HBA-ATS H.B. 2652 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2652
By: Elkins
Civil Practices
3/22/1999
Introduced



BACKGROUND AND PURPOSE 

Because of concerns over the Year 2000 (Y2k) problem, all software bought
over the last five or six years that is not Y2k compliant may need to be
updated.  Software companies that fail to replace ineffective software
could be sued by customers relying on that software to run their business
operations.  H.B. 2652 creates a new chapter in the Civil Practice and
Remedies Code that addresses computer date failure.  It specifies that this
new chapter applies only to an action for damages arising from computer
date failure caused by computer software being unable to recognize and
accurately process or accurately convert from a two-digit format to a
four-digit format during the change from December 31, 1999, to January 1,
2000.  However, a defendant is not liable for damages if the defendant
provided, before January 1, 2000, a free upgrade to the plaintiff, who must
have been a registered user, that the defendant reasonably believed in good
faith would avoid computer date failure.  To avoid liability, the defendant
must have provided the claimant with a free upgrade that corrected the
problems associated with the computer date failure in the event the
original update failed. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 6, Civil Practice and Remedies Code, by adding
Chapter 147, as follows: 

CHAPTER 147.  LIABILITY FOR COMPUTER DATE FAILURE BY COMPUTER SOFTWARE

Sec. 147.001.  DEFINITIONS.  Defines "claimant," "computer," "computer
network," "computer program," "computer software," "computer system," and
"defendant." 

Sec. 147.002.  ACTION FOR COMPUTER DATE FAILURE.  Specifies that this
chapter applies only to an action for damages arising from computer date
failure caused by computer software (software) being unable to recognize
and accurately process or accurately convert from a two-digit format to a
four-digit format during the change from December 31, 1999, to January
1,2000. 

Sec. 147.003.  NO LIABILITY FOR DEFENDANT PROVIDING UPGRADES.  Limits the
liability of a defendant in an action to which this chapter applies if the
defendant demonstrates that a claimant was a registered user of the
software supplied by the defendant that experienced a computer date failure
(failure), that before January 1, 2000, the defendant provided a free
upgrade, repair, or replacement to the claimant's software that the
defendant reasonably believed in good faith would avoid computer date
failure, and that after learning or being notified of the failure of the
upgrade, repair, or replacement to avoid computer date failure, the
defendant, within the time frame expected in an emergency situation,
provided the claimant with a free upgrade, repair, or replacement that
corrected the problems associated with the computer date failure. 
 
SECTION 2.Emergency clause.
  Effective date: upon passage.