1999 Legislation
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SENATE BILL NO. 1065 – Y2K problems, gov’t liability, lmtd

SENATE BILL NO. 1065

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View Statement of Purpose / Fiscal Impact



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Daily Data Tracking History



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

Bill Text


S1065


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN 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 / Fiscal Impact


                        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