Text: SF00404 Text: SF00406 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
2 SENATE FILE 405
4
6 MARGINS C
8 AN ACT
12 LIMITING THE LIABILITY OF CERTAIN PERSONS FOR CERTAIN ACTIONS
14 ARISING OUT OF THE FAILURE OF INFORMATION TECHNOLOGY AS
16 THE RESULT OF A YEAR 2000 PROBLEM.
20
22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
24
26 MARGINS L
32 Section 1. NEW SECTION. 527A.1 LIMITATION OF LIABILITY
36 – YEAR 2000.
46 1. LEGISLATIVE INTENT. The general assembly finds that
56 the ability of financial institutions to continue operations
66 through the transition from the year 1999 to the year 2000 and
76 subsequent years is essential to the economy of this state and
86 the nation. Financial institutions are subject to both state
96 and federal laws and regulations and are regulated by both
106 state and federal regulatory agencies. The general assembly
116 also finds that despite compliance with regulatory guidelines
126 and regulations, certain events may occur during the
136 transition from the year 1999 to the year 2000 and subsequent
146 years that may affect operations of financial institutions.
156 It is the intent of the general assembly to limit the
166 liability of financial institutions, public utilities, and
176 other persons, except a person who has manufactured or
186 produced for sale or modified for resale any information
196 technology, that may result from year 2000 problems in order
206 to ensure that financial institutions, public utilities, and
216 other persons continue to operate during and after the
226 transition from the year 1999 to the year 2000.
236 2. DEFINITIONS. As used in this chapter, unless the
246 context otherwise requires:
256 a. "Actual damages" means actual monetary losses
266 proximately caused by a year 2000 problem.
276 b. "Financial institution" means a bank incorporated under
286 the provisions of any state or federal law, a savings and loan
296 association or savings bank incorporated under the provisions
306 of any state or federal law, a credit union organized under
316 the provisions of any state or federal law, and any affiliate
326 of a bank, savings and loan association, savings bank, or
336 credit union, or an insurance company organized under the laws
346 of this state or admitted to do business in this state, or an
356 agent of an insurance company licensed pursuant to chapter
366 522.
376 c. "Information technology" means microprocessors,
386 computer equipment and software, telecommunications equipment
396 and software, and other equipment, software and systems
406 utilized in the processing of data and information, and the
416 technology involved in processing such data and information.
426 d. "Latent year 2000 problem" means a year 2000 problem
436 that could not be discovered by observation, inspection, or
446 testing conducted with reasonable care prior to December 31,
456 2001.
466 e. "Public utility" means a gas or electric entity
476 regulated pursuant to chapter 476.
486 f. "Year 2000 problem" means an event, circumstance,
496 disruption, or other problem which prevents information
506 technology from accurately processing, calculating, comparing,
516 or sequencing date or time data or information related to
526 either of the following:
536 (1) From, into, or between the twentieth and twenty-first
546 centuries, or from, into, or between the years 1999 and 2000.
556 (2) Leap year calculations.
566 "Year 2000 problem" also includes an inability of a
576 financial institution or other person, except a person who has
586 manufactured or produced for sale or modified for resale any
596 information technology, to perform its intended or requested
606 functions because of a problem that is the result of a year
616 2000 problem encountered by a third party including, but not
626 limited to, the failure of a governmental entity to provide
636 data or information, transportation delays, energy failure, or
646 communications failure.
656 3. TIME FOR COMMENCING ACTION. An action in connection
666 with a year 2000 problem shall not be filed after December 31,
676 2001. The time for filing an action under this section shall
686 be extended, in the event of a latent year 2000 problem which
696 is discovered after December 31, 2001, for a period of six
706 months from the date a reasonably prudent person should have
716 discovered the year 2000 problem, provided, however, that an
726 action based upon a latent year 2000 problem shall not be
736 filed after December 31, 2002. An action not timely filed is
746 forever barred.
756 4. PRIVITY OF CONTRACT WITH FINANCIAL INSTITUTION. A
766 financial institution is not liable to a person not in privity
776 of contract with such financial institution for damages
786 resulting from a year 2000 problem.
796 5. LIABILITY FOR ACTUAL DAMAGES. Except with respect to a
806 claim for workers' compensation under chapter 85, a claim for
816 personal injury or wrongful death, or unless otherwise
826 provided by written contract, a financial institution, public
836 utility, or other person, except a person who has manufactured
846 or produced for sale or modified for resale any information
856 technology, shall only be held liable, if at all, for actual
866 damages incurred by reason of a year 2000 problem. A
876 financial institution, public utility, or other person, except
886 a person who has manufactured or produced for sale or modified
896 for resale any information technology, shall not be held
906 liable for projected losses of future income or earnings, loss
916 of future business or employment opportunities, punitive
926 damages, exemplary damages, consequential damages,
936 extraordinary damages, noneconomic damages, or any other
946 relief in excess of actual damages incurred by reason of a
956 year 2000 problem.
966 6. AFFIRMATIVE DEFENSE FOR FINANCIAL INSTITUTIONS AND
976 PUBLIC UTILITIES. It is an affirmative defense of a financial
986 institution and a public utility to any claim, action, or
996 proceeding alleging liability arising by reason of a year 2000
1006 problem that the financial institution or public utility has
1016 substantially complied with year 2000 regulations,
1026 requirements, and guidelines as set forth by such financial
1036 institution's or public utility's primary state or federal
1046 regulator. No damages shall be awarded against a financial
1056 institution or public utility that affirmatively proves such
1066 substantial compliance.
1076 7. REASONABLE EFFORTS DEFENSE. In any claim, action, or
1086 proceeding alleging liability arising by reason of a year 2000
1096 problem, it shall be an affirmative defense that the defendant
1106 exercised due diligence, reasonable care, or complied with the
1116 state-of-the-art in existence at the time, to prevent or
1126 remedy the year 2000 problem in the activity in which the
1136 defendant was engaged. No damages shall be awarded against a
1146 defendant who affirmatively proves such fact.
1156 8. FORSEEABILITY. In any claim, action or proceeding
1166 alleging liability arising by reason of a year 2000 problem,
1176 except with respect to a claim for workers' compensation under
1186 chapter 85, personal injury or wrongful death, or unless
1196 otherwise provided by written contract, the defendant shall
1206 not be liable unless the plaintiff establishes, by clear and
1216 convincing evidence in addition to all other requisite
1226 elements of the claim, that the defendant knew, or reasonably
1236 should have known, that its acts or omissions would cause harm
1246 to the plaintiff in the specific facts and circumstances of
1256 the claim.
1266 9. COMPARATIVE FAULT. In an action or proceeding against
1276 a financial institution, public utility, or other person
1286 alleging actual damages arising by reason of a year 2000
1296 problem, the apportionment, if any, of such damages shall be
1306 made pursuant to chapter 668. For purposes of a claim arising
1316 by reason of a year 2000 problem, chapter 668 shall apply to
1326 articles 3 and 4 of chapter 554.
1336 Sec. 2. NEW SECTION. 527A.2 LIMITATION ON ACTIONS
1346 AGAINST PERSONS FOR ELECTRONIC FAILURE ASSOCIATED WITH A YEAR
1356 2000 PROBLEM.
1366 1. A person who transacts business in this state on
1376 matters directly or indirectly affecting real or personal
1386 property, whether tangible or intangible, mortgages, credit
1396 accounts, banking and financial transactions, or property
1406 interests in this state shall not initiate or cause to be
1416 initiated a foreclosure proceeding, default, or other adverse
1426 action against another person due to a failure of payment or
1436 performance caused by a year 2000 problem.
1446 2. A person shall not initiate or cause to be initiated an
1456 adverse enforcement action, whether based on contract or
1466 otherwise, against another person who is unable to cause
1476 payment, or to act or forbear, or to cause other financial
1486 transactions to occur in a timely manner due to a year 2000
1496 problem.
1506 3. The prohibitions in subsections 1 and 2 apply to
1516 transactions relating to and including, but not limited to,
1526 mortgages, contracts, landlord and tenant relations, consumer
1536 credit obligations, utilities, and banking.
1546 4. An enforcement action otherwise prohibited under
1556 subsection 1 or 2, may be commenced at any time after sixty
1566 days following the date the payment was due or the act or
1576 omission was required to be performed.
1586 5. This section does not affect transactions upon which a
1596 default occurred before any disruption of financial or data
1606 transfer operations attributable to a year 2000 problem.
1616 6. This section does not eliminate, but only suspends, the
1626 ability to enforce obligations to which this section applies.
1636 7. A person shall not report to a credit reporting agency
1646 operating in this state negative credit information resulting
1656 from a failure of payment or performance due to a year 2000
1666 problem.
1676 MARGINS F
1716
1726
1736
1746 MARY E. KRAMER
1756 President of the Senate
1766
1776
1786
1796 RON J. CORBETT
1806 Speaker of the House
1816
1826 I hereby certify that this bill originated in the Senate and
1836 is known as Senate File 405, Seventy-eighth General Assembly.
1846
1856
1866
1876 MICHAEL E. MARSHALL
1886 Secretary of the Senate
1896 Approved , 1999
1906
1916
1926
1936 THOMAS J. VILSACK
1946 Governor
Text: SF00404 Text: SF00406 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
© 1999 Cornell College and League of Women Voters of Iowa
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