By Pitts                                                H.B. No. 40
         76R413 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to limiting liability for damages arising from failure of
 1-3     a computer to recognize and accurately process the date January 1,
 1-4     1999, or a later date.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Title 4, Civil Practice and Remedies Code, is
 1-7     amended by adding Chapter 97 to read as follows:
 1-8              CHAPTER 97.  LIABILITY FOR COMPUTER DATE FAILURE
 1-9           Sec. 97.001.  DEFINITIONS.  In this chapter:
1-10                 (1)  "Computer" means an electronic, magnetic, optical,
1-11     electrochemical, or other high-speed data processing device that
1-12     performs logical, arithmetic, or memory functions by the
1-13     manipulations of electronic or magnetic impulses and includes all
1-14     input, output, processing, storage, or communication facilities
1-15     that are connected or related to the device.
1-16                 (2)  "Computer date failure" means the failure of a
1-17     computer, computer network, program, software, embedded chip, or
1-18     computer system to recognize, to not cause an error condition on,
1-19     and to accurately process the date January 1, 1999, or a later
1-20     date.
1-21                 (3)  "Computer network" means the interconnection of
1-22     two or more computers or computer systems by satellite, microwave,
1-23     line, cable, wiring, or other communication medium with the
1-24     capability to transmit information among the computers.
 2-1                 (4)  "Computer program" means an ordered set of
 2-2     data-coded instructions or statements that when executed by a
 2-3     computer cause the computer system to process data or perform
 2-4     specific functions.
 2-5                 (5)  "Computer software" means a set of computer
 2-6     programs, procedures, and associated documentation related to the
 2-7     operation of a computer, computer system, or computer network.
 2-8                 (6)  "Computer system" means any combination of a
 2-9     computer or computer network with the documentation, computer
2-10     software, or physical facilities supporting the computer or
2-11     computer network.
2-12                 (7)  "Embedded chip" means a single or multiple
2-13     microprocessor chip that operates in conjunction with software,
2-14     including software on the chip itself, designed to control a device
2-15     or equipment in some way.
2-16           Sec. 97.002.  LIMITATION OF LIABILITY.  In a claim for
2-17     damages arising from a computer date failure, the claimant may
2-18     recover only:
2-19                 (1)  damages resulting from personal injury or wrongful
2-20     death, excluding mental anguish; and
2-21                 (2)  costs reasonably incurred to reprogram or replace
2-22     and internally test the relevant computer, computer network,
2-23     computer program, computer software, computer system, or internal
2-24     hardware timer.
2-25           Sec. 97.003.  EFFECT ON OTHER LIABILITY.  (a)  This chapter:
2-26                 (1)  does not provide an independent basis for a claim
2-27     for computer date failure;
 3-1                 (2)  serves only to limit the recovery of damages if
 3-2     the claim is authorized by common law or other statutory law;
 3-3                 (3)  does not relieve a party of any liability that
 3-4     would otherwise exist for deliberate, wilful, or malicious injury
 3-5     to a person or property;
 3-6                 (4)  applies to a governmental unit; and
 3-7                 (5)  does not waive sovereign immunity.
 3-8           (b)  To the extent that this chapter limits the liability of
 3-9     a governmental unit under circumstances in which the governmental
3-10     unit would be liable under Chapter 101, this chapter controls.
3-11           SECTION 2.  This Act applies only to a cause of action that
3-12     accrues on or after the effective date of this Act.  An action that
3-13     accrued before  the effective date of this Act is governed by the
3-14     law in effect at the time the action accrued, and that law is
3-15     continued in effect only for this purpose.
3-16           SECTION 3.  The importance of this legislation and the
3-17     crowded condition of the calendars in both houses create an
3-18     emergency and an imperative public necessity that the
3-19     constitutional rule requiring bills to be read on three several
3-20     days in each house be suspended, and this rule is hereby suspended,
3-21     and that this Act take effect and be in force from and after its
3-22     passage, and it is so enacted.