US electronic signature bill heads for vote
(UPDATE: adds Daley comment, industry quote, graphs 7-9)
Friday June 9, 4:38 pm Eastern Time
By Tim Dobbyn
WASHINGTON, June 9 (Reuters) - Compromise legislation giving electronic signatures and documents the same force in law as their paper counterparts will likely come to a vote in the House next Tuesday, House Commerce Committee Chairman Thomas Bliley said Friday.
House and Senate negotiators arrived at a single version of the bill late on Thursday after making changes to the timing of some provisions and assuring that consumer consent provisions would not prove too onerous for businesses.
``Electronic signatures and records will help grow the digital economy by giving American consumers greater confidence in their online business transactions,'' said Bliley, a Virginia Republican.
But paper is not dead yet. Some contracts and records are excluded from the bill's effect of giving equal standing to electronic forms.
Notices about the cancellation of power, water or gas will still have to come on paper to carry their full force. The same goes for court orders, eviction notices, cancellation of health or life insurance, product recalls and paperwork to accompany shipments of hazardous materials.
President Clinton has said he will sign the legislation.
WIDE BENEFITS PREDICTED
Commerce Secretary William Daley predicted the legislation would benefit every sector of the economy. ``This legislation provides businesses with the certainty they need to move more commerce on line,'' he said.
Michael Hogan, general counsel for DLJdirect, the online brokerage united of Donaldson, Lufkin & Jenrette Inc. (NYSE:DLJ - news), said the firm had opened accounts on line for years.
``But we've always had to mail paper behind that,'' Hogan said. ``People will now be able to enter into contractual relationships beyond the simple purchasing of goods.''
A major question mark over the bill's prospects for passage was removed Friday when Senate Banking Committee Chairman Phil Gramm said he would lend his support.
Gramm, a Texas Republican with a reputation for holding his ground, had been pressing for changes in the bill's consumer consent provisions.
To ensure consumers can access electronic records, the bill says there must be a reasonable demonstration that consumers can access the records for the consumer's consent to have effect.
Gramm shared the concern of some financial institutions that those provisions could be costly if interpreted too broadly and received assurances that regulators could waive overly burdensome requirements.
``Progress was made in addressing my final concerns,'' Gramm said in a statement. ``The availability of a regulatory waiver is an improvement over the original bill.''
If signed into law, the Electronic Signatures in Global and National Commerce Act would take effect Oct. 1, apart from electronic record keeping provisions.
A tussle over the date by which electronic record keeping would be regarded as an adequate substitute for paper records by government regulators was resolved as March 1, 2001.
biz.yahoo.com |
