[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2626 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2626

To amend certain consumer protection laws to facilitate the electronic 
             delivery of disclosures and other information.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 1999

 Mrs. Roukema (for herself, Mr. Lazio, and Mr. Inslee) introduced the 
  following bill; which was referred to the Committee on Banking and 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend certain consumer protection laws to facilitate the electronic 
             delivery of disclosures and other information.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Electronic Disclosures Delivery Act 
of 1999''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds as follows:
            (1) Dramatic growth in the use of the Internet is enabling 
        more consumers to access financial products and services on-
        line.
            (2) Electronic media also make it possible for consumer 
        disclosures and other information to be provided more 
        efficiently and in a more user-friendly fashion than in static, 
        paper formats.
            (3) To take full advantage of this new technology, however, 
        it is desirable to clarify the provisions of certain consumer 
        protection laws to facilitate delivery of disclosures and other 
        information electronically.
    (b) Purposes.--
            (1) In general.--The purpose of this Act is to provide a 
        procedure by which persons subject to Federal consumer 
        protections laws may satisfy requirements for provision of 
        disclosures, notices, and other information through electronic 
        communications with the informed consent of consumers.
            (2) Scope.--It is the purpose of this Act to address only 
        electronic delivery of information to and from consumers and 
        financial services providers and not to affect the substantive 
        rights and responsibilities of any person or the content of any 
        disclosure, including both the timing and format of disclosures 
        and information to be provided.

SEC. 3. ELECTRONIC COMMUNICATIONS MODERNIZATION.

    (a) Amendments to Truth in Lending Act.--
            (1) Definitions.--Section 103 of the Truth in Lending Act 
        (15 U.S.C. 1602) is amended by adding at the end the following 
        new subsection:
    ``(cc) Definitions Relating to Electronic Communication.--
            ``(1) Acknowledgment.--The term `acknowledgment' includes 
        an electronic acknowledgment.
            ``(2) Communication.--The term `communication' means any 
        provision of information pursuant to this title and includes 
        the delivery or provision of disclosures, booklets, notices, 
        copies, written or printed materials, documents, records, 
        statements, authorizations, and acknowledgments.
            ``(3) Electronic acknowledgment.--The term `electronic 
        acknowledgment' means an electronic identifying sound, symbol, 
        or process, attached to or logically associated with an 
        electronic communication and executed or adopted by a person 
        with the intent and effect of--
                    ``(A) establishing the assent or association of the 
                person to the electronic communication in the same 
manner and to the same extent that a physical signature establishes the 
assent or association of an identifiable person to a physical document; 
and
                    ``(B) establishing, or permitting the establishment 
                of, the form and content beyond a reasonable doubt as 
                of the time of acknowledgment of an electronic 
                communication to which the electronic acknowledgment is 
                attached.
            ``(4) Electronic communication.--The term `electronic 
        communication' means a communication created, stored, 
        generated, received, or transmitted by electronic means in a 
        format that allows visual text to be displayed.
            ``(5) Electronic.--The term `electronic' means of or 
        relating to technology having electrical, digital, magnetic, 
        optical, electromagnetic, or similar capabilities regardless of 
        medium.''.
            (2) Electronic communication.--The Truth in Lending Act (15 
        U.S.C. 1601 et seq.) is amended by inserting after section 103 
        the following new section:

``SEC. 103A. ELECTRONIC COMMUNICATIONS.

    ``(a) In General.--Any communication delivered pursuant to this 
title (other than chapter 5) may be delivered in the form of an 
electronic communication, and any acknowledgment which may be affixed 
to a communication pursuant to this title (other than chapter 5) may be 
affixed as an electronic acknowledgment to an electronic communication 
if the person who is sent such communication or who provides an 
acknowledgement--
            ``(1) is provided with--
                    ``(A) a description of the types of communications 
                to be provided electronically;
                    ``(B) an explanation of how to access and retain 
                such electronic communications which directs the 
                person's attention to consideration of the person's 
                ability to print or download such disclosures; and
                    ``(C) a notice of the period of time that the 
                communications will be available to such person in 
                electronic form; and
            ``(2) expressly consents by electronic means to the 
        electronic communication or the use of an electronic 
        acknowledgment.
    ``(b) Regulations.--The Board may--
            ``(1) from time to time and with respect to federally 
        related mortgage loans, in consultation with the Secretary of 
        Housing and Urban Development, prescribe regulations to clarify 
        the procedures applicable to the delivery of electronic 
        communications provided for in this section; and
            ``(2) without affecting or impairing the legal 
        effectiveness of the delivery of any electronic communication 
        provided in accordance with this section, prescribe procedures 
        which provide consumers with the option to request paper copies 
        of any such communications if the Board finds that such 
        procedures are necessary and appropriate to supplement 
        electronic communications.''.
    (b) Amendments to Equal Credit Opportunity Act.--
            (1) Definitions.--Section 702 of the Equal Credit 
        Opportunity Act (15 U.S.C. 1691a) is amended by adding at the 
        end the following new subsection:
    ``(g) Definitions Relating to Electronic Communications.--
            ``(1) Acknowledgment.--The term `acknowledgment' includes 
        an electronic acknowledgment.
            ``(2) Communication.--The term `communication' means any 
        provision of information pursuant to this title and includes 
        the delivery or provision of disclosures, booklets, notices, 
        copies, written or printed materials, documents, records, 
        statements, authorizations, and acknowledgments.
            ``(3) Electronic acknowledgment.--The term `electronic 
        acknowledgment' means an electronic identifying sound, symbol, 
        or process, attached to or logically associated with an 
        electronic communication and executed or adopted by a person 
        with the intent and effect of--
                    ``(A) establishing the assent or association of the 
                person to the electronic communication in the same 
                manner and to the same extent that a physical signature 
                establishes the assent or association of an 
                identifiable person to a physical document; and
                    ``(B) establishing, or permitting the establishment 
                of, the form and content beyond a reasonable doubt as 
                of the time of acknowledgment of an electronic 
                communication to which the electronic acknowledgment is 
                attached.
            ``(4) Electronic communication.--The term `electronic 
        communication' means a communication created, stored, 
        generated, received, or transmitted by electronic means in a 
        format that allows visual text to be displayed.
            ``(5) Electronic.--The term `electronic' means of or 
        relating to technology having electrical, digital, magnetic, 
        optical, electromagnetic, or similar capabilities regardless of 
        medium.''.
            (2) Electronic communication.--The Equal Credit Opportunity 
        Act (15 U.S.C. 191 et seq.) is amended by inserting after 
        section 702 the following new section:

``SEC. 702A. ELECTRONIC COMMUNICATIONS.

    ``(a) In General.--Any communication delivered pursuant to this 
title may be delivered in the form of an electronic communication, and 
any acknowledgment which may be affixed to a communication pursuant to 
this title may be affixed as an electronic acknowledgment to an 
electronic communication if the person who is sent such communication 
or who provides an acknowledgment--
            ``(1) is provided with--
                    ``(A) a description of the types of communications 
                to be provided electronically;
                    ``(B) an explanation of how to access and retain 
                such electronic communications which directs the 
                person's attention to consideration of the person's 
                ability to print or download such disclosures; and
                    ``(C) a notice of the period of time that the 
                communications will be available to such person in 
                electronic form; and
            ``(2) expressly consents by electronic means to the 
        electronic communication or the use of an electronic 
        acknowledgment.
    ``(b) Regulations.--The Board may--
            ``(1) from time to time prescribe regulations to clarify 
        the procedures applicable to the delivery of electronic 
        communications provided for in this section; and
            ``(2) without affecting or impairing the legal 
        effectiveness of the delivery of any electronic communication 
        provided in accordance with this section, prescribe procedures 
        which provide consumers with the option to request paper copies 
        of any such communications if the Board finds that such 
        procedures are necessary and appropriate to supplement 
        electronic communications.''.
    (c) Amendments to Fair Credit Reporting Act.--
            (1) Definitions.--Section 603 of the Fair Credit Reporting 
        Act (15 U.S.C. 1681a) is amended by adding at the end the 
        following new subsection:
    ``(q) Definitions Relating to Electronic Communication.--
            ``(1) Acknowledgment.--The term `acknowledgment' includes 
        an electronic acknowledgment.
            ``(2) Communication.--The term `communication' means any 
        provision of information pursuant to this title and includes 
        the delivery or provision of disclosures, booklets, notices, 
        copies, written or printed materials, documents, records, 
        statements, authorizations, and acknowledgments.
            ``(3) Electronic acknowledgment.--The term `electronic 
        acknowledgment' means an electronic identifying sound, symbol, 
        or process, attached to or logically associated with an 
        electronic communication and executed or adopted by a person 
        with the intent and effect of--
                    ``(A) establishing the assent or association of the 
                person to the electronic communication in the same 
                manner and to the same extent that a physical signature 
                establishes the assent or association of an 
                identifiable person to a physical document; and
                    ``(B) establishing, or permitting the establishment 
                of, the form and content beyond a reasonable doubt as 
                of the time of acknowledgment of an electronic 
                communication to which the electronic acknowledgment is 
                attached.
            ``(4) Electronic communication.--The term `electronic 
        communication' means a communication created, stored, 
        generated, received, or transmitted by electronic means in a 
        format that allows visual text to be displayed.
            ``(5) Electronic.--The term `electronic' means of or 
        relating to technology having electrical, digital, magnetic, 
        optical, electromagnetic, or similar capabilities regardless of 
        medium.''.
            (2) Electronic communications.--The Fair Credit Reporting 
        Act (15 U.S.C. 1681 et seq.) is amended by inserting after 
        section 603 the following new section:

``SEC. 603A. ELECTRONIC COMMUNICATIONS.

    ``Any communication delivered pursuant to this title may be 
delivered in the form of an electronic communication, and any 
acknowledgment which may be affixed to a communication pursuant to this 
title may be affixed as an electronic acknowledgment to an electronic 
communication if the person who is sent such communication or who 
provides an acknowledgment--
            ``(1) is provided with--
                    ``(A) a description of the types of communications 
                to be provided electronically;
                    ``(B) an explanation of how to access and retain 
                such electronic communications which directs the 
                person's attention to consideration of the person's 
                ability to print or download such disclosures; and
                    ``(C) a notice of the period of time that the 
                communications will be available to such person in 
                electronic form; and
            ``(2) expressly consents by electronic means to the 
        electronic communication or the use of an electronic 
        acknowledgment.''.
    (d) Amendments to Real Estate Settlement Procedures Act of 1974.--
            (1) Definitions.--Section 3 of the Real Estate Settlement 
        Procedures Act (12 U.S.C. 2602) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (7);
                    (B) by striking the period at the end of paragraph 
                (8) and inserting a semicolon; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(9) the term `acknowledgment' includes an electronic 
        acknowledgment;
            ``(10) the term `communication' means any provision of 
        information pursuant to this title and includes the delivery or 
        provision of disclosures, booklets, notices, copies, written or 
        printed materials, documents, records, statements, 
        authorizations, and acknowledgments;
            ``(11) the term `electronic acknowledgment' means an 
        electronic identifying sound, symbol, or process, attached to 
        or logically associated with an electronic communication and 
        executed or adopted by a person with the intent and effect of--
                    ``(A) establishing the assent or association of the 
                person to the electronic communication in the same 
                manner and to the same extent that a physical signature 
                establishes the assent or association of an 
                identifiable person to a physical document; and
                    ``(B) establishing, or permitting the establishment 
                of, the form and content beyond a reasonable doubt as 
                of the time of acknowledgment of an electronic 
                communication to which the electronic acknowledgment is 
                attached;
            ``(12) the term `electronic communication' means a 
        communication created, stored, generated, received, or 
        transmitted by electronic means in a format that allows visual 
        text to be displayed; and
            ``(13) the term `electronic' means of or relating to 
        technology having electrical, digital, magnetic, optical, 
        electromagnetic, or similar capabilities regardless of 
        medium.''.
            (2) Electronic communication.--The Real Estate Settlement 
        Procedures Act (12 U.S.C. 2601 et seq.) is amended by inserting 
        after section 3 the following new section:

``SEC. 3A. ELECTRONIC COMMUNICATIONS.

    ``(a) In General.--Any communication delivered pursuant to this Act 
may be delivered in the form of an electronic communication, and any 
acknowledgment which may be affixed to a communication pursuant to this 
Act may be affixed as an electronic acknowledgment to an electronic 
communication if the person who is sent such communication or who 
provides an acknowledgment--
            ``(1) is provided with--
                    ``(A) a description of the types of communications 
                to be provided electronically;
                    ``(B) an explanation of how to access and retain 
                such electronic communications which directs the 
                person's attention to consideration of the person's 
                ability to print or download such disclosures; and
                    ``(C) a notice of the period of time that the 
                communications will be available to such person in 
                electronic form; and
            ``(2) expressly consents by electronic means to the 
        electronic communication or the use of an electronic 
        acknowledgment.
    ``(b) Regulations.--The Secretary may--
            ``(1) from time to time and in consultation with the Board 
        of Governors of the Federal Reserve System, prescribe 
        regulations to clarify the procedures applicable to the 
        delivery of electronic communications provided for in this 
        section; and
            ``(2) without affecting or impairing the legal 
        effectiveness of the delivery of any electronic communication 
        provided in accordance with this section, prescribe procedures 
        which provide consumers with the option to request paper copies 
        of any such communications if the Secretary finds that such 
        procedures are necessary and appropriate to supplement 
electronic communications.''.
    (e) Amendments to Truth in Savings Act.--
            (1) Definitions.--Section 274 of the Truth in Savings Act 
        (12 U.S.C. 4313) is amended by adding at the end the following 
        new paragraphs:
            ``(9) Acknowledgment.--The term `acknowledgment' includes 
        an electronic acknowledgment.
            ``(10) Communication.--The term `communication' means any 
        provision of information pursuant to this title and includes 
        the delivery or provision of disclosures, booklets, notices, 
        copies, written or printed materials, documents, records, 
        statements, authorizations, and acknowledgments.
            ``(11) Electronic acknowledgment.--The term `electronic 
        acknowledgment' means an electronic identifying sound, symbol, 
        or process, attached to or logically associated with an 
        electronic communication and executed or adopted by a person 
        with the intent and effect of--
                    ``(A) establishing the assent or association of the 
                person to the electronic communication in the same 
                manner and to the same extent that a physical signature 
                establishes the assent or association of an 
                identifiable person to a physical document; and
                    ``(B) establishing, or permitting the establishment 
                of, the form and content beyond a reasonable doubt as 
                of the time of acknowledgment of an electronic 
                communication to which the electronic acknowledgment is 
                attached.
            ``(12) Electronic communication.--The term `electronic 
        communication' means a communication created, stored, 
        generated, received, or transmitted by electronic means in a 
        format that allows visual text to be displayed.
            ``(13) Electronic.--The term `electronic' means of or 
        relating to technology having electrical, digital, magnetic, 
        optical, electromagnetic, or similar capabilities regardless of 
        medium.''.
            (2) Electronic communication.--The Truth in Savings Act (12 
        U.S.C. 4301 et seq.) is amended by inserting after section 274 
        the following new section:

``SEC. 275. ELECTRONIC COMMUNICATIONS.

    ``(a) In General.--Any communication delivered pursuant to this 
title may be delivered in the form of an electronic communication, and 
any acknowledgment which may be affixed to a communication pursuant to 
this title may be affixed as an electronic acknowledgment to an 
electronic communication if the person who is sent such communication 
or who provides an acknowledgment--
            ``(1) is provided with--
                    ``(A) a description of the types of communications 
                to be provided electronically;
                    ``(B) an explanation of how to access and retain 
                such electronic communications which directs the 
                person's attention to consideration of the person's 
                ability to print or download such disclosures; and
                    ``(C) a notice of the period of time that the 
                communications will be available to such person in 
                electronic form; and
            ``(2) expressly consents by electronic means to the 
        electronic communication or the use of an electronic 
        acknowledgment.
    ``(b) Regulations.--The Board may--
            ``(1) from time to time prescribe regulations to clarify 
        the procedures applicable to the delivery of electronic 
        communications provided for in this section; and
            ``(2) without affecting or impairing the legal 
        effectiveness of the delivery of any electronic communication 
        provided in accordance with this section, prescribe procedures 
        which provide consumers with the option to request paper copies 
        of any such communications if the Board finds that such 
        procedures are necessary and appropriate to supplement 
        electronic communications.''.
    (f) Amendments Relating to Consumer Leasing.--
            (1) Definitions.--Section 181 of the Truth in Lending Act 
        (15 U.S.C. 1667) is amended by adding at the end the following 
        new paragraphs:
            ``(6) Acknowledgment.--The term `acknowledgment' includes 
        an electronic acknowledgment.
            ``(7) Communication.--The term `communication' means any 
        provision of information pursuant to this title and includes 
        the delivery or provision of disclosures, booklets, notices, 
        copies, written or printed materials, documents, records, 
        statements, authorizations, and acknowledgments.
            ``(8) Electronic acknowledgment.--The term `electronic 
        acknowledgment' means an electronic identifying sound, symbol, 
        or process, attached to or logically associated with an 
        electronic communication and executed or adopted by a person 
        with the intent and effect of--
                    ``(A) establishing the assent or association of the 
                person to the electronic communication in the same 
                manner and to the same extent that a physical signature 
                establishes the assent or association of an 
                identifiable person to a physical document; and
                    ``(B) establishing, or permitting the establishment 
                of, the form and content beyond a reasonable doubt as 
                of the time of acknowledgment of an electronic 
                communication to which the electronic acknowledgment is 
                attached.
            ``(9) Electronic communication.--The term `electronic 
        communication' means a communication created, stored, 
        generated, received, or transmitted by electronic means in a 
        format that allows visual text to be displayed.
            ``(10) Electronic.--The term `electronic' means of or 
        relating to technology having electrical, digital, magnetic, 
        optical, electromagnetic, or similar capabilities regardless of 
        medium.''.
            (2) Electronic communication.--Chapter 5 of the Truth in 
        Lending Act (15 U.S.C. 1667 et seq.) is amended by inserting 
        after section 181 the following new section:

``SEC. 181A. ELECTRONIC COMMUNICATIONS.

    ``(a) In General.--Any communication delivered pursuant to this 
chapter may be delivered in the form of an electronic communication, 
and any acknowledgment which may be affixed to a communication pursuant 
to this chapter may be affixed as an electronic acknowledgment to an 
electronic communication if the person who is sent such communication 
or who provides an acknowledgment--
            ``(1) is provided with--
                    ``(A) a description of the types of communications 
                to be provided electronically;
                    ``(B) an explanation of how to access and retain 
                such electronic communications which directs the 
                person's attention to consideration of the person's 
                ability to print or download such disclosures; and
                    ``(C) a notice of the period of time that the 
                communications will be available to such person in 
                electronic form; and
            ``(2) expressly consents by electronic means to the 
        electronic communication or the use of an electronic 
        acknowledgment.
    ``(b) Regulations.--The Board may--
            ``(1) from time to time prescribe regulations to clarify 
        the procedures applicable to the delivery of electronic 
        communications provided for in this section; and
            ``(2) without affecting or impairing the legal 
        effectiveness of the delivery of any electronic communication 
        provided in accordance with this section, prescribe procedures 
        which provide consumers with the option to request paper copies 
        of any such communications if the Board finds that such 
        procedures are necessary and appropriate to supplement 
        electronic communications.''.
                                 <all>