1.1                          A bill for an act 
  1.2             relating to civil actions; limiting the liability of 
  1.3             the state and municipalities for certain claims 
  1.4             involving Year 2000 problems; amending Minnesota 
  1.5             Statutes 1998, section 466.03, subdivision 15; 
  1.6             proposing coding for new law in Minnesota Statutes, 
  1.7             chapter 3. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [3.7361] [YEAR 2000 CLAIMS.] 
  1.10     Subdivision 1.  [DEFINITIONS.] (a) The definitions in 
  1.11  sections 3.732 and 466.01 apply to this section.  In addition, 
  1.12  the following definitions apply to this section.  
  1.13     (b) "Computer system or system component" includes: 
  1.14     (1) computer hardware, including microprocessors; 
  1.15     (2) computer application software; 
  1.16     (3) computer operating systems and related software; 
  1.17     (4) computer networks; 
  1.18     (5) microprocessors or other computer chips that are not 
  1.19  part of a computer system; or 
  1.20     (6) any other computerized or electronically controlled 
  1.21  equipment, devices, or components. 
  1.22     (c) "Municipality" includes a municipality and its 
  1.23  employees, officers, and agents. 
  1.24     (d) "State" includes the state and employees of the state. 
  1.25     (e) "Year 2000 claim" means a claim for damages or loss 
  1.26  arising directly or indirectly out of: 
  2.1      (1) an actual or alleged failure, malfunction, or 
  2.2   inadequacy of a computer system or system component, which is 
  2.3   due to a Year 2000 problem; 
  2.4      (2) an actual or alleged failure, malfunction, or 
  2.5   inadequacy of a product, service, data, or function that 
  2.6   directly or indirectly uses or relies on a computer system or 
  2.7   system component, which is due to a Year 2000 problem; or 
  2.8      (3) any advice, consultation, design, evaluation, 
  2.9   inspection, installation, maintenance, repair, replacement, or 
  2.10  supervision done to determine, rectify, or test for a potential 
  2.11  or actual Year 2000 problem. 
  2.12     (f) "Year 2000 problem" means the inability of a computer 
  2.13  system or system component to correctly recognize, process, 
  2.14  distinguish, interpret, or accept certain dates in 1999 and 
  2.15  after December 31, 1999. 
  2.16     Subd. 2.  [EXCLUSION FROM LIABILITY.] Without intent to 
  2.17  preclude the courts from finding additional cases where the 
  2.18  state or a municipality should not, in equity or good 
  2.19  conscience, pay damages, the state or a municipality is not 
  2.20  liable for a Year 2000 claim if the state or municipality: 
  2.21     (1) identified the Year 2000 problem that gave rise to the 
  2.22  claim; 
  2.23     (2) made reasonable efforts to correct the Year 2000 
  2.24  problem or to mitigate the effects of the Year 2000 problem, to 
  2.25  the extent it could not reasonably be corrected; and 
  2.26     (3) by July 1, 1999, filed a disclosure of the potential 
  2.27  Year 2000 problem with the department of administration, as 
  2.28  provided in subdivision 3.  
  2.29     Subd. 3.  [DISCLOSURE OF YEAR 2000 PROBLEM.] The disclosure 
  2.30  of a Year 2000 problem under subdivision 2 must be filed with 
  2.31  the Year 2000 project office in the department of 
  2.32  administration.  The disclosure must include: 
  2.33     (1) a description of the Year 2000 problem; and 
  2.34     (2) a description of any efforts made or to be made by the 
  2.35  state or municipality to correct the Year 2000 problem or 
  2.36  mitigate the effects of the Year 2000 problem. 
  3.1      Subd. 4.  [NOTICE OF CLAIM.] (a) At least 60 days before 
  3.2   commencing or asserting a Year 2000 claim against the state or a 
  3.3   municipality, the person bringing the claim must give the state 
  3.4   or municipality a written notice of claim stating the time, 
  3.5   place, and circumstances giving rise to the claim, the names of 
  3.6   any state or municipal employees known to be involved, and the 
  3.7   amount of compensation or other relief demanded. 
  3.8      (b) The written notice required by this subdivision is a 
  3.9   jurisdictional prerequisite to bringing a Year 2000 claim. 
  3.10     Subd. 5.  [SUSPENSION OF TIME WHEN CLAIM ALLOWED.] A Year 
  3.11  2000 claim against the state or a municipality may not be 
  3.12  commenced until 180 days after the damage or loss on which the 
  3.13  claim is based is discovered by the plaintiff.  The running of 
  3.14  the statute of limitations for a Year 2000 claim is suspended 
  3.15  for the time when the claim is barred under this subdivision. 
  3.16     Subd. 6.  [THIRD-PARTY CONTROL EXCEPTION.] The state or a 
  3.17  municipality is not liable for damages or losses resulting from 
  3.18  any Year 2000 problem, if the failure or malfunction causing the 
  3.19  loss results from failures or malfunctions of computer systems 
  3.20  or components that the state or municipality does not own or 
  3.21  control. 
  3.22     Subd. 7.  [CONTRACTUAL RIGHTS PRESERVED.] Nothing in this 
  3.23  section interferes with contractual rights, obligations, duties, 
  3.24  or warranties of private vendors supplying computer system or 
  3.25  system components to a party, including the state and 
  3.26  municipalities.  In the event of a party's or contractor's 
  3.27  failure to perform contractual obligations due to a Year 2000 
  3.28  problem, the remedies available to the parties are as set forth 
  3.29  by contract or other applicable law. 
  3.30     Sec. 2.  Minnesota Statutes 1998, section 466.03, 
  3.31  subdivision 15, is amended to read: 
  3.32     Subd. 15.  [SECTION 3.736-LIKE CLAIM; YEAR 2000 CLAIM.] Any 
  3.33  claim against a municipality, if the same claim would be 
  3.34  excluded under section 3.736 or 3.7361, if brought against the 
  3.35  state. 
  3.36     Sec. 3.  [EFFECTIVE DATE.] 
  4.1      This act is effective the day following final enactment.