II

105TH CONGRESS

2D SESSION S. 2000

To ensure that businesses, financial markets, and the Federal Government

are taking adequate steps to resolve the year 2000 computer problem.

IN THE SENATE OF THE UNITED STATES

APRIL 29, 1998

Mr. BENNETT introduced the following bill; which was read twice and referred

to the Committee on Governmental Affairs

A BILL

To ensure that businesses, financial markets, and the Federal

Government are taking adequate steps to resolve the

year 2000 computer problem.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. FIDUCIARIES OF EMPLOYEE BENEFIT PLANS

4 MUST CONSIDER YEAR 2000 COMPUTER

5 PROBLEMS IN MAKING INVESTMENT DECI6 SIONS.

7 (a) IN GENERAL.—Section 404(a) of the Employee

8 Retirement Income Security Act of 1974 (29 U.S.C.

9 1104(a)) is amended by adding at the end the following

10 new paragraph:
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1 ‘‘(3) A fiduciary shall not be treated as meeting

2 the requirements of paragraph (1)(B) unless—

3 ‘‘(A) the fiduciary determines that—

4 ‘‘(i) the issuer of any security in

5 which the fiduciary seeks to invest the as6 sets of the plan has, or is taking, steps to

7 substantially eliminate any year 2000 com8 puter problem faced by the issuer, and

9 ‘‘(ii) such security is traded on a mar10 ket that is prepared to operate without any

11 interruption due to the year 2000 com12 puter problem, or

13 ‘‘(B) in any case where such assets are in14 vested by an insurance carrier, bank, or similar

15 institution, the fiduciary determines that such

16 institution makes the determinations described

17 in subparagraph (A) with respect to the invest18 ment of such assets.’’

19 (b) EFFECTIVE DATE.—The amendment made by

20 this section shall apply to investments made by a fidu21 ciary, and contracts to invest plan assets entered into with

22 insurance carriers, banks, and similar institutions, on or

23 after the date of the enactment of this Act.
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1 SEC. 2. STEPS TO ENSURE THE FEDERAL GOVERNMENT AD2 DRESSES YEAR 2000 COMPUTER PROBLEM.

3 (a) PRESIDENT’S COUNCIL ON YEAR 2000 CONVER4 SION.—

5 (1) IN GENERAL.—The President shall establish

6 the President’s Council on Year 2000 Conversion

7 (the ‘‘Council’’) which shall be chaired, at the Presi8 dent’s discretion, by an Assistant to the President.

9 (2) MEMBERSHIP.—

10 (A) IN GENERAL.—The Council shall be

11 composed of 1 representative from each of the

12 executive departments and from such other

13 Federal agencies as the Chair shall designate.

14 (B) VICE CHAIR; OTHER PERSONNEL.—

15 The Chair shall appoint a Vice Chair and shall

16 assign other responsibilities to members of the

17 Council as the Chair determines necessary.

18 (3) FUNCTIONS.—The Chair shall—

19 (A) oversee the activities of executive de20 partments and other Federal agencies to assure

21 that their computer systems operate smoothly

22 through the year 2000,

23 (B) provide policy direction to, and receive

24 reports and data from, executive departments

25 and other Federal agencies, as is necessary to

26 ensure progress and compliance with Federal
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1 standards for remediation of the year 2000

2 computer problem,

3 (C) allocate resources for correcting critical

4 year 2000 computer problems among executive

5 departments and other Federal agencies in

6 order to meet critical deadlines, and

7 (D) utilize any existing authorities granted

8 to the executive branch, or recommend to the

9 Congress other appropriate plans, for the reten10 tion of critical personnel needed to address the

11 Federal Government’s year 2000 computer

12 problem in a timely manner.

13 (4) COOPERATION.—The head of each executive

14 department and any other Federal agency shall co15 operate to the fullest extent with the Council.

16 (b) REPORT.—The Director of the Office of Manage17 ment and Budget shall report quarterly to the Congress

18 on the progress made by the Federal Government—

19 (1) in achieving year 2000 compliance, and

20 (2) in obtaining and retaining the resources and

21 personnel necessary to achieve an orderly conversion

22 to year 2000 compliance.

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