On June 15, the U.S. Senate approved by a vote of 62 to 37 the McCain-Dodd Y2K immunity legislation (S.96). Thirty-three (33) Democrats and four (4) Republicans voted against the bill. The Clinton administration has indicated it will veto S.96 in its current form or the even more draconian House version (H.R. 775).

The Senate bill will now go back to the House, which can accept the Senate-passed bill and send it to the President or demand a conference committee to work out differences between the House and Senate versions and then send a "compromise" bill to the President. The House is expected to take up Y2K legislation as early as June 24, though it may wait until after the July 4 recess.

The Senate legislation would apply principally to business versus business, rather than consumer versus business, contract and tort actions. In Y2K cases only, it would cap punitive damages, eliminate joint liability, federalize class actions, and establish delays and procedural hurdles for plaintiffs.

ATLA and other opponents of the legislation succeeded in preventing inclusion in the bill of any limitations on liability for personal physical injury and in assuring that the liability protection would sunset in three years.

ATLA will closely monitor the conference committee to help assure that the legislation is not made worse still, and continue to work with the White House to make certain that the President exercises his veto of this special interest protection legislation.