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91_HB0487eng HB0487 Engrossed LRB9102441WHdv 1 AN ACT concerning electronic computing devices and the 2 year 2000 date change. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 1. Short title. This Act may be cited as the 6 Year 2000 Citizens' Protection Act. 7 Section 5. Legislative declaration. 8 (1) The General Assembly finds that society is heavily 9 reliant upon computers, technology, and the rapid electronic 10 transfer and exchange of accurate information and data. The 11 General Assembly further finds that society relies heavily 12 upon computer technology for most aspects of daily living and 13 business, including but not limited to financial 14 transactions. The General Assembly further finds that the 15 rapid growth of technology has often outpaced the 16 capabilities of the electronic equipment, software, and 17 hardware that our society uses for the exchange and transfer 18 of data and other information. The General Assembly finds 19 that recently developed computer technology is the 20 operational basis for much of our current hardware and 21 software, and yet it may not recognize the year 2000 date 22 change. The General Assembly finds that the result may be 23 that in the year 2000, many computer-based systems may fail 24 or cause incorrect data or other information to be processed. 25 This potentially world-wide deficiency in computers is often 26 referred to as the "Y2K bug" and may cause significant 27 problems in the transfer and exchange of data and information 28 in the year 2000 and beyond. 29 (2) Accordingly, the General Assembly determines that, 30 to protect the citizens of the State of Illinois, it is 31 appropriate to limit their liability against adverse HB0487 Engrossed -2- LRB9102441WHdv 1 financial ramifications resulting from electronic computing 2 device failures associated with the year 2000 date change. 3 Section 10. Definitions. As used in this Act, unless the 4 context otherwise requires: 5 (1) "Electronic computing device" means any 6 computer hardware or software, computer chip, embedded 7 chip, process control equipment, or other information 8 system that: 9 (A) is used to capture, store, manipulate, or 10 process data; or 11 (B) controls, monitors, or assists in the 12 operation of physical apparatus that is not 13 primarily used as a computer but that relies on 14 automation or digital technology to function, 15 including but not limited to vehicles, vessels, 16 buildings, structures, facilities, elevators, 17 medical equipment, traffic signals, and factory 18 machinery. 19 (2) "Small business" means a corporation or a 20 concern, including its affiliates, that is independently 21 owned and operated, not dominant in its field, and 22 employs fewer than 50 full-time employees or has gross 23 annual sales of less than $4,000,000. 24 (3) "Individual" means a natural person. 25 Section 15. Limitation on actions against citizens for 26 electronic failures associated with the year 2000. 27 (1) Except as otherwise provided by federal law, no 28 person or entity who transacts business with the citizens of 29 this State on matters directly or indirectly affecting real 30 or personal property, whether tangible or intangible, 31 mortgages, credit accounts, banking and financial 32 transactions, or property interests in this State may HB0487 Engrossed -3- LRB9102441WHdv 1 initiate or cause to be initiated any foreclosure proceeding, 2 default, or other enforcement action or impose any late 3 payment charge or similar penalty against any individual or 4 small business until April 1, 2000 due to the improper or 5 incorrect transmission of data or resulting from the 6 inability of a financial transaction to occur in a timely 7 manner, as a result of a failure of an electronic computing 8 device in the possession or control of a person or entity 9 other than the individual or small business owing on the 10 obligation to accurately compute, recognize, or timely 11 process the year 2000 date change. 12 (2) Except as otherwise provided by federal law, the 13 prohibitions set forth in subsection (1) of this Section 14 apply but are not limited to the following types of 15 transactions: mortgages, contracts, landlord and tenant 16 relations, consumer credit obligations, utilities, and 17 banking transactions. 18 (3) The prohibitions set forth in subsection (1) of this 19 Section may be raised as an affirmative defense to any 20 actions or charges initiated in violation of subsection (1) 21 provided: 22 (A) the individual or small business establishes 23 that the default, failure to pay, breach, or other 24 omission that is the basis of the enforcement action or 25 late payment charge was caused by the failure of an 26 electronic computing device in the possession or control 27 of a person or entity other than the individual or small 28 business to accurately compute, recognize, or timely 29 process the year 2000 date change, and, if it were not 30 for this failure, the individual or small business would 31 have been able to satisfy the underlying obligation that 32 is the basis of the enforcement action or late payment 33 charge; and 34 (B) the individual or small business establishes HB0487 Engrossed -4- LRB9102441WHdv 1 that the individual or small business notified the person 2 or entity bringing the enforcement action or imposing the 3 late payment charge of the information in subdivision 4 (3)(A) in writing within 21 days of the date the 5 individual or small business received actual or 6 constructive notice of the failure. 7 (4) This Section does not affect transactions upon which 8 a default occurred before any disruption of financial or data 9 transfer operations attributable to the year 2000 date 10 change. 11 (5) This Section does not dissolve but only suspends the 12 enforcement of the underlying obligations to which it 13 applies. 14 (6) An individual may dispute directly with a credit 15 reporting agency operating in this State any negative credit 16 information resulting from the failure of an electronic 17 computing device in the possession or control of a person or 18 entity other than the individual owing on the obligation to 19 transmit data or timely process a financial transaction due 20 to the failure of the electronic computing device in the 21 possession or control of a person or entity other than the 22 consumer to accurately compute, recognize, or timely process 23 the year 2000 date change. If requested by the individual 24 pursuant to this subsection (6), the credit reporting agency 25 shall include a statement prepared by the individual of no 26 more than 100 words in the individual's consumer file 27 explaining an item of information relating to the year 28 2000-related failure of an electronic computing device as 29 described in the preceding sentence that the consumer 30 reporting agency denies is inaccurate. The credit reporting 31 agency shall include the individual's statement in any report 32 it provides to any person or entity regarding the individual. 33 The credit reporting agency shall not charge the individual a 34 fee for the inclusion of this statement in the individual's HB0487 Engrossed -5- LRB9102441WHdv 1 consumer file. 2 (7) This Section shall apply only to claims, actions, or 3 late payment charge accruing on or after January 1, 2000. 4 Section 90. Application. If there is a conflict between 5 this Act and any other law of this State, this Act shall 6 control. 7 Section 95. Repeal. This Act is repealed on January 1, 8 2007. 9 Section 99. Effective date. This Act takes effect upon 10 becoming law.