By Elkins                                             H.B. No. 2652
         76R4254 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to liability for damages arising from failure of computer
 1-3     software to recognize and accurately process certain dates.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Title 6, Civil Practice and Remedies Code, is
 1-6     amended by adding Chapter 147 to read as follows:
 1-7                  CHAPTER 147.  LIABILITY FOR COMPUTER DATE
 1-8                        FAILURE BY COMPUTER SOFTWARE
 1-9           Sec. 147.001.  DEFINITIONS.  In this chapter:
1-10                 (1)  "Claimant" means a party seeking recovery of
1-11     damages, including a plaintiff, counterclaimant, cross-claimant, or
1-12     third-party plaintiff.
1-13                 (2)  "Computer" means an electronic, magnetic, optical,
1-14     electrochemical, or other high-speed data processing device that
1-15     performs logical, arithmetic, or memory functions by the
1-16     manipulations of electronic or magnetic impulses and includes all
1-17     input, output, processing, storage, or communication facilities
1-18     that are connected or related to the device.
1-19                 (3)  "Computer network" means the interconnection of
1-20     two or more computers or computer systems by satellite, microwave,
1-21     line, or other communication medium with the capability to transmit
1-22     information between or among the computers.
1-23                 (4)  "Computer program" means an ordered set of data
1-24     representing coded instructions or statements that when executed by
 2-1     a computer cause the computer to process data or perform specific
 2-2     functions.
 2-3                 (5)  "Computer software" means a set of computer
 2-4     programs, procedures, and associated documentation related to the
 2-5     operation of a computer, computer system, or computer network.
 2-6                 (6)  "Computer system" means any combination of a
 2-7     computer or computer network with the documentation, computer
 2-8     software, or physical facilities supporting the computer or
 2-9     computer network.
2-10                 (7)  "Defendant" means a party from whom a claimant
2-11     seeks recovery of damages.
2-12           Sec. 147.002.  ACTION FOR COMPUTER DATE FAILURE.  This
2-13     chapter applies only to an action for damages arising from computer
2-14     date failure caused by computer software being unable to:
2-15                 (1)  recognize and accurately process the date change
2-16     from December 31, 1999, to January 1, 2000; or
2-17                 (2)  accurately convert from a two-digit format to a
2-18     four-digit format during the date change from December 31, 1999, to
2-19     January 1, 2000.
2-20           Sec. 147.003.  NO LIABILITY FOR DEFENDANT PROVIDING UPGRADES.
2-21     A defendant is not liable for damages in an action to which this
2-22     chapter applies if the defendant shows that:
2-23                 (1)  the claimant was a registered user of the computer
2-24     software supplied by the defendant that experienced a computer date
2-25     failure;
2-26                 (2)  before January 1, 2000, the defendant provided the
2-27     claimant with a free upgrade, repair, or replacement to the
 3-1     software that the defendant reasonably believed in good faith would
 3-2     avoid computer date failure; and
 3-3                 (3)  after learning or being notified of the failure of
 3-4     the upgrade, repair, or replacement to avoid computer date failure,
 3-5     the defendant, within the time frame expected in an emergency
 3-6     situation, provided the claimant with a free upgrade, repair, or
 3-7     replacement that corrected the problems associated with the
 3-8     computer date failure.
 3-9           SECTION 2.  The importance of this legislation and the
3-10     crowded condition of the calendars in both houses create an
3-11     emergency and an imperative public necessity that the
3-12     constitutional rule requiring bills to be read on three several
3-13     days in each house be suspended, and this rule is hereby suspended,
3-14     and that this Act take effect and be in force from and after its
3-15     passage, and it is so enacted.