44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

ENACTING THE Y2K FINANCIAL PROTECTION ACT; PROVIDING FOR PROTECTION OF CONSUMERS WHEN COMPUTER DATE FAILURE IS THE CAUSE OF CERTAIN ACTIONS TAKEN OR NOT TAKEN BY PARTIES TO COMMERCIAL TRANSACTIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. SHORT TITLE.--This act may be cited as the "Y2K Financial Protection Act".

Section 2. DEFINITIONS--PROTECTION AGAINST ADVERSE ACTIONS WHEN CAUSED BY YEAR 2000 EVENT.--

A. As used in the Y2K Financial Protection Act:

(1) "adverse action" means a specific action taken by a person in connection with a commercial transaction that has a direct and negative impact upon another because it: (a) shortens the length of time available for performance;

(b) imposes additional interest or penalties;

(c) declares a breach of or default in an obligation;

(d) declares a forfeiture of or forfeits something of value, tangible or intangible; or

(e) causes a negative entry to be made in a credit record; and

(2) "year 2000 event" means an occurrence resulting from a year 2000 date failure or failure or malfunction of computer hardware, computer software, microchip-controlled firmware or other equipment affected by the failure or malfunction.

B. No adverse action shall be taken by a person as a result of a year 2000 event.

C. Adverse action taken by a person in violation of Subsection B of this section subjects the violator to a civil action in district court by the person against whom the adverse action was taken and if the court finds based upon clear and convincing evidence that the violation occurred, it shall award treble damages, costs and reasonable attorney fees to the plaintiff in the action.