Your Help Needed To Enact
Y2K Preparedness Legislation
Background
The National Association of Wholesaler-Distributors (NAW) has been tracking
Y2K preparedness legislation because of its potential impact on wholesaler
and distributor companies. NAW reports that progress has been made in
moving legislation forward:
S.96 (McCain, R-AZ), the "Y2K Act" has been approved by the
Senate Commerce Committee
S.461 (Hatch, R-UT), the "Year 2000 Fairness and Responsibility Actî
has been approved by the Senate Judiciary Committee
H.R. 775 (Davis, R-VA-11), the "Year 2000 Readiness and Responsibility
Act" has been introduced in the House of Representatives, and the
Judiciary Committee is scheduled to hold a hearing on the bill on April
13th
NAW also reports that the bulk of support for these bills comes from the
Republican side of the aisle, and that the current lack of cooperation
from the Clinton Administration combined with the active opposition of
the trial lawyers is putting the future of this legislation in serious
jeopardy. They note that for strong, effective Y2K preparedness legislation
to become law, a major, nationwide display of grassroots support from
all business sectors is needed. They encourage the entire NAW family ñ
including NAGASA members -- to contact Congress in order to give this
legislative effort an urgently needed boost.
Current Status
In just 9 short months, the new millennium will be upon us and with
it, the so-called "Y2K problem" -- the readiness of computers,
computer applications and embedded systems to function at the turn of
the century. Plaintiff trial lawyers see a gold mine in the prospective
avalanche of lawsuits that may result. Federal legislation is needed to
create incentives to fix Y2K problems before they develop, encourage parties
to resolve Y2K disputes without litigation, and to screen-out insubstantial
lawsuits while preserving the rights of parties that suffer real injuries.
Y2K preparedness legislation has been introduced in both
houses of Congress that has the strong support of NAW, of which NAGASA
is a member. As noted:
Two similar bills - S.96 and S.461 - have been approved in committee and
will be considered by the full Senate this spring.
A third bill - H.R.775 - has been introduced in the House
and will be considered by the House Judiciary Committee beginning in mid-April.
Enactment of NAW-supported Y2K preparedness legislation is needed to ensure
that the resources of wholesaler-distributors and others that are devoted
to the "millennium bug" are directed at readiness and remediation,
not on needless and costly litigation.
Path Forward
You can help by:
Contacting your U.S. Senators (the address for both people is: U.S. Senate,
Washington, DC 20510; telephone number 202-224-3121 (Capitol switchboard)
Contacting your U.S. Representative (his/her address is: U.S. House of
Representatives, Washington, DC 20515; telephone number 202-225-3121 (Capitol
switchboard)
In all cases, urge them to support these bills.
To provide an incentive to fix Y2K problems before they
arise, these bills prevent plaintiffs from recovering damages for Y2K
problems that they reasonably could have avoided. Other key provisions
seek to avoid lawsuits altogether through pre-trial reforms that encourage
Y2K fixes before litigation ensues, and by encouraging alternative dispute
resolution. If litigation does occur, these bills ensure that negotiated
contracts wiII be respected, interpreted consistent with the law in effect
at the time the contract was entered into. The bills also provide fair
and balanced rules for Y2K tort claims: among them, joint ("deep
pockets") liability is abolished; liability is based on fault; and
both punitive damages and the personal liability of directors and officers
is limited. Finally, these bills significantly reduce the potential for
abusive class actions.
Again, please write or call your U.S. Senators and Representative today in support of Y2K preparedness legislation. As always, please report the result of your contacts to NAGASA and to Jim Anderson, Vice President-Government Relations, NAW, 1725 K Street, NW, #300, Washington, DC 20006, telephone 202-872-0885.
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