Two California Congressmen have announced legislation based on a bill introduced early this year in Sacramento to head off lawyers aiming to reap big profits off problems that may develop when computers go from 1999 to 2000.

The measure by Rep. David Dreier (R-Los Angeles) and Rep. Christopher Cox (R-Orange County), like AB 1710 authored by California Assemblyman Brooks Firestone, restricts most Year 2000 disputes to contract actions if defendants meet goals for avoiding "Y2K" failures. In addition, the federal bill provides a targeted anti-trust exemption to encourage corporate cooperation in solving problems.

In announcing the bill Thursday, Dreier said, "With the press reporting that some unscrupulous lawyers are already planning multi-billion dollar lawsuits to reap monetary rewards from America's pain, it's in the national interest to have companies focused on fixing Y2K problems rather than being frozen by the fear of lawsuits."

The Dreier-Cox bill requires computer-related companies to make fixes available to customers for their non-Y2K compatible hardware and software, and those fixes must be available cost-free for products sold after December 31, 1994. Companies that use computers can gain similar liability protection if they make all reasonable efforts to fix the Y2K problems in their systems, run a test by July 1, 1999, and notify all customers and the President's Y2K Commission of the prospects for their own Y2K failures by August 1, 1999.

Testimony at a joint hearing held by state legislative technology committees and a President Clinton speech to the National Academy of Sciences provided further evidence that fear of lawsuits is hobbling attempts to get computer systems ready for the year 2000 date change.

At the Sacramento hearing Wednesday, representatives of utilities and financial institutions said fear of litigation was contributing to the lack of information they need to tell them if computer systems are ready for the Year 2000 or what is needed to make them ready.

In his Washington speech Tuesday, President Clinton said, "Today, too many businesses are understandably reluctant to share information, fearing legal complication. We have to take prudent steps to clear away any legal barriers to effective action.....This week I will propose good Samaritan legislation to guarantee that businesses which share information about their readiness with the public or with each other, and do it honestly and carefully, cannot be held liable for the exchange of that information if it turns out to be inaccurate. And here, too, time is of the essence."

John H. Sullivan, president of the Civil Justice Association of California, said, "At both the state and national level, there's a groundswell of interest in at least making sure lawyers don't seize on a company's good faith Year 2000 compliance statement and turn it into a lawsuit. We need legislation to protect businesses of all kinds and sizes against lawyer abuse of information being released to try to head off year 2000 problems. The legal system should be helping the situation, not making it worse."

California trial lawyers in May blocked the Firestone bill to head off the most outrageous kinds of lawsuits being planned to capitalize on the possibility that computers won't smoothly cope with the coming date change from 1999 to 2000.

NOTE: Text of the Dreier-Cox bill is at http://www.house.gov/dreier/y2k_bill.htm