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S. 970 (is) To amend the Public Health Service Act to establish grant programs for youth substance abuse treatment services. [Introduced in Senate] ...


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                                                        Calendar No. 34

106th CONGRESS

  1st Session

                                 S. 96

                          [Report No. 106-10]

_______________________________________________________________________

                                 A BILL

To regulate commerce between and among the several States by providing 
 for the orderly resolution of disputes arising out of computer-based 
problems related to processing data that includes a 2-digit expression 
                          of the year's date.

_______________________________________________________________________

                             March 10, 1999

                       Reported with an amendment





                                                        Calendar No. 34
106th CONGRESS
  1st Session
                                 S. 96

                          [Report No. 106-10]

To regulate commerce between and among the several States by providing 
 for the orderly resolution of disputes arising out of computer-based 
problems related to processing data that includes a 2-digit expression 
                          of the year's date.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 19, 1999

 Mr. McCain (for himself and Mr. Frist) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

                             March 10, 1999

               Reported by Mr. McCain, with an amendment
 [Strike all after the enacting clause and insert the part printed in 
                                italic]

_______________________________________________________________________

                                 A BILL


 
To regulate commerce between and among the several States by providing 
 for the orderly resolution of disputes arising out of computer-based 
problems related to processing data that includes a 2-digit expression 
                          of the year's date.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Y2K Act''.</DELETED>

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Y2K action.--The term ``Y2K action'' means a 
        civil action commenced in any Federal or State court for a 
        cause of action arising out of a Y2K failure but does include 
        an action to recover damages for personal injury (excluding 
        emotional harm) or wrongful death.</DELETED>
        <DELETED>    (2) Y2K failure.--The term ``Y2K failure'' means a 
        systems product failure caused by the inability of a computer 
        system, program, or software's failure to accurately store, 
        process, provide, or receive data containing the year-2000 
        date.</DELETED>
        <DELETED>    (3) Y2K-compliant.--The term ``Y2K-compliant'' 
        means--</DELETED>
                <DELETED>    (A) with respect to an information 
                technology product, that the product does not have a 
                Y2K failure; and</DELETED>
                <DELETED>    (B) with respect to a business, that none 
                of that business's information technology products that 
                materially affects the business's capacity to deliver 
                goods and services has a Y2K failure.</DELETED>
        <DELETED>    (4) Information technology product.--The term 
        ``information technology product'' means a computer, a computer 
        program, or computer software, or product using a computer 
        program, chip, or computer software.</DELETED>

<DELETED>SEC. 3. APPLICABILITY; PREEMPTION.</DELETED>

<DELETED>    (a) Applicability to Y2K Actions.--This Act applies to any 
Y2K action, commenced after the date of enactment of this Act, brought 
in a Federal or State court.</DELETED>
<DELETED>    (b) Scope of Preemption.--This Act supersedes any State 
law regarding recovery for harm caused by a Y2K failure only to the 
extent that this Act establishes a rule of law applicable to any such 
recovery which is inconsistent with State law. Any issue arising under 
this Act that is not governed by any such rule of law shall be governed 
by applicable State or Federal law.</DELETED>
<DELETED>    (c) Actions for Personal Injury.--This Act does not apply 
to a civil action brought for personal injury to the extent that the 
action is based on physical injury.</DELETED>

<DELETED>SEC. 4. EXCLUSIVE REMEDIES.</DELETED>

<DELETED>    (a) In General.--The remedies provided by this Act are the 
exclusive remedies available to a plaintiff in a Y2K action, except as 
may be otherwise provided in a contract to which the plaintiff and the 
defendant are parties.</DELETED>
<DELETED>    (b) Defendant's Opportunity to Fix Problem.--A Y2K action 
may not proceed to trial until--</DELETED>
        <DELETED>    (1) the plaintiff has notified the defendant in 
        writing, describing the Y2K failure with particularity; 
        and</DELETED>
        <DELETED>    (2) the plaintiff has afforded the defendant the 
        opportunity, including reasonable access to computers and 
        computer software affected by the Y2K failure described in the 
        notice, to fix the problem.</DELETED>

<DELETED>SEC. 5. DAMAGES.</DELETED>

<DELETED>    (a) Economic Loss.--Except as otherwise provided in this 
section, damages awarded in a Y2K action are limited to economic 
loss.</DELETED>
<DELETED>    (b) Other damages.--</DELETED>
        <DELETED>    (1) In general.--Damages in a Y2K action 
        (including punitive damages) other than for economic loss may 
        not exceed the greater of--</DELETED>
                <DELETED>    (A) 3 times the amount awarded for 
                economic loss; or</DELETED>
                <DELETED>    (B) $250,000.</DELETED>
        <DELETED>    (2) Special rule.--In the case of a defendant--
        </DELETED>
                <DELETED>    (A) who--</DELETED>
                        <DELETED>    (i) is sued in his or her capacity 
                        as a individual; and</DELETED>
                        <DELETED>    (ii) whose net worth does not 
                        exceed $500,000; or</DELETED>
                <DELETED>    (B) that is an unincorporated business, a 
                partnership, corporation, association, unit of local 
                government, or organization with fewer than 25 full-
                time employees,</DELETED>
        <DELETED>paragraph (1) shall be applied by substituting 
        ``$50,000'' for ``$250,000'' in subparagraph (B).</DELETED>
<DELETED>    (c) Punitive damages.--No amount shall be awarded a 
plaintiff in a Y2K action for punitive damages--</DELETED>
        <DELETED>    (1) except to the extent authorized by State law; 
        and</DELETED>
        <DELETED>    (2) unless the plaintiff proves that the economic 
        damages suffered resulted from conscious and flagrant 
        disregard, rather than mere negligence, on the part of the 
        defendant.</DELETED>
<DELETED>    (d) Good Faith Limitation.--Damages in a Y2K action may 
not be awarded, except for economic loss, against any defendant who 
demonstrates that the defendant exercised due diligence and reasonable 
care to prevent or remedy the Y2K failure according to generally 
accepted standards of care and effort in the business activity in which 
the defendant was engaged.</DELETED>

<DELETED>SEC. 6. SEVERAL LIABILITY.</DELETED>

<DELETED>    The liability of more than 1 defendant in a Y2K action may 
be several but may not be joint.</DELETED>

<DELETED>SEC. 7. APPOINTMENT OF SPECIAL MASTERS FOR Y2K 
              ACTIONS.</DELETED>

<DELETED>    Any District Court of the United States in which a Y2K 
action is pending may appoint a special master to hear the matter and 
to make findings of fact and conclusions of law in accordance with Rule 
53 of the Federal Rules of Civil Procedure.</DELETED>

<DELETED>SEC. 8. LIABILITY RULES APPLICABLE TO PRODUCT SELLERS, 
              RENTERS, AND LESSORS.</DELETED>

<DELETED>    (a) General Rule.--</DELETED>
        <DELETED>    (1) In general.--In any Y2K action, an information 
        technology product seller other than a manufacturer shall be 
        liable to a claimant only if the claimant establishes--
        </DELETED>
                <DELETED>    (A) that--</DELETED>
                        <DELETED>    (i) the information technology 
                        product that allegedly caused the harm that is 
                        the subject of the complaint was sold, rented, 
                        or leased by the information technology product 
                        seller;</DELETED>
                        <DELETED>    (ii) the information technology 
                        product seller failed to exercise reasonable 
                        care with respect to the information technology 
                        product; and</DELETED>
                        <DELETED>    (iii) the failure to exercise 
                        reasonable care was a proximate cause of harm 
                        to the claimant;</DELETED>
                <DELETED>    (B) that--</DELETED>
                        <DELETED>    (i) the information technology 
                        product seller made an express warranty 
                        applicable to the information technology 
                        product that allegedly caused the harm that is 
                        the subject of the complaint, independent of 
                        any express warranty made by a manufacturer as 
                        to the same information technology 
                        product;</DELETED>
                        <DELETED>    (ii) the information technology 
                        product failed to conform to the warranty; 
                        and</DELETED>
                        <DELETED>    (iii) the failure of the 
                        information technology product to conform to 
                        the warranty caused harm to the claimant; 
                        or</DELETED>
                <DELETED>    (C) that--</DELETED>
                        <DELETED>    (i) the information technology 
                        product seller engaged in intentional 
                        wrongdoing, as determined under applicable 
                        State law; and</DELETED>
                        <DELETED>    (ii) such intentional wrongdoing 
                        was a proximate cause of the harm that is the 
                        subject of the complaint.</DELETED>
        <DELETED>    (2) Reasonable opportunity for inspection.--For 
        purposes of paragraph (1)(A)(ii), an information technology 
        product seller shall not be considered to have failed to 
        exercise reasonable care with respect to an information 
        technology product based upon an alleged failure to inspect the 
        information technology product--</DELETED>
                <DELETED>    (A) if the failure occurred because there 
                was no reasonable opportunity to inspect the 
                information technology product; or</DELETED>
                <DELETED>    (B) if the inspection, in the exercise of 
                reasonable care, would not have revealed the aspect of 
                the information technology product which allegedly 
                caused the claimant's harm.</DELETED>
<DELETED>    (b) Special Rule.--</DELETED>
        <DELETED>    (1) In general.--An information technology product 
        seller shall be liable as a manufacturer of an information 
        technology product for harm caused by the information 
        technology product if--</DELETED>
                <DELETED>    (A) the manufacturer is not subject to 
                service of process under the laws of any State in which 
                the action may be brought; or</DELETED>
                <DELETED>    (B) the court determines that the claimant 
                would be unable to enforce a judgment against the 
                manufacturer.</DELETED>
        <DELETED>    (2) Statute of limitations.--For purposes of this 
        subsection only, the statute of limitations applicable to 
        claims asserting liability of an information technology product 
        seller as a manufacturer shall be tolled from the date of the 
        filing of a complaint against the manufacturer to the date that 
        judgment is entered against the manufacturer.</DELETED>
<DELETED>    (c) Rented or Leased Products.--Any person engaged in the 
business of renting or leasing an information technology product (other 
than a person that is an information technology product manufacturer or 
a seller liable as a manufacturer under paragraph (1)) shall be subject 
to liability in a Y2K action, but any person engaged in the business of 
renting or leasing an information technology product shall not be 
liable to a claimant for the acts of another solely by reason of 
ownership of such information technology product.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF SECTIONS.

    (a) Short Title.--This Act may be cited as the ``Y2K Act''.
    (b) Table of Sections.--The table of sections for this Act is as 
follows:

Sec. 1. Short title; table of sections.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Application of Act.
Sec. 5. Punitive damages limitations.

             Title I--OPPORTUNITY TO RESOLVE Y2K PROBLEMS.

Sec. 101. Pre-filing notice.
Sec. 102. Pleading requirements.
Sec. 103. Duty to mitigate.
Sec. 104. Proportionate liability.

        Title II--Y2K ACTIONS INVOLVING CONTRACT-RELATED CLAIMS.

Sec. 201. Contracts enforced.
Sec. 202. Defenses.

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