Clinton Signs Year 2000 Liability Bill

(October 20, 1998)  Bill Clinton signed S 2392, the "Year 2000 Information Readiness and Disclosure Act," on Monday, October 19.  The bill will limit liability for sharing information about Year 2000 technology problems.

S 2392 limits 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 will 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 in September by the administration and members of Congress.  An "administration bill" had been introduced in the Senate in July by Sen. Bob Bennett (R-UT), and in the House by Rep. Dan Burton (R-IN).  Also, a bill which afforded greater protection against lawsuits was introduced by Rep. David Dreier (R-CA) and Rep. Anna Eshoo (D-CA).  Senators Hatch, Kyl, Leahy, and Thompson were also involved in negotiating the compromise.

Bill Clinton issued a statement on Monday about his signing of the bill.  He said:

"Many organizations have been reluctant to share valuable information about their experiences in dealing with the Y2K problem or the status of their Y2K efforts for fear of lawsuits. The Act's limited liability protections will promote and encourage greater information sharing about both experiences and solutions, which will significantly enhance public and private sector efforts to prepare the Nation's computer systems for the new millennium. However, the bill will not affect liability that may arise from Y2K failures of systems or devices."