Y2K Liability Bill Passes House

(October 10, 1998)  The U.S. House of Representatives passed the Year 2000 Information and Readiness Act of 1998 on Thursday, October 1.  The Senate passed it on September 28.  The President promised to sign it.  The bill limits the liability of those who share Y2K conversion problem information.

The bill would limit the liability of certain companies and individuals who share information about Year 2000 conversion problems in some situations.  The rationale of the bill is that the prompt and thorough disclosure and exchange of information related to the Year 2000 conversion problems would greatly enhance the ability businesses and government to improve their Year 2000 readiness.  Presently, many are not sharing information because of concerns about the potential for legal liability associated with the disclosure and exchange of year 2000 compliance information.

The bill is "compromise" or "consensus" bill negotiated last month by the administration and members of Congress.

There exists wide support for passage of a Y2K liability bill before the Congress adjourns.  In order to speed up passage, the House Judiciary Committee, which has jurisdiction over the bill, did not hold a hearing.

President Clinton stated in a press release after the vote that:

I am pleased that the House today joined the Senate in passing the "Year 2000 Information and Readiness Disclosure Act," a bill that will provide limited liability protections for sharing information while protecting consumers from misleading statements. This important bipartisan legislation, based on a proposal by my Administration, will help our nation prepare its computer systems for the new millennium.

By encouraging greater information sharing about Y2K solutions, this legislation will help businesses, State and local government, and Federal agencies in their efforts to address the year 2000 computer problem. I look forward to signing it into law.