An Act relating to immunity for certain claims arising out of or in connection with the year 2000 date change; amending Rule 23, Alaska Rules of Civil Procedure; and providing for an effective date.

Updated: May 19, 1999

SCS CSHB 82 (JUD) provides limited immunity for Alaskan businesses for certain contract claims arising out of or in connection with the year 2000 date change if such businesses made good faith efforts to correct the problem before it occurred.

The Year 2000 date change (commonly referred to as "Y2K" or "Millenium Bug") could have a tremendous impact on businesses in Alaska. A number of states have adopted or are considering laws in this arena. Other states and the US Congress are considering such measures, as well as measures protecting businesses.

Across the United States and the world, businesses are facing exposure to lawsuits resulting from possible Y2K claims. Businesses in Alaska are no exception. There have been estimates that it will cost small businesses as much as $450-600 per affected computer program to address the Y2K problem. Many businesses are making good faith efforts to address the problem but may not be able to fully solve the problem, particularly the issue of embedded chips.

Under SCS CSHB 82 (JUD), a business would have the right to cure the Y2K problem before a lawsuit could be initiated. Additionally, the business would have to show by a preponderance of evidence that the business used good faith efforts to avoid the damages claimed in the civil act.

By offering this immunity, SCS CSHB 82 (JUD) will assist in encouraging small businesses to continue or begin to address the Y2K situation faced by that particular business.

Your support would be appreciated.