44th legislature - STATE OF NEW MEXICO - first session, 1999

ENACTING THE Y2K FINANCIAL PROTECTION ACT; PROVIDING FOR PROTECTION OF CONSUMERS WHEN COMPUTER DATE FAILURE IS THE CAUSE OF CERTAIN ACTIONS TAKEN OR NOT TAKEN BY PARTIES TO COMMERCIAL TRANSACTIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. SHORT TITLE.--This act may be cited as the "Y2K Financial Protection Act".

Section 2. DEFINITIONS.--As used in the Y2K Financial Protection Act:

A. "adverse action" means a specific action taken by a person in connection with a mortgage, a contract, landlord-tenant relations, a consumer credit obligation, a utility bill, a banking transaction or any other commercial transaction that has a direct and negative impact upon another because it:

(1) shortens the length of time available for performance;

(2) imposes additional interest or penalties;

(3) declares a breach of or default in an obligation;

(4) declares a forfeiture of or forfeits something of value, tangible or intangible; or

(5) causes a negative entry to be made in a credit record; and

B. "year 2000 event" means an improper or incorrect transmission, an inability to cause a transaction to occur, a failure or inability to act in a timely manner, a failure or inability to accurately or timely process any information or data, payment or transfer or any other occurrence directly or indirectly resulting from the failure or malfunction of any computer processor to accurately or properly recognize, calculate, display, sort or otherwise process dates or times because of the beginning of the year 2000.

Section 3. ADVERSE ACTION--PROCEDURE TO MITIGATE EFFECTS--CAUSE OF ACTION.--

A. A person who has been harmed by an adverse action that he believes may have resulted from a year 2000 event may, within thirty days of the latter of having actual knowledge of the adverse action or having actual knowledge of a year 2000 event that may have caused the adverse action to be taken, file a protest in writing with the person who took the adverse action. The protest shall be accompanied by any documentation or other evidence that may show that the adverse action resulted from a year 2000 event.

B. Within ten days of receiving a protest pursuant to Subsection A of this section, the person who took adverse action shall investigate the matter and:

(1) if the person concludes that the adverse action was taken because of a year 2000 event, the person shall revoke the adverse action and notify the protestor of the revocation;

(2) if the person concludes that the adverse action was not taken because of a year 2000 event, the person shall so notify the protestor; or

(3) offer to mediate the matter with the protestor.

C. A protestor who has followed the procedures established by Subsections A and B of this section may bring a civil action in district court against the person who took the adverse action if:

(1) the person did not respond to the protestor within the time frame required by Subsection B of this section;

(2) the protestor received a notice pursuant to Paragraph (2) of Subsection B of this section; or

(3) the matter has not been resolved within thirty days after the commencement of mediation procedures pursuant to Paragraph (3) of Subsection B of this section.

D. In an action brought pursuant to Subsection C of this section, if the court finds that, based upon a preponderance of evidence, the adverse action was taken as a result of a year 2000 event and that the defendant knew or should have known, by the evidence in the defendant's possession and the evidence submitted by the plaintiff pursuant to Subsection A of this section, that the adverse action was taken as a result of a year 2000 event, then the court shall award treble damages, costs and reasonable attorney fees to the plaintiff.

E. The procedures and remedies of this section are in addition to any others that may be provided for by law.

Section 4. DELAYED REPEAL.--The provisions of this act are repealed effective January 1, 2007.