Statements by Rep. David Dreier.
Re: HR 4455, "Year 2000 Readiness Disclosure Act."
Date: August 6, 1998.
Source: Rep. David Dreier.

1.   Press Release.
2.   Statement in Congressional Record.
3.   Comparison of Dreier-Eshoo and Clinton Bills.

1.  Press Release.

August 6, 1998

Reps. David Dreier (R-Los Angeles) and Anna Eshoo (D-Palo Alto) today led a bipartisan group of Members of Congress in introducing narrowly focused legislation to encourage private-sector companies to share information relating to possible computer problems caused by the transition to the Year 2000 (Y2K). President Clinton recently acknowledged that limiting the potential legal liability of companies related to their Y2K information would encourage them to go public with information that would help the nation avoid serious Y2K-related failures.

"The President has pointed out that liability concerns are clogging up the flow of valuable information on finding and fixing Y2K problems, and he called for congressional action to address it this year," said Dreier. "I am pleased that we now have a narrowly-tailored, bipartisan bill that gives the private-sector the confidence needed to share Y2K information and solve this problem."

Although the Clinton Administration submitted its own Y2K legislation to Congress, business groups have criticized the bill's failure to address key private-sector liability concerns related to Y2K information-sharing. The Administration bill only protects companies from liability lawsuits based on unknowingly false Y2K information disclosures. However, many companies fear that their accurate Y2K statements will be used against them as evidence in liability lawsuits.

The Dreier-Eshoo bill addresses the full range of concerns regarding Y2K information-sharing by permitting private-sector entities to release "Year 2000 Information Disclosures." Accurate information in these written, labeled statements would be protected from use in any civil litigation related to Y2K failures.

"The Y2K problem has the potential to affect the lives of every single American," said Eshoo. "Companies, especially smaller companies without the resources to solve this problem on their own, will rely on work already being done on this issue. We can't afford to let the threat of frivolous lawsuits designed to take advantage of this unique occurrence put a stranglehold on critical information that could help solve the Y2K problem."

Other original cosponsors -- Reps. Boehner (R-OH), Boucher (D-VA), Cox (R-CA), John (D-LA), Morella (R-MD), Sessions (R-TX), Solomon (R-NY), Royce (R-CA), Goodlatte (R-VA) and Hayworth (R-AZ).

2. Rep. Dreier Statement in Congressional Record.

STATEMENT OF HON. DAVID DREIER
EXTENSION OF REMARKS

Thursday, August 6, 1998

INTRODUCTION OF THE YEAR 2000 READINESS DISCLOSURE ACT

Mr. Speaker, by now most Americans know about the Year 2000 computer problem and understand that if preventive steps aren’t taken, computer failures may cause serious problems. To mitigate the severity of the problem, Congress must not only act to ensure that the Federal government’s mission critical computers can function on January 1, 2000, but that the private sector can use all of the tools at its disposal to prevent unnecessary Year 2000 computer failures. Today I’ve joined with a number of colleagues from both sides of the aisle to introduce a modest, targeted measure to do just that.

I want to commend the President for calling attention to an important part of the Year 2000 problem for private sector firms. Many companies are afraid that the information they share about their Year 2000 readiness and their efforts to become Year 2000-compliant will later be used against them in civil suits. While the President submitted a bill intended to encourage information-sharing by preventing some of this information from being used in subsequent suits, his proposal is crafted so narrowly that it really won’t make any difference. The bipartisan “Year 2000 Readiness Disclosure Act,” which I introduced today, gives companies the liability protection they need to make statements about Year 2000 compliance efforts, knowing that they’re not just pouring gasoline onto some litigation bonfire.

The Year 2000 Readiness Disclosure Act is by no means the last word on the subject. I look forward to working with the administration and committees of jurisdiction to make it better. In particular, I would support language to clarify that firms working together to minimize Year 2000 problems and promote Y2K compliance are not in violation of antitrust laws. Furthermore, starting this fall and moving into next year, it’s critical that Congress address the problem of liability for Year 2000 failures themselves. Legal analysts are already anticipating that the total litigation burden for Year 2000 failure suits will climb into the hundreds of billions of dollars. Congress and the President need to work together to make sure that companies are concentrating on preventing Year 2000 failures, not protecting themselves from wasteful suits after they’ve occurred.

While I’m not an alarmist, Year 2000 failures have the potential to have a significant impact on the economy of the United States and the world. Just as a stitch in time saves nine, Congress can prevent a lot of headaches down the road by passing legislation that’s carefully crafted to encourage companies to share information now.

3.  Comparison of Dreier-Eshoo and Clinton Bills.