[atlas:bill]

AN ACT Relating to the year 2000 computer problem; creating new sections; and providing expiration dates.

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

NEW SECTION. Sec. 1. (1) The legislature finds that financial institutions play a major role in the economy of this state and in the financial security and well-being of citizens of this state. A significant disruption to financial services could adversely affect the economy and the citizens of this state. The legislature intends to reduce potential adverse impacts on the public and on financial institutions regulated by the department from the year 2000 computer problem by providing technical assistance and increased regulatory oversight regarding this potential problem.

(2) To the extent funds are available, the department of financial institutions shall provide technical assistance to financial institutions under their jurisdiction in addressing the year 2000 computer problem. Technical assistance can include, but is not limited to, assistance or models defining the extent of the problem and managing projects to address the problem, testing regimes, a list of vendors that other institutions are using, and business continuity planning. The department shall consult with federal regulators who are addressing this problem for federal financial institutions.

(3) In conducting examinations, the department of financial institutions shall include an examination of whether the institution has a year 2000 computer problem and the institutions' efforts to address any problems in this area. The department may advise the institution of technical assistance available under subsection (1) of this section, and may take other regulatory action the department deems necessary to preserve the safety and soundness of the institution or protect the public.

(4) The director of the department of financial institutions shall report to the governor and chairs of the legislative committees dealing with financial institutions' issues by July 1, 1999, and October 1, 1999, regarding the potential year 2000 computer problem faced by the state's financial institutions and the implementation of this section.

(5) This section expires February 1, 2000.

NEW SECTION. Sec. 2. (1) The legislature finds that insurance plays a major role in the economy of this state and in the financial security and well-being of citizens of this state. A significant disruption to insurance services could adversely affect the economy and the citizens of this state. The legislature intends to reduce potential adverse impacts on insurance companies and policyholders from the year 2000 computer problem by providing technical assistance and increased regulatory oversight regarding this potential problem.

(2) To the extent funds are available, the insurance commissioner shall provide technical assistance to insurance companies and health carriers in addressing the year 2000 computer problem. Technical assistance can include, but is not limited to, assistance or models defining the extent of the problem and managing projects to address the problem, testing regimes, a list of vendors that other institutions are using, and business continuity planning. The commissioner shall consult with other state and federal regulators who also are addressing this problem.

(3) In conducting examinations, the commissioner shall include an examination of whether the insurer or carrier has a year 2000 computer problem and the insurers' or carriers' efforts to address any problems in this area. The commissioner may advise the insurer or carrier of technical assistance available under subsection (1) of this section, and may take other regulatory action the commissioner deems necessary to preserve the solvency of the insurer or carrier or to protect the public.

(4) The commissioner shall report to the governor and chairs of the legislative committees dealing with insurance issues by July 1, 1999, and October 1, 1999, regarding the potential year 2000 computer problem faced by the state's insurers and carriers and the implementation of this section.

(5) This section expires February 1, 2000.