NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Senate Bills 474 & 563 and House Bill 552

SOURCES OF INFORMATION

Administrative Office of the Courts

LFC Files

SUMMARY

Synopsis of Amendment

The Senate Corporations and Transportation Committee amendment to SCORC substitute for Senate Bill 620 changes the requirement that when an adverse action was taken as a result of a year 2000 event the court "shall" award "treble" damages. The amendment provides that the court may award damages, and "treble" is stricken.

Synopsis of Bill

Senate Corporations and Transportation Committee substitute for Senate Bill 620 seeks to enact the Year 2000 Financial Protection Act which would provide protection to consumers for computer date failures in the year 2000. The act would prohibit any person from taking an adverse action, as defined. A person aggrieved by an adverse action may seek a civil remedy for treble damages and reasonable costs and fees. Proof of an adverse action must be established by clear and convincing evidence. The bill provides the procedure of how one may protest an adverse action that is the result of a year 2000 event.

Significant Issues

The bill defines "adverse action" caused by a Year 2000 event as a specific action taken by a person in connection with a commercial transaction that has a direct and negative impact upon another. The bill would provide the grounds for a civil remedy for a person aggrieved by a Year 2000 computer date failure.

FISCAL IMPLICATIONS

There is no appropriation contained within this bill.

ADMINISTRATIVE IMPLICATIONS

The Administrative Office of the Courts indicates that an increase in the administrative needs of the courts would be proportional to the number of new cases brought under this act for damages resulting from computer date failure.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

Relates to Senate Bill 474, Senate Bill 563, and House Bill 552.

MW/njw