1 Union Calendar No. 469 105th Congress, 2d Session ±±±±±±±±±± House Report 105±827 THE YEAR 2000 PROBLEM FOURTH REPORT BY THE COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHT TOGETHER WITH ADDITIONAL VIEWS OCTOBER 26, 1998.ÐCommitted to the Committee of the Whole House on the State of the Union and ordered to be printed U.S. GOVERNMENT PRINTING OFFICE 51±352 WASHINGTON : 1998 COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHT DAN BURTON, Indiana, Chairman BENJAMIN A. GILMAN, New York HENRY A. WAXMAN, California J. DENNIS HASTERT, Illinois TOM LANTOS, California CONSTANCE A. MORELLA, Maryland ROBERT E. WISE, JR., West Virginia CHRISTOPHER SHAYS, Connecticut MAJOR R. OWENS, New York CHRISTOPHER COX, California EDOLPHUS TOWNS, New York ILEANA ROS-LEHTINEN, Florida PAUL E. KANJORSKI, Pennsylvania JOHN M. MCHUGH, New York GARY A. CONDIT, California STEPHEN HORN, California CAROLYN B. MALONEY, New York JOHN L. MICA, Florida THOMAS M. BARRETT, Wisconsin THOMAS M. DAVIS, Virginia ELEANOR HOLMES NORTON, Washington, DAVID M. MCINTOSH, Indiana DC MARK E. SOUDER, Indiana CHAKA FATTAH, Pennsylvania JOE SCARBOROUGH, Florida ELIJAH E. CUMMINGS, Maryland JOHN B. SHADEGG, Arizona DENNIS J. KUCINICH, Ohio STEVEN C. LATOURETTE, Ohio ROD R. BLAGOJEVICH, Illinois MARSHALL ``MARK'' SANFORD, South DANNY K. DAVIS, Illinois Carolina JOHN F. TIERNEY, Massachusetts JOHN E. SUNUNU, New Hampshire JIM TURNER, Texas PETE SESSIONS, Texas THOMAS H. ALLEN, Maine MICHAEL PAPPAS, New Jersey HAROLD E. FORD, JR., Tennessee VINCE SNOWBARGER, Kansas ÐÐÐ BOB BARR, Georgia BERNARD SANDERS, Vermont DAN MILLER, Florida (Independent) RON LEWIS, Kentucky KEVIN BINGER, Staff Director DANIEL R. MOLL, Deputy Staff Director DAVID A. KASS, Deputy Counsel and Parliamentarian LISA SMITH ARAFUNE, Deputy Chief Clerk PHIL SCHILIRO, Minority Staff Director SUBCOMMITTEE ON GOVERNMENT MANAGEMENT, INFORMATION, AND TECHNOLOGY STEPHEN HORN, California, Chairman PETE SESSIONS, Texas DENNIS J. KUCINICH, Ohio THOMAS M. DAVIS, Virginia PAUL E. KANJORSKI, Pennsylvania JOE SCARBOROUGH, Florida MAJOR R. OWENS, New York MARSHALL ``MARK'' SANFORD, South CAROLYN B. MALONEY, New York Carolina JIM TURNER, Texas JOHN E. SUNUNU, New Hampshire RON LEWIS, Kentucky EX OFFICIO DAN BURTON, Indiana HENRY A. WAXMAN, California J. RUSSELL GEORGE, Staff Director and Chief Counsel JOHN L. HYNES, Professional Staff Member RANDALL J. KAPLAN, Professional Staff Member and Counsel MATTHEW EBERT, Clerk MASON ALINGER, Staff Assistant BRIAN COHEN, Minority Professional Staff Member (II) LETTER OF TRANSMITTAL HOUSE OF REPRESENTATIVES, Washington, DC, October 26, 1998. Hon. NEWT GINGRICH, Speaker of the House of Representatives, Washington, DC. DEAR MR. SPEAKER: By direction of the Committee on Govern- ment Reform and Oversight, I submit herewith the committee's fourth report to the 105th Congress. The committee's report is based on a study conducted by its Subcommittee on Government Management, Information, and Technology. DAN BURTON, Chairman. (III) C O N T E N T S Page I. Summary of Oversight Findings and Recommendations .............................. 1 A. Introduction .......................................................................................... 1 B. Overview of Investigation ................................................................... 3 C. Committee Findings ............................................................................ 4 D. Committee Recommendations ............................................................ 12 II. Report on the Committee's Oversight Review ............................................... 16 A. Background .......................................................................................... 16 B. Proceedings of the Subcommittee ....................................................... 17 1. 104th Congress ............................................................................ 17 2. February 24, 1997, Hearing ....................................................... 18 3. March 20, 1997, Hearing ............................................................ 19 4. July 10, 1997, Hearing ............................................................... 20 5. September 15, 1997, News Conference ..................................... 22 6. October 17, 1997, Hearing .......................................................... 23 7. December 11, 1997, News Conference ....................................... 23 8. February 4, 1998, Hearing ......................................................... 24 9. March 4, 1998, News Conference ............................................... 25 10. March 18, 1998, Hearing ............................................................ 27 11. June 2, 1998, News Conference ................................................. 29 12. June 10, 1998, Hearing ............................................................... 30 13. June 22, 1998, Hearing ............................................................... 31 14. August 13, 1998, Field Hearing (New York, NY) ..................... 32 15. August 17, 1998, Field Hearing (Mesquite, TX) ....................... 34 16. August 19, 1998, Field Hearing (New Orleans, LA) ................ 36 17. September 1, 1998, Field Hearing (Lakewood, OH) ................. 38 18. September 2, 1998, Field Hearing (Indianapolis, IN) .............. 39 19. September 3, 1998, Field Hearing (Palatine, IL) ..................... 41 20. September 9, 1998, News Conference ....................................... 42 21. September 24, 1998, Hearing ..................................................... 44 22. September 29, 1998, Hearing ..................................................... 46 23. October 2, 1998, Hearing ............................................................ 48 C. The Federal Level ................................................................................ 48 1. The Federal Year 2000 Problem .................................................. 48 2. The Federal Leadership Role ....................................................... 55 D. The State and Local Level .................................................................. 60 1. The State and Local Government Year 2000 Problem ............... 60 2. Basic Infrastructure: Electricity, Telecommunications, Water . 66 III. Conclusions ....................................................................................................... 70 APPENDIXES Appendix A.ÐCorrespondence ................................................................................ 71 Appendix B.ÐSubcommittee Report Cards ........................................................... 86 Appendix C.ÐExecutive Order ............................................................................... 101 Appendix D.ÐCitizen's Check Lists ....................................................................... 104 Appendix E.ÐCommittee Findings and Recommendations ................................. 110 VIEWS Additional views of Hon. Stephen Horn ................................................................ 111 (V) VI Page Additional views of Hon. Henry A. Waxman, Hon. Dennis J. Kucinich, Hon. Tom Lantos, Hon. Robert E. Wise, Jr., Hon. Major R. Owens, Hon. Edolphus Towns, Hon. Paul E. Kanjorski, Hon. Gary A. Condit, Hon. Caro- lyn B. Maloney, Hon. Thomas M. Barrett, Hon. Eleanor Holmes Norton, Hon. Elijah E. Cummings, Hon. Rod R. Blagojevich, Hon. Danny K. Davis, Hon. John F. Tierney, Hon. Thomas H. Allen, and Hon. Harold E. Ford, Jr. .......................................................................................................................... 112 Union Calendar No. 469 105TH CONGRESS REPORT 2d Session HOUSE OF REPRESENTATIVES 105±827 "! THE YEAR 2000 PROBLEM OCTOBER 26, 1998.ÐCommitted to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. BURTON of Indiana, from the Committee on Government Reform and Oversight, submitted the following FOURTH REPORT On October 8, 1998, the Committee on Government Reform and Oversight approved and adopted a report entitled, ``The Year 2000 Problem.'' The chairman was directed to transmit a copy to the Speaker of the House. I. SUMMARY OF OVERSIGHT FINDINGS AND RECOMMENDATIONS A. INTRODUCTION The Committee on Government Reform and Oversight (the ``com- mittee'') has primary legislative and oversight jurisdiction with re- spect to the ``overall economy, efficiency and management of Gov- ernment operations and activities, including Federal procure- ment.'' 1 In addition: [T]he Committee on Government Reform and Oversight may at any time conduct investigations of any matter without regard to the provisions . conferring jurisdic- tion over such matter upon another standing committee. The committee's findings and recommendations in any such investigation shall be made available to the other standing committee or committees having jurisdiction over the matter involved.2 Pursuant to this authority, the Subcommittee on Government Management, Information, and Technology (the ``subcommittee'') convened an oversight hearing on April 16, 1996 to examine wheth- er computers throughout the Federal Government, the United 1 Rules of the House of Representatives, 105th Congress, X, 1(g)(6). 2 Rules of the House of Representatives, 105th Congress, X, 4(c)(2). 2 States, and the world would be able to handle the transition from the year 1999 to the year 2000. The subcommittee has continued this investigation throughout the 105th Congress. The potential problem, known as the Year 2000 problem or Y2K, is simple: In the 1960s, when large