REPORT TITLE:
Year 2000

DESCRIPTION:
Protects government from serving as a "deep pocket" for claims
based on Year 2000 errors generated by a government computer
system.  (HB1105 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1105
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO CLAIMS AGAINST THE GOVERNMENT BASED ON YEAR 2000
   ERRORS BY COMPUTER-BASED SYSTEMS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The purpose of this Act is to amend the immunity
 
 2 provisions established by Act 213, Session Laws of Hawaii 1998,
 
 3 including the protection afforded to persons affected by a year
 
 4 2000 error generated by a government computer system.
 
 5      This Act amends the time frame covered by the immunity to
 
 6 beyond June 30, 1999, and the scope of the immunity to afford
 
 7 protection as to claims arising out of or relating to a year 2000
 
 8 error produced, calculated, or generated by a government computer
 
 9 system or other computer-based system, regardless of the cause
 
10 for the year 2000 error.
 
11      These amendments are intended to be applied retroactively to
 
12 protect the government from serving as a deep pocket for claims
 
13 based on year 2000 errors produced, calculated, or generated by
 
14 computer-based systems.
 
15      SECTION 2.  Section 662-15, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "662-15  Exceptions.  This chapter shall not apply to:
 
18      (1)  Any claim based upon an act or omission of an employee
 
19           of the State, exercising due care, in the execution of
 

 
Page 2                                                     1105
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 1           a statute or regulation, whether or not such statute or
 
 2           regulation is valid, or based upon the exercise or
 
 3           performance or the failure to exercise or perform a
 
 4           discretionary function or duty on the part of a state
 
 5           officer or employee, whether or not the discretion
 
 6           involved has been abused;
 
 7      (2)  Any claim arising in respect of the assessment or
 
 8           collection of any tax, or the detention of any goods or
 
 9           merchandise by law enforcement officers;
 
10      (3)  Any claim for which a remedy is provided elsewhere in
 
11           the laws of the State;
 
12      (4)  Any claim arising out of assault, battery, false
 
13           imprisonment, false arrest, malicious prosecution,
 
14           abuse of process, libel, slander, misrepresentation,
 
15           deceit, or interference with contract rights;
 
16      (5)  Any claim arising out of the combatant activities of
 
17           the Hawaii national guard and Hawaii state defense
 
18           force during time of war, or during the times the
 
19           Hawaii national guard is engaged in federal service
 
20           pursuant to sections 316, 502, 503, 504, 505, or 709 of
 
21           Title 32 of the United States Code;
 
22      (6)  Any claim arising in a foreign country;
 

 
 
 
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 1      (7)  Any claim arising out of the acts or omissions of any
 
 2           boating enforcement officer; or
 
 3      (8)  Any claim arising out of or [based upon any failure of
 
 4           or error produced, calculated, or generated by a
 
 5           government computer system, which failure or error
 
 6           occurred prior to June 30, 1999 as a result of the
 
 7           system's not being year 2000 compliant, regardless of
 
 8           the cause for the system's not being year 2000
 
 9           compliant.  "Year 2000 compliant" means, with respect
 
10           to a government computer system, that the system
 
11           accurately processes date and time data (including, but
 
12           not limited to, calculating, comparing, projecting, and
 
13           sequencing) from, into, and between the twentieth and
 
14           twenty-first centuries and the years 1999 and 2000 and
 
15           leap year calculations.] relating to a year 2000 error
 
16           produced, calculated, or generated by a government
 
17           computer system or other computer-based system,
 
18           regardless of the cause for the year 2000 error.
 
19           "Government computer system" means a computer-based
 
20           system owned or operated by or on behalf of the State,
 
21           a county, or a board.  "Computer-based system" includes
 
22           any computer or other information technology system and
 
23           any electronic device that controls, operates,
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           monitors, or assists in the operation or functioning of
 
 2           equipment, machinery, plant, or a device using an
 
 3           embedded or installed microprocessor or chip.  "Year
 
 4           2000 error" means the failure of a computer-based
 
 5           system to accurately store, display, transmit, receive,
 
 6           process, calculate, compare, or sequence date and time
 
 7           data from, into, or between the years 1999 and 2000 and
 
 8           beyond, and leap year calculations."
 
 9      SECTION 3.  Chapter 662E, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11                        "[[]CHAPTER 662E[]]
 
12      [GOVERNMENT COMPUTER SYSTEMS AND YEAR 2000 COMPLIANCE]
 
13             CLAIMS AGAINST GOVERNMENT ARISING OUT OF
 
14                  OR RELATING TO YEAR 2000 ERRORS
 
15      [[]662E-1[]]  Definitions.  As used in this chapter:
 
16      "Board" means any agency, board, commission, authority, or
 
17 committee of the State or [its political subdivision] a county
 
18 that is created by constitution, statute, rule, or executive
 
19 order to have supervision, control, jurisdiction, or advisory
 
20 power over specific matters.
 
21      "Computer-based system" includes any computer or other
 
22 information technology system and any electronic device that
 

 
 
 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 controls, operates, monitors, or assists in the operation or
 
 2 functioning of equipment, machinery, plant, or a device using an
 
 3 embedded or installed microprocessor or chip.
 
 4      "Government computer system" [includes any computer or other
 
 5 information technology system] means a computer-based system
 
 6 owned or operated by or on behalf of the State, [its political
 
 7 subdivisions,] a county, or a board.
 
 8      "Government employee" includes an officer or employee of the
 
 9 State, [its political subdivisions,] a county, or a board,
 
10 including a person acting on behalf of a board in an official
 
11 capacity, temporarily or permanently, whether with or without
 
12 compensation.
 
13      ["Year 2000 compliant" means, with respect to a government
 
14 computer system, that the system accurately processes date and
 
15 time data (including, but not limited to, calculating, comparing,
 
16 projecting, and sequencing) from, into, and between the twentieth
 
17 and twenty-first centuries and the years 1999 and 2000, and leap
 
18 year calculations.]
 
19      "Year 2000 error" means the failure of a computer-based
 
20 system to accurately store, display, transmit, receive, process,
 
21 calculate, compare, or sequence date and time data from, into, or
 
22 between the years 1999 and 2000 and beyond, and leap year
 
23 calculations.
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      [[]662E-2[]]  Immunity against suits.  [No action,
 
 2 including, without limitation, any action for declaratory or
 
 3 injunctive relief, may be brought against any person including,
 
 4 but not limited to, the State, its political subdivisions, a
 
 5 board, or a government employee, arising out of or based upon any
 
 6 failure of or error produced, calculated, or generated by a
 
 7 government computer system, which failure or error occurred prior
 
 8 to June 30, 1999 as a result of the system's not being year 2000
 
 9 compliant, regardless of the cause for the system's not being
 
10 year 2000 compliant.]
 
11      (a)  No action, including, without limitation, any action
 
12 for declaratory or injunctive relief, may be brought against the
 
13 State, a county, a board, or a government employee, arising out
 
14 of or relating to a year 2000 error produced, calculated, or
 
15 generated by a government computer system or other computer-based
 
16 system, regardless of the cause for the year 2000 error.  Nothing
 
17 in this subsection shall be deemed to provide a government
 
18 employee with immunity from any action to enforce a mortgage
 
19 obligation or other similar personal obligation of the government
 
20 employee that is unrelated to the government employee's
 
21 employment.
 
22      (b)  No action, including, without limitation, any action
 
23 for declaratory or injunctive relief, may be brought against any
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 person arising out of or relating to a year 2000 error produced,
 
 2 calculated, or generated by a government computer system,
 
 3 regardless of the cause for the year 2000 error.
 
 4      [[]662E-3[]]  Remedial measures.  Nothing in this chapter
 
 5 shall be deemed to prevent the State, [its political
 
 6 subdivisions,] a county, a board, or a government employee, from
 
 7 taking steps to remedy [any failure of or] a year 2000 error
 
 8 produced, calculated, or generated by a government computer
 
 9 system [as a result of the system's not being year 2000
 
10 compliant,] once the [failure or] error [is] has been verified.
 
11      [[]662E-4[]]  Exceptions.  Nothing in this chapter shall be
 
12 deemed to provide immunity or release from liability to any
 
13 person who:
 
14      (1)  Deliberately tampers with a government computer system
 
15           for the purpose of [preventing it from being year 2000
 
16           compliant;] causing the system to produce, calculate,
 
17           or generate a year 2000 error; provided, however, that
 
18           the immunity or release from liability shall remain and
 
19           not be set aside if the year 2000 error arises out or
 
20           is related to a test performed to determine whether a
 
21           government computer system will produce, calculate, or
 
22           generate a year 2000 error; or
 

 
 
 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (2)  Receives and fails to immediately return a benefit
 
 2           [which] that the person is not legally entitled to
 
 3           [arising out of or based upon any failure of or error
 
 4           produced, calculated, or generated by a government
 
 5           computer system as a result of the system's not being
 
 6           year 2000 compliant.], which benefit was provided to
 
 7           the person as a result of a year 2000 error produced,
 
 8           calculated, or generated by a government computer
 
 9           system."
 
10      SECTION 4.  Nothing in this Act is intended to affect the
 
11 indemnity and defense coverage rights and obligations under any
 
12 contract of insurance.
 
13      SECTION 5.  If any provision of this Act, or the application
 
14 thereof to any person or circumstance is held invalid, the
 
15 invalidity does not affect other provisions or applications of
 
16 the Act which can be given effect without the invalid provision
 
17 or application, and to this end the provisions of this Act are
 
18 severable.
 
19      SECTION 6.  If any portion of this Act is found to be
 
20 preempted by federal law or regulation, the remainder shall
 
21 remain in full force and effect to the fullest extent consistent
 
22 with the preemption.
 

 
 
 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      SECTION 7.  This Act shall not be deemed to impose any
 
 2 increased obligation, duty, or standard of care than is otherwise
 
 3 applicable under federal or state law.  It is not intended to
 
 4 create any new cause of action or remedy.
 
 5      SECTION 8.  The amendments to chapter 662E and section 662-
 
 6 15(8), Hawaii Revised Statutes, in sections 2 and 3 of this Act
 
 7 are specifically intended to be and shall be applied
 
 8 retroactively as of the effective date of Act 213, Session Laws
 
 9 of Hawaii 1998.
 
10      SECTION 9.  The intention of this Act is to afford
 
11 protection against harm which is pervasive, unpredictable in
 
12 impact, and which was generally unknown to government.  For that
 
13 reason, its provisions are remedial, and shall be read to provide
 
14 the greatest level of protection.
 
15      SECTION 10.  Statutory material to be repealed is bracketed.
 
16 New statutory material is underscored.
 
17      SECTION 11.  This Act shall take effect upon its approval,
 
18 provided that:
 
19      (1)  Chapter 662E and section 662-15(8), Hawaii Revised
 
20           Statutes, shall be repealed on December 31, 2010; and
 
21      (2)  Section 662-15, Hawaii Revised Statutes, is reenacted
 
22           in the form in which it read on July 16, 1998.