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S1065................................................by JUDICIARY AND RULES YEAR 2000 COMPUTER PROBLEMS - Adds to existing law to limit the liability of governmental entities for year 2000 computer problems; and to provide liability for computer vendors. 01/28 Senate intro - 1st rdg - to printing 01/29 Rpt prt - to Jud
S1065|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1065 BY JUDICIARY AND RULES COMMITTEE 1 AN ACT 2 RELATING TO THE LIABILITY OF GOVERNMENTAL ENTITIES FOR YEAR 2000 COMPUTER 3 ERRORS; AMENDING CHAPTER 9, TITLE 6, IDAHO CODE, BY THE ADDITION OF A NEW 4 SECTION 6-904E, IDAHO CODE, TO LIMIT LIABILITY FOR DAMAGES CAUSED BY OR 5 RESULTING FROM A YEAR 2000 COMPUTER ERROR THAT OCCURS BEFORE OR WHILE THIS 6 SECTION IS IN EFFECT AND TO DEFINE YEAR 2000 COMPUTER ERROR; AMENDING 7 CHAPTER 23, TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 8 67-2358, IDAHO CODE, TO PROVIDE BY LAW THAT EVERY CONTRACT ENTERED BY A 9 GOVERNMENTAL ENTITY WHILE THIS SECTION IS IN EFFECT SHALL BE DEEMED TO 10 CONTAIN A PROVISION THAT NO SUIT CAN BE BROUGHT AGAINST A GOVERNMENTAL 11 ENTITY FOR CONTRACT LIABILITY, LOSSES OR DAMAGES, AND RELEASING GOVERNMEN- 12 TAL ENTITIES FROM LIABILITY FOR DAMAGES, CAUSED BY OR RESULTING FROM A 13 YEAR 2000 COMPUTER ERROR OCCURRING BETWEEN THE EFFECTIVE DATE OF THIS ACT 14 AND JULY 1, 2004; AND PROVIDING A SUNSET DATE AND APPLICATION. 15 Be It Enacted by the Legislature of the State of Idaho: 16 SECTION 1. That Chapter 9, Title 6, Idaho Code, be, and the same is 17 hereby amended by the addition thereto of a NEW SECTION , to be 18 known and designated as Section 6-904E, Idaho Code, and to read as follows: 19 6-904E. EXCEPTIONS TO GOVERNMENTAL LIABILITY -- YEAR 2000 COMPUTER 20 ERRORS. A governmental entity and its employees, while acting within the 21 course and scope of their employment and without malice or criminal intent and 22 without reckless, willful and wanton conduct, as defined in section 6-904C, 23 Idaho Code, shall not be liable for any claim which is caused by or results 24 from a year 2000 computer error that occurs before or while this section is 25 in effect. For purposes of this section, a "year 2000 computer error" means 26 the failure of a computer, software, software program, database, network, 27 information system, computer chip, embedded chip, any device containing a com- 28 puter processor, or any other automated system, to accurately or properly rec- 29 ognize, store, manipulate, retrieve, interpret, produce, calculate, generate, 30 account for, transfer, display, sort, compare, sequence or otherwise process 31 date data or date-related information, where such failure, directly or indi- 32 rectly, results from or is connected to the numeric description of calendar 33 days, months or years. 34 SECTION 2. That Chapter 23, Title 67, Idaho Code, be, and the same is 35 hereby amended by the addition thereto of a NEW SECTION , to be 36 known and designated as Section 67-2358, Idaho Code, and to read as follows: 37 67-2358. YEAR 2000 COMPUTER ERRORS. Every contract of every governmental 38 entity, as defined in section 6-902 3., Idaho Code, entered while this section 39 is in effect shall by operation of law be deemed to include: 40 (1) A provision that no action or suit of any kind may be maintained 41 against the governmental entity for contract liability, losses or damages 2 1 caused by or resulting from a year 2000 computer error, as defined in section 2 6-904E, Idaho Code; and 3 (2) A provision that releases the governmental entity from contract lia- 4 bility, losses or damages caused by or resulting from a year 2000 computer 5 error, as defined in section 6-904E, Idaho Code. 6 SECTION 3. Sections 1 and 2 of this act are null, void and of no force 7 and effect on and after July 1, 2004, provided that Section 1 of this act 8 shall apply to all year 2000 computer errors that occur before July 1, 2004, 9 regardless of whether damages or losses caused by or resulting from the year 10 2000 computer error occur before or after July 1, 2004. Provided further that 11 Section 2 of this act shall apply to all year 2000 computer errors that occur 12 between July 1, 1999, and July 1, 2004, regardless of whether damages or 13 losses caused by or resulting from the year 2000 computer error occur on and 14 after July 1, 2004.
STATEMENT OF PURPOSE RS08422Cl State and local governmental entities are spending significant money and are working diligently to identify, remediate and address potential computer errors that could result from the failure of a computer system or embedded computer chip to correctly process date information related to the year 2000 date change. However, because of the size and complexity of this problem, all potential errors may not be remedied. State and local governmental entities could face lawsuits and potential liability for a year 2000 error. This legislation would provide state and local governmental entities a limitation of tort and contractual liability caused by or related to year 2000 errors. The legislation would sunset July l, 2004. FISCAL IMPACT No cost to state or local governmental entities. CONTACT Name: Joanna L. Guilfoy, Deputy Attorney General Agency: Department of Administration Phone: 334-3388 Statement of Purpose/Fiscal Impact S1065