The Role of Government in Solving the Year 2000 Computer Problem

 

 

Leon A. Kappelman, Jerry L. Johnson, and Kathy Rosmond

 

 

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At a time when the public is crying for less government control, it may be difficult to get some legislatures and agencies to step up to the kind of intervention needed. The country would be greatly served by government assistance in the form of:

 

 

1.antitrust exemption so enterprises can freely share their solutions with each other;

2.the choice to amortize costs so enterprises get moving more quickly instead of delaying expenses;

3.the facilitation of information sharing; and

4.some leadership on issues like certification of nuclear power plants and waste dumps, water and sewer systems, oil and chemical pipelines and plants, power-generation facilities, and the like.

 

 

Using the example of the hypothetical "State" state government and its agencies, we examine the role of government in protecting the public safety and the economy.

 

We are not sure how far government should, and can, go in monitoring the compliance of private or not-for-profit organizations that provide essential services to citizens, but government should assume responsibility for public education and making the parties aware of the issues. Though people resist government intervention, the fact is that most people depend on government-monitored services like Emergency Response Systems, oil and gas line distribution, the Food and Drug Administration, and the airline industry, to name but a few. These services must be held accountable to be year-2000-ready, and the government agencies listed in the following paragraphs are charged with requiring that this happens.

 

Telecommunication Systems Issue

The voice telephone system has known problems that could result in system failures, incorrect billing, and other problems. The Federal Communications Commission (FCC) is aware of the problem but has not initiated any action to ensure that local exchanges or the long distance network are ready for the year 2000. Recommendation: The State Public Utility Commission (PUC) should initiate a proceeding to assess the year 2000 readiness of all local exchange carriers and long distance providers. The proceeding should determine if each utility has conducted a year 2000 risk assessment, developed a corrective action plan, and established a date to become year-2000-ready. The PUC, if necessary, should establish a standard date format for billing information, so that this could not be used to lock in customers.

 

Water and Waste Treatment Systems Issue

Most modern systems that control the treatment and distribution of drinking water and waste water use microcomputers and "smart valves" with embedded microprocessors. Problems with the control system, hardware or software, or the smart valves could result in total system failures, or contamination of ground water. Recommendation: The State Natural Resource Conservation Commission (NRCC) should initiate a proceeding to assess the year 2000 readiness of all water districts, municipal water supplies, and waste water treatment facilities. The proceeding should determine if each utility has conducted a year 2000 risk assessment, developed a corrective action plan, and established a date to become year-2000-ready. NRCC also should make information available about known problems and potential solutions for specific vendor-supplied systems and equipment.

 

Electric Power Generation and Distribution Issue

Power plants, both nuclear and conventional, use computer systems and smart valves that could result in system failures. The power grid also is at risk. Recommendation: The State Public Utility Commission (PUC) should initiate a proceeding to assess the year 2000 readiness of all power plants and the potential impact on the power grid itself. The proceeding should determine if each utility has conducted a year 2000 risk assessment, developed a corrective action plan, and established a date to become year-2000-ready.

 

Financial Institutions Issue

Banks and credit unions also are at risk. On June 17, 1996, the Comptroller of the Currency, Administrator of National Banks, issued an advisory letter (AL 96-4) to the chief executive officers of all national banks, department and division heads, and all examining personnel. The advisory letter contained a statement by the Federal Financial Institutions Examination Council (FFIEC) that alerts financial institutions to risks that may be present in existing computer systems as the industry enters the new century. The FFIEC memorandum and Comptroller's advisory letter can be found at www.unt.edu/bcis/faculty/kappelma/. On May 5, 1997 the FFIEC issued a more extensive statement, including "Year 2000 Examination Procedures," and it can be found at www.FFIEC.gov/Y2K/ and is available by FAX BACK at 888-882-0982. Recommendation: The Finance Commission and the Credit Union Department should issue advisory letters to all state-chartered banks, savings and loans, consumer credit enterprises, and credit unions that they have a responsibility for analyzing the risk of their internal computer systems, and should consult with affected vendors (e.g., automated teller machines) and customers to ensure they are addressing the year 2000 issue. Based on the risk analysis, management should develop and implement an action plan to deal with any identified systems coding changes required to achieve year 2000 compatibility.

 

Transportation Control Systems Issue

Motor vehicle, highway, and railroad traffic control systems use computers and devices with embedded microprocessors that could fail or produce incorrect timing sequences. Recommendation: (1) The State Department of Transportation (DOT) should be made aware of the potential problem and should assist local communities with the identification of vendor equipment and systems that have year 2000 problems and possible solutions. DOT should work with the State Railroad Commission to assess the safety of highway/rail crossing sites. (2) The Railroad Commission should initiate proceedings to determine if each rail system manager has conducted a year 2000 risk assessment, developed a corrective action plan, and established a date to become year-2000-ready.

 

Petrochemical Refineries and Oil/Gas Line Distribution Issues

Refineries and oil/gas line distribution systems are controlled by computer systems and use smart valves that could be at risk. Recommendation: The State Railroad Commission and NRCC should initiate proceedings to determine if refineries and managers for oil/gas line distribution systems have conducted a year 2000 risk assessment, developed a corrective action plan, and established a date to become year-2000-ready.

 

Insurance Industry Issue

The insurance industry has many of the same year 2000 problems as financial institutions. Recommendation: The State Department of Insurance should initiate proceedings to determine if insurance companies have conducted a year 2000 risk assessment, developed a corrective action plan, and established a date to become year-2000-ready.

 

Hospitals and Medical Facilities Issues

Universities have found potential year 2000 problems with medical lab equipment. Patient record systems could also have problems. Recommendation: The State Department of Health should initiate proceedings to determine if hospitals and medical facilities have conducted a year 2000 risk assessment, developed a corrective action plan, and established a date to become year-2000-ready.

 

Court System Issues

While the pardon and parole systems have to deal with dates into the year 2000, other less obvious systems dealing with scheduling court action or documenting evidence could also be at risk. Recommendations: The State Administrator for the Courts needs to take responsibility to see that the appropriate jurisdiction is aware of and is correcting any problems in the state, appellate, district, municipal, and juvenile court systems.

 

Criminal Justice Systems Issues

Sentencing and environmental (i.e., buildings and facilities) control systems could be affected by the year 2000 problem. Recommendations: The Department of Corrections needs to ensure that the sentencing and environment control systems (especially security!) are year-2000-ready in the correctional institutions.

 

State Investments Issues

Several state agencies (e.g., Comptroller, employee and teacher retirement systems) and universities invest funds in stocks and bonds. During a year 2000 conference held in March 1996 several experts indicated that up to 10 percent of American businesses could close due to the costs of fixing, or failing to fix, the year 2000 problem. Recommendation: State agencies and universities should require companies or entities issuing bonds in which they are investing to document the companies'/entities' efforts to address the year 2000 problem.

 

State Police Issues

The State Police needs to ensure that all safety and protection systems function properly. This could include the statewide law enforcement microwave communications systems, the computer systems that contain criminal history and offender information (including fingerprint identification systems), the sophisticated equipment in patrol vehicles, and the jails. Recommendations: The State Police should initiate proceedings to determine if these safety and protection systems are year-2000-ready.

 

Emergency Response Systems Issue

While not a specific year 2000 problem, ground receivers that use the Global Positioning System (GPS) satellite system may fail in August 1999 due to a date-related processing problem. Many of the emergency response systems are using GPS to track emergency vehicles for 911 systems. Recommendation: The Emergency Communications Commission should alert all 911 system operators in the state of the potential problem and assist in identifying vendors offering equipment and systems that have corrected the problem.

 

 

Copyright 1997 Leon A. Kappelman. The complete version of this article appears in the book "Year 2000 Problem: Strategies and Solutions from the Fortune 100", Leon A. Kappelman (Editor) 1997 (ISBN 1-85032-913-3), International Thomson Computer Press. Used with permission. Get more information about this book at the SIM Year 2000 Working Group's site www.year2000.unt.edu/book/main.htm.

 

Leon Kappelman, Ph.D., is a researcher, writer, teacher, speaker, facilitator, and consultant dedicated to helping organizations better manage their information assets. He co-chairs the Society for Information Management's (SIM) Year 2000 Working Group. He can be reached at kapp@unt.edu.

 

Jerry L. Johnson been employed at the Texas Department of Information Resources (DIR) since January 14, 1991 as Senior Policy Analyst. Prior to joining DIR, Jerry served in the United States Army from 1965 to 1990. He can be reached at jerry.johnson@dir.texas.gov

 

Kathy Rosmond is one of two Year 2000 Project Managers at the Washington State Department of Information Services. Kathy is the vice chair of a Pacific Northwest year 2000 users group, treasurer for the Society for Information Management's Year 2000 Working Group, and participates in the Information Management Forum's year 2000 work group. She can be reached at kathyr@dis.wa.gov.