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                                                      PRINTER'S NO. 1435

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1258 Session of 1999


        INTRODUCED BY GANNON, ARMSTRONG, BELFANTI, CHADWICK, CLYMER,
           DALLY, FICHTER, HALUSKA, LAUGHLIN, MELIO, NICKOL, ROSS,
           SAYLOR, SEYFERT, STERN AND WILLIAMS, APRIL 13, 1999

        REFERRED TO COMMITTEE ON JUDICIARY, APRIL 13, 1999

                                     AN ACT

     1  Amending Title 42 (Judiciary and Judicial Procedure) of the
     2     Pennsylvania Consolidated Statutes, providing for damages
     3     resulting from computer date failure; and further providing
     4     for exceptions to sovereign immunity and for exceptions to
     5     governmental immunity.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8     Section 1.  Title 42 of the Pennsylvania Consolidated
     9  Statutes is amended by adding a section to read:
    10  § 8313.  Damages in actions for computer date failure.
    11     (a)  Direct damages recoverable.--Notwithstanding any other
    12  provision of law, in an action to recover damages based upon an
    13  alleged failure by a computer software consultant properly to
    14  detect, disclose, prevent or remediate a computer date failure,
    15  the plaintiff may recover direct damages, including:
    16         (1)  damages resulting from bodily injury to the
    17     plaintiff or physical damage to the plaintiff's property
    18     proximately caused by the defendant's conduct; and
    19         (2)  any costs reasonably incurred to reprogram or

     1     replace and test the relevant computer system, computer
     2     program or software or internal hardware timer.
     3     (b)  Other damages.--In an action to which subsection (a)
     4  applies and subject to subsection (d), there shall be no
     5  recovery for consequential, indirect or incidental damages,
     6  including, but not limited to, business interruption losses,
     7  lost profits or losses alleged to have resulted from the
     8  plaintiff's inability to perform his contractual obligations to
     9  third parties, provided that nothing in this subsection shall
    10  limit recovery of consequential damages for bodily injury
    11  proximately caused by the defendant's conduct.
    12     (c)  Contractual rights.--Nothing in this section shall be
    13  construed to limit the ability of contracting parties to enter
    14  into agreements as they deem appropriate with regard to
    15  liability and damages.
    16     (d)  Scope.--Nothing in this section shall limit recovery of
    17  consequential, indirect or incidental damages if the plaintiff
    18  proves fraud, including fraudulent misrepresentation,
    19  intentional harm or gross negligence. Nothing in this section
    20  shall be construed to create or give rise to a cause of action
    21  not otherwise existing under law.
    22     (e)  Definitions.--As used in this section, the following
    23  words and phrases shall have the meanings given to them in this
    24  subsection:
    25     "Computer date failure."  Either of the following:
    26         (1)  A present or future inability of a computer system,
    27     computer program or software, or internal hardware timer, to
    28     properly handle dates of calendar year 1999 or subsequent
    29     years.
    30         (2)  An incompatibility between:
    19990H1258B1435                  - 2 -

     1             (i)  the computer system, computer program or
     2         software, or internal hardware timer; and
     3             (ii)  any other system, program, software, internal
     4         hardware timer, or electronic data in any form, with
     5         respect to the handling of dates of calendar year 1999 or
     6         subsequent years.
     7     "Computer program or software."  A set of statements or
     8  instructions to be used directly or indirectly in a computer in
     9  order to bring about a certain result.
    10     "Computer software consultant."  A person who creates,
    11  repairs or modifies computer programs or software for others.
    12  The term includes a person who engages, subcontracts with or
    13  employs others to perform such services. The term shall not
    14  include a person who manufactures computer programs or software
    15  for sale to the general public.
    16     "Computer system."  Any electronic device or collection of
    17  devices, including support devices, networks and embedded chips,
    18  that contains computer programs, electronic instructions, input
    19  data and output data, and that performs functions, including,
    20  but not limited to, logic, arithmetic, data storage and
    21  retrieval, communication and control. The term shall not include
    22  calculators that are not programmable.
    23     "Creates, repairs or modifies."  Any creation or alteration
    24  of the design, source code or other components contained within
    25  or constituting a computer program. The term includes any such
    26  services provided under a contract for computer goods and
    27  services.
    28     Section 2.  Sections 8522 and 8542 of Title 42 are amended by
    29  adding subsections to read:
    30  § 8522.  Exceptions to sovereign immunity.
    19990H1258B1435                  - 3 -

     1     * * *
     2     (c)  Computer date failures.--Nothing in this section shall
     3  create or allow an exception to sovereign immunity, and there
     4  shall be no liability imposed upon a Commonwealth party for
     5  damages arising out of a negligent act which causes or fails to
     6  prevent a computer date failure as defined in section 8313
     7  (relating to damages in actions for computer date failure).
     8  § 8542.  Exceptions to governmental immunity.
     9     * * *
    10     (e)  Computer date failures.--Nothing in this section shall
    11  create or allow an exception to governmental immunity, and there
    12  shall be no liability imposed upon a local agency for damages
    13  arising out of a negligent act which causes or fails to prevent
    14  a computer date failure as defined in section 8313 (relating to
    15  damages in actions for computer date failure).
    16     Section 3.  This act shall take effect immediately.










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