Text: S03178 Text: S03180 Text: S03100 - S03199 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Amend Senate File 405 as follows:
1 2 #1. By striking everything after the enacting
1 3 clause and inserting the following:
1 4 "Section 1. NEW SECTION. 527A.1 LIMITATION OF
1 5 LIABILITY – YEAR 2000.
1 6 1. LEGISLATIVE INTENT. The general assembly finds
1 7 that the ability of financial institutions to continue
1 8 operations through the transition from the year 1999
1 9 to the year 2000 and subsequent years is essential to
1 10 the economy of this state and the nation. Financial
1 11 institutions are subject to both state and federal
1 12 laws and regulations and are regulated by both state
1 13 and federal regulatory agencies. The general assembly
1 14 also finds that despite compliance with regulatory
1 15 guidelines and regulations, certain events may occur
1 16 during the transition from the year 1999 to the year
1 17 2000 and subsequent years that may affect operations
1 18 of financial institutions. It is the intent of the
1 19 general assembly to limit the liability of financial
1 20 institutions, public utilities, and other persons,
1 21 except a person who has manufactured or produced for
1 22 sale or modified for resale any information
1 23 technology, that may result from year 2000 problems in
1 24 order to ensure that financial institutions, public
1 25 utilities, and other persons continue to operate
1 26 during and after the transition from the year 1999 to
1 27 the year 2000.
1 28 2. DEFINITIONS. As used in this chapter, unless
1 29 the context otherwise requires:
1 30 a. "Actual damages" means actual monetary losses
1 31 proximately caused by a year 2000 problem.
1 32 b. "Financial institution" means a bank
1 33 incorporated under the provisions of any state or
1 34 federal law, a savings and loan association or savings
1 35 bank incorporated under the provisions of any state or
1 36 federal law, a credit union organized under the
1 37 provisions of any state or federal law, and any
1 38 affiliate of a bank, savings and loan association,
1 39 savings bank, or credit union, or an insurance company
1 40 organized under the laws of this state or admitted to
1 41 do business in this state, or an agent of an insurance
1 42 company licensed pursuant to chapter 522.
1 43 c. "Information technology" means microprocessors,
1 44 computer equipment and software, telecommunications
1 45 equipment and software, and other equipment, software
1 46 and systems utilized in the processing of data and
1 47 information, and the technology involved in processing
1 48 such data and information.
1 49 d. "Latent year 2000 problem" means a year 2000
1 50 problem that could not be discovered by observation,
2 1 inspection, or testing conducted with reasonable care
2 2 prior to December 31, 2001.
2 3 e. "Public utility" means a gas or electric entity
2 4 regulated pursuant to chapter 476.
2 5 f. "Year 2000 problem" means an event,
2 6 circumstance, disruption, or other problem which
2 7 prevents information technology from accurately
2 8 processing, calculating, comparing, or sequencing date
2 9 or time data or information related to either of the
2 10 following:
2 11 (1) From, into, or between the twentieth and
2 12 twenty-first centuries, or from, into, or between the
2 13 years 1999 and 2000.
2 14 (2) Leap year calculations.
2 15 "Year 2000 problem" also includes an inability of a
2 16 financial institution or other person, except a person
2 17 who has manufactured or produced for sale or modified
2 18 for resale any information technology, to perform its
2 19 intended or requested functions because of a problem
2 20 that is the result of a year 2000 problem encountered
2 21 by a third party including, but not limited to, the
2 22 failure of a governmental entity to provide data or
2 23 information, transportation delays, energy failure, or
2 24 communications failure.
2 25 3. TIME FOR COMMENCING ACTION. An action in
2 26 connection with a year 2000 problem shall not be filed
2 27 after December 31, 2001. The time for filing an
2 28 action under this section shall be extended, in the
2 29 event of a latent year 2000 problem which is
2 30 discovered after December 31, 2001, for a period of
2 31 six months from the date a reasonably prudent person
2 32 should have discovered the year 2000 problem,
2 33 provided, however, that an action based upon a latent
2 34 year 2000 problem shall not be filed after December
2 35 31, 2002. An action not timely filed is forever
2 36 barred.
2 37 4. PRIVITY OF CONTRACT WITH FINANCIAL INSTITUTION.
2 38 A financial institution is not liable to a person not
2 39 in privity of contract with such financial institution
2 40 for damages resulting from a year 2000 problem.
2 41 5. LIABILITY FOR ACTUAL DAMAGES. Except with
2 42 respect to a claim for workers compensation under
2 43 chapter 85, a claim for personal injury or wrongful
2 44 death, or unless otherwise provided by written
2 45 contract, a financial institution, public utility, or
2 46 other person, except a person who has manufactured or
2 47 produced for sale or modified for resale any
2 48 information technology, shall only be held liable, if
2 49 at all, for actual damages incurred by reason of a
2 50 year 2000 problem. A financial institution, public
3 1 utility, or other person, except a person who has
3 2 manufactured or produced for sale or modified for
3 3 resale any information technology, shall not be held
3 4 liable for projected losses of future income or
3 5 earnings, loss of future business or employment
3 6 opportunities, punitive damages, exemplary damages,
3 7 consequential damages, extraordinary damages,
3 8 noneconomic damages, or any other relief in excess of
3 9 actual damages incurred by reason of a year 2000
3 10 problem.
3 11 6. AFFIRMATIVE DEFENSE FOR FINANCIAL INSTITUTIONS
3 12 AND PUBLIC UTILITIES. It is an affirmative defense of
3 13 a financial institution and a public utility to any
3 14 claim, action, or proceeding alleging liability
3 15 arising by reason of a year 2000 problem that the
3 16 financial institution or public utility has
3 17 substantially complied with year 2000 regulations,
3 18 requirements, and guidelines as set forth by such
3 19 financial institution's or public utility's primary
3 20 state or federal regulator. No damages shall be
3 21 awarded against a financial institution or public
3 22 utility that affirmatively proves such substantial
3 23 compliance.
3 24 7. REASONABLE EFFORTS DEFENSE. In any claim,
3 25 action, or proceeding alleging liability arising by
3 26 reason of a year 2000 problem, it shall be an
3 27 affirmative defense that the defendant exercised due
3 28 diligence, reasonable care, or complied with the
3 29 state-of-the-art in existence at the time, to prevent
3 30 or remedy the year 2000 problem in the activity in
3 31 which the defendant was engaged. No damages shall be
3 32 awarded against a defendant who affirmatively proves
3 33 such fact.
3 34 8. FORSEEABILITY. In any claim, action or
3 35 proceeding alleging liability arising by reason of a
3 36 year 2000 problem, except with respect to a claim for
3 37 workers compensation under chapter 85, personal injury
3 38 or wrongful death, or unless otherwise provided by
3 39 written contract, the defendant shall not be liable
3 40 unless the plaintiff establishes, by clear and
3 41 convincing evidence in addition to all other requisite
3 42 elements of the claim, that the defendant knew, or
3 43 reasonably should have known, that its acts or
3 44 omissions would cause harm to the plaintiff in the
3 45 specific facts and circumstances of the claim.
3 46 9. COMPARATIVE FAULT. In an action or proceeding
3 47 against a financial institution, public utility, or
3 48 other person alleging actual damages arising by reason
3 49 of a year 2000 problem, the apportionment, if any, of
3 50 such damages shall be made pursuant to chapter 668.
4 1 For purposes of a claim arising by reason of a year
4 2 2000 problem, chapter 668 shall apply to articles 3
4 3 and 4 of chapter 554."
4 4 #2. Title page, line 1, by striking the words
4 5 "financial institutions" and inserting the following:
4 6 "certain persons".
4 7
4 8
4 9
4 10 JOHN W. JENSEN
4 11
4 12
4 13
4 14 JEFF LAMBERTI
4 15
4 16
4 17
4 18 TOM FLYNN
4 19 SF 405.701 78
4 20 mj/sc
Text: S03178 Text: S03180 Text: S03100 - S03199 Text: S Index Bills and Amendments: General Index Bill History: General Index
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