§6617 Suspension of Penalties for Certain Year 2000 Failures by Small Business Concerns

Summary

Agencies that can fine small businesses must not charge civil money penalties for a first-time violation caused by a Y2K failure, if the business meets certain conditions and the agency agrees. An "agency" here means an executive agency that can impose fines. A "first-time violation" means a rule break by a small business that did not happen in the prior 3 years and was caused by a Y2K failure (but not violations tied to the safety or soundness of banks, the monetary system, or the integrity of the National Securities markets, including depositor or investor protection). "Small business concern" means the type of defendant described in the related statute. Within 30 days after July 20, 1999 each agency must name a liaison for Y2K problems and publish that person’s name and phone number in the Federal Register. Agencies must waive fines if the business shows it tried in good faith to prevent and fix Y2K problems; the violation was caused by a Y2K failure that hurt its ability to comply; the violation was unavoidable or occurred while preventing harm; the business quickly tried to fix the problem; and the business told the agency within 5 business days. Agencies can still fine a business if the failure caused actual harm or an imminent threat to health, safety, or the environment, or if the business does not fix the violation within 1 month after the agency’s initial notice. The rule does not cover Y2K failures that happen after December 31, 2000.