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.