Federal Activities Inventory Reform Act of 1998
PL 105-270 (S.314), enacted 10/19/1998

112 STAT. 2382 
PUBLIC LAW 105-270—OCT. 19, 1998 
Public Law 105-270 
105th Congress 
Oct. 19, 1998 
[S. 314] 
Federal Activities 
Inventory Reform 
Act of 1998. 
31 use 501 note. 
Records. 
Deadline. 
Federal Register, 
publication. 
An Act 
To provide a process for identifying the functions of the Federal Government that 
are not inherently governmental functions, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Federal Activities Inventory 
Reform Act of 1998". 
SEC. 2. ANNUAL LISTS OF GOVERNMENT ACTIVITIES NOT INHER-
ENTLY GOVERNMENTAL IN NATURE. 
(a) LISTS REQUIRED.—^Not later than the end of the third quar-
ter of each HSCEQ year, the head of each executive agency shall 
submit to the Director of the Office of Management and Budget 
a list of activities performed by Federal Government sources for 
the executive agency that, in the judgment of the head of the 
executive agency, are not inherently governmental functions. The 
entry for an activity on the list shall include the following: 
(1) The fiscal year for which the activity first appeared 
on a list prepared under this section. 
(2) The number of full-time employees (or its equivalent) 
that are necessary for the performance of the activity by a 
Federal Government source. 
(3) The name of a Federal Government employee respon-
sible for the activity from whom additional information about 
the activity may be obtained. 
(b) 0MB REVIEW AND CONSULTATION.—^The Director of 
the 
Office of Management and Budget shall review the executive agen-
cy's list for a fiscal year and consult with the head of the executive 
agency regarding the content of the final list for that fiscal year. 
(c) PUBLIC AVAILABILITY OF LISTS.— 
(1) PUBLICATION.—^Upon the completion of the review and 
consultation regarding a list of an executive agency— 
(A) the head of the executive agency shall promptly 
transmit a copy of the list to Congress and make the 
list available to the public; and 
(B) the Director of the Office of Management and 
Budget shall promptly publish in the Federal Register a 
notice that the list is available to the public. 
(2) CHANGES.—If the list changes after the publication of 
the notice as a result of the resolution of a challenge under 
section 3, the head of the executive agency shall promptly— 
(A) make each such change available to the public 
and transmit a copy of the change to Congress; and 
PUBLIC LAW 105-270—OCT. 19, 1998 
112 STAT. 2383 
(B) publish in the Federal Register a notice that the Federal Register, 
change is available to the public. 
pubUcation. 
(d) COMPETITION REQUIRED.—^Within a reasonable time after 
the date on which a notice of the public availability of a list 
is published under subsection (c), the head of the executive agency 
concerned shall review the activities on the list. Each time that 
the head of the executive agency considers contracting with a pri-
vate sector source for the performance of such an activity, the 
head of the executive agency shall use a competitive process to 
select the source (except as may otherwise be provided in a law 
other than this Act, an Executive order, regulations, or any execu-
tive branch circular setting forth requirements or guidance that 
is issued by competent executive authority). The Director of the 
Office of Management and Budget shall issue guidance for the 
administration of this subsection. 
(e) REALISTIC AND FAIR COST COMPARISONS.—For the purpose 
of determining whether to contract with a source in the private 
sector for the performance of an executive agency activity on the 
list on the basis of a comparison of the costs of procuring services 
from such a source with the costs of performing that activity by 
the executive agency, the head of the executive agency shall ensure 
that all costs (including the costs of quality assurance, technical 
monitoring of the performance of such function, liability insurance, 
employee retirement and disability benefits, and all other overhead 
costs) are considered and that the costs considered are realistic 
and fair. 
SEC. 3. CHALLENGES TO THE UST. 
(a) CHALLENGE AUTHORIZED.—^An interested party may submit 
to an executive agency a challenge of an omission of a particular 
activity from, or an inclusion of a particular activity on, a list 
for which a notice of public availability has been published under 
section 2. 
(b) INTERESTED PARTY DEFINED.—For the purposes of this sec-
tion, the term "interested party", with respect to an activity referred 
to in subsection (a), means the following: 
(1) A private sector source that— 
(A) is an actual or prospective offeror for any contract, 
or other form of agreement, to perform the activity; and 
(B) has a direct economic interest in performing the 
activity that would be adversely affected by a determination 
not to procure the performance of the activity from a private 
sector source. 
(2) A representative of any business or professional associa-
tion that includes within its membership private sector sources 
referred to in paragraph (1). 
(3) An officer or employee of an organization within an 
executive agency that is an actual or prospective offeror to 
perform the activity. 
(4) The head of any labor organization referred to in section 
7103(a)(4) of title 5, United States Code, that includes within 
its membership officers or employees of an organization referred 
to in paragraph (3). 
(c) TIME FOR SUBMISSION.—A challenge to a list shall be submit-
ted to the executive agency concerned within 30 days after the 
publication of the notice of the public availability of the list under 
section 2. 
112 STAT. 2384 
PUBLIC LAW 105-270—OCT. 19, 1998 
Deadline. 
(d) INITIAL DECISION.—Within 28 days after an executive agency 
receives a challenge, an official designated by the head of the 
executive agency shall— 
(1) decide the challenge; and 
(2) transmit to the party submitting the challenge a written 
notification of the decision together with a discussion of the 
rationale for the decision and an explanation of the party's 
right to appeal under subsection (e). 
(e) APPEAL.— 
Deadlines. 
(1) AUTHORIZATION OF APPEAL,—^An interested party may 
appeal an adverse decision of the official to the head of the 
executive agency within 10 days after receiving a notification 
of the decision under subsection (d). 
(2) DECISION ON APPEAL.—Within 10 days after the head 
of an executive agency receives an appeal of a decision under 
paragraph (1), the head of the executive agency shall decide 
the appeal and transmit to the party submitting the appeal 
a written notification of the decision together with a discussion 
of the rationale for the decision. 
SEC. 4. APPLICABILITY. 
(a) EXECUTIVE AGENCIES COVERED.—Except as provided in sub-
section (b), this Act applies to the following executive agencies: 
(1) EXECUTIVE DEPARTMENT.—^An executive department 
named in section 101 of title 5, United States Code. 
(2) MILITARY DEPARTMENT.—^A military department named 
in section 102 of title 5, United States Code. 
(3) INDEPENDENT ESTABLISHMENT.—^An independent estab-
lishment, as defined in section 104 of title 5, United States 
Code. 
(b) EXCEPTIONS.—^This Act does not apply to or with respect 
to the following: 
(1) GENERAL ACCOUNTING OFFICE.—^The General Accounting 
Office. 
(2) GOVERNMENT CORPORATION.—^A Government corpora-
tion or a Government controlled corporation, as those terms 
are defined in section 103 of title 5, United States Code. 
(3) NONAPPROPRIATED FUNDS INSTRUMENTALITY.—A part of 
a department or agency if all of the employees of that part 
of the department or agency are employees referred to in section 
2105(c) of title 5, United States Code. 
(4) CERTAIN DEPOT-LEVEL MAINTENANCE AND REPAIR.— 
Depot-level maintenance and repair of the Department of 
Defense (as defined in section 2460 of title 10, United States 
Code). 
SEC. 5. DEFINITIONS. 
In this Act: 
(1) FEDERAL GOVERNMENT SOURCE.—^The term "Federal 
Government source", with respect to performance of an activity, 
means any organization within an executive agency that uses 
Federal Grovernment employees to perform the activity. 
(2) INHERENTLY GOVERNMENTAL FUNCTION.— 
(A) DEFINITION.—^The term "inherently governmental 
function" means a function that is so intimately related 
to the public interest as to require performance by Federal 
Government employees. 
PUBLIC LAW 105-270—OCT. 19, 1998 
112 STAT. 2385 
(B) FUNCTIONS INCLUDED.—^The term includes activi-
ties that require either the exercise of discretion in applying 
Federal Government authority or the making of value judg-
ments in making decisions for the Federal Government, 
including judgments relating to monetary transactions and 
entitlements. An inherently governmental function in-
volves, among other things, the interpretation and execu-
tion of the laws of the United States so as— 
(i) to bind the United States to take or not to 
take some action by contract, policy, regulation, 
authorization, order, or otherwise; 
(ii) to determine, protect, and advance United 
States economic, political, territorial, property, or other 
interests by military or diplomatic action, civil or crimi-
nal judicial proceedings, contract management, or 
otherwise; 
(iii) to significantly affect the life, liberty, or prop-
erty of private persons; 
(iv) to commission, appoint, direct, or control offi-
cers or employees of the United States; or 
(v) to exert ultimate control over the acquisition, 
use, or disposition of the property, real or personal, 
tangible or intangible, of the United States, including 
the collection, control, or disbursement of appropriated 
and other Federal funds. 
(C) FUNCTIONS EXCLUDED.—^The term does not nor-
mally include— 
(i) gathering information for or providing advice, 
opinions, recommendations, or ideas to Federal Govern-
ment officials; or 
(ii) any function that is primarily ministerial and 
internal in nature (such as building security, mail oper-
ations, operation of cafeterias, housekeeping, facilities 
operations and maintenance, warehouse operations, 
motor vehicle fleet management operations, or other 
routine electrical or mechanical services). 
SEC. 6. EFFECTIVE DATE. 
This Act shall take effect on October 1,1998. 
Approved October 19, 1998. 
LEGISLATIVE HISTORY—S. 314: 
SENATE REPORTS: No. 105-269 (Comm. on Governmental Affairs). 
CONGRESSIONAL RECORD, Vol. 144 (1998): 
July 30, considered and passed Senate. 
Oct. 5, considered and passed House. 
112 STAT. 2384 
PUBLIC LAW 105-270—OCT. 19, 1998 
Deadline. 
(d) INITIAL DECISION.—Within 28 days after an executive agency 
receives a challenge, an official designated by the head of the 
executive agency shall— 
(1) decide the challenge; and 
(2) transmit to the party submitting the challenge a written 
notification of the decision together with a discussion of the 
rationale for the decision and an explanation of the party's 
right to appeal under subsection (e). 
(e) APPEAL.— 
Deadlines. 
(1) AUTHORIZATION OF APPEAL,—^An interested party may 
appeal an adverse decision of the official to the head of the 
executive agency within 10 days after receiving a notification 
of the decision under subsection (d). 
(2) DECISION ON APPEAL.—Within 10 days after the head 
of an executive agency receives an appeal of a decision under 
paragraph (1), the head of the executive agency shall decide 
the appeal and transmit to the party submitting the appeal 
a written notification of the decision together with a discussion 
of the rationale for the decision. 
SEC. 4. APPLICABILITY. 
(a) EXECUTIVE AGENCIES COVERED.—Except as provided in sub-
section (b), this Act applies to the following executive agencies: 
(1) EXECUTIVE DEPARTMENT.—^An executive department 
named in section 101 of title 5, United States Code. 
(2) MILITARY DEPARTMENT.—^A military department named 
in section 102 of title 5, United States Code. 
(3) INDEPENDENT ESTABLISHMENT.—^An independent estab-
lishment, as defined in section 104 of title 5, United States 
Code. 
(b) EXCEPTIONS.—^This Act does not apply to or with respect 
to the following: 
(1) GENERAL ACCOUNTING OFFICE.—^The General Accounting 
Office. 
(2) GOVERNMENT CORPORATION.—^A Government corpora-
tion or a Government controlled corporation, as those terms 
are defined in section 103 of title 5, United States Code. 
(3) NONAPPROPRIATED FUNDS INSTRUMENTALITY.—A part of 
a department or agency if all of the employees of that part 
of the department or agency are employees referred to in section 
2105(c) of title 5, United States Code. 
(4) CERTAIN DEPOT-LEVEL MAINTENANCE AND REPAIR.— 
Depot-level maintenance and repair of the Department of 
Defense (as defined in section 2460 of title 10, United States 
Code). 
SEC. 5. DEFINITIONS. 
In this Act: 
(1) FEDERAL GOVERNMENT SOURCE.—^The term "Federal 
Government source", with respect to performance of an activity, 
means any organization within an executive agency that uses 
Federal Grovernment employees to perform the activity. 
(2) INHERENTLY GOVERNMENTAL FUNCTION.— 
(A) DEFINITION.—^The term "inherently governmental 
function" means a function that is so intimately related 
to the public interest as to require performance by Federal 
Government employees. 
PUBLIC LAW 105-270—OCT. 19, 1998 
112 STAT. 2385 
(B) FUNCTIONS INCLUDED.—^The term includes activi-
ties that require either the exercise of discretion in applying 
Federal Government authority or the making of value judg-
ments in making decisions for the Federal Government, 
including judgments relating to monetary transactions and 
entitlements. An inherently governmental function in-
volves, among other things, the interpretation and execu-
tion of the laws of the United States so as— 
(i) to bind the United States to take or not to 
take some action by contract, policy, regulation, 
authorization, order, or otherwise; 
(ii) to determine, protect, and advance United 
States economic, political, territorial, property, or other 
interests by military or diplomatic action, civil or crimi-
nal judicial proceedings, contract management, or 
otherwise; 
(iii) to significantly affect the life, liberty, or prop-
erty of private persons; 
(iv) to commission, appoint, direct, or control offi-
cers or employees of the United States; or 
(v) to exert ultimate control over the acquisition, 
use, or disposition of the property, real or personal, 
tangible or intangible, of the United States, including 
the collection, control, or disbursement of appropriated 
and other Federal funds. 
(C) FUNCTIONS EXCLUDED.—^The term does not nor-
mally include— 
(i) gathering information for or providing advice, 
opinions, recommendations, or ideas to Federal Govern-
ment officials; or 
(ii) any function that is primarily ministerial and 
internal in nature (such as building security, mail oper-
ations, operation of cafeterias, housekeeping, facilities 
operations and maintenance, warehouse operations, 
motor vehicle fleet management operations, or other 
routine electrical or mechanical services). 
SEC. 6. EFFECTIVE DATE. 
This Act shall take effect on October 1,1998. 
Approved October 19, 1998. 
LEGISLATIVE HISTORY—S. 314: 
SENATE REPORTS: No. 105-269 (Comm. on Governmental Affairs). 
CONGRESSIONAL RECORD, Vol. 144 (1998): 
July 30, considered and passed Senate. 
Oct. 5, considered and passed House. 
112 STAT. 2386 
PUBLIC LAW 105-271—OCT. 19, 1998 
Public Law 105-271 
105th Congress 
An Act 
rvt 1
Q iQQa 
To encourage the disclosure and exchange of information about computer processing 
:—: 
problems, solutions, test practices and test results, and related matters in connec-
(S. 2392] 
tion with the transition to the year 2000. 
Be it enacted by the Senate and House of Representatives 
of 
Year 2000 
the United States of America in Congress assembled. 
Information and 
Readiness 
SECTION 1. SHORT TITLE. 
isUScTnote! 
This Act may be cited as the "Year 2000 Information and 
Readiness Disclosure Act". 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FlNDBSTGS.—Congress finds the following: 
(1)(A) At least thousands but possibly millions of informa-
tion technology computer S3rstems, software programs, and 
semiconductors are not capable of recognizing certain dates 
in 1999 and after Deceml^r 31, 1999, and will read dates 
in the year 2000 and thereafter as if those dates represent 
the year 1900 or thereafter or will fail to process those dates. 
(B) The problem described in subparagraph (A) and result-
ing failures could incapacitate systems that are essential to 
the ftmctioning of markets, commerce, consimier products, utili-
ties, government, and safety and defense systems, in the United 
States and throughout the world. 
(C) Reprogramming or replacing affected systems before 
the problem incapacitates essential systems is a matter of 
national and global interest. 
(2) The prompt, candid, and thorough disclosure and 
exchange of information related to year 2000 readiness of enti-
ties, products, and services— 
(A) would greatly enhance the ability of public and 
private entities to improve their year 2000 readiness; and 
(B) is therefore a matter of national importance and 
a vital factor in minimizing any potential year 2000 related 
disruption to the Nation's economic well-being and security. 
(3) Concern about the potential for legal Uabuity associated 
with the disclosure and exchange of year 2000 readiness 
information is impeding the disclosure and exchange of such 
information. 
(4) The capabiUty to freely disseminate and exchange 
information relating to year 2000 readiness, solutions, test prac-
tices and test results, with the public and other entities without 
undue concern about Utigation is critical to the ability of pubUc 
and private entities to address year 2000 needs in a timely 
manner. 
PUBLIC LAW 105-271—OCT. 19, 1998 
112 STAT. 2387 
(5) The national interest will be served by uniform legal 
standards in connection with the disclosure and exchange of 
year 2000 readiness information that will promote disclosures 
and exchanges of such information in a timely fashion. 
(b) PURPOSES.—^Based upon the powers contained in article 
I, section 8, clause 3 of the Constitution of the United States, 
the purposes of this Act are— 
(1) to promote the free disclosure and exchange of informa-
tion related to year 2000 readiness; 
(2) to assist consumers, small businesses, and local govern-
ments in effectively and rapidly responding to year 2000 prob-
lems; and 
(3) to lessen burdens on interstate conmierce by establish-
ing certain uniform legal principles in connection with the 
disclosure and exchange of information related to year 2000 
readiness. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) ANTITRUST LAWS.—The term "antitrust laws"— 
(A) has the meaning given to it in subsection (a) of 
the first section of the Clayton Act (15 U.S.C. 12(a)), except 
that such term includes section 5 of the Federal Trade 
Commission Act (15 U.S.C. 45) to the extent such section 
5 appHes to unfair methods of competition; and 
(B) includes any State law similar to the laws referred 
to in subparagraph (A). 
(2) CONSUMER.—^The term "consumer" means an individual 
who acquires a consumer product for purposes other than 
resale. 
(3) CONSUMER PRODUCT.—The term "consumer product" 
means £iny personal property or service which is normally used 
for personal, family, or household purposes. 
(4) COVERED ACTION,—The term "covered action" means 
a civil action of any kind, whether arising imder Federal or 
State law, except for an action brought by a Federal, State, 
or other pubhc entity, agency, or authority acting in a regu-
latory, supervisory, or enforcement capacity. 
(5) MAKER.—^The term "maker 
means each person or 
entity, including the United States or a State or political sub-
division thereof, that— 
(A) issues or publishes any year 2000 statement; 
(B) develops or prepares any year 2000 statement; 
or 
(C) assists in, contributes to, or reviews, reports or 
comments on during, or approves, or otherwise takes part 
in the preparing, developing, issuing, approving, or publish-
ing of any year 2000 statement. 
(6) REPUBLICATION.—^The term "repubUcation" means any 
repetition, in whole or in part, of a year 2000 statement origi-
nally made by smother. 
(7) YEAR 2000 INTERNET WEBSITE.—The term "year 2000 
Internet website" means an Internet website or other similar 
electronically accessible service, clearly designated on the 
website or service by the person or entity creating or controlUng 
the content of the website or service as an area where year 
112 STAT. 2388 
PUBLIC LAW 105-271—OCT. 19, 1998 
2000 statements concerning that person or entity are posted 
or otherwise made accessible to the general public. 
(8) YEAR 2000 PROCESSING.—The term "year 2000 process-
ing" means the processing (including calculating, comparing, 
sequencing, displa3dng, or storing), transmitting, or receiving 
of date data from, into, and between the 20th and 21st cen-
turies, and during the years 1999 and 2000, and leap year 
calculations. 
(9) YEAR 2000 READINESS DISCLOSURE.—The term "year 2000 
readiness disclosure" means any written year 2000 statement— 
(A) clearly identified on its face as a year 2000 readi-
ness disclosure; 
(B) inscribed on a tangible medium or stored in an 
electronic or other medium and retrievable in perceivable 
form; and 
(C) issued or published by or with the approval of 
a person or entity with respect to year 2000 processing 
of that person or entity or of products or services offered 
by that person or entity. 
(10) YEAR 2000 REMEDIATION PRODUCT OR SERVICE.—The 
term "year 2000 remediation product or service" means a soft-
ware program or service hcensed, sold, or rendered by a person 
or entity and specifically designed to detect or correct year 
2000 processing problems with respect to sjrstems, products, 
or services manufactured or rendered by another person or 
entity. 
(11) YEAR 2000 STATEMENT.— 
(A) IN GENERAL.—The term "year 2000 statement" 
means any commimication or other conveyance of informa-
tion by a party to another or to the public, in any form 
or medium— 
(i) concerning an assessment, projection, or esti-
mate concerning year 2000 processing capabilities of 
an entity, product, service, or set of products and serv-
ices; 
(ii) concerning plans, objectives, or timetables for 
implementing or verifying the year 2000 processing 
capabilities of an entity, product, service, or set of 
products and services; 
(iii) concerning test plans, test dates, test results, 
or operational problems or solutions related to year 
2000 processing by— 
(I) products; or 
(II) services that incorporate or utilize prod-
ucts; or 
(iv) reviewing, commenting on, or 
otherwise 
directly or indirectly relating to year 2000 processing 
capabiUties. 
(B) NOT INCLUDED.—For the purposes of any action 
brought under the securities laws, as that term is defined 
in section 3(a)(47) of the Securities Exchange Act of 1934 
(15 U.S.C. 78c(a)(47)), the term "year 2000 statement" does 
not include statements contained in any documents or 
materials filed with the Securities and Exchange Commis-
sion, or with Federal banking regulators, pursuant to sec-
tion 12(i) of the Securities Exchange Act of^l934 (15 U.S.C. 
PUBLIC LAW 105-271—OCT. 19, 1998 
112 STAT. 2389 
781(i)), or disclosures or writing that when made accom-
panied the solicitation of an offer or sale of securities. 
SEC. 4. PROTECTION FOR YEAR 2000 STATEMENTS. 
(a) EvTOENCE EXCLUSION.—No year 2000 readiness disclosure, 
in whole or in part, shall be admissible against the maker of 
that disclosure to prove the accuracy or truth of any year 2000 
statement set forth in that disclosure, in any covered action brought 
by another party except that— 
(1) a year 2000 readiness disclosure may be admissible 
to serve as the basis for a claim for anticipatory breach, or 
repudiation of a contract, or a similar claim against the maker, 
to the extent provided by applicable law; and 
(2) the court in any covered action shall have discretion 
to limit appUcation of this subsection in any case in which 
the court determines that the maker's use of the year 2000 
readiness disclosure amounts to bad faith or fraud, or is other-
wise beyond what is reasonable to achieve the purposes of 
this Act. 
(b) FALSE, MISLEADING AND INACCURATE YEAR 2000 STATE-
MENTS.—Except as provided in subsection (c), in any covered action, 
to the extent that such action is based on an allegedly false, inac-
curate, or misleading year 2000 statement, the maker of that year 
2000 statement shall not be liable under Federal or State law 
with respect to that year 2000 statement unless the claimant estab-
lishes, in addition to all other requisite elements of the appUcable 
action, by clear and convincing evidence, that— 
(1) the year 2000 statement was material; and 
(2)(A) to the extent the year 2000 statement was not a 
repubUcation, that the maker made the year 2000 statement— 
(i) with actual knowledge that the year 2000 statement 
was false, inaccurate, or misleading; 
(ii) with intent to deceive or mislead; or 
(iii) with a reckless disregard as to the accuracy of 
the year 2000 statement; or 
(B) to the extent the year 2000 statement was a republica-
tion, that the maker of the republication made the year 2000 
statement— 
(i) with actual knowledge that the year 2000 statement 
was false, inaccurate, or misleading; 
(ii) with intent to deceive or mislead; or 
(iii) without notice in that year 2000 statement that— 
(I) the maker has not verified the contents of the 
republication; or 
(II) the maker is not the source of the repubUcation 
and the republication is based on information suppHed 
by another person or entity identified in that year 
2000 statement or repubUcation. 
(c) DEFAMATION OR SIMILAR CLAIMS.—In a covered action aris-
ing under any Federal or State law of defamation, trade disparage-
ment, or a similar claim, to the extent such action is based on 
an allegedly false, inaccurate, or misleading year 2000 statement, 
the maker of that year 2000 statement shall not be liable with 
respect to that year 2000 statement, unless the claimant estabUshes 
by clear and convincing evidence, in addition to all other requisite 
elements of the applicable action, that the year 2000 statement 
112 STAT. 2390 
PUBLIC LAW 105-271—OCT. 19, 1998 
was made with knowledge that the year 2000 statement was false 
or made with reckless disregard as to its truth or falsity. 
(d) YEAR 2000 INTERNET WEBSITE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), in 
any covered action other tnan a covered action involving per-
sonal injury or serious physical damage to property, in wnich 
the adequacy of notice about year 2000 processing is at issue, 
the posting, in a commercially reasonable manner and for a 
commercially reasonable duration, of a notice by the entity 
charged with giving such notice on the year 2000 Internet 
website of that entity shall be deemed an adequate mechanism 
for providing that notice. 
(2) EXCEPTION.—Paragraph (1) shall not apply if the court 
finds that the use of the mechanism of notice— 
(A) is contrary to express prior representations regard-
ing the mechanism of notice made by the party giving 
notice; 
(B) is materially inconsistent with the regular course 
of dealing between the parties; or 
(C) occurs where there have been no prior representa-
tions regarding the mechanism of notice, no regular course 
of dealing exists between the parties, and actual notice 
is clearly the most commercially reasonable means of 
providing notice. 
(3) CONSTRUCTION.—^Nothing in this subsection shall— 
(A) alter or amend any Federal or State statute or 
regulation requiring that notice about year 2000 processing 
be provided using a different mechanism; 
(B) create a duty to provide notice about year 2000 
processing; 
(C) preclude or suggest the use of any other medium 
for notice about year 2000 processing or require the use 
of an Internet website; or 
(D) mandate the content or timing of any notices about 
year 2000 processing. 
(e) LIMITATION ON EFFECT OF YEAR 2000 STATEMENTS.— 
(1) IN GENERAL.^—In any covered action, a year 2000 state-
ment shall not be interpreted or construed as an amendment 
to or alteration of a contract or warranty, whether entered 
into by or approved for a pubUc or private entity. 
(2) NOT APPLICABLE.— 
(A) IN GENERAL.—This subsection shall not apply— 
(i) to the extent the party whose year 2000 state-
ment is alleged to have amended or altered a contract 
or warranty has otiierwise agreed in writing to so 
alter or amend the contract or warranty; 
(ii) to a year 2000 statement maae in conjunction 
with the formation of the contract or warranty; or 
(iii) if the contract or warranty specifically provides 
for its amendment or alteration through the making 
of a year 2000 statement. 
(B) RULE OF CONSTRUCTION.—Nothing in this sub-
section shall affect applicable Federal or State law in effect 
as of the date of enactment of this Act with respect to 
determining the extent to which a year 2000 statement 
affects a contract or warranty. 
(f) SPECIAL DATA GATHERING.— 
PUBLIC LAW 105-271—OCT. 19, 1998 
112 STAT. 2391 
(1) IN GENERAL.—A Federal entity, agency, or authority 
may expressly designate a request for tiie voluntary provision 
of information relating to year 2000 processing, including year 
2000 statements, as a special year 2000 data gathering request 
made pursuant to this subsection. 
(2) SPECIFICS.—A special year 2000 data gathering request 
made under this subsection shall specify a Federal entity, 
agency, or authority, or, with its consent, another public or 
private entity, agency, or authority, to gather responses to 
the request. 
(3) PROTECTIONS.—Except with the express consent or 
permission of the provider of information described in para-
graph (1), any year 2000 statements or other such information 
provided by a party in response to a special year 2000 data 
gathering request made under this subsection— 
(A) shall be exempt from disclosure under subsection 
(b)(4) of section 552 of title 5, United States Code, com-
monly known as the "Freedom of Information Act"; 
(B) shall not be disclosed to any third party; and 
(C) may not be used by any Federal entity, agency, 
or authority or by any third party, directly or indirectly, 
in any civil action arising under any Federal or State 
law. 
(4) EXCEPTIONS.— 
(A) INFORMATION OBTAINED ELSEWHERE.^Nothing in 
this subsection shall preclude a Federal entity, agency, 
or authority, or any third party, from separately obtaining 
the information submitted in response to a request under 
this subsection through the use of independent legal 
authorities, and using such separately obteiined information 
in any action. 
(B) VOLUNTARY DISCLOSURE.—A restriction on use or 
disclosure of information under this subsection shall not 
apply to any information disclosed to the pubUc with the 
express consent of the party responding to a special year 
2000 data gathering request or disclosed by such party 
separately from a response to a special year 2000 data 
gathering request. 
SEC. 5. TEMPORARY ANTITRUST EXEMPTION. 
(a) EXEMPTION.—Except as provided in subsection (b), the anti-
trust laws shall not apply to conduct engaged in, including making 
and implementing an agreement, solely for the purpose of and 
limited to— 
(1) facilitating responses intended to correct or avoid a 
failure of year 2000 processing in a computer sjrstem, in a 
component of a computer system, in a computer program or 
software, or services utilizing any such system, component, 
program, or hardware; or 
(2) communicating or disclosing information to help correct 
or avoid the effects of yeeu* 2000 processing failure 
(b) ApPLiCABiLrrY.—Subsection (a) shall apply only to conduct 
that occurs, or an agreement that is made and implemented, after 
the date of enactment of this Act and before July 14, 2001. 
(c) EXCEPTION TO EXEMPTION.—Subsection (a) shall not apply 
with respect to conduct that involves or results in an agreement 
112 STAT. 2392 
PUBLIC LAW 105-271—OCT. 19, 1998 
to boycott any person, to allocate a market, or to fix prices or 
output. 
(d) RULE OF CONSTRUCTION.—The exemption granted by this 
section shall be construed narrowly. 
SEC. 6. EXCLUSIONS. 
(a) EFFECT ON INFORMATION DISCLOSURE.—This Act does not 
affect, abrogate, amend, or alter the authority of a Federal or 
State entity, agency, or authority to enforce a requirement to pro-
vide or disclose, or not to provide or disclose, information under 
a Federal or State statute or regulation or to enforce such statute 
or regulation. 
(b) CONTRACTS AND OTHER CLAIMS.— 
(1) IN GENERAL.—Except as may be otherwise provided 
in subsections (a) and (e) of section 4, this Act does not affect, 
abrogate, amend, or alter any right established by contract 
or tariff between any person or entity, whether entered into 
by a pubUc or private person or entity, imder any Federal 
or State law. 
(2) OTHER CLAIMS.— 
(A) IN GENERAL.—In any covered action brought by 
a consumer, this Act does not apply to a year 2000 state-
ment expressly made in a solicitation, including an 
advertisement or offer to sell, to that consumer by a seller, 
manufacturer, or provider of a consumer product. 
(B) SPECIFIC NOTICE REQUIRED.—^In any covered action, 
this Act shall not apply to a year 2000 statement, concern-
ing a year 2000 remediation product or service, expressly 
made in an offer to sell or in a soUcitation (including 
an advertisement) by a seller, manufacturer, or provider, 
of that product or service unless, during the course of 
the offer or sohcitation, the party making the offer or 
soUcitation provides the following notice in accordance with 
section 4(d): 
"Statements made to you in the course of this 
sale are subject to the Year 2000 Information and 
Readiness Disclosure Act ( 
U.S.C. 
). In the 
case of a dispute, this Act may reduce your legal rights 
regarding the use of any such statements, unless other-
wise specified by your contract or tariff.". 
(3) RULE OP CONSTRUCTION.—Nothing in this Act shall 
be construed to preclude any claims that are not based exclu-
sively on year 2000 statements. 
(c) DUTY OR STANDARD OF CARE.— 
(1) IN GENERAL.—This Act shall not impose upon the maker 
of any year 2000 statement any more stringent obligation, 
duty, or standard of care than is otherwise applicable under 
any other Federal law or State law. 
(2) ADDITIONAL DISCLOSURE.—^This Act does not preclude 
any party from making or providing any additional disclosure, 
disclaimer, or similar provisions in connection with any year 
2000 readiness disclosure or year 2000 statement. 
(3) DUTY OF CARE.—-This Act shall not be deemed to alter 
any standard or duty of care owed by a fiduciary, as defined 
or determined by apphcable Federal or State law. 
PUBLIC LAW 105-271—OCT. 19, 1998 
112 STAT. 2393 
(d) INTELLECTUAL PROPERTY RIGHTS.—This Act does not affect, 
abrogate, amend, or alter any right in a patent, cop3ndght, semi-
conductor mask work, trade secret, trade name, trademark, or 
service mark, under any Federal or State law. 
(e) INJUNCTIVE RELIEF.—^Nothing in this Act shall be deemed 
to preclude a claimant from seeking injunctive relief with respect 
to a year 2000 statement. 
SEC. 7. APPLICABIUTY. 
(a) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided in this sec-
tion, this Act shall become effective on the date of enactment 
of this Act. 
(2) APPLICATION TO LAWSUITS PENDING.—This Act shall 
not affect or apply to any lawsuit pending on July 14, 1998. 
(3) APPLICATION TO STATEMENTS AND DISCLOSURES.—Except 
as provided in subsection (b)— 
(A) this Act shall apply to any year 2000 statement 
made beginning on July 14, 1998 and ending on July 
14, 2001; and 
(B) this Act shall apply to any year 2000 readiness 
disclosure made beginning on the date of enactment of 
this Act and ending on July 14, 2001. 
(b) PREVIOUSLY MADE READINESS DISCLOSURE.— 
(1) IN GENERAL.—For the purposes of section 4(a), a person 
or entity that issued or pubhshed a year 2000 statement after 
January 1, 1996, and before the date of enactment of this 
Act, may designate that year 2000 statement as a year 2000 
readiness disclosure if— 
(A) the year 2000 statement complied with the require-
ments of section 3(9) when made, other than being clearly 
designated on its face as a disclosure; and 
(B) within 45 days after the date of enactment of Deadline, 
this Act, the person or entity seeking the designation— 
(i) provides individual notice that meets the 
requirements of paragraph (2) to all recipients of the 
applicable year 2000 statement; or 
(ii) prominently posts notice that meets the 
requirements of paragraph (2) on its year 2000 Internet 
website, commencing prior to the end of the 45-day 
period under this subparagraph and extending for a 
minimum of 45 consecutive days and also uses the 
same method of notification used to originally provide 
the applicable year 2000 statement. 
(2) REQUIREMENTS.—^A notice imder paragraph (1)(B) 
shall— 
(A) state that the year 2000 statement that is the 
subject of the notice is being designated a year 2000 readi-
ness disclosure; and 
(B) include a copy of the year 2000 statement with 
a legend labeling the statement as a "Year 2000 Readiness 
Disclosure". 
(c) EXCEPTION.—^No designation of a year 2000 statement as 
a year 2000 readiness disclosure under subsection (b) shall apply 
with respect to any person or entity that— 
(1) proves, by clear and convincing evidence, that it reUed 
on the year 2000 statement prior to the receipt of notice