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§ 147.001.Definitions

Title 6. Miscellaneous Provisions · Chapter 147. Year 2000 Computer Date Failure · Subchapter A. General Provisions · Last amended 1999 · Last verified August 29, 2026

In one sentenceSection 147.001 defines computer product, recent consumer product and small business, and names the state website through which notice could be given.

Full Text of § 147.001

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In this chapter:
(1)"Action" means a cause of action to which this chapter applies.
(2)"Claimant" means a party seeking recovery of damages or other relief, including a plaintiff, counterclaimant, cross-claimant, or third-party plaintiff.
(3)"Computer product" means a computer, computer network, computer program, computer software, computer system, microprocessor, embedded computer chip, semiconductor device, any component of any of those items, or a product that includes any of those items as a component of the product.
(4)"Computer service product" means the product of the use of a computer, including uses related to data processing and storage. The term includes information stored in the computer by personnel supporting the computer.
(5)"Defendant" means a party from whom a claimant seeks recovery of damages or other relief, including a counterdefendant, cross-defendant, or third-party defendant.
(6)"Good faith" means honesty in fact in the conduct or transaction concerned.
(7)"Recent consumer product" means a mass-marketed computer product, intended by the seller to be used for personal, family, or household purposes or by small businesses, that will manifest a computer date failure during its normal use and was last offered for sale by the manufacturer after January 1, 1997, and in the case of software, was offered for a retail price of $300 or less. The term does not include customized products.
(8)"Small business" means a legal entity, including a sole proprietorship, that:
(A)is formed for the purpose of making a profit;
(B)is independently owned and operated; and
(C)has fewer than 100 employees or less than $1 million in annual gross receipts.
(9)"Year 2000 Project Office website" means the Texas Year 2000 Project Office website administered by the Department of Information Resources. The Internet address of the website is www.dir.state.tx.us/y2k.
End

Plain-English Summary

Nine definitions, and two of them build the tiered protection the chapter applies to consumers.

"Computer product" is drawn as widely as the technology of the time allowed — a computer, network, program, software, system, microprocessor, embedded computer chip, semiconductor device, any component of those, or a product that includes any of them as a component.

The last limb is the important one. It reaches lifts, medical devices, vehicles, and industrial controls — anything with a chip in it — which was the whole concern about embedded systems.

"Computer service product" covers the product of the use of a computer, including data processing and storage, and information stored in the computer by personnel supporting it.

"Recent consumer product" has five conditions: mass-marketed; intended for personal, family, or household purposes or by small businesses; will manifest a computer date failure during normal use; last offered for sale after January 1, 1997; and for software, offered at $300 or less. Customized products are excluded.

That category matters because the affirmative defence treats it more favourably to the buyer — a seller relying on an offered cure must show it charged no more than delivery and installation.

"Small business" means a for-profit entity, independently owned and operated, with fewer than 100 employees or less than $1 million in annual gross receipts.

"Year 2000 Project Office website" names a Department of Information Resources site, with its address written into the statute — a piece of drafting that has aged conspicuously.

Frequently Asked Questions

What is a computer product under this chapter?

A computer, network, program, software, system, microprocessor, embedded chip, semiconductor device, any component of those, or a product containing one as a component.

What makes something a "recent consumer product"?

Mass-marketed, intended for household or small-business use, will manifest a date failure in normal use, last offered for sale after January 1, 1997, and for software priced at $300 or less. Customized products are excluded.

Why does that category matter?

The cure-or-correct affirmative defence is harder to establish for a recent consumer product — the seller must show it charged no more than delivery and installation.

Amendment History

  • Added by Acts 1999, 76th Leg., ch. 128, Sec. 2, eff. May 19, 1999.
Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source