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Electronic Signatures Bill Stalls in Congress

Strategic Insights

— 1 min read

Tensions have risen between House and Senate Democrats and Republicans over a proposal to establish a federal precedent for electronic signatures and record-keeping. Despite efforts to compromise, the two sides remain at an impasse, with Democrats criticizing the GOP's handling of the process and Republicans defending their draft report. The House-Senate conference committee has met for the first time, but progress has been slow, with each side attempting to resolve differences on consumer protections and states' rights issues.

Key Takeaways:

  • The House-Senate conference committee has met for the first time to develop a unified electronic signatures bill, but progress has been slow due to disagreements over consumer protections and states' rights issues.
  • Democrats have criticized the GOP's draft report, which allows many documents to be made available online only, rather than on paper, and claim that it could have a deleterious impact on the non-wired masses.
  • Republicans have defended their draft report, arguing that it serves as a "uniform standard of legal authority" until all 50 states pass the Uniform Electronic Transactions Act (UETA).
  • Democrats have proposed several changes to the bill, including ensuring that consumers can receive access to electronic notices and disclosures, and providing consumer protections against "unfair" use of those notices.
  • The committee is expected to meet again at an undetermined date, but House Commerce Committee Chairman Thomas Bliley, R-Va., is confident that a vote could be held before Memorial Day.
  • Several lobby groups, including the American Electronics Association, have expressed support for the legislation and called on lawmakers to keep up their efforts.

Statistics:

  • The Uniform Electronic Transactions Act (UETA) has been passed by 47 states, leaving three states to still enact the law.
  • The Electronic Signatures in Global and National E-Commerce (E-SIGN) Act has been pending in Congress since 1998.
  • Citing data from the United States Census Bureau, at least 30 million Americans do not have access to the internet.

Sources:

  • Reported by Newsbytes.com, http://www.newsbytes.com (May 18, 2000).
  • Senator Spencer Abraham's statement, Newsbytes.com, May 18, 2000.
  • House Commerce Committee Ranking Democrat John Dingell's statement, Newsbytes.com, May 18, 2000.
  • Senator Ron Wyden's statement, Newsbytes.com, May 18, 2000.

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