US (United States) Code. Title 15. Chapter 92: Year 2000 computer date change

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Commerce and Trade

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-CITE-

15 USC CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

.

-HEAD-

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-MISC1-

Sec.

6601. Findings and purposes.

(a) Findings.

(b) Purposes.

6602. Definitions.

6603. Application of chapter.

(a) General rule.

(b) No new cause of action created.

(c) Claims for personal injury or wrongful death

excluded.

(d) Warranty and contract preservation.

(e) Preemption of State law.

(f) Application with Year 2000 Information and

Readiness Disclosure Act.

(g) Application to actions brought by a government

entity.

(h) Consumer protection from Y2K failures.

(i) Applicability to securities litigation.

6604. Punitive damages limitations.

(a) In general.

(b) Caps on punitive damages.

(c) Government entities.

(d) Institutions of higher education.

6605. Proportionate liability.

(a) In general.

(b) Proportionate liability.

(c) Joint liability for specific intent or fraud.

(d) Special rules.

(e) Settlement discharge.

(f) General right of contribution.

(g) More protective State law not preempted.

6606. Prelitigation notice.

(a) In general.

(b) Person to whom notice to be sent.

(c) Response to notice.

(d) Failure to respond.

(e) Remediation period.

(f) Failure to provide notice.

(g) Effect of contractual or statutory waiting

periods.

(h) State law controls alternative methods.

(i) Provisional remedies unaffected.

(j) Special rule for class actions.

6607. Pleading requirements.

(a) Application with rules of civil procedure.

(b) Nature and amount of damages.

(c) Material defects.

(d) Required state of mind.

6608. Duty to mitigate.

(a) In general.

(b) Preservation of existing law.

(c) Exception for intentional fraud.

6609. Application of existing impossibility or commercial

impracticability doctrines.

6610. Damages limitation by contract.

6611. Damages in tort claims.

(a) In general.

(b) Economic loss.

(c) Certain other actions.

6612. State of mind; bystander liability; control.

(a) Defendant's state of mind.

(b) Limitation on bystander liability for Y2K

failures.

(c) Control not determinative of liability.

(d) Protections of the Year 2000 Information and

Readiness Disclosure Act apply.

6613. Appointment of special masters or magistrate judges for Y2K

actions.

6614. Y2K actions as class actions.

(a) Material defect requirement.

(b) Notification.

(c) Forum for Y2K class actions.

(d) Effect on rules of civil procedure.

6615. Applicability of State law.

6616. Admissible evidence ultimate issue in State courts.

6617. Suspension of penalties for certain year 2000 failures by

small business concerns.

(a) Definitions.

(b) Establishment of liaisons.

(c) General rule.

(d) Standards for waiver.

(e) Exceptions.

(f) Expiration.

-CITE-

15 USC Sec. 6601 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6601. Findings and purposes

-STATUTE-

(a) Findings

The Congress finds the following:

(1)(A) Many information technology systems, devices, and

programs are not capable of recognizing certain dates in 1999 and

after December 31, 1999, and will read dates in the year 2000 and

thereafter as if those dates represent the year 1900 or

thereafter or will fail to process dates after December 31, 1999.

(B) If not corrected, the problem described in subparagraph (A)

and resulting failures could incapacitate systems that are

essential to the functioning of markets, commerce, consumer

products, utilities, Government, and safety and defense systems,

in the United States and throughout the world.

(2) It is in the national interest that producers and users of

technology products concentrate their attention and resources in

the time remaining before January 1, 2000, on assessing, fixing,

testing, and developing contingency plans to address any and all

outstanding year 2000 computer date-change problems, so as to

minimize possible disruptions associated with computer failures.

(3)(A) Because year 2000 computer date-change problems may

affect virtually all businesses and other users of technology

products to some degree, there is a substantial likelihood that

actual or potential year 2000 failures will prompt a significant

volume of litigation, much of it insubstantial.

(B) The litigation described in subparagraph (A) would have a

range of undesirable effects, including the following:

(i) It would threaten to waste technical and financial

resources that are better devoted to curing year 2000 computer

date-change problems and ensuring that systems remain or become

operational.

(ii) It could threaten the network of valued and trusted

business and customer relationships that are important to the

effective functioning of the national economy.

(iii) It would strain the Nation's legal system, causing

particular problems for the small businesses and individuals

who already find that system inaccessible because of its

complexity and expense.

(iv) The delays, expense, uncertainties, loss of control,

adverse publicity, and animosities that frequently accompany

litigation of business disputes could exacerbate the

difficulties associated with the date change and work against

the successful resolution of those difficulties.

(4) It is appropriate for the Congress to enact legislation to

assure that the year 2000 problems described in this section do

not unnecessarily disrupt interstate commerce or create

unnecessary caseloads in Federal courts and to provide

initiatives to help businesses prepare and be in a position to

withstand the potentially devastating economic impact of such

problems.

(5) Resorting to the legal system for resolution of year 2000

problems described in this section is not feasible for many

businesses and individuals who already find the legal system

inaccessible, particularly small businesses and individuals who

already find the legal system inaccessible, because of its

complexity and expense.

(6) Concern about the potential for liability - in particular,

concern about the substantial litigation expense associated with

defending against even the most insubstantial lawsuits - is

prompting many persons and businesses with technical expertise to

avoid projects aimed at curing year 2000 computer date-change

problems.

(7) A proliferation of frivolous lawsuits relating to year 2000

computer date-change problems by opportunistic parties may

further limit access to courts by straining the resources of the

legal system and depriving deserving parties of their legitimate

rights to relief.

(8) Congress encourages businesses to approach their disputes

relating to year 2000 computer date-change problems responsibly,

and to avoid unnecessary, time-consuming, and costly litigation

about Y2K failures, particularly those that are not material.

Congress supports good faith negotiations between parties when

there is such a dispute, and, if necessary, urges the parties to

enter into voluntary, nonbinding mediation rather than

litigation.

(b) Purposes

Based upon the power of the Congress under Article I, Section 8,

Clause 3 of the Constitution of the United States, the purposes of

this chapter are -

(1) to establish uniform legal standards that give all

businesses and users of technology products reasonable incentives

to solve year 2000 computer date-change problems before they

develop;

(2) to encourage continued remediation and testing efforts to

solve such problems by providers, suppliers, customers, and other

contracting partners;

(3) to encourage private and public parties alike to resolve

disputes relating to year 2000 computer date-change problems by

alternative dispute mechanisms in order to avoid costly and

time-consuming litigation, to initiate those mechanisms as early

as possible, and to encourage the prompt identification and

correction of such problems; and

(4) to lessen the burdens on interstate commerce by

discouraging insubstantial lawsuits while preserving the ability

of individuals and businesses that have suffered real injury to

obtain complete relief.

-SOURCE-

(Pub. L. 106-37, Sec. 2, July 20, 1999, 113 Stat. 185.)

-MISC1-

SHORT TITLE

Pub. L. 106-37, Sec. 1(a), July 20, 1999, 113 Stat. 185, provided

that: ''This Act (enacting this chapter) may be cited as the 'Y2K

Act'.''

-CITE-

15 USC Sec. 6602 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6602. Definitions

-STATUTE-

In this chapter:

(1) Y2K action

The term ''Y2K action'' -

(A) means a civil action commenced in any Federal or State

court, or an agency board of contract appeal proceeding, in

which the plaintiff's alleged harm or injury arises from or is

related to an actual or potential Y2K failure, or a claim or

defense arises from or is related to an actual or potential Y2K

failure;

(B) includes a civil action commenced in any Federal or State

court by a government entity when acting in a commercial or

contracting capacity; but

(C) does not include an action brought by a government entity

acting in a regulatory, supervisory, or enforcement capacity.

(2) Y2K failure

The term ''Y2K failure'' means failure by any device or system

(including any computer system and any microchip or integrated

circuit embedded in another device or product), or any software,

firmware, or other set or collection of processing instructions

to process, to calculate, to compare, to sequence, to display, to

store, to transmit, or to receive year-2000 date-related data,

including failures -

(A) to deal with or account for transitions or comparisons

from, into, and between the years 1999 and 2000 accurately;

(B) to recognize or accurately to process any specific date

in 1999, 2000, or 2001; or

(C) accurately to account for the year 2000's status as a

leap year, including recognition and processing of the correct

date on February 29, 2000.

(3) Government entity

The term ''government entity'' means an agency,

instrumentality, or other entity of Federal, State, or local

government (including multijurisdictional agencies,

instrumentalities, and entities).

(4) Material defect

The term ''material defect'' means a defect in any item,

whether tangible or intangible, or in the provision of a service,

that substantially prevents the item or service from operating or

functioning as designed or according to its specifications. The

term ''material defect'' does not include a defect that -

(A) has an insignificant or de minimis effect on the

operation or functioning of an item or computer program;

(B) affects only a component of an item or program that, as a

whole, substantially operates or functions as designed; or

(C) has an insignificant or de minimis effect on the efficacy

of the service provided.

(5) Personal injury

The term ''personal injury'' means physical injury to a natural

person, including -

(A) death as a result of a physical injury; and

(B) mental suffering, emotional distress, or similar injuries

suffered by that person in connection with a physical injury.

(6) State

The term ''State'' means any State of the United States, the

District of Columbia, the Commonwealth of Puerto Rico, the

Northern Mariana Islands, the United States Virgin Islands, Guam,

American Samoa, and any other territory or possession of the

United States, and any political subdivision thereof.

(7) Contract

The term ''contract'' means a contract, tariff, license, or

warranty.

(8) Alternative dispute resolution

The term ''alternative dispute resolution'' means any process

or proceeding, other than adjudication by a court or in an

administrative proceeding, to assist in the resolution of issues

in controversy, through processes such as early neutral

evaluation, mediation, minitrial, and arbitration.

-SOURCE-

(Pub. L. 106-37, Sec. 3, July 20, 1999, 113 Stat. 187.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6003 of this title.

-CITE-

15 USC Sec. 6603 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6603. Application of chapter

-STATUTE-

(a) General rule

This chapter applies to any Y2K action brought after January 1,

1999, for a Y2K failure occurring before January 1, 2003, or for a

potential Y2K failure that could occur or has allegedly caused harm

or injury before January 1, 2003, including any appeal, remand,

stay, or other judicial, administrative, or alternative dispute

resolution proceeding in such an action.

(b) No new cause of action created

Nothing in this chapter creates a new cause of action, and,

except as otherwise explicitly provided in this chapter, nothing in

this chapter expands any liability otherwise imposed or limits any

defense otherwise available under Federal or State law.

(c) Claims for personal injury or wrongful death excluded

This chapter does not apply to a claim for personal injury or for

wrongful death.

(d) Warranty and contract preservation

(1) In general

Subject to paragraph (2), in any Y2K action any written

contractual term, including a limitation or an exclusion of

liability, or a disclaimer of warranty, shall be strictly

enforced unless the enforcement of that term would manifestly and

directly contravene applicable State law embodied in any statute

in effect on January 1, 1999, specifically addressing that term.

(2) Interpretation of contract

In any Y2K action in which a contract to which paragraph (1)

applies is silent as to a particular issue, the interpretation of

the contract as to that issue shall be determined by applicable

law in effect at the time the contract was executed.

(3) Unconscionability

Nothing in paragraph (1) shall prevent enforcement of State law

doctrines of unconscionability, including adhesion, recognized as

of January 1, 1999, in controlling judicial precedent by the

courts of the State whose law applies to the Y2K action.

(e) Preemption of State law

This chapter supersedes State law to the extent that it

establishes a rule of law applicable to a Y2K action that is

inconsistent with State law, but nothing in this chapter

implicates, alters, or diminishes the ability of a State to defend

itself against any claim on the basis of sovereign immunity.

(f) Application with Year 2000 Information and Readiness Disclosure

Act

Nothing in this chapter supersedes any provision of the Year 2000

Information and Readiness Disclosure Act.

(g) Application to actions brought by a government entity

(1) In general

To the extent provided in this subsection, this chapter shall

apply to an action brought by a government entity described in

section 6602(1)(C) of this title.

(2) Definitions

In this subsection:

(A) Defendant

(i) In general

The term ''defendant'' includes a State or local

government.

(ii) State

The term ''State'' means each of the several States of the

United States, the District of Columbia, the Commonwealth of

Puerto Rico, the Virgin Islands, Guam, American Samoa, and

the Commonwealth of the Northern Mariana Islands.

(iii) Local government

The term ''local government'' means -

(I) any county, city, town, township, parish, village, or

other general purpose political subdivision of a State; and

(II) any combination of political subdivisions described

in subclause (I) recognized by the Secretary of Housing and

Urban Development.

(B) Y2K upset

The term ''Y2K upset'' -

(i) means an exceptional temporary noncompliance with

applicable federally enforceable measurement, monitoring, or

reporting requirements directly related to a Y2K failure that

are beyond the reasonable control of the defendant charged

with compliance; and

(ii) does not include -

(I) noncompliance with applicable federally enforceable

measurement, monitoring, or reporting requirements that

constitutes or would create an imminent threat to public

health, safety, or the environment;

(II) noncompliance with applicable federally enforceable

measurement, monitoring, or reporting requirements that

provide for the safety and soundness of the banking or

monetary system, or for the integrity of the national

securities markets, including the protection of depositors

and investors;

(III) noncompliance with applicable federally enforceable

measurement, monitoring, or reporting requirements to the

extent caused by operational error or negligence;

(IV) lack of reasonable preventative maintenance;

(V) lack of preparedness for a Y2K failure; or

(VI) noncompliance with the underlying federally

enforceable requirements to which the applicable federally

enforceable measurement, monitoring, or reporting

requirement relates.

(3) Conditions necessary for a demonstration of a Y2K upset

A defendant who wishes to establish the affirmative defense of

Y2K upset shall demonstrate, through properly signed,

contemporaneous operating logs, or other relevant evidence that -

(A) the defendant previously made a reasonable good faith

effort to anticipate, prevent, and effectively remediate a

potential Y2K failure;

(B) a Y2K upset occurred as a result of a Y2K failure or

other emergency directly related to a Y2K failure;

(C) noncompliance with the applicable federally enforceable

measurement, monitoring, or reporting requirement was

unavoidable in the face of an emergency directly related to a

Y2K failure and was necessary to prevent the disruption of

critical functions or services that could result in harm to

life or property;

(D) upon identification of noncompliance the defendant

invoking the defense began immediate actions to correct any

violation of federally enforceable measurement, monitoring, or

reporting requirements; and

(E) the defendant submitted notice to the appropriate Federal

regulatory authority of a Y2K upset within 72 hours from the

time that the defendant became aware of the upset.

(4) Grant of a Y2K upset defense

Subject to the other provisions of this subsection, the Y2K

upset defense shall be a complete defense to the imposition of a

penalty in any action brought as a result of noncompliance with

federally enforceable measurement, monitoring, or reporting

requirements for any defendant who establishes by a preponderance

of the evidence that the conditions set forth in paragraph (3)

are met.

(5) Length of Y2K upset

The maximum allowable length of the Y2K upset shall be not more

than 15 days beginning on the date of the upset unless specific

relief by the appropriate regulatory authority is granted.

(6) Fraudulent invocation of Y2K upset defense

Fraudulent use of the Y2K upset defense provided for in this

subsection shall be subject to the sanctions provided in section

1001 of title 18.

(7) Expiration of defense

The Y2K upset defense may not be asserted for a Y2K upset

occurring after June 30, 2000.

(8) Preservation of authority

Nothing in this subsection shall affect the authority of a

government entity to seek injunctive relief or require a

defendant to correct a violation of a federally enforceable

measurement, monitoring, or reporting requirement.

(h) Consumer protection from Y2K failures

(1) In general

No person who transacts business on matters directly or

indirectly affecting residential mortgages shall cause or permit

a foreclosure on any such mortgage against a consumer as a result

of an actual Y2K failure that results in an inability to

accurately or timely process any mortgage payment transaction.

(2) Notice

A consumer who is affected by an inability described in

paragraph (1) shall notify the servicer for the mortgage, in

writing and within 7 business days from the time that the

consumer becomes aware of the Y2K failure and the consumer's

inability to accurately or timely fulfill his or her obligation

to pay, of such failure and inability and shall provide to the

servicer any available documentation with respect to the failure.

(3) Actions may resume after grace period

Notwithstanding paragraph (1), an action prohibited under

paragraph (1) may be resumed, if the consumer's mortgage

obligation has not been paid and the servicer of the mortgage has

not expressly and in writing granted the consumer an extension of

time during which to pay the consumer's mortgage obligation, but

only after the later of -

(A) four weeks after January 1, 2000; or

(B) four weeks after notification is made as required under

paragraph (2), except that any notification made on or after

March 15, 2000, shall not be effective for purposes of this

subsection.

(4) Applicability

This subsection does not apply to transactions upon which a

default has occurred before December 15, 1999, or with respect to

which an imminent default was foreseeable before December 15,

1999.

(5) Enforcement of obligations merely tolled

This subsection delays but does not prevent the enforcement of

financial obligations, and does not otherwise affect or

extinguish the obligation to pay.

(6) Definition

In this subsection -

(A) The term ''consumer'' means a natural person.

(B) The term ''residential mortgage'' has the meaning given

the term ''federally related mortgage loan'' under section 2602

of title 12.

(C) The term ''servicer'' means the person, including any

successor, responsible for receiving any scheduled periodic

payments from a consumer pursuant to the terms of a residential

mortgage, including amounts for any escrow account, and for

making the payments of principal and interest and such other

payments with respect to the amounts received from the borrower

as may be required pursuant to the terms of the mortgage. Such

term includes the person, including any successor, who makes or

holds a loan if such person also services the loan.

(i) Applicability to securities litigation

In any Y2K action in which the underlying claim arises under the

securities laws (as defined in section 78c(a) of this title), the

provisions of this chapter, other than section 6612(b) of this

title, shall not apply.

-SOURCE-

(Pub. L. 106-37, Sec. 4, July 20, 1999, 113 Stat. 188.)

-REFTEXT-

REFERENCES IN TEXT

The Year 2000 Information and Readiness Disclosure Act, referred

to in subsec. (f), is Pub. L. 105-271, Oct. 19, 1998, 112 Stat.

2386, which is set out as a note under section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6611 of this title.

-CITE-

15 USC Sec. 6604 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6604. Punitive damages limitations

-STATUTE-

(a) In general

In any Y2K action in which punitive damages are permitted by

applicable law, the defendant shall not be liable for punitive

damages unless the plaintiff proves by clear and convincing

evidence that the applicable standard for awarding damages has been

met.

(b) Caps on punitive damages

(1) In general

Subject to the evidentiary standard established by subsection

(a) of this section, punitive damages permitted under applicable

law against a defendant described in paragraph (2) in a Y2K

action may not exceed the lesser of -

(A) three times the amount awarded for compensatory damages;

or

(B) $250,000.

(2) Defendant described

A defendant described in this paragraph is a defendant -

(A) who -

(i) is sued in his or her capacity as an individual; and

(ii) whose net worth does not exceed $500,000; or

(B) that is an unincorporated business, a partnership,

corporation, association, or organization, with fewer than 50

full-time employees.

(3) No cap if injury specifically intended

Paragraph (1) does not apply if the plaintiff establishes by

clear and convincing evidence that the defendant acted with

specific intent to injure the plaintiff.

(c) Government entities

Punitive damages in a Y2K action may not be awarded against a

government entity.

(d) Institutions of higher education

(1) In general

Subject to paragraph (2), punitive damages in a Y2K action may

not be awarded against an instituion (FOOTNOTE 1) of higher

education as defined in section 1001(a) of title 20.

(FOOTNOTE 1) So in original. Probably should be

''institution''.

(2) Exception

Paragraph (1) shall not apply to an institution of higher

education if the Y2K failure in the Y2K action occurred in a

computer-based student financial aid system of that institution

of higher education, and the institution -

(A) has passed Y2K data exchange testing with the Department

of Education; or

(B) is not or was not in the process of performing data

exchange testing with the Department of Education at the time

the Department terminates such testing.

-SOURCE-

(Pub. L. 106-37, Sec. 5, July 20, 1999, 113 Stat. 192; Pub. L.

106-113, div. B, Sec. 1000(a)(4) (title III, Sec. 311), Nov. 29,

1999, 113 Stat. 1535, 1501A-265.)

-MISC1-

AMENDMENTS

1999 - Subsec. (d). Pub. L. 106-113 added subsec. (d).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6617 of this title.

-CITE-

15 USC Sec. 6605 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6605. Proportionate liability

-STATUTE-

(a) In general

Except in a Y2K action that is a contract action, and except as

provided in subsections (b) through (g) of this section, a person

against whom a final judgment is entered in a Y2K action shall be

liable solely for the portion of the judgment that corresponds to

the relative and proportionate responsibility of that person. In

determining the percentage of responsibility of any defendant, the

trier of fact shall determine that percentage as a percentage of

the total fault of all persons, including the plaintiff, who caused

or contributed to the total loss incurred by the plaintiff.

(b) Proportionate liability

(1) Determination of responsibility

In any Y2K action that is not a contract action, the court

shall instruct the jury to answer special interrogatories, or, if

there is no jury, the court shall make findings with respect to

each defendant, including defendants who have entered into

settlements with the plaintiff or plaintiffs, concerning -

(A) the percentage of responsibility, if any, of each

defendant, measured as a percentage of the total fault of all

persons who caused or contributed to the loss incurred by the

plaintiff; and

(B) if alleged by the plaintiff, whether the defendant (other

than a defendant who has entered into a settlement agreement

with the plaintiff) -

(i) acted with specific intent to injure the plaintiff; or

(ii) knowingly committed fraud.

(2) Contents of special interrogatories or findings

The responses to interrogatories or findings under paragraph

(1) shall specify the total amount of damages that the plaintiff

is entitled to recover and the percentage of responsibility of

each defendant found to have caused or contributed to the loss

incurred by the plaintiff.

(3) Factors for consideration

In determining the percentage of responsibility under this

subsection, the trier of fact shall consider -

(A) the nature of the conduct of each person found to have

caused or contributed to the loss incurred by the plaintiff;

and

(B) the nature and extent of the causal relationship between

the conduct of each such person and the damages incurred by the

plaintiff.

(c) Joint liability for specific intent or fraud

(1) In general

Notwithstanding subsection (a) of this section, the liability

of a defendant in a Y2K action that is not a contract action is

joint and several if the trier of fact specifically determines

that the defendant -

(A) acted with specific intent to injure the plaintiff; or

(B) knowingly committed fraud.

(2) Fraud; recklessness

(A) Knowing commission of fraud described

For purposes of subsection (b)(1)(B)(ii) of this section and

paragraph (1)(B) of this subsection, a defendant knowingly

committed fraud if the defendant -

(i) made an untrue statement of a material fact, with

actual knowledge that the statement was false;

(ii) omitted a fact necessary to make the statement not be

misleading, with actual knowledge that, as a result of the

omission, the statement was false; and

(iii) knew that the plaintiff was reasonably likely to rely

on the false statement.

(B) Recklessness

For purposes of subsection (b)(1)(B) of this section and

paragraph (1) of this subsection, reckless conduct by the

defendant does not constitute either a specific intent to

injure, or the knowing commission of fraud, by the defendant.

(3) Right to contribution not affected

Nothing in this section affects the right, under any other law,

of a defendant to contribution with respect to another defendant

found under subsection (b)(1)(B) of this section, or determined

under paragraph (1)(B) of this subsection, to have acted with

specific intent to injure the plaintiff or to have knowingly

committed fraud.

(d) Special rules

(1) Uncollectible share

(A) In general

Notwithstanding subsection (a) of this section, if, upon

motion made not later than 6 months after a final judgment is

entered in any Y2K action that is not a contract action, the

court determines that all or part of the share of the judgment

against a defendant for compensatory damages is not collectible

against that defendant, then each other defendant in the action

is liable for the uncollectible share as follows:

(i) Percentage of net worth

The other defendants are jointly and severally liable for

the uncollectible share if the plaintiff establishes that -

(I) the plaintiff is an individual whose recoverable

damages under the final judgment are equal to more than 10

percent of the net worth of the plaintiff; and

(II) the net worth of the plaintiff is less than

$200,000.

(ii) Other plaintiffs

For a plaintiff not described in clause (i), each of the

other defendants is liable for the uncollectible share in

proportion to the percentage of responsibility of that

defendant.

(iii) Additional liability

For a plaintiff not described in clause (i), in addition to

the share identified in clause (ii), the defendant is liable

for an additional portion of the uncollectible share in an

amount equal to 50 percent of the amount determined under

clause (ii) if the plaintiff demonstrates by a preponderance

of the evidence that the defendant acted with reckless

disregard for the likelihood that its acts would cause injury

of the sort suffered by the plaintiff.

(B) Overall limit

The total payments required under subparagraph (A) from all

defendants may not exceed the amount of the uncollectible

share.

(C) Subject to contribution

A defendant against whom judgment is not collectible is

subject to contribution and to any continuing liability to the

plaintiff on the judgment.

(D) Suits by consumers

(i) Notwithstanding subparagraph (A), the other defendants

are jointly and severally liable for the uncollectible share if

-

(I) the plaintiff is a consumer whose suit alleges or

arises out of a defect in a consumer product; and

(II) the plaintiff is suing as an individual and not as

part of a class action.

(ii) In this subparagraph:

(I) The term ''class action'' means -

(aa) a single lawsuit in which: (1) damages are sought on

behalf of more than 10 persons or prospective class

members; or (2) one or more named parties seek to recover

damages on a representative basis on behalf of themselves

and other unnamed parties similarly situated; or

(bb) any group of lawsuits filed in or pending in the

same court in which: (1) damages are sought on behalf of

more than 10 persons; and (2) the lawsuits are joined,

consolidated, or otherwise proceed as a single action for

any purpose.

(II) The term ''consumer'' means an individual who acquires

a consumer product for purposes other than resale.

(III) The term ''consumer product'' means any personal

property or service which is normally used for personal,

family, or household purposes.

(2) Special right of contribution

To the extent that a defendant is required to make an

additional payment under paragraph (1), that defendant may

recover contribution -

(A) from the defendant originally liable to make the payment;

(B) from any other defendant that is jointly and severally

liable;

(C) from any other defendant held proportionately liable who

is liable to make the same payment and has paid less than that

other defendant's proportionate share of that payment; or

(D) from any other person responsible for the conduct giving

rise to the payment that would have been liable to make the

same payment.

(3) Nondisclosure to jury

The standard for allocation of damages under subsection (a) of

this section and subsection (b)(1) of this section, and the

procedure for reallocation of uncollectible shares under

paragraph (1) of this subsection, shall not be disclosed to

members of the jury.

(e) Settlement discharge

(1) In general

A defendant who settles a Y2K action that is not a contract

action at any time before final verdict or judgment shall be

discharged from all claims for contribution brought by other

persons. Upon entry of the settlement by the court, the court

shall enter an order constituting the final discharge of all

obligations to the plaintiff of the settling defendant arising

out of the action. The order shall bar all future claims for

contribution arising out of the action -

(A) by any person against the settling defendant; and

(B) by the settling defendant against any person other than a

person whose liability has been extinguished by the settlement

of the settling defendant.

(2) Reduction

If a defendant enters into a settlement with the plaintiff

before the final verdict or judgment, the verdict or judgment

shall be reduced by the greater of -

(A) an amount that corresponds to the percentage of

responsibility of that defendant; or

(B) the amount paid to the plaintiff by that defendant.

(f) General right of contribution

(1) In general

A defendant who is jointly and severally liable for damages in

any Y2K action that is not a contract action may recover

contribution from any other person who, if joined in the original

action, would have been liable for the same damages. A claim for

contribution shall be determined based on the percentage of

responsibility of the claimant and of each person against whom a

claim for contribution is made.

(2) Statute of limitations for contribution

An action for contribution in connection with a Y2K action that

is not a contract action shall be brought not later than 6 months

after the entry of a final, nonappealable judgment in the Y2K

action, except that an action for contribution brought by a

defendant who was required to make an additional payment under

subsection (d)(1) of this section may be brought not later than 6

months after the date on which such payment was made.

(g) More protective State law not preempted

Nothing in this section preempts or supersedes any provision of

State law that -

(1) limits the liability of a defendant in a Y2K action to a

lesser amount than the amount determined under this section; or

(2) otherwise affords a greater degree of protection from joint

or several liability than is afforded by this section.

-SOURCE-

(Pub. L. 106-37, Sec. 6, July 20, 1999, 113 Stat. 192.)

-CITE-

15 USC Sec. 6606 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6606. Prelitigation notice

-STATUTE-

(a) In general

Before commencing a Y2K action, except an action that seeks only

injunctive relief, a prospective plaintiff in a Y2K action shall

send a written notice by certified mail (with either return receipt

requested or other means of verification that the notice was sent)

to each prospective defendant in that action. The notice shall

provide specific and detailed information about -

(1) the manifestations of any material defect alleged to have

caused harm or loss;

(2) the harm or loss allegedly suffered by the prospective

plaintiff;

(3) how the prospective plaintiff would like the prospective

defendant to remedy the problem;

(4) the basis upon which the prospective plaintiff seeks that

remedy; and

(5) the name, title, address, and telephone number of any

individual who has authority to negotiate a resolution of the

dispute on behalf of the prospective plaintiff.

(b) Person to whom notice to be sent

The notice required by subsection (a) of this section shall be

sent -

(1) to the registered agent of the prospective defendant for

service of legal process;

(2) if the prospective defendant does not have a registered

agent, then to the chief executive officer if the prospective

defendant is a corporation, to the managing partner if the

prospective defendant is a partnership, to the proprietor if the

prospective defendant is a sole proprietorship, or to a

similarly-situated person if the prospective defendant is any

other enterprise; or

(3) if the prospective defendant has designated a person to

receive prelitigation notices on a Year 2000 Internet Website (as

defined in section 3(7) of the Year 2000 Information and

Readiness Disclosure Act), to the designated person, if the

prospective plaintiff has reasonable access to the Internet.

(c) Response to notice

(1) In general

Within 30 days after receipt of the notice specified in

subsection (a) of this section, each prospective defendant shall

send by certified mail with return receipt requested to each

prospective plaintiff a written statement acknowledging receipt

of the notice, and describing the actions it has taken or will

take to address the problem identified by the prospective

plaintiff.

(2) Willingness to engage in ADR

The written statement shall state whether the prospective

defendant is willing to engage in alternative dispute resolution.

(3) Inadmissibility

A written statement required by this subsection is not

admissible in evidence, under Rule 408 of the Federal Rules of

Evidence or any analogous rule of evidence in any State, in any

proceeding to prove liability for, or the invalidity of, a claim

or its amount, or otherwise as evidence of conduct or statements

made in compromise negotiations.

(4) Presumptive time of receipt

For purposes of paragraph (1), a notice under subsection (a) of

this section is presumed to be received 7 days after it was sent.

(5) Priority

A prospective defendant receiving more than one notice under

this section may give priority to notices with respect to a

product or service that involves a health or safety related Y2K

failure.

(d) Failure to respond

If a prospective defendant -

(1) fails to respond to a notice provided pursuant to

subsection (a) of this section within the 30 days specified in

subsection (c)(1) of this section; or

(2) does not describe the action, if any, the prospective

defendant has taken, or will take, to address the problem

identified by the prospective plaintiff,

the prospective plaintiff may immediately commence a legal action

against that prospective defendant.

(e) Remediation period

(1) In general

If the prospective defendant responds and proposes remedial

action it will take, or offers to engage in alternative dispute

resolution, then the prospective plaintiff shall allow the

prospective defendant an additional 60 days from the end of the

30-day notice period to complete the proposed remedial action or

alternative dispute resolution before commencing a legal action

against that prospective defendant.

(2) Extension by agreement

The prospective plaintiff and prospective defendant may change

the length of the 60-day remediation period by written agreement.

(3) Multiple extensions not allowed

Except as provided in paragraph (2), a defendant in a Y2K

action is entitled to no more than one 30-day period and one

60-day remediation period under paragraph (1).

(4) Statutes of limitation, etc., tolled

Any applicable statute of limitations or doctrine of laches in

a Y2K action to which paragraph (1) applies shall be tolled

during the notice and remediation period under that paragraph.

(f) Failure to provide notice

If a defendant determines that a plaintiff has filed a Y2K action

without providing the notice specified in subsection (a) of this

section or without awaiting the expiration of the appropriate

waiting period specified in subsection (c) of this section, the

defendant may treat the plaintiff's complaint as such a notice by

so informing the court and the plaintiff in its initial response to

the plaintiff. If any defendant elects to treat the complaint as

such a notice -

(1) the court shall stay all discovery and all other

proceedings in the action for the appropriate period after filing

of the complaint; and

(2) the time for filing answers and all other pleadings shall

be tolled during the appropriate period.

(g) Effect of contractual or statutory waiting periods

In cases in which a contract, or a statute enacted before January

1, 1999, requires notice of nonperformance and provides for a

period of delay prior to the initiation of suit for breach or

repudiation of contract, the period of delay provided by contract

or the statute is controlling over the waiting period specified in

subsections (c) and (d) of this section.

(h) State law controls alternative methods

Nothing in this section supersedes or otherwise preempts any

State law or rule of civil procedure with respect to the use of

alternative dispute resolution for Y2K actions.

(i) Provisional remedies unaffected

Nothing in this section interferes with the right of a litigant

to provisional remedies otherwise available under Rule 65 of the

Federal Rules of Civil Procedure or any State rule of civil

procedure providing extraordinary or provisional remedies in any

civil action in which the underlying complaint seeks both

injunctive and monetary relief.

(j) Special rule for class actions

For the purpose of applying this section to a Y2K action that is

maintained as a class action in Federal or State court, the

requirements of the preceding subsections of this section apply

only to named plaintiffs in the class action.

-SOURCE-

(Pub. L. 106-37, Sec. 7, July 20, 1999, 113 Stat. 196.)

-REFTEXT-

REFERENCES IN TEXT

Section 3(7) of the Year 2000 Information and Readiness

Disclosure Act, referred to in subsec. (b)(3), is section 3(7) of

Pub. L. 105-271, which is set out in a note under section 1 of this

title.

The Federal Rules of Evidence, referred to in subsec. (c)(3), are

set out in the Appendix to Title 28, Judiciary and Judicial

Procedure.

The Federal Rules of Civil Procedure, referred to in subsec. (i),

are set out in the Appendix to Title 28, Judiciary and Judicial

Procedure.

-CITE-

15 USC Sec. 6607 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6607. Pleading requirements

-STATUTE-

(a) Application with rules of civil procedure

This section applies exclusively to Y2K actions and, except to

the extent that this section requires additional information to be

contained in or attached to pleadings, nothing in this section is

intended to amend or otherwise supersede applicable rules of

Federal or State civil procedure.

(b) Nature and amount of damages

In all Y2K actions in which damages are requested, there shall be

filed with the complaint a statement of specific information as to

the nature and amount of each element of damages and the factual

basis for the damages calculation.

(c) Material defects

In any Y2K action in which the plaintiff alleges that there is a

material defect in a product or service, there shall be filed with

the complaint a statement of specific information regarding the

manifestations of the material defects and the facts supporting a

conclusion that the defects are material.

(d) Required state of mind

In any Y2K action in which a claim is asserted on which the

plaintiff may prevail only on proof that the defendant acted with a

particular state of mind, there shall be filed with the complaint,

with respect to each element of that claim, a statement of the

facts giving rise to a strong inference that the defendant acted

with the required state of mind.

-SOURCE-

(Pub. L. 106-37, Sec. 8, July 20, 1999, 113 Stat. 198.)

-REFTEXT-

REFERENCES IN TEXT

Rules of Federal civil procedure, referred to in subsec. (a), are

contained in the Federal Rules of Civil Procedure which are set out

in the Appendix to Title 28, Judiciary and Judicial Procedure.

-CITE-

15 USC Sec. 6608 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6608. Duty to mitigate

-STATUTE-

(a) In general

Damages awarded in any Y2K action shall exclude compensation for

damages the plaintiff could reasonably have avoided in light of any

disclosure or other information of which the plaintiff was, or

reasonably should have been, aware, including information made

available by the defendant to purchasers or users of the

defendant's product or services concerning means of remedying or

avoiding the Y2K failure involved in the action.

(b) Preservation of existing law

The duty imposed by this section is in addition to any duty to

mitigate imposed by State law.

(c) Exception for intentional fraud

Subsection (a) of this section does not apply to damages suffered

by reason of the plaintiff's justifiable reliance upon an

affirmative material misrepresentation by the defendant, made by

the defendant with actual knowledge of its falsity, concerning the

potential for Y2K failure of the device or system used or sold by

the defendant that experienced the Y2K failure alleged to have

caused the plaintiff's harm.

-SOURCE-

(Pub. L. 106-37, Sec. 9, July 20, 1999, 113 Stat. 198.)

-CITE-

15 USC Sec. 6609 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6609. Application of existing impossibility or commercial

impracticability doctrines

-STATUTE-

In any Y2K action for breach or repudiation of contract, the

applicability of the doctrines of impossibility and commercial

impracticability shall be determined by the law in existence on

January 1, 1999. Nothing in this chapter shall be construed as

limiting or impairing a party's right to assert defenses based upon

such doctrines.

-SOURCE-

(Pub. L. 106-37, Sec. 10, July 20, 1999, 113 Stat. 199.)

-CITE-

15 USC Sec. 6610 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6610. Damages limitation by contract

-STATUTE-

In any Y2K action for breach or repudiation of contract, no party

may claim, or be awarded, any category of damages unless such

damages are allowed -

(1) by the express terms of the contract; or

(2) if the contract is silent on such damages, by operation of

State law at the time the contract was effective or by operation

of Federal law.

-SOURCE-

(Pub. L. 106-37, Sec. 11, July 20, 1999, 113 Stat. 199.)

-CITE-

15 USC Sec. 6611 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6611. Damages in tort claims

-STATUTE-

(a) In general

A party to a Y2K action making a tort claim, other than a claim

of intentional tort arising independent of a contract, may not

recover damages for economic loss unless -

(1) the recovery of such losses is provided for in a contract

to which the party seeking to recover such losses is a party; or

(2) such losses result directly from damage to tangible

personal or real property caused by the Y2K failure involved in

the action (other than damage to property that is the subject of

the contract between the parties to the Y2K action or, in the

event there is no contract between the parties, other than damage

caused only to the property that experienced the Y2K failure),

and such damages are permitted under applicable Federal or State

law.

(b) Economic loss

For purposes of this section only, and except as otherwise

specifically provided in a valid and enforceable written contract

between the plaintiff and the defendant in a Y2K action, the term

''economic loss'' means amounts awarded to compensate an injured

party for any loss, and includes amounts awarded for damages such

as -

(1) lost profits or sales;

(2) business interruption;

(3) losses indirectly suffered as a result of the defendant's

wrongful act or omission;

(4) losses that arise because of the claims of third parties;

(5) losses that must be pled as special damages; and

(6) consequential damages (as defined in the Uniform Commercial

Code or analogous State commercial law).

(c) Certain other actions

A person liable for damages, whether by settlement or judgment,

in a civil action to which this chapter does not apply because of

section 6603(c) of this title whose liability, in whole or in part,

is the result of a Y2K failure may, notwithstanding any other

provision of this chapter, pursue any remedy otherwise available

under Federal or State law against the person responsible for that

Y2K failure to the extent of recovering the amount of those

damages.

-SOURCE-

(Pub. L. 106-37, Sec. 12, July 20, 1999, 113 Stat. 199.)

-CITE-

15 USC Sec. 6612 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6612. State of mind; bystander liability; control

-STATUTE-

(a) Defendant's state of mind

In a Y2K action other than a claim for breach or repudiation of

contract, and in which the defendant's actual or constructive

awareness of an actual or potential Y2K failure is an element of

the claim, the defendant is not liable unless the plaintiff

establishes that element of the claim by the standard of evidence

under applicable State law in effect on the day before January 1,

1999.

(b) Limitation on bystander liability for Y2K failures

(1) In general

With respect to any Y2K action for money damages in which -

(A) the defendant is not the manufacturer, seller, or

distributor of a product, or the provider of a service, that

suffers or causes the Y2K failure at issue;

(B) the plaintiff is not in substantial privity with the

defendant; and

(C) the defendant's actual or constructive awareness of an

actual or potential Y2K failure is an element of the claim

under applicable law,

the defendant shall not be liable unless the plaintiff, in

addition to establishing all other requisite elements of the

claim, proves, by the standard of evidence under applicable State

law in effect on the day before January 1, 1999, that the

defendant actually knew, or recklessly disregarded a known and

substantial risk, that such failure would occur.

(2) Substantial privity

For purposes of paragraph (1)(B), a plaintiff and a defendant

are in substantial privity when, in a Y2K action arising out of

the performance of professional services, the plaintiff and the

defendant either have contractual relations with one another or

the plaintiff is a person who, prior to the defendant's

performance of such services, was specifically identified to and

acknowledged by the defendant as a person for whose special

benefit the services were being performed.

(3) Certain claims excluded

For purposes of paragraph (1)(C), claims in which the

defendant's actual or constructive awareness of an actual or

potential Y2K failure is an element of the claim under applicable

law do not include claims for negligence but do include claims

such as fraud, constructive fraud, breach of fiduciary duty,

negligent misrepresentation, and interference with contract or

economic advantage.

(c) Control not determinative of liability

The fact that a Y2K failure occurred in an entity, facility,

system, product, or component that was sold, leased, rented, or

otherwise within the control of the party against whom a claim is

asserted in a Y2K action shall not constitute the sole basis for

recovery of damages in that action. A claim in a Y2K action for

breach or repudiation of contract for such a failure is governed by

the terms of the contract.

(d) Protections of the Year 2000 Information and Readiness

Disclosure Act apply

The protections for the exchanges of information provided by

section 4 of the Year 2000 Information and Readiness Disclosure Act

(Public Law 105-271) shall apply to any Y2K action.

-SOURCE-

(Pub. L. 106-37, Sec. 13, July 20, 1999, 113 Stat. 200.)

-REFTEXT-

REFERENCES IN TEXT

Section 4 of the Year 2000 Information and Readiness Disclosure

Act, referred to in subsec. (d), is section 4 of Pub. L. 105-271,

which is set out in a note under section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6603 of this title.

-CITE-

15 USC Sec. 6613 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6613. Appointment of special masters or magistrate judges for

Y2K actions

-STATUTE-

Any district court of the United States in which a Y2K action is

pending may appoint a special master or a magistrate judge to hear

the matter and to make findings of fact and conclusions of law in

accordance with Rule 53 of the Federal Rules of Civil Procedure.

-SOURCE-

(Pub. L. 106-37, Sec. 14, July 20, 1999, 113 Stat. 201.)

-REFTEXT-

REFERENCES IN TEXT

Rule 53 of the Federal Rules of Civil Procedure, referred to in

text, is set out in the Appendix to Title 28, Judiciary and

Judicial Procedure.

-CITE-

15 USC Sec. 6614 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6614. Y2K actions as class actions

-STATUTE-

(a) Material defect requirement

A Y2K action involving a claim that a product or service is

defective may be maintained as a class action in Federal or State

court as to that claim only if -

(1) it satisfies all other prerequisites established by

applicable Federal or State law, including applicable rules of

civil procedure; and

(2) the court finds that the defect in a product or service as

alleged would be a material defect for the majority of the

members of the class.

(b) Notification

In any Y2K action that is maintained as a class action, the

court, in addition to any other notice required by applicable

Federal or State law, shall direct notice of the action to each

member of the class, which shall include -

(1) a concise and clear description of the nature of the

action;

(2) the jurisdiction where the case is pending; and

(3) the fee arrangements with class counsel, including the

hourly fee being charged, or, if it is a contingency fee, the

percentage of the final award which will be paid, including an

estimate of the total amount that would be paid if the requested

damages were to be granted.

(c) Forum for Y2K class actions

(1) Jurisdiction

Except as provided in paragraph (2), the district courts of the

United States shall have original jurisdiction of any Y2K action

that is brought as a class action.

(2) Exceptions

The district courts of the United States shall not have

original jurisdiction over a Y2K action brought as a class action

if -

(A)(i) a substantial majority of the members of the proposed

plaintiff class are citizens of a single State;

(ii) the primary defendants are citizens of that State; and

(iii) the claims asserted will be governed primarily by the

laws of that State;

(B) the primary defendants are States, State officials, or

other governmental entities against whom the district courts of

the United States may be foreclosed from ordering relief;

(C) the plaintiff class does not seek an award of punitive

damages, and the amount in controversy is less than the sum of

$10,000,000 (exclusive of interest and costs), computed on the

basis of all claims to be determined in the action; or

(D) there are less than 100 members of the proposed plaintiff

class.

A party urging that any exception described in subparagraph (A),

(B), (C), or (D) applies to an action shall bear the full burden

of demonstrating the applicability of the exception.

(3) Procedure if requirements not met

(A) Dismissal or remand

A United States district court shall dismiss, or, if after

removal, strike the class allegations and remand, any Y2K

action brought or removed under this subsection as a class

action if -

(i) the action is subject to the jurisdiction of the court

solely under this subsection; and

(ii) the court determines the action may not proceed as a

class action based on a failure to satisfy the conditions of

Rule 23 of the Federal Rules of Civil Procedure.

(B) Amendment; removal

Nothing in paragraph (A) shall prohibit plaintiffs from

filing an amended class action in Federal or State court. A

defendant shall have the right to remove such an amended class

action to a United States district court under this subsection.

(C) Period of limitations tolled

Upon dismissal or remand, the period of limitations for any

claim that was asserted in an action on behalf of any named or

unnamed member of any proposed class shall be deemed tolled to

the full extent provided under Federal law.

(D) Dismissal without prejudice

The dismissal of a Y2K action under subparagraph (A) shall be

without prejudice.

(d) Effect on rules of civil procedure

Except as otherwise provided in this section, nothing in this

section supersedes any rule of Federal or State civil procedure

applicable to class actions.

-SOURCE-

(Pub. L. 106-37, Sec. 15, July 20, 1999, 113 Stat. 201.)

-REFTEXT-

REFERENCES IN TEXT

Rules of Federal civil procedure, referred to in subsecs. (a)(1),

(c)(3)(A)(ii), and (d), are contained in the Federal Rules of Civil

Procedure which are set out in the Appendix to Title 28, Judiciary

and Judicial Procedure.

-CITE-

15 USC Sec. 6615 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6615. Applicability of State law

-STATUTE-

Nothing in this chapter shall be construed to affect the

applicability of any State law that provides stricter limits on

damages and liabilities, affording greater protection to defendants

in Y2K actions, than are provided in this chapter.

-SOURCE-

(Pub. L. 106-37, Sec. 16, July 20, 1999, 113 Stat. 202.)

-CITE-

15 USC Sec. 6616 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6616. Admissible evidence ultimate issue in State courts

-STATUTE-

Any party to a Y2K action in a State court in a State that has

not adopted a rule of evidence substantially similar to Rule 704 of

the Federal Rules of Evidence may introduce in such action evidence

that would be admissible if Rule 704 applied in that jurisdiction.

-SOURCE-

(Pub. L. 106-37, Sec. 17, July 20, 1999, 113 Stat. 202.)

-REFTEXT-

REFERENCES IN TEXT

Rule 704 of the Federal Rules of Evidence, referred to in text,

is set out in the Appendix to Title 28, Judiciary and Judicial

Procedure.

-CITE-

15 USC Sec. 6617 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 92 - YEAR 2000 COMPUTER DATE CHANGE

-HEAD-

Sec. 6617. Suspension of penalties for certain year 2000 failures

by small business concerns

-STATUTE-

(a) Definitions

In this section -

(1) the term ''agency'' means any executive agency, as defined

in section 105 of title 5, that has the authority to impose civil

penalties on small business concerns;

(2) the term ''first-time violation'' means a violation by a

small business concern of a federally enforceable rule or

regulation (other than a Federal rule or regulation that relates

to the safety and soundness of the banking or monetary system or

for the integrity of the National Securities markets, including

protection of depositors and investors) caused by a Y2K failure

if that Federal rule or regulation had not been violated by that

small business concern within the preceding 3 years; and

(3) the term ''small business concern'' has the same meaning as

a defendant described in section 6604(b)(2)(B) of this title.

(b) Establishment of liaisons

Not later than 30 days after July 20, 1999, each agency shall -

(1) establish a point of contact within the agency to act as a

liaison between the agency and small business concerns with

respect to problems arising out of Y2K failures and compliance

with Federal rules or regulations; and

(2) publish the name and phone number of the point of contact

for the agency in the Federal Register.

(c) General rule

Subject to subsections (d) and (e) of this section, no agency

shall impose any civil money penalty on a small business concern

for a first-time violation.

(d) Standards for waiver

An agency shall provide a waiver of civil money penalties for a

first-time violation, provided that a small business concern

demonstrates, and the agency determines, that -

(1) the small business concern previously made a reasonable

good faith effort to anticipate, prevent, and effectively

remediate a potential Y2K failure;

(2) a first-time violation occurred as a result of the Y2K

failure of the small business concern or other entity, which

significantly affected the small business concern's ability to

comply with a Federal rule or regulation;

(3) the first-time violation was unavoidable in the face of a

Y2K failure or occurred as a result of efforts to prevent the

disruption of critical functions or services that could result in

harm to life or property;

(4) upon identification of a first-time violation, the small

business concern initiated reasonable and prompt measures to

correct the violation; and

(5) the small business concern submitted notice to the

appropriate agency of the first-time violation within a

reasonable time not to exceed 5 business days from the time that

the small business concern became aware that the first-time

violation had occurred.

(e) Exceptions

An agency may impose civil money penalties authorized under

Federal law on a small business concern for a first-time violation

if -

(1) the small business concern's failure to comply with Federal

rules or regulations resulted in actual harm, or constitutes or

creates an imminent threat to public health, safety, or the

environment; or

(2) the small business concern fails to correct the violation

not later than 1 month after initial notification to the agency.

(f) Expiration

This section shall not apply to first-time violations caused by a

Y2K failure occurring after December 31, 2000.

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(Pub. L. 106-37, Sec. 18, July 20, 1999, 113 Stat. 202.)

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