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House Journal: Page 1713: Monday, April 26, 1999

	I hereby transmit Senate File 405, an act limiting the liability of certain persons for 

certain actions arising out of the failure of information technology as the result of a 
year 2000 problem.
I am unable to approve Senate File 405 and hereby transmit it to you in accordance 
with Article III, Section 16, of the Constitution of the State of Iowa.
Many concerns have been raised about the potential for Year 2000 computer 
problems (Y2K).  I am confident that the financial institutions, public utilities and 
others identified in Senate File 405 have taken reasonable and prudent steps to 
address and to alleviate these potential problems.
The taking of reasonable and prudent steps to prevent computer problems insulates 
financial institutions, public utilities and other from exposure to liability.  Only those 
who have failed to take the reasonable and prudent steps to avoid problems require the 
immunity protection afforded under Senate File 405.  Damages resulting from the 
failure to take such steps should not be borne by customers, consumers or the general 
public, nor should the costs of identifying and holding those parties liable be borne by 
innocent customers, consumers or members of the general public.
I believe those responsible for taking reasonable and prudent steps should be held 
accountable when such steps are not taken and people suffer as a result.  Current 
protections in existing law provide adequate protections against frivolous and non-
meritorious suits.
For the above reasons, I hereby respectfully disapprove Senate File 405.
	Sincerely,
	Thomas J. Vilsack
	Governor
GOVERNOR'S ITEM VETO MESSAGE
A copy of the following communication was received and placed on 
file:
April 26, 1999
The Honorable Ron Corbett
Speaker of the House
State Capitol Building
L O C A L
Dear Mr. Speaker:
I hereby transmit House File 745, an act appropriating funds to the Department of 
Economic Development, certain Board of Regents institutions, the Department of 
Workforce Development, and the Public Employment Relations Board, making related 
statutory changes, and providing an effective date.

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