CONFERENCE COMMITTEE REPORT NO.150

                            Honolulu, Hawaii
                                            , 1999

                            RE:   H.B. No. 1111
                                  H.D. 2
                                  S.D. 2
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 1111, H.D. 2, S.D. 2, entitled:

    "A BILL FOR AN ACT RELATING TO YEAR 2000 ERRORS BY COMPUTER-
    BASED SYSTEMS,"

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this bill is to provide protection for
persons who make commercially reasonable efforts to find
solutions for potential year 2000 errors in computer systems and
to set standards and provide guidance as to what steps must be
undertaken as part of commercially reasonable efforts.

     Your Committee on Conference has amended this bill by:

     (1) Adding non-economic damages under the blanket
         protections;


 
 
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     (2) Deleted the two year limitations on actions;

     (3) Clarifying that upon a finding that the respondent
         failed to engage in commercially reasonable efforts, the
         respondent is liable for all economic damages directly
         caused by the year 2000 error;

     (4) Adding the requirement that a credit reporting agency or
         a creditor not report negative credit information about
         a consumer if the credit reporting agency or creditor
         knew or should have known that the consumer was unable
         to meet financial obligations due to a year 2000 error;

     (5) Clarifying that the manufacturer or contractor who
         provided or serviced a government computer system or the
         computer software used by the system is liable to
         persons harmed by year 2000 errors to the same extent
         the person would be liable had this measure not existed;

     (6) Adds definitions for the terms "contractor" and
         "manufacturer of a government computer system or the
         computer software";

     (7) Clarifies that the chapter does not apply to any claim
         for physical injury or death;

     (8) Changing the effective date to be effective upon
         approval; and

     (9) Making technical, nonsubstantive amendments for purposes
         of style and clarity.

     Your Committee on Conference is in accord with the intent
and purpose of H.B. No. 1111, H.D. 2, S.D. 2, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as H.B. No. 1111, H.D. 2, S.D. 2, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
           SENATE                              HOUSE
                                   
                                   
                                   
______________________________     ______________________________
DAVID Y. IGE, Co-Chair             ERIC G. HAMAKAWA, Co-Chair

 
 
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______________________________     ______________________________
BRIAN T. TANIGUCHI, Co-Chair       BOB NAKASONE, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
AVERY B. CHUMBLEY, Co-Chair        IRIS IKEDA CATALANI, Member
                                   
                                   
                                   
______________________________     ______________________________
MATT MATSUNAGA, Co-Chair           BARBARA MARUMOTO, Member



______________________________
BRIAN KANNO, Member



______________________________
NORMAN SAKAMOTO, Member