This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0482 - Provides remedies for businesses that cause harm due to year 2000 non-compliance
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 1464-04
BILL NO.: SB 482
SUBJECT: Y2K Remedies
TYPE: Original
DATE: March 9, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 4 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Public Safety, Emergency Management Agency assume this proposal would not fiscally impact their agency. Any computer related problems would fall under the definition of disaster in section 44.010 (3) RSMo as currently defined.
Officials from the Office of State Courts Administrator assume that it is not possible to estimate the number of Y2K computer problems that would result in major civil damages. In a worst case, there would be a substantial number of cases over a relatively few years. At best, there would be no significant problems. Any significant increase in new cases would also increase the caseload of the judiciary.
Officials of the Department of Corrections (DOC) stated that they could not predict the number of new commitments which could result from the creation of the offense(s) outlined in this proposal. An increase in commitments would depend on the utilization of prosecutors and the actual sentences imposed by the court. If additional persons were sentenced to the custody of the DOC due to the provisions of this legislation, the DOC would incur a corresponding increase in operational costs either through incarceration (average $35.00 per inmate, per day) or through supervision provided by the Board of Probation and Parole (average $3.50 per offender, per day). Supervision by the DOC through probation or incarceration would result in some additional costs, but DOC officials assume that the impact would be minimal and could be absorbed within existing resources.
Oversight assumes this proposal would primarily affect small businesses.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Small Business | |||
| Small businesses that cause harm to others due to year 2000 non-compliance could be assessed damages. Damages are limited to compensatory damages, and punitive damages not more than twice the compensatory amount. Punitive damages are only allowed for intentional misrepresentations of Y2K. | |||
DESCRIPTION
This proposal provides remedies for businesses that cause harm due to year 2000 non-compliance. The proposal applies only to businesses with less than 50 employees. Businesses not within that definition would be governed by traditional tort law.
537.827 - After the effective date, this act will provide the exclusive remedies to year 2000 non-compliance damages caused by businesses. Damages are limited to compensatory damages, and punitive damages not more than twice the compensatory amount. Punitive damages are only allowed for intentional misrepresentations of Y2K compliance. Compensatory damages will exclude mitigation that the plaintiff should have engaged in after being warned by the defendant business. The prevailing party is entitled to attorney's fees, unless the business believes in good faith it was compliant or disclosed its lack of compliance. Class actions are restricted unless each member has suffered $50,000 in damages.
537.831 - Individual officers of a business are not personally liable if the business is year 2000 non-compliant, if the officer acted in good faith and secured an assessment to become year 2000 complaint by September 1, 1999 and identified potential harms of not being compliant.
537.834 - Solution providers, defined as entities that assess and/or fix year 2000 problems for compensation for businesses under this act. The solution providers are held to an express warranty, whether or not they have disclaimed a warranty.
537.837 - Solution providers may not, under consequences of civil damages, disclose any computer or technical information they obtain while servicing a business. Monetary and criminal penalties are provided for.
537.840 - This section exempts the sharing of information on year 2000 compliance issues from
antitrust laws.
537.842 - This section allows the judge, or either party to request mediation.
44.010 - This section is changed so that the Governor's emergency powers include projected or DESCRIPTION (continued)
actual problems related to the year 2000 compliance concern. This act has an emergency clause.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of State Courts Administrator
Department of Public Safety
Emergency Management Agency
Department of Corrections
Jeanne Jarrett, CPA
Director
March 9, 1999