c) STANDARD OF PROOF- A person may recover damages for a year 2000 processing failure, disruption, or error if the person shows by a preponderance of the evidence that--

(1) the failure, disruption, or error in year 2000 processing caused a loss which was foreseeable;

(2) the defendant's action or inaction as an end user was unreasonable under the circumstances; and

(3) the loss was proximately caused by the defendant.

(d) DIRECTORS AND OFFICERS- A director or officer of a corporation which is a defendant to an action brought for a year 2000 processing failure, disruption, or error shall be responsible only if the director or officer failed to exercise due diligence in overseeing the direction of an act cited by the plaintiff under subsection (c).

(e) DAMAGE AWARDS- In any action for a year 2000 processing failure, error, or disruption, damages may be awarded for the following:

(1) Personal injury, including--

(A) medical and hospital expenses, past and future;

(B) loss of earnings, past and future; and

(C) pain and suffering but in an amount not to exceed the amount of medical and hospital expenses.

(2) Wrongful death.

(3) Property damage, including--

(A) loss of profits; and

(B) cost of repairs and replacements.

(4) Punitive damages but only for willful and wanton conduct proved by clear and convincing evidence and not to exceed 3 times the actual damages, except that punitive damages may not be awarded in an action involving only property damage.

(e) STATUTE OF LIMITATIONS- No action may be brought for a year 2000 processing failure, error, or disruption after the expiration of 2 years after January 1, 2000.

SEC. 4. CLASS ACTIONS.

Any class action brought for damages for a year 2000 processing failure, disruption, or error which is governed by this Act or State law shall be brought in the United States district court for the district in which the failure occurred.

SEC. 5. APPLICABILITY.

This Act does not apply to any action arising out of an express written contract between the parties.

END