States Move to Limit Year/2000 Liability

States Move to Limit Year/2000 Liability

By David M. Nadler

Like the rest of corporate America, state governments are highly dependent upon computer systems to conduct business and provide services to citizens. And like the rest of corporate America, states are confronting the significant Year/2000 problem and its fixed deadline. To the states, the implications of computer malfunctions could be profound. At risk is everything from pension plans to health services and tax collection. States are rightly concerned about the avalanche of litigation they could face if Year/2000 glitches compromise their computer systems. Accordingly, some states are looking to their legislatures to limit the state's potential liability for Year/2000-related damages.