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August 17, 1999
TO: BOARD OF GOVERNORS No. 53-99
FEDERAL LEGISLATION MEMBERS No. 22-99
PRIMARY CONTACTS - MEMBER COMPLEX No. 78-99
PUBLIC INFORMATION COMMITTEE No. 36-99
RE: HOUSE COMMERCE COMMITTEE REPORTS ELECTRONIC SIGNATURES BILL
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On August 5, the House Commerce Committee reported H.R. 1714, the “Electronic Signatures
in Global and National (E-SIGN) Commerce Act.” The bill provides for the acceptance of electronic
signatures in interstate commerce by according electronic signatures the same legal effect and validity as
physical signatures for contracts. The bill also directs the Secretary of Commerce to promote the
principles of this legislation internationally and provides for the acceptance of electronic signatures and
records by the securities industries.
On the Senate side, a similar bill, S. 761, the “Millennium Digital Commerce Act” was reported
by the Senate Commerce Committee in June. S. 761 sets forth a national standard governing the use of
electronic signatures in interstate commerce. Both the full House and Senate are expected to vote on
their respective bills when they return from recess in September.
These bills are designed to serve as a stopgap measure until states adopt the standards in the
Uniform Electronic Transactions Act (UETA), which will establish uniformity for the interstate use of
electronic signatures.
There are concerns about the full scope of coverage of these acts; however, it is expected that
these issues will be resolved before final legislation is sent to the president.
We will keep you informed of further developments.
Matthew P. Fink
President