REPORT TITLE:
Year 2000; government immunity

DESCRIPTION:
Provides State immunity until the year 2003 from tort liability
claims arising from year 2000 errors, regardless of when the
error occurs.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1313
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   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 legislature finds that Act 213, Session Laws
 
 2 of Hawaii 1998, established limited government immunity from
 
 3 claims arising out of year 2000 errors generated by a government
 
 4 computer system.  The legislature further finds that the intent
 
 5 of this Act is to extend the time frame covered by the immunity
 
 6 to beyond June 30, 1999, and expand the scope of the immunity to
 
 7 afford protection as to claims arising out a year 2000 errors
 
 8 produced, calculated, or generated by a government computer
 
 9 system or other computer-based system.  However, the legislature
 
10 notes that this Act shall not be deemed to impose any increased
 
11 obligation, duty, or standard of care than is otherwise
 
12 applicable under federal or state law, nor is it intended to
 
13 create any new cause of action or remedy.
 
14     Thus, the purpose of this Act is to amend the immunity
 
15 provisions established by Act 213, Session Laws of Hawaii 1998,
 
16 including the protection afforded to persons affected by a year
 
17 2000 error generated by a government computer system.
 
18     SECTION 2.  Section 662-15, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 

 
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 1     "662-15  Exceptions.  This chapter shall not apply to:
 
 2     (1)  Any claim based upon an act or omission of an employee
 
 3          of the State, exercising due care, in the execution of a
 
 4          statute or regulation, whether or not such statute or
 
 5          regulation is valid, or based upon the exercise or
 
 6          performance or the failure to exercise or perform a
 
 7          discretionary function or duty on the part of a state
 
 8          officer or employee, whether or not the discretion
 
 9          involved has been abused;
 
10     (2)  Any claim arising in respect of the assessment or
 
11          collection of any tax, or the detention of any goods or
 
12          merchandise by law enforcement officers;
 
13      (3)  Any claim for which a remedy is provided elsewhere in
 
14           the laws of the State;
 
15      (4)  Any claim arising out of assault, battery, false
 
16           imprisonment, false arrest, malicious prosecution,
 
17           abuse of process, libel, slander, misrepresentation,
 
18           deceit, or interference with contract rights;
 
19      (5)  Any claim arising out of the combatant activities of
 
20           the Hawaii national guard and Hawaii state defense
 
21           force during time of war, or during the times the
 
22           Hawaii national guard is engaged in federal service
 
23           pursuant to sections 316, 502, 503, 504, 505, or 709 of
 

 
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 1           Title 32 of the United States Code;
 
 2      (6)  Any claim arising in a foreign country;
 
 3      (7)  Any claim arising out of the acts or omissions of any
 
 4           boating enforcement officer; or
 
 5      (8)  Any claim arising out of [or based upon any failure of
 
 6           or error produced, calculated, or generated by a
 
 7           government computer system, which failure or error
 
 8           occurred prior to June 30, 1999 as a result of the
 
 9           system's not being year 2000 compliant, regardless of
 
10           the cause for the system's not being year 2000
 
11           compliant.  "Year 2000 compliant" means, with respect
 
12           to a government computer system, that the system
 
13           accurately processes date and time data (including, but
 
14           not limited to, calculating, comparing, projecting, and
 
15           sequencing) from, into, and between the twentieth and
 
16           twenty-first centuries and the years 1999 and 2000, and
 
17           leap year calculations.] a year 2000 error produced,
 
18           calculated, or generated by a government computer
 
19           system or other computer-based system, regardless of
 
20           the cause for the year 2000 error. "Government computer
 
21           system" means a computer-based system owned or operated
 
22           by or on behalf of the State, its political
 
23           subdivisions, or a board.  "Computer- based system"
 

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

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

 
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 1 and 2000 and beyond, and leap year calculations.
 
 2      [[]662E-2[]]  Immunity against suits.  [No action,
 
 3 including, without limitation, any action for declaratory or
 
 4 injunctive relief, may be brought against any person including,
 
 5 but not limited to, the State, its political subdivisions, a
 
 6 board, or a government employee, arising out of or based upon any
 
 7 failure of or error produced, calculated, or generated by a
 
 8 government computer system, which failure or error occurred prior
 
 9 to June 30, 1999 as a result of the system's not being year 2000
 
10 compliant, regardless of the cause for the system's not being
 
11 year 2000 compliant.]
 
12      (a)  No action, including, without limitation, any action
 
13 for declaratory or injunctive relief, may be brought against the
 
14 State, its political subdivisions, a board, or a government
 
15 employee, arising out of a year 2000 error produced, calculated,
 
16 or generated by a government computer system or other computer-
 
17 based system, regardless of the cause for the year 2000 error,
 
18 unless the error is the result of gross negligence on the part of
 
19 the defendant State, political subdivision, board, or government
 
20 employee.  Failure to fix or prevent an error after a good faith
 
21 effort to do so shall not constitute gross negligence for the
 
22 purpose of this subsection.  Nothing in this subsection shall be
 
23 deemed to provide a government employee with immunity from any
 

 
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 1 action to enforce a mortgage obligation or other similar personal
 
 2 obligation of the government employee which is unrelated to the
 
 3 government employee's employment.
 
 4      (b)  No action, including, without limitation, any action
 
 5 for declaratory or injunctive relief, may be brought against any
 
 6 person arising soley out of a year 2000 error produced,
 
 7 calculated, or generated by a government computer system,
 
 8 regardless of the cause for the year 2000 error.
 
 9      [[]662E-3[]]  Remedial measures.  Nothing in this chapter
 
10 shall be deemed to prevent the State, its political subdivisions,
 
11 a board, or a government employee, from taking steps to remedy
 
12 [any failure of or] a year 2000 error produced, calculated, or
 
13 generated by a government computer system [as a result of the
 
14 system's not being year 2000 compliant,] once the [failure or]
 
15 error [is] has been verified.
 
16      [[]662E-4[]]  Exceptions.  Nothing in this chapter shall be
 
17 deemed to provide immunity or release from liability to any
 
18 person who:
 
19      (1)  Deliberately tampers with a government computer system
 
20           for the purpose of [preventing it from being year 2000
 
21           compliant;] causing the system to produce, calculate,
 
22           or generate a year 2000 error; provided, however, that
 
23           the immunity or release from liability shall remain and
 

 
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 1           not be set aside where the year 2000 error arises out
 
 2           of a test performed to determine whether a government
 
 3           computer system will produce, calculate, or generate a
 
 4           year 2000 error; or
 
 5      (2)  Receives and fails to immediately return a benefit
 
 6           which the person is not legally entitled to [arising
 
 7           out of or based upon any failure of or error produced,
 
 8           calculated, or generated by a government computer
 
 9           system as a result of the system's not being year 2000
 
10           complaint], which benefit was provided to the person as
 
11           a result of a year 2000 error produced, calculated, or
 
12           generated by a government computer system."
 
13      SECTION 4.  Nothing in this Act is intended to affect the
 
14 indemnity and defense coverage rights and obligations under any
 
15 contract of insurance.
 
16      SECTION 5.  If any provision of this Act, or the application
 
17 thereof to any person or circumstance is held invalid, the
 
18 invalidity does not affect other provisions or applications of
 
19 the Act which can be given effect without the invalid provision
 
20 or application, and to this end the provisions of this Act are
 
21 severable.
 
22      SECTION 6.  Statutory material to be repealed is bracketed.
 
23 New statutory material is underscored.
 

 
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 1      SECTION 7.  This Act, upon its approval, shall take
 
 2 effective retroactive to the effective date of Act 213, Session
 
 3 Laws of Hawaii; provided that chapter 662E and section 662-15(8),
 
 4 Hawaii Revised Statutes shall be repealed on December 31, 2003.