I
106TH CONGRESS
1ST SESSION
H. R. 1714
To facilitate the use of electronic records and signatures in interstate or
foreign commerce.
IN THE HOUSE OF REPRESENTATIVES
MAY 6, 1999
Mr. BLILEY (for himself, Mr. DAVIS of Virginia, Mr. TAUZIN, Mr. OXLEY, Mr.
TOWNS, and Mr. FOSSELLA) introduced the following bill; which was re-
ferred to the Committee on Commerce
A BILL
To facilitate the use of electronic records and signatures
in interstate or foreign commerce.
Be it enacted by the Senate and House of Representa-
tives 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—VALIDITY 
OF 
ELEC-
TRONIC RECORDS AND SIG-
NATURES FOR COMMERCE
SEC. 101. GENERAL RULE OF VALIDITY.
(a) GENERAL RULE.—With respect to any contract
or agreement entered into in or affecting interstate or for-
eign commerce—
(1) no statute, regulation, or other rule of law
shall deny the legal effect of such contract or agree-
ment on the ground that the instrument is not in
writing if the instrument is an electronic record; and
(2) no statute, regulation, or other rule of law
shall deny the legal effect of such contract or agree-
ment on the ground that the contract or agreement
is not signed or is not affirmed by a signature if the
contract or agreement is signed or affirmed by an
electronic signature.
(b) AUTONOMY OF PARTIES IN COMMERCE.—With
respect to any contract or agreement entered into in or
affecting interstate or foreign commerce, the parties to
such contract or agreement may establish reasonable re-
quirements regarding the types of electronic records and
electronic signatures acceptable to such parties.
SEC. 102. AUTHORITY TO ALTER OR SUPERSEDE GENERAL
RULE.
(a) IN GENERAL.—Except as provided in subsection
(b), a Federal or State statute, regulation, or other rule
of law enacted or adopted after the date of enactment of
this Act may modify, limit, or supersede the provisions of
section 101 if—
(1) such statute, regulation, or rule makes spe-
cific reference to the provisions of section 101;
(2) specifies the alternative procedures or re-
quirements for the use of electronic records or elec-
tronic signatures to establish the legal validity of
contracts or agreements; and
(3) in the case of a State statute, regulation, or
other rule of law, is enacted or adopted within 2
years after the date of enactment of this Act.
(b) EFFECT ON OTHER LAWS.—A State statute, reg-
ulation, or other rule of law that modifies, limits, or super-
sedes section 101 shall not be effective to the extent that
such statute, regulation, or rule—
(1) discriminates in favor of or against a spe-
cific technology, method, or technique of creating,
storing, generating, receiving, communicating, or au-
thenticating electronic records or electronic signa-
tures;
(2) discriminates in favor of or against a spe-
cific type or size of entity engaged in the business
of facilitating the use of electronic records or elec-
tronic signatures;
(3) is not based on specific and publicly avail-
able criteria; or
(4) is otherwise inconsistent with the provisions
of section 101.
(c) ACTIONS TO ENJOIN.—Whenever it shall appear
to the Secretary of Commerce that a State has enacted
or adopted a statute, regulation, or other law that is pro-
hibited by subsection (b), the Secretary may bring an ac-
tion to enjoin the enforcement of such statute, regulation,
or rule, and upon a proper showing a permanent or tem-
porary injunction or restraining order shall be granted
without bond.
SEC. 103. SPECIFIC EXCLUSIONS.
The provisions of section 101 shall not apply to—
(1) a statute, regulation, or other rule of law
governing the creation and execution of wills, codi-
cils, or testamentary trusts; or
(2) a statute, regulation, or other rule of law
governing adoption, divorce, or other matters of
family law.
SEC. 104. DEFINITIONS.
For purposes of this title:
(1) ELECTRONIC
RECORD.—The term ‘‘elec-
tronic record’’ means a writing, document, or other
record created, stored, generated, received, or com-
municated by electronic means.
(2) ELECTRONIC SIGNATURE.—The term ‘‘elec-
tronic signature’’ means a signature in electronic
form, attached to or logically associated with an
electronic record, that—
(A) is intended by the parties to signify
agreement to a contract or agreement;
(B) is capable of verifying the identity of
the person using the signature; and
(C) is linked to the electronic record in a
manner that prevents alteration of the record
after signature.
(3) 
ELECTRONIC.—The 
term 
‘‘electronic’’
means of or relating to technology having electrical,
digital, magnetic, optical, electromagnetic, or similar
capabilities regardless of medium.
TITLE 
II—DEVELOPMENT 
AND
ADOPTION OF ELECTRONIC
SIGNATURE PRODUCTS AND
SERVICES
SEC. 201. TREATMENT OF ELECTRONIC SIGNATURES IN
INTERSTATE AND FOREIGN COMMERCE.
(a) INQUIRY REGARDING IMPEDIMENTS
TO COM-
MERCE.—
(1) INQUIRIES
REQUIRED.—Within 90 days
after the date of the enactment of this Act, and an-
nually thereafter, the Secretary of Commerce, acting
through the Assistant Secretary for Communications
and Information, shall complete an inquiry to—
(A) identify any domestic and foreign im-
pediments to commerce in electronic signature
products and services and the manners in which
and extent to which such impediments inhibit
the development of interstate and foreign com-
merce;
(B) identify constraints imposed by foreign
nations or international organizations that con-
stitute barriers to providers of electronic signa-
ture products or services; and
(C) identify the degree to which other na-
tions and international organizations are com-
plying with the principles in subsection (b)(2).
(2) SUBMISSION.—The Secretary shall submit a
report to the Congress regarding the results of each
such inquiry within 90 days after the conclusion of
such inquiry.
(b) PROMOTION OF ELECTRONIC SIGNATURES.—
(1) REQUIRED
ACTIONS.—The Secretary of
Commerce, acting through the Assistant Secretary
for Communications and Information, shall promote
the acceptance and use, on an international basis, of
electronic signatures in accordance with the prin-
ciples specified in paragraph (2) and in a manner
consistent with section 101 of this Act. The Sec-
retary of Commerce shall take all actions necessary
in a manner consistent with such principles to elimi-
nate or reduce, to the maximum extent possible, the
impediments to commerce in electronic signatures,
including those identified in the inquiries under sub-
section (a) for the purpose of facilitating the devel-
opment of interstate and foreign commerce.
(2) PRINCIPLES.—The principles specified in
this paragraph are the following:
(A) Free markets and self-regulation, rath-
er than government standard-setting or rules,
should govern the development and use of elec-
tronic records and electronic signatures.
(B) 
Neutrality 
and 
nondiscrimination
should be observed among providers of and
technologies for electronic records and elec-
tronic signatures.
(C) Parties to a transaction should be per-
mitted to establish reasonable requirements re-
garding the types of electronic records and elec-
tronic signatures acceptable to such parties.
(D) Electronic records and electronic sig-
natures in a form acceptable to the parties
should not be denied legal validity on the
ground that they are not in writing.
(E) De jure or de facto imposition of
standards on private industry through foreign
adoption of regulations or policies with respect
to electronic records and electronic signatures
should be avoided.
(c) FOLLOWUP STUDY.—Within 3 years after the
date of enactment of this Act, the Secretary of Commerce,
acting through the Assistant Secretary for Communica-
tions and Information, shall conduct an inquiry regarding
any State statutes, regulations, or other rules of law en-
acted or adopted after such date of enactment pursuant
to section 102(a), and the extent to which such statutes,
regulations, and rules comply with section 102(b). The
Secretary shall submit a report to the Congress regarding
the results of such inquiry by the conclusion of such 3-
year period and such report shall identify any actions
taken by the Secretary pursuant to section 102(c) and
subsection (b) of this section.
(d) CONSULTATION.—In conducting the activities re-
quired by this section, the Secretary shall consult with
users and providers of electronic signature products and
services and other interested persons.
TITLE III—USE OF ELECTRONIC
RECORDS AND SIGNATURES
UNDER FEDERAL SECURITIES
LAW
(a) AMENDMENT.—Section 3 of the Securities Ex-
change Act of 1934 (15 U.S.C. 78c) is amended by adding
at the end the following:
‘‘(h) REQUIREMENTS RELATING TO WRITTEN DOCU-
MENTS AND SIGNATURES.—
‘‘(1) USE OF ELECTRONIC RECORDS AND SIG-
NATURES.—Notwithstanding any State statute, reg-
ulation, or rule of law, whenever in the securities
laws, or in the rules or regulations thereunder (in-
cluding the rules of any self-regulatory organiza-
tion)—
‘‘(A) a contract, agreement, or record (as
defined in subsection (a)(37)) is required to be
in writing, or is required to be authenticated by
means of an instrument in writing, the legal ef-
fect of such contract, agreement, or record shall
not be denied on the ground that the instru-
ment is not in writing if the instrument is an
electronic record; and
‘‘(B) a contract, agreement, or record is
required to be signed, the legal effect of such
contract, agreement, or record shall not be de-
nied on the ground that contract, agreement, or
record is not signed or is not affirmed by a sig-
nature if the contract, agreement, or record is
signed or affirmed by an electronic signature.
‘‘(2) AUTHORITY
OF
COMMISSION.—Notwith-
standing any State statute, regulation, or rule of
law, the Commission may, consistent with the public
interest and the protection of investors, prescribe
regulations to carry out this subsection, but such
regulations shall not—
‘‘(A) discriminate in favor of or against a
specific technology, method, or technique of cre-
ating, storing, generating, receiving, commu-
nicating, or authenticating electronic records or
electronic signatures; or
‘‘(B) discriminate in favor of or against a
specific type or size of entity engaged in the
business of facilitating the use of electronic
records or electronic signatures.
‘‘(3) 
DEFINITIONS.—The 
terms 
‘electronic
record’ and ‘electronic signature’ have the meanings
provided such terms by section 104 of the Electronic
Signatures In Global and National Commerce Act.’’.
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