AN
ACT Relating to restricting liability for harm caused by incorrectly calculated
or interpreted dates associated with year 2000 date-changes processed by
electronic computing devices; adding a new section to chapter 4.22 RCW; adding
a new section to chapter 4.24 RCW; adding a new section to chapter 48.18 RCW;
adding a new section to chapter 51.04 RCW; adding a new section to chapter
82.32 RCW; adding a new section to chapter 84.56 RCW; providing expiration
dates; and declaring an emergency.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. A
new section is added to chapter 4.22 RCW to read as follows:
(1)
The definitions in this section apply throughout this section and sections 2
through 5 of this act.
(a)
"Agency" means any state or local government board, commission,
bureau, committee, department, institution, division, or tribunal in the
legislative, executive, or judicial branch, including elective and legislative
offices, institutions of higher education created and supported by state
government, counties, cities, towns, special purpose districts, local service
districts, municipal corporations, quasi-municipal corporations, and political
subdivisions of such agencies and corporations, and any officer, employee, or
agent of these entities acting within the scope of the officer, employee, or
agent's employment or duties. "Agency" does not include municipal
electric or gas utilities formed under Title 35 RCW or electric public utility
districts formed under Title 54 RCW.
(b)
"Electric cooperative utility" means any nonprofit, member-owned
cooperative organized under chapter 23.86 RCW and engaged in the business of
distributing electric energy in the state.
(c)
"Electric mutual utility" means any nonprofit, member-owned
corporation or association organized under chapter 24.06 RCW and engaged in the
business of distributing electric energy in the state.
(d)
"Electronic computing device" means any computer hardware or
software, computer chip, embedded chip, process control equipment, or other
information system used to capture, store, manipulate, or process data, or that
controls, monitors, or assists in the operation of physical apparatus that is
not primarily used as a computer, but that relies on automation or digital
technology to function, including but not limited to vehicles, vessels,
buildings, structures, facilities, elevators, medical equipment, traffic
signals, factory machinery, and the like.
(e)
"Public service provider" means any municipal electric or gas utility
formed under Title 35 RCW, electric public utility district formed under Title
54 RCW, electrical company, as defined in RCW 80.04.010, gas company, as
defined in RCW 80.04.010, electric cooperative utility, and electric mutual
utility.
(f)
"Year 2000 failure" means with respect to an electronic computing
device, a computing failure that prevents such electronic computing device from
accurately interpreting, producing, computing, generating, accounting for,
processing, calculating, comparing, or sequencing date or time data from, into,
or between the years 1999 and 2000, or with regard to leap year calculations.
(2)
In any action against an agency or public service provider, whether based in
tort, contract, or otherwise, for damages caused in whole or in part by
computational or interpretive errors generated by an electronic computing
device in connection with a year 2000 failure:
(a)
Any liability shall be several, not joint, and the liability shall be
determined as a percentage of fault in a manner consistent with RCW 4.22.070;
and
(b)
Agencies as defined in this section shall have no liability for the first one
hundred dollars of damages per claimant that would otherwise be owed by the
agency.
(3)
This section shall not apply to any action for damages arising from bodily
personal injury, or to wrongful death and survival actions under chapter 4.20
RCW or RCW 4.24.010.
(4)
This section does not apply to any claim or cause of action filed after
December 31, 2003.
(5)
This section expires December 31, 2009.
NEW
SECTION. Sec. 2. A
new section is added to chapter 4.24 RCW to read as follows:
(1)
A person has an affirmative defense to any claim or action, based on a
contract, brought against the person if he or she establishes that:
(a)
The default, failure to pay, breach, omission, or other violation that is the
basis of the claim against him or her was caused, in whole or in part, by a
year 2000 failure associated with an electronic computing device;
(b)
The year 2000 failure being asserted was not proximately caused by a failure of
the person to update an electronic computing device, that is under his or her
dominion or control, to be year 2000 compliant; and
(c)
If it were not for the year 2000 failure, the person would have been able to
satisfy the contractual obligation that was the basis of the claim.
(2)
If an affirmative defense as set forth in subsection (1) of this section is
established, then the person or entity making the claim may not reassert the
claim against which the affirmative defense was asserted for a period of thirty
days from the date on which the court dismissed the case as a result of the
affirmative defense. Any statute of limitations applicable to the claim shall
be tolled for forty-five days upon the dismissal of the case under this
section.
(3)
The dismissal of an action as the result of the affirmative defense under this
section does not impair, extinguish, discharge, satisfy, or otherwise affect
the underlying obligation that is the basis of the claim against which the
affirmative defense was asserted. However, the ability of a party to bring the
claim based upon the obligation is delayed as set forth in subsection (2) of
this section.
(4)
A person who has established an affirmative defense as set forth in subsection
(1) of this section may dispute directly with a credit reporting agency
operating in this state any item of information in the person's consumer file
relating to the subject of the affirmative defense. The dispute shall be filed
in accordance with RCW 19.182.090(6). If requested by the person under this
subsection (4), the credit reporting agency shall furnish a statement, made in
accordance with RCW 19.182.090(7), to the person and include the statement in
the person's consumer file. The credit reporting agency may not charge the
person a fee for the inclusion of this statement in the person's consumer file.
(5)(a)
The definitions in section 1 of this act apply to this section unless the
context clearly requires otherwise.
(b)
As used in this section, unless the context clearly requires otherwise,
"person" means a natural person or a small business as defined in RCW
19.85.020.
(6)
This section does not affect those transactions upon which a default has
occurred before any disruption of financial or data transfer operations
attributable to a year 2000 failure.
(7)
This section does not apply to or affect any contract that specifically
provides for a year 2000 failure.
(8)
This section does not apply to any claim or cause of action filed after
December 31, 2003.
(9)
This section expires December 31, 2006.
NEW
SECTION. Sec. 3. A
new section is added to chapter 48.18 RCW to read as follows:
(1)
An insurer shall reinstate back to the effective date of cancellation, with no
penalties or interest, any personal lines insurance policy, subject to this
chapter, that was canceled for nonpayment of premium, if the named insured:
(a)
Provides notice to the insurer, no later than ten days after the effective date
of cancellation, that the failure to pay the premium due for the insurance
policy is caused by a year 2000 failure associated with an electronic computing
device that is not under the named insured's dominion or control;
(b)
Establishes that a year 2000 failure occurred and that if it were not for the
year 2000 failure, the named insured would have been able to pay the premium
due in a timely manner;
(c)
Makes a premium payment to bring the insurance policy current as soon as
possible, but no later than ten days after the year 2000 failure has been
corrected or reasonably should have been corrected.
(2)
If the named insured fails to pay the premium due within ten days after the
year 2000 failure has been corrected or reasonably should have been corrected,
the insurer's previous notice of cancellation for nonpayment of premium remains
effective.
(3)(a)
The definitions in section 1 of this act apply to this section unless the
context clearly requires otherwise.
(b)
As used in this section, unless the context clearly requires otherwise,
"named insurer" means a natural person or a small business as defined
in RCW 19.85.020.
(4)
This section does not effect the cancellation of any insurance policy that is
unrelated to a year 2000 failure, or occurs before any disruption of financial
or data transfer operations attributable to the year 2000 failure.
(5)
This section does not apply to any claim or cause of action filed after
December 31, 2003.
(6)
This section expires December 31, 2006.
NEW
SECTION. Sec. 4. A
new section is added to chapter 51.04 RCW to read as follows:
(1)
No interest or penalties shall be imposed on any employer because of the
failure to pay any premium required by this title to be made to the state treasury
for the accident fund, the medical aid fund, the supplemental pension fund, or
any other fund created under this title if the employer establishes that:
(a)
The failure to pay was caused, in whole or in part, by a year 2000 failure
associated with an electronic computing device;
(b)
The year 2000 failure being asserted was not proximately caused by a failure of
the employer to update an electronic computing device, that is under his or her
dominion or control, to be year 2000 compliant; and
(c)
If it were not for the year 2000 failure, the employer would have been able to
satisfy the payment of premiums in a timely manner.
Payment
of such premiums shall be made within thirty days after the year 2000 failure
has been corrected or reasonably should have been corrected.
(2)(a)
The definitions in section 1 of this act apply to this section unless the
context clearly requires otherwise.
(b)
As used in this section, unless the context clearly requires otherwise,
"employer" means a natural person or a small business as defined in
RCW 19.85.020.
(3)
This section does not affect those transactions upon which a default has
occurred before any disruption of financial or data transfer operations
attributable to a year 2000 failure.
(4)
This section does not apply to any claim or cause of action filed after
December 31, 2003.
(5)
This section expires December 31, 2006.
NEW
SECTION. Sec. 5. A
new section is added to chapter 82.32 RCW to read as follows:
(1)
Notwithstanding any other provision in this chapter, no interest or penalties
may be imposed on any person because of the failure to pay excise taxes on or
before the date due for payment if the person establishes that:
(a)
The failure to pay was caused, in whole or in part, by a year 2000 failure
associated with an electronic computing device;
(b)
The year 2000 failure being asserted was not proximately caused by a failure of
the person to update an electronic computing device, that is under his or her
dominion or control, to be year 2000 compliant; and
(c)
If it were not for the year 2000 failure, the person would have been able to
satisfy the payment of taxes in a timely manner.
Payment
of such taxes shall be made within thirty days after the year 2000 failure has
been corrected or reasonably should have been corrected.
(2)(a)
The definitions in section 1 of this act apply to this section unless the
context clearly requires otherwise.
(b)
As used in this section, unless the context clearly requires otherwise,
"person" means a natural person or a small business as defined in RCW
19.85.020.
(3)
This section does not affect those transactions upon which a default has
occurred before any disruption of financial or data transfer operations
attributable to a year 2000 failure.
(4)
This section does not apply to any claim or cause of action filed after
December 31, 2003.
(5)
This section expires December 31, 2006.
NEW
SECTION. Sec. 6. A
new section is added to chapter 84.56 RCW to read as follows:
(1)
Notwithstanding any other provision in this chapter, no interest or penalties
may be imposed on any person because of the failure to pay real or personal
property taxes on or before the date due for payment if the person establishes
that:
(a)
The failure to pay was caused, in whole or in part, by a year 2000 failure
associated with an electronic computing device;
(b)
The year 2000 failure being asserted was not proximately caused by a failure of
the person to update an electronic computing device, that is under his or her
dominion or control, to be year 2000 compliant; and
(c)
If it were not for the year 2000 failure, the person would have been able to
satisfy the payment of taxes in a timely manner.
Payment
of such taxes shall be made within thirty days after the year 2000 failure has
been corrected or reasonably should have been corrected.
(2)(a)
The definitions in section 1 of this act apply to this section unless the
context clearly requires otherwise.
(b)
As used in this section, unless the context clearly requires otherwise,
"person" means a natural person or a small business as defined in RCW
19.85.020.
(3)
This section does not affect those transactions upon which a default has
occurred before any disruption of financial or data transfer operations
attributable to a year 2000 failure.
(4)
This section does not apply to any claim or cause of action filed after
December 31, 2003.
(5)
This section expires December 31, 2006.
NEW SECTION. Sec. 7. This
act is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and takes effect immediately.
