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States Take the Lead.
It was one of several studies NGA released that address the top issues facing state governments. Electronic signatures are designed to authenticate the identity of a party involved in an electronic transaction, just as a handwritten signature serves a paper contract. Most states have passed or amended laws or regulations to make sure such signatures are legally binding. Nine states require the use of digital-signature technology, which is generally viewed as the most secure method of conducting and protecting digital transactions. These states either have not yet fashioned legislation or they do not feel it is necessary, Whitter said.