One Hundred Sixth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the twenty-fourth day of January, two thousand
An Act
To facilitate the use of electronic records and signatures in
interstate or foreign commerce.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Electronic Signatures in Global and National
Commerce Act'.
TITLE I--ELECTRONIC RECORDS AND SIGNATURES IN COMMERCE
SEC. 101. GENERAL RULE OF VALIDITY.
(a) IN GENERAL- Notwithstanding any statute, regulation, or other rule of
law (other than this title and title II), with respect to any transaction in
or affecting interstate or foreign commerce--
(1) a signature, contract, or other record relating to such transaction
may not be denied legal effect, validity, or enforceability solely because
it is in electronic form; and
(2) a contract relating to such transaction may not be denied legal
effect, validity, or enforceability solely because an electronic signature
or electronic record was used in its formation. (b) PRESERVATION OF RIGHTS AND OBLIGATIONS- This title does not--
(1) limit, alter, or otherwise affect any requirement imposed by a
statute, regulation, or rule of law relating to the rights and obligations
of persons under such statute, regulation, or rule of law other than a
requirement that contracts or other records be written, signed, or in
non-electronic form; or
(2) require any person to agree to use or accept electronic records or
electronic signatures, other than a governmental agency with respect to a
record other than a contract to which it is a party. (c) CONSUMER DISCLOSURES-
(1) CONSENT TO ELECTRONIC RECORDS- Notwithstanding subsection (a), if a
statute, regulation, or other rule of law requires that information relating
to a transaction or transactions in or affecting interstate or foreign
commerce be provided or made available to a consumer in writing, the use of
an electronic record to provide or make available (whichever is required)
such information satisfies the requirement that such information be in
writing if--
(A) the consumer has affirmatively consented to such use and has not
withdrawn such consent;
(B) the consumer, prior to consenting, is provided with a clear and
conspicuous statement--
(i) informing the consumer of (I) any right or option of the
consumer to have the record provided or made available on paper or in
non-electronic form, and (II) the right of the consumer to withdraw the
consent to have the record provided or made available in an electronic
form and of any conditions, consequences (which may include termination
of the parties' relationship), or fees in the event of such
withdrawal;
(ii) informing the consumer of whether the consent applies (I) only
to the particular transaction which gave rise to the obligation to
provide the record, or (II) to identified categories of records that may
be provided or made available during the course of the parties'
relationship;
(iii) describing the procedures the consumer must use to withdraw
consent as provided in clause (i) and to update information needed to
contact the consumer electronically; and
(iv) informing the consumer (I) how, after the consent, the consumer
may, upon request, obtain a paper copy of an electronic record, and (II)
whether any fee will be charged for such copy;
(i) prior to consenting, is provided with a statement of the
hardware and software requirements for access to and retention of the
electronic records; and
(ii) consents electronically, or confirms his or her consent
electronically, in a manner that reasonably demonstrates that the
consumer can access information in the electronic form that will be used
to provide the information that is the subject of the consent;
and
(D) after the consent of a consumer in accordance with subparagraph
(A), if a change in the hardware or software requirements needed to access
or retain electronic records creates a material risk that the consumer
will not be able to access or retain a subsequent electronic record that
was the subject of the consent, the person providing the electronic
record--
(i) provides the consumer with a statement of (I) the revised
hardware and software requirements for access to and retention of the
electronic records, and (II) the right to withdraw consent without the
imposition of any fees for such withdrawal and without the imposition of
any condition or consequence that was not disclosed under subparagraph
(B)(i); and
(ii) again complies with subparagraph (C).
(A) PRESERVATION OF CONSUMER PROTECTIONS- Nothing in this title
affects the content or timing of any disclosure or other record required
to be provided or made available to any consumer under any statute,
regulation, or other rule of law.
(B) VERIFICATION OR ACKNOWLEDGMENT- If a law that was enacted prior to
this Act expressly requires a record to be provided or made available by a
specified method that requires verification or acknowledgment of receipt,
the record may be provided or made available electronically only if the
method used provides verification or acknowledgment of receipt (whichever
is required).
(3) EFFECT OF FAILURE TO OBTAIN ELECTRONIC CONSENT OR CONFIRMATION OF
CONSENT- The legal effectiveness, validity, or enforceability of any
contract executed by a consumer shall not be denied solely because of the
failure to obtain electronic consent or confirmation of consent by that
consumer in accordance with paragraph (1)(C)(ii).
(4) PROSPECTIVE EFFECT- Withdrawal of consent by a consumer shall not
affect the legal effectiveness, validity, or enforceability of electronic
records provided or made available to that consumer in accordance with
paragraph (1) prior to implementation of the consumer's withdrawal of
consent. A consumer's withdrawal of consent shall be effective within a
reasonable period of time after receipt of the withdrawal by the provider of
the record. Failure to comply with paragraph (1)(D) may, at the election of
the consumer, be treated as a withdrawal of consent for purposes of this
paragraph.
(5) PRIOR CONSENT- This subsection does not apply to any records that
are provided or made available to a consumer who has consented prior to the
effective date of this title to receive such records in electronic form as
permitted by any statute, regulation, or other rule of law.
(6) ORAL COMMUNICATIONS- An oral communication or a recording of an oral
communication shall not qualify as an electronic record for purposes of this
subsection except as otherwise provided under applicable law. (d) RETENTION OF CONTRACTS AND RECORDS-
(1) ACCURACY AND ACCESSIBILITY- If a statute, regulation, or other rule
of law requires that a contract or other record relating to a transaction in
or affecting interstate or foreign commerce be retained, that requirement is
met by retaining an electronic record of the information in the contract or
other record that--
(A) accurately reflects the information set forth in the contract or
other record; and
(B) remains accessible to all persons who are entitled to access by
statute, regulation, or rule of law, for the period required by such
statute, regulation, or rule of law, in a form that is capable of being
accurately reproduced for later reference, whether by transmission,
printing, or otherwise.
(2) EXCEPTION- A requirement to retain a contract or other record in
accordance with paragraph (1) does not apply to any information whose sole
purpose is to enable the contract or other record to be sent, communicated,
or received.
(3) ORIGINALS- If a statute, regulation, or other rule of law requires a
contract or other record relating to a transaction in or affecting
interstate or foreign commerce to be provided, available, or retained in its
original form, or provides consequences if the contract or other record is
not provided, available, or retained in its original form, that statute,
regulation, or rule of law is satisfied by an electronic record that
complies with paragraph (1).
(4) CHECKS- If a statute, regulation, or other rule of law requires the
retention of a check, that requirement is satisfied by retention of an
electronic record of the information on the front and back of the check in
accordance with paragraph (1). (e) ACCURACY AND ABILITY TO RETAIN CONTRACTS AND OTHER RECORDS-
Notwithstanding subsection (a), if a statute, regulation, or other rule of law
requires that a contract or other record relating to a transaction in or
affecting interstate or foreign commerce be in writing, the legal effect,
validity, or enforceability of an electronic record of such contract or other
record may be denied if such electronic record is not in a form that is
capable of being retained and accurately reproduced for later reference by all
parties or persons who are entitled to retain the contract or other record.
(f) PROXIMITY- Nothing in this title affects the proximity required by any
statute, regulation, or other rule of law with respect to any warning, notice,
disclosure, or other record required to be posted, displayed, or publicly
affixed.
(g) NOTARIZATION AND ACKNOWLEDGMENT- If a statute, regulation, or other
rule of law requires a signature or record relating to a transaction in or
affecting interstate or foreign commerce to be notarized, acknowledged,
verified, or made under oath, that requirement is satisfied if the electronic
signature of the person authorized to perform those acts, together with all
other information required to be included by other applicable statute,
regulation, or rule of law, is attached to or logically associated with the
signature or record.
(h) ELECTRONIC AGENTS- A contract or other record relating to a
transaction in or affecting interstate or foreign commerce may not be denied
legal effect, validity, or enforceability solely because its formation,
creation, or delivery involved the action of one or more electronic agents so
long as the action of any such electronic agent is legally attributable to the
person to be bound.
(i) INSURANCE- It is the specific intent of the Congress that this title
and title II apply to the business of insurance.
(j) INSURANCE AGENTS AND BROKERS- An insurance agent or broker acting
under the direction of a party that enters into a contract by means of an
electronic record or electronic signature may not be held liable for any
deficiency in the electronic procedures agreed to by the parties under that
contract if--
(1) the agent or broker has not engaged in negligent, reckless, or
intentional tortious conduct;
(2) the agent or broker was not involved in the development or
establishment of such electronic procedures; and
(3) the agent or broker did not deviate from such procedures.
SEC. 102. EXEMPTION TO PREEMPTION.
(a) IN GENERAL- A State statute, regulation, or other rule of law may
modify, limit, or supersede the provisions of section 101 with respect to
State law only if such statute, regulation, or rule of law--
(1) constitutes an enactment or adoption of the Uniform Electronic
Transactions Act as approved and recommended for enactment in all the States
by the National Conference of Commissioners on Uniform State Laws in 1999,
except that any exception to the scope of such Act enacted by a State under
section 3(b)(4) of such Act shall be preempted to the extent such exception
is inconsistent with this title or title II, or would not be permitted under
paragraph (2)(A)(ii) of this subsection; or
(2)(A) specifies the alternative procedures or requirements for the use
or acceptance (or both) of electronic records or electronic signatures to
establish the legal effect, validity, or enforceability of contracts or
other records, if--
(i) such alternative procedures or requirements are consistent with
this title and title II; and
(ii) such alternative procedures or requirements do not require, or
accord greater legal status or effect to, the implementation or
application of a specific technology or technical specification for
performing the functions of creating, storing, generating, receiving,
communicating, or authenticating electronic records or electronic
signatures; and
(B) if enacted or adopted after the date of the enactment of this Act,
makes specific reference to this Act. (b) EXCEPTIONS FOR ACTIONS BY STATES AS MARKET PARTICIPANTS- Subsection
(a)(2)(A)(ii) shall not apply to the statutes, regulations, or other rules of
law governing procurement by any State, or any agency or instrumentality
thereof.
(c) PREVENTION OF CIRCUMVENTION- Subsection (a) does not permit a State to
circumvent this title or title II through the imposition of nonelectronic
delivery methods under section 8(b)(2) of the Uniform Electronic Transactions
Act.
SEC. 103. SPECIFIC EXCEPTIONS.
(a) EXCEPTED REQUIREMENTS- The provisions of section 101 shall not apply
to a contract or other record to the extent it is governed by--
(1) a statute, regulation, or other rule of law governing the creation
and execution of wills, codicils, or testamentary trusts;
(2) a State statute, regulation, or other rule of law governing
adoption, divorce, or other matters of family law; or
(3) the Uniform Commercial Code, as in effect in any State, other than
sections 1-107 and 1-206 and Articles 2 and 2A. (b) ADDITIONAL EXCEPTIONS- The provisions of section 101 shall not apply
to--
(1) court orders or notices, or official court documents (including
briefs, pleadings, and other writings) required to be executed in connection
with court proceedings;
(A) the cancellation or termination of utility services (including
water, heat, and power);
(B) default, acceleration, repossession, foreclosure, or eviction, or
the right to cure, under a credit agreement secured by, or a rental
agreement for, a primary residence of an individual;
(C) the cancellation or termination of health insurance or benefits or
life insurance benefits (excluding annuities); or
(D) recall of a product, or material failure of a product, that risks
endangering health or safety; or
(3) any document required to accompany any transportation or handling of
hazardous materials, pesticides, or other toxic or dangerous
materials. (c) REVIEW OF EXCEPTIONS-
(1) EVALUATION REQUIRED- The Secretary of Commerce, acting through the
Assistant Secretary for Communications and Information, shall review the
operation of the exceptions in subsections (a) and (b) to evaluate, over a
period of 3 years, whether such exceptions continue to be necessary for the
protection of consumers. Within 3 years after the date of enactment of this
Act, the Assistant Secretary shall submit a report to the Congress on the
results of such evaluation.
(2) DETERMINATIONS- If a Federal regulatory agency, with respect to
matter within its jurisdiction, determines after notice and an opportunity
for public comment, and publishes a finding, that one or more such
exceptions are no longer necessary for the protection of consumers and
eliminating such exceptions will not increase the material risk of harm to
consumers, such agency may extend the application of section 101 to the
exceptions identified in such finding.
SEC. 104. APPLICABILITY TO FEDERAL AND STATE GOVERNMENTS.
(B) such regulation, order, or guidance does not add to the
requirements of such section; and
(C) such agency finds, in connection with the issuance of such
regulation, order, or guidance, that--
(i) there is a substantial justification for the regulation, order,
or guidance;
(ii) the methods selected to carry out that purpose--
(I) are substantially equivalent to the requirements imposed on
records that are not electronic records; and
(II) will not impose unreasonable costs on the acceptance and use
of electronic records; and
(iii) the methods selected to carry out that purpose do not require,
or accord greater legal status or effect to, the implementation or
application of a specific technology or technical specification for
performing the functions of creating, storing, generating, receiving,
communicating, or authenticating electronic records or electronic
signatures.
(3) PERFORMANCE STANDARDS-
(A) ACCURACY, RECORD INTEGRITY, ACCESSIBILITY- Notwithstanding
paragraph (2)(C)(iii), a Federal regulatory agency or State regulatory
agency may interpret section 101(d) to specify performance standards to
assure accuracy, record integrity, and accessibility of records that are
required to be retained. Such performance standards may be specified in a
manner that imposes a requirement in violation of paragraph (2)(C)(iii) if
the requirement (i) serves an important governmental objective; and (ii)
is substantially related to the achievement of that objective. Nothing in
this paragraph shall be construed to grant any Federal regulatory agency
or State regulatory agency authority to require use of a particular type
of software or hardware in order to comply with section 101(d).
(B) PAPER OR PRINTED FORM- Notwithstanding subsection (c)(1), a
Federal regulatory agency or State regulatory agency may interpret section
101(d) to require retention of a record in a tangible printed or paper
form if--
(i) there is a compelling governmental interest relating to law
enforcement or national security for imposing such requirement;
and
(ii) imposing such requirement is essential to attaining such
interest.
(4) EXCEPTIONS FOR ACTIONS BY GOVERNMENT AS MARKET PARTICIPANT-
Paragraph (2)(C)(iii) shall not apply to the statutes, regulations, or other
rules of law governing procurement by the Federal or any State government,
or any agency or instrumentality thereof. (c) ADDITIONAL LIMITATIONS-
(1) REIMPOSING PAPER PROHIBITED- Nothing in subsection (b) (other than
paragraph (3)(B) thereof) shall be construed to grant any Federal regulatory
agency or State regulatory agency authority to impose or reimpose any
requirement that a record be in a tangible printed or paper form.
(2) CONTINUING OBLIGATION UNDER GOVERNMENT PAPERWORK ELIMINATION ACT-
Nothing in subsection (a) or (b) relieves any Federal regulatory agency of
its obligations under the Government Paperwork Elimination Act (title XVII
of Public Law 105-277). (d) AUTHORITY TO EXEMPT FROM CONSENT PROVISION-
(1) IN GENERAL- A Federal regulatory agency may, with respect to matter
within its jurisdiction, by regulation or order issued after notice and an
opportunity for public comment, exempt without condition a specified
category or type of record from the requirements relating to consent in
section 101(c) if such exemption is necessary to eliminate a substantial
burden on electronic commerce and will not increase the material risk of
harm to consumers.
(2) PROSPECTUSES- Within 30 days after the date of enactment of this
Act, the Securities and Exchange Commission shall issue a regulation or
order pursuant to paragraph (1) exempting from section 101(c) any records
that are required to be provided in order to allow advertising, sales
literature, or other information concerning a security issued by an
investment company that is registered under the Investment Company Act of
1940, or concerning the issuer thereof, to be excluded from the definition
of a prospectus under section 2(a)(10)(A) of the Securities Act of
1933. (e) ELECTRONIC LETTERS OF AGENCY- The Federal Communications Commission
shall not hold any contract for telecommunications service or letter of agency
for a preferred carrier change, that otherwise complies with the Commission's
rules, to be legally ineffective, invalid, or unenforceable solely because an
electronic record or electronic signature was used in its formation or
authorization.
SEC. 105. STUDIES.
(a) DELIVERY- Within 12 months after the date of the enactment of this
Act, the Secretary of Commerce shall conduct an inquiry regarding the
effectiveness of the delivery of electronic records to consumers using
electronic mail as compared with delivery of written records via the United
States Postal Service and private express mail services. The Secretary shall
submit a report to the Congress regarding the results of such inquiry by the
conclusion of such 12-month period.
(b) STUDY OF ELECTRONIC CONSENT- Within 12 months after the date of the
enactment of this Act, the Secretary of Commerce and the Federal Trade
Commission shall submit a report to the Congress evaluating any benefits
provided to consumers by the procedure required by section 101(c)(1)(C)(ii);
any burdens imposed on electronic commerce by that provision; whether the
benefits outweigh the burdens; whether the absence of the procedure required
by section 101(c)(1)(C)(ii) would increase the incidence of fraud directed
against consumers; and suggesting any revisions to the provision deemed
appropriate by the Secretary and the Commission. In conducting this
evaluation, the Secretary and the Commission shall solicit comment from the
general public, consumer representatives, and electronic commerce
businesses.
SEC. 106. DEFINITIONS.
For purposes of this title:
(1) CONSUMER- The term `consumer' means an individual who obtains,
through a transaction, products or services which are used primarily for
personal, family, or household purposes, and also means the legal
representative of such an individual.
(2) ELECTRONIC- The term `electronic' means relating to technology
having electrical, digital, magnetic, wireless, optical, electromagnetic, or
similar capabilities.
(3) ELECTRONIC AGENT- The term `electronic agent' means a computer
program or an electronic or other automated means used independently to
initiate an action or respond to electronic records or performances in whole
or in part without review or action by an individual at the time of the
action or response.
(4) ELECTRONIC RECORD- The term `electronic record' means a contract or
other record created, generated, sent, communicated, received, or stored by
electronic means.
(5) ELECTRONIC SIGNATURE- The term `electronic signature' means an
electronic sound, symbol, or process, attached to or logically associated
with a contract or other record and executed or adopted by a person with the
intent to sign the record.
(6) FEDERAL REGULATORY AGENCY- The term `Federal regulatory agency'
means an agency, as that term is defined in section 552(f) of title 5,
United States Code.
(7) INFORMATION- The term `information' means data, text, images,
sounds, codes, computer programs, software, databases, or the like.
(8) PERSON- The term `person' means an individual, corporation, business
trust, estate, trust, partnership, limited liability company, association,
joint venture, governmental agency, public corporation, or any other legal
or commercial entity.
(9) RECORD- The term `record' means information that is inscribed on a
tangible medium or that is stored in an electronic or other medium and is
retrievable in perceivable form.
(10) REQUIREMENT- The term `requirement' includes a prohibition.
(11) SELF-REGULATORY ORGANIZATION- The term `self-regulatory
organization' means an organization or entity that is not a Federal
regulatory agency or a State, but that is under the supervision of a Federal
regulatory agency and is authorized under Federal law to adopt and
administer rules applicable to its members that are enforced by such
organization or entity, by a Federal regulatory agency, or by another
self-regulatory organization.
(12) STATE- The term `State' includes the District of Columbia and the
territories and possessions of the United States.
(13) TRANSACTION- The term `transaction' means an action or set of
actions relating to the conduct of business, consumer, or commercial affairs
between two or more persons, including any of the following types of
conduct--
(A) the sale, lease, exchange, licensing, or other disposition of (i)
personal property, including goods and intangibles, (ii) services, and
(iii) any combination thereof; and
(B) the sale, lease, exchange, or other disposition of any interest in
real property, or any combination thereof.
SEC. 107. EFFECTIVE DATE.
(a) IN GENERAL- Except as provided in subsection (b), this title shall be
effective on October 1, 2000.
(b) EXCEPTIONS-
(A) IN GENERAL- Subject to subparagraph (B), this title shall be
effective on March 1, 2001, with respect to a requirement that a record be
retained imposed by--
(i) a Federal statute, regulation, or other rule of law,
or
(ii) a State statute, regulation, or other rule of law administered
or promulgated by a State regulatory agency.
(B) DELAYED EFFECT FOR PENDING RULEMAKINGS- If on March 1, 2001, a
Federal regulatory agency or State regulatory agency has announced,
proposed, or initiated, but not completed, a rulemaking proceeding to
prescribe a regulation under section 104(b)(3) with respect to a
requirement described in subparagraph (A), this title shall be effective
on June 1, 2001, with respect to such requirement.
(2) CERTAIN GUARANTEED AND INSURED LOANS- With regard to any transaction
involving a loan guarantee or loan guarantee commitment (as those terms are
defined in section 502 of the Federal Credit Reform Act of 1990), or
involving a program listed in the Federal Credit Supplement, Budget of the
United States, FY 2001, this title applies only to such transactions entered
into, and to any loan or mortgage made, insured, or guaranteed by the United
States Government thereunder, on and after one year after the date of
enactment of this Act.
(3) STUDENT LOANS- With respect to any records that are provided or made
available to a consumer pursuant to an application for a loan, or a loan
made, pursuant to title IV of the Higher Education Act of 1965, section
101(c) of this Act shall not apply until the earlier of--
(A) such time as the Secretary of Education publishes revised
promissory notes under section 432(m) of the Higher Education Act of 1965;
or
(B) one year after the date of enactment of this Act.
TITLE II--TRANSFERABLE RECORDS
SEC. 201. TRANSFERABLE RECORDS.
(a) DEFINITIONS- For purposes of this section:
(1) TRANSFERABLE RECORD- The term `transferable record' means an
electronic record that--
(A) would be a note under Article 3 of the Uniform Commercial Code if
the electronic record were in writing;
(B) the issuer of the electronic record expressly has agreed is a
transferable record; and
(C) relates to a loan secured by real property.
A transferable record may be executed using an electronic
signature.
(2) OTHER DEFINITIONS- The terms `electronic record', `electronic
signature', and `person' have the same meanings provided in section 106 of
this Act. (b) CONTROL- A person has control of a transferable record if a system
employed for evidencing the transfer of interests in the transferable record
reliably establishes that person as the person to which the transferable
record was issued or transferred.
(c) CONDITIONS- A system satisfies subsection (b), and a person is deemed
to have control of a transferable record, if the transferable record is
created, stored, and assigned in such a manner that--
(1) a single authoritative copy of the transferable record exists which
is unique, identifiable, and, except as otherwise provided in paragraphs
(4), (5), and (6), unalterable;
(2) the authoritative copy identifies the person asserting control
as--
(A) the person to which the transferable record was issued;
or
(B) if the authoritative copy indicates that the transferable record
has been transferred, the person to which the transferable record was most
recently transferred;
(3) the authoritative copy is communicated to and maintained by the
person asserting control or its designated custodian;
(4) copies or revisions that add or change an identified assignee of the
authoritative copy can be made only with the consent of the person asserting
control;
(5) each copy of the authoritative copy and any copy of a copy is
readily identifiable as a copy that is not the authoritative copy; and
(6) any revision of the authoritative copy is readily identifiable as
authorized or unauthorized. (d) STATUS AS HOLDER- Except as otherwise agreed, a person having control
of a transferable record is the holder, as defined in section 1-201(20) of the
Uniform Commercial Code, of the transferable record and has the same rights
and defenses as a holder of an equivalent record or writing under the Uniform
Commercial Code, including, if the applicable statutory requirements under
section 3-302(a), 9-308, or revised section 9-330 of the Uniform Commercial
Code are satisfied, the rights and defenses of a holder in due course or a
purchaser, respectively. Delivery, possession, and endorsement are not
required to obtain or exercise any of the rights under this subsection.
(e) OBLIGOR RIGHTS- Except as otherwise agreed, an obligor under a
transferable record has the same rights and defenses as an equivalent obligor
under equivalent records or writings under the Uniform Commercial Code.
(f) PROOF OF CONTROL- If requested by a person against which enforcement
is sought, the person seeking to enforce the transferable record shall provide
reasonable proof that the person is in control of the transferable record.
Proof may include access to the authoritative copy of the transferable record
and related business records sufficient to review the terms of the
transferable record and to establish the identity of the person having control
of the transferable record.
(g) UCC REFERENCES- For purposes of this subsection, all references to the
Uniform Commercial Code are to the Uniform Commercial Code as in effect in the
jurisdiction the law of which governs the transferable record.
SEC. 202. EFFECTIVE DATE.
This title shall be effective 90 days after the date of enactment of this
Act.
TITLE III--PROMOTION OF INTERNATIONAL ELECTRONIC COMMERCE
SEC. 301. PRINCIPLES GOVERNING THE USE OF ELECTRONIC SIGNATURES IN
INTERNATIONAL TRANSACTIONS.
(a) PROMOTION OF ELECTRONIC SIGNATURES-
(1) REQUIRED ACTIONS- The Secretary of Commerce shall promote the
acceptance and use, on an international basis, of electronic signatures in
accordance with the principles specified in paragraph (2) and in a manner
consistent with section 101 of this Act. The Secretary of Commerce shall
take all actions necessary in a manner consistent with such principles to
eliminate or reduce, to the maximum extent possible, the impediments to
commerce in electronic signatures, for the purpose of facilitating the
development of interstate and foreign commerce.
(2) PRINCIPLES- The principles specified in this paragraph are the
following:
(A) Remove paper-based obstacles to electronic transactions by
adopting relevant principles from the Model Law on Electronic Commerce
adopted in 1996 by the United Nations Commission on International Trade
Law.
(B) Permit parties to a transaction to determine the appropriate
authentication technologies and implementation models for their
transactions, with assurance that those technologies and implementation
models will be recognized and enforced.
(C) Permit parties to a transaction to have the opportunity to prove
in court or other proceedings that their authentication approaches and
their transactions are valid.
(D) Take a nondiscriminatory approach to electronic signatures and
authentication methods from other jurisdictions.
(b) CONSULTATION- In conducting the activities required by this section,
the Secretary shall consult with users and providers of electronic signature
products and services and other interested persons.
(c) DEFINITIONS- As used in this section, the terms `electronic record'
and `electronic signature' have the same meanings provided in section 106 of
this Act.
TITLE IV--COMMISSION ON ONLINE CHILD PROTECTION
SEC. 401. AUTHORITY TO ACCEPT GIFTS.
Section 1405 of the Child Online Protection Act (47 U.S.C. 231 note) is
amended by inserting after subsection (g) the following new subsection:
`(h) GIFTS, BEQUESTS, AND DEVISES- The Commission may accept, use, and
dispose of gifts, bequests, or devises of services or property, both real
(including the use of office space) and personal, for the purpose of aiding or
facilitating the work of the Commission. Gifts or grants not used at the
termination of the Commission shall be returned to the donor or grantee.'.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
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