REPORT TITLE:
Y2K Financial Protection Act


DESCRIPTION:
Temporarily prohibits foreclosures, defaults, or adverse action
on various financial transactions, and prohibits adverse or
enforcement action on these matters as a result of y2K problems.
Prohibits negative entries in credit reports.  Repealed
6/30/2006.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1598
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT
RELATING TO THE CITIZENS YEAR 2000 FINANCIAL PROTECTION ACT.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that our society is
 
 2 heavily dependent upon computers, technology, and the rapid
 
 3 transfer and exchange of accurate information and data via
 
 4 electronic means, and relies heavily upon computer technology for
 
 5 almost all aspects of daily living and business.  The year 2000
 
 6 problem stems from the fact that data systems recognize only the
 
 7 last two digits of a year, and "00" is read as "1900" instead of
 
 8 "2000".  These computer systems must be modified to enable
 
 9 compliance and prevent errors or system failures before
 
10 January 1, 2000.  "Year 2000 compliant" means, with respect to
 
11 any computer system, that the system accurately processes date
 
12 and time data (including calculating, comparing, projecting, and
 
13 sequencing) from, into, and between the twentieth and twenty-
 
14 first centuries and the years 1999 and 2000, and leap year
 
15 calculations.
 
16      It is universally recognized that the year 2000 problem, if
 
17 not unequivocally fixed, may cause significant problems in the
 
18 year 2000 and beyond.  It is in the public interest to afford
 
19 some measure of financial protection for our citizens in
 

 
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 1 anticipation of a less than one hundred per cent successful
 
 2 solution to the year 2000 problem.
 
 3      SECTION 2.  The Hawaii Revised Statutes is amended by adding
 
 4 a new chapter to be appropriately designated and to read as
 
 5 follows:
 
 6                             "CHAPTER
 
 7            CITIZENS YEAR 2000 FINANCIAL PROTECTION ACT
 
 8      §   -1 Definitions.  Unless the context otherwise requires,
 
 9 for the purposes of this chapter:
 
10      "Year 2000 problem" means the possible misinterpretation by
 
11 computer systems of the last two digits representing a year to
 
12 mean the years beginning in year 1900 and thereafter, rather than
 
13 the actual year 2000 and the years thereafter, on computer
 
14 systems that operate based on true actual dates.
 
15      §   -2  Year 2000 problem; no foreclosure; no adverse
 
16 enforcement action.  (a)  Notwithstanding any other law to the
 
17 contrary, no person or entity of this State or who transacts
 
18 business with the citizens of this State on matters directly or
 
19 indirectly affecting property, mortgages, credit accounts,
 
20 banking transactions, financial transactions of persons, tangible
 
21 or intangible property, or property interests in this State,
 
22 shall cause or permit a foreclosure, default, or other adverse
 

 
 
 
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                                     S.B. NO.           1598
                                                        
                                                        

 
 1 action against any person as a result of the improper or
 
 2 incorrect transmission or inability to cause a transaction to
 
 3 occur, which is caused wholly or in part to a failure or
 
 4 inability to accurately or timely process any information or
 
 5 data, payment, transfer, or processing of the same, due directly
 
 6 or indirectly to the failure or malfunction of any computer
 
 7 processor to accurately or property recognize, calculate,
 
 8 display, sort, or otherwise process dates, times, or other data
 
 9 as a consequence of the year 2000 problem.
 
10      (b)  No person or entity may take any adverse or enforcement
 
11 action whether based on contract or otherwise against any person
 
12 or entity who is unable to cause payment, acts, forbearance, or
 
13 other transaction in a timely manner, to occur where the failure
 
14 or inability of the obligor to access or receive funds or to
 
15 otherwise cause a proper transaction to occur, is due wholly or
 
16 in part to the inability of either party to have the necessary
 
17 data, information, payment, fund transfer, checking, or other
 
18 financial transaction to occur, where it is due to the obligor's
 
19 inability to properly account or the obligee's inability to
 
20 access or cause their source of the transaction to occur
 
21 properly.
 
22      §   -2 Application.  The prohibition of enforcement of
 

 
 
 
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                                     S.B. NO.           1598
                                                        
                                                        

 
 1 obligations under section    -1 shall apply particularly, but not
 
 2 exclusively, to mortgages, contracts, landlord-tenant relations,
 
 3 consumer credit obligations, utilities, and banking and financial
 
 4 transactions.
 
 5      §   -3 Resumption of enforcement; when.  No enforcement
 
 6 shall resume until a reasonable period of time after the full
 
 7 restoration of the ability to regularly receive and dispense
 
 8 necessary financial transactions related to these obligations has
 
 9 elapsed.
 
10      §   -4 No effect when prior default.  This chapter shall
 
11 not apply to any transaction that is in default prior to any
 
12 disruption of financial or data transfer operations upon either
 
13 party due to the year 2000 problem.
 
14      §   -5 Suspension only.  This chapter shall not dissolve
 
15 any enforcement but shall only suspend enforcement of obligations
 
16 arising from disruptions due to the year 2000 problem.
 
17      §   -6 No negative entry in credit reporting.  No negative
 
18 entry shall be recorded or posted in any account by any credit
 
19 reporting agency operating within or without the State of any
 
20 negative credit information that is due in whole or in part to
 
21 the disruption of the otherwise proper processing of financial
 
22 responsibilities or information, or the inability of the consumer
 

 
 
 
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                                     S.B. NO.           1598
                                                        
                                                        

 
 1 to cause payments to be made to creditors where the inability is
 
 2 due in whole or in part to the disruption or otherwise
 
 3 malfunctioning of computer processing, banking, financial, or
 
 4 related matters due to the year 2000 problem."
 
 5      SECTION 3.  This Act does not affect rights and duties that
 
 6 matured, penalties that were incurred, and proceedings that were
 
 7 begun, before its effective date.
 
 8      SECTION 4.  This Act shall take effect upon its approval and
 
 9 shall be repealed on June 30, 2006.
 
10 
 
11                           INTRODUCED BY: ________________________