GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 1074

Short Title:  Year 2000 Consumer Protection Act.	(Public)

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Sponsors: Senators Reeves; Ballantine, Clodfelter, Dalton, Foxx, Hartsell, Hoyle, and Wellons.

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Referred to:  Judiciary II.

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April 15, 1999

A BILL TO BE ENTITLED
AN ACT LIMITING LIABILITY FROM YEAR 2000 FAILURES BY PROVIDING CERTAIN PARTIES THE RIGHT TO ASSERT AN AFFIRMATIVE DEFENSE BASED ON A YEAR 2000 PROBLEM.
The General Assembly of North Carolina enacts:
Section 1.  Subchapter XIV of Chapter 1 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 43E.
"Affirmative Defense Based on Year 2000 Failure.
"§ 1-539.25. Definitions.
Unless the context clearly requires otherwise, the definitions in this section apply throughout this Article:
(1)	'Electronic computing device' means any computer hardware or software, computer chip, embedded chip, process control equipment, or other information system that:
a.	Is used to capture, store, manipulate, or process data; or
b.	Controls, monitors, or assists in the operation of physical apparatus that is not primarily used as a computer but that relies on automation or digital technology to function, including, but not limited to, vehicles, vessels, buildings, structures, facilities, elevators, medical equipment, traffic signals, and factory machinery.
(2)	'Person' means any natural person, partnership, corporation, body politic, and any unincorporated association, organization, or society which may sue or be sued under a common name.
(3)	'Year 2000 problem' means disruptions in electronic communications or the functioning of electronically controlled equipment resulting or reasonably anticipated to result from erroneous data that is or may be supplied by electronic devices in 1999 or on or after January 1, 2000.
"§ 1-539.26. Right to affirmative defense based on year 2000 problem.
(a)	A person has an affirmative defense to any claim or action brought against the person if the person establishes that the person's default, failure to pay, breach, omission, or other violation that is the basis of the claim against the person was caused by a year 2000 problem associated with an electronic computing device that is not owned, controlled, or operated by the person, and, if it were not for the year 2000 problem, the person would have been able to satisfy the obligations that are the basis of the claim.
(b)	If a person establishes an affirmative defense as set forth in subsection (a) of this section, the court shall dismiss the claim without prejudice and the person or entity making the claim against the person shall not reassert the claim as to which the affirmative defense was asserted for a period of 60 days from the date on which the affirmative defense is granted by the court.  Any statute of limitations applicable to the claim is tolled for 90 days upon the granting of the affirmative defense under this section.
(c)	This section does not affect those transactions upon which a default has occurred before any disruption of financial or data transfer operations attributable to the year 2000 date change.
(d)	The granting of the affirmative defense under this section does not impair, extinguish, discharge, satisfy, or otherwise affect the underlying obligation that is the basis of the claim against which the affirmative defense was asserted; except that the inability of a party to bring the claim based upon the obligation must be delayed as set forth in subsection (b) of this section.
(e)	A credit reporting agency operating in this State shall not report any negative credit information resulting from the failure of an electronic computing device to process financial information and other information or the inability of the consumer to transact financial business and make payments due to the failure of an electronic computing device to compute, recognize, or timely process the year 2000 date change."
Section 2.  This act is effective when it becomes law and shall apply to actions accruing on or after that date.  The act expires July 1, 2000.