ADVISORY

FROM THE COMMITTEE ON WAYS AND MEANS
Subcommittee on Oversight

FOR IMMEDIATE RELEASE, Contact: (202) 225-7601
April 30, 1998
No. OV-17


Johnson Announces Hearing on the
Year 2000 Computer Problem

    Congresswoman Nancy L. Johnson (R-CT), Chairman, Subcommittee on Oversight of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing on the potential effects of the year 2000 (Y2K) computer problem on the Federal programs within the jurisdiction of the Committee on Ways and Means. The hearing will take place on Thursday, May 7, 1998, in room B-318 Rayburn House Office Building, beginning at 10:00 a.m.

    In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. Witnesses will include individuals testifying on behalf of the U.S. Departments of the Treasury and Health and Human Services, the Social Security Administration, the Office of Management and Budget and the U.S. General Accounting Office, as well as the private sector. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.

BACKGROUND:

    Most computers and computer systems in use in the Federal Government today will not be able to function beyond the year 2000 unless they are modified. In particular, this applies with respect to the Federal programs within the jurisdiction of the Committee on Ways and Means, including those administered by the U.S. Department of the Treasury, U.S. Department of Health and Human Services, and the Social Security Administration.

    Some computers cannot be modified and must be replaced. In addition, there are many items, like elevators or security systems, that are not directly related to computer systems which have embedded computer chips. Many of these chips are date dependent and require replacement in order to function beyond the year 2000.

    Currently most computers only store a two-digit number for the year, which makes the year 2000 indistinguishable from the year 1900. Computer operating systems and applications software that are dependent upon this two-digit year format will likely malfunction. Incorrect notices, penalty assessments, refund or beneficiary checks could result. Without proper renovation, computer malfunctions will cause many costly problems for both commerce and government.

    While fixing the two-digit year field is technically simple, the process of analyzing, renovating, and testing software and hardware for all computer systems that must interact is a very complex management task. For most of the Federal Government's computer systems, it is too impractical and expensive to purchase a completely new system. Most software must be modified to accommodate four-digit years or to incorporate some other interim solution. To determine whether a computer system needs to be modified, all of its software code must be reviewed, which can entail reading hundreds, or millions, of lines of computer code. The process of reading and interpreting the code is made more difficult by the many computer languages in use today and the shortage of programmers with skills in older languages. Most older programs which have been modified thousands of times over the years, no longer have the accompanying documentation.

    A further complication is that there is no single solution to be used to renovate computer systems for the year 2000. Rather, there are dozens of standards, public and proprietary, for storing and processing dates in computers.

    Although some may have doubted the seriousness of this problem a few years ago or had not focused on the potential risks to the success of their programs and systems, most business managers and government officials are now convinced that this will be a difficult and time-consuming management challenge. Federal agencies have established Y2K program offices, and an interagency committee has overseen government-wide actions. The century date change is a worldwide problem affecting every industry, locally, nationally, and internationally.

    The information gained in this hearing will be helpful to Congress in evaluating the progress made by each agency in renovating its computer systems and in determining whether legislation or other congressional action is necessary to help ensure that renovation is successful and timely.

    In announcing the hearing, Chairman Johnson stated: "We have a very real problem with a very real deadline. The programs within our Committee's jurisdiction affect more than 260 million Americans. Our revenue programs affect every taxpayer and every business. Millions rely on our benefit programs for their health and well being. These people need assurance that the services that they rely on will not be disrupted by a computer failure. Today we are assessing the adequacy of the planning and management of the bureaus within the Committee's jurisdiction to avert a potential disaster."

FOCUS OF THE HEARING:

    The hearing will explore the Y2K issues for the major program areas within the jurisdiction of the Committee on Ways and Means. In particular the Subcommittee will examine the implications of the Y2K computer problem for the various program beneficiaries, the potential risks to program missions, and major remaining program vulnerabilities.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

    Any person or organization wishing to submit a written statement for the printed record of the hearing should submit six (6) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, with their name, address, and hearing date noted on a label, by the close of business, Thursday, May 21, 1998, to A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Subcommittee on Oversight office, room 1136 Longworth House Office Building, at least one hour before the hearing begins.

FORMATTING REQUIREMENTS:

    Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

    1. All statements and any accompanying exhibits for printing must be submitted on an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, typed in single space and may not exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.

    2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

    3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.

    4. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers where the witness or the designated representative may be reached. This supplemental sheet will not be included in the printed record.

    The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press, and the public during the course of a public hearing may be submitted in other forms.

Symbol to Show Committee Seeks to Assist Persons with Disabilities at the Committee's facilities.The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.