Press Release of Sen. John McCain (R-AZ).
Re: transcript of speech in Senate re cloture vote on S 96, the Y2K Act.
Date: April 29, 1999.
Source: Office of Sen. John McCain. This document was created by scanning a fax copy, and converting into HTML.

McCAIN STATEMENT ON Y2K CLOTURE VOTE TODAY

WASHINGTON, D.C. -- Senator John McCain (R-AZ), Chairman an of the Committee on Commerce, Science and Transportation, today made the following statement before this morning's failed cloture vote, which if successful, would have allowed the Senate to complete consideration of S.96:

"We are now at a critical time if we are to pass this bill. We have been attempting to debate and act on this matter for a week. We are about to have our second cloture vote as we crawl through the morass of Senate procedure. We have endured hours of quorum calls waiting for substantive discussion. We have heard at length the views of the Ranking Member, Mr. Hollings, in opposition to this bill. We have detoured from the bill to hear the minority's complaints about scheduling unrelated matters of interest to them. But now we are about to have a critical vote.

"This is a vote to allow us to complete action on this critical bill. This is a vote to cast aside the partisan procedural games and get on with the business of the nation. Important business, as the thousands of CEO's and business people from all segments of industry: high tech, accounting, insurance, retail, wholesale, large and small, who are actively supporting this bill will attest. The Y2K problem is not going away, nor is it going to be postponed by petty, partisan procedural wrangling.

"The cost of solving the Y2K problem is staggering. Experts have estimated that the businesses in the United States alone will spend $50 billion in fixing affected computers, products and systems. But experts have also predicted that the potential litigation costs could reach $1 trillion -- more than the legal costs associated with asbestos, breast implants, tobacco and Superfund litigation combined -- more than three times the total annual estimated cost of all civil litigation in the United States. This is not just my opinion, these are the facts supported by a panel of experts on an American Bar Association panel last August. These costs represent resources and energy that will not be directed toward innovation, new technology, or new productivity for our nation's economy. This litigation could overwhelm and paralyze the industries driving the best economy in our history.

"The Y2K phenomenon, while anticipated for years, presents nevertheless, a one-time, unique problem. Our legal system is neither designed, nor adequately equipped, to handle the flood of litigation which we can expect when law firms across the country are laying in wait, in eager anticipation of a golden opportunity. More to the point, the vast majority of our countrymen do not want to sue. They want their computers, their equipment, their systems to work. They want solutions to problems, and a healthy economy, not a trial lawyers' full employment act.

"S.96 presents a solution, a reasonable, practical, balanced, and most importantly, a bi-partisan solution. Since it passed out of Committee, with the help of my colleagues on both sides of the aisle, it has been improved, narrowed, and more carefully crafted to ensure a fair and practical result to the Y2K situation.

"The Public Policy Institute of the Democratic Leadership Council published a Y2K background paper in March which has been widely circulated and quoted here on the Senate floor in the past several days. The authors state:

'In order to diminish the threat of burdensome and unwarranted litigation, it is essential that any legislation addressing Y2K liability:

• Encourage remediation over litigation and the assignment of blame;
• Enact fair rules that reassure businesses that honest efforts at remediation will be rewarded by limiting liability, while enforcing contracts and punishing negligence;
• Promote Alternative Dispute Resolution; and
• Discourage frivolous lawsuits while protecting avenues of redress for parties that suffer real injuries.'

"S.96 does all of those things. It:

• Provides time for plaintiffs and defendants to resolve Y2K problems without litigation;
• Reiterates the plaintiff's duty to mitigate damages, and highlights the defendant's opportunity to assist plaintiffs in doing that by providing information and resources;
• Provides for proportional liability in most cases, with exceptions for fraudulent or intentional conduct, or where the plaintiff has limited assets;
• Protects governmental entities including municipalities, school, fire, water and sanitation districts from punitive damages;
• Eliminates punitive damage limits for egregious conduct, while providing some protection against runaway punitive damage awards; and
• Provides protection for those not directly involved in a Y2K failure;
• It is a temporary measure. It sunsets January 1, 2003;
• And it does not deny the right of anyone to redress their legitimate grievances in court.

"I have spent hours working with several of my colleagues, including the distinguished Senator from Connecticut, Mr. Dodd, to resolve specific concerns. We have arrived at an agreement to further modify the substitute amendment my friend Mr. Wyden and I earlier agreed upon. There may still be others, such as Mr. Kerry of Massachusetts, with ideas, suggestions, or a different perspective on solving the problem."

"I welcome hearing other ideas. My colleagues may want to offer amendments. I am willing to enter into consent agreements to allow the opportunity for debate on other ideas. We can then vote and let the best idea win. That is the way of the Senate. But, that cannot take place unless we vote yes now on cloture.

"The clock is ticking. 246 days plus a few hours remain until January 1. This bill cannot wait. Its purpose is to provide incentives to be proactive -- to encourage remediation and solution and to prevent Y2K problems from occurring. It will not serve its purpose unless it passes NOW.

"This vote is a simple vote. It is a critical vote. This is a vote as to whether we want to solve and prevent the Y2K litigation problem, which has already begun, or whether we will let partisan 'politics as usual' be an obstacle to our nation's well-being. It is a vote to either help the American economy or to show your willingness to do the bidding of the Trial Lawyers' Association. Make no mistake, I hope companies across America are paying attention. Senators will vote to help protect small and large business, the high tech industry, and others, or they will choose to protect the trial lawyers' stream of income. That is the choice. I ask my colleagues to consider carefully the message they send with their vote today. Are you part of the solution? Or part of the problem?"