[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3220 Introduced in House (IH)]
106th CONGRESS
1st Session
H. R. 3220
To regulate interstate commerce by electronic means by permitting and
encouraging the continued expansion of electronic commerce through the
operation of free market forces, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 4, 1999
Mr. Gephardt (for himself, Mr. Dingell, and Mr. Conyers) introduced the
following bill; which was referred to the Committee on Commerce, and in
addition to the Committee on Government Reform, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To regulate interstate commerce by electronic means by permitting and
encouraging the continued expansion of electronic commerce through the
operation of free market forces, and for other purposes.
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 ``Millennium Digital Commerce Act''.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) The growth of electronic commerce and electronic
government transactions represent a powerful force for economic
growth, consumer choice, improved civic participation and
wealth creation.
(2) The promotion of growth in private sector electronic
commerce through Federal legislation is in the national
interest because that market is globally important to the
United States.
(3) A consistent legal foundation, across multiple
jurisdictions, for electronic commerce will promote the growth
of such transactions, and that such a foundation should be
based upon a simple, technology neutral, nonregulatory, and
market-based approach.
(4) The Nation and the world stand at the beginning of a
large scale transition to an information society which will
require innovative legal and policy approaches, and therefore,
States can serve the national interest by continuing their
proven role as laboratories of innovation for quickly evolving
areas of public policy, provided that States also adopt a
consistent, reasonable national baseline to eliminate obsolete
barriers to electronic commerce such as undue paper and pen
requirements, and further, that any such innovation should not
unduly burden inter-jurisdictional commerce.
(5) To the extent State laws or regulations do not provide
a consistent, reasonable national baseline or in fact create an
undue burden to interstate commerce in the important burgeoning
area of electronic commerce, the national interest is best
served by Federal preemption to the extent necessary to provide
such consistent, reasonable national baseline or eliminate said
burden, but that absent such lack of a consistent, reasonable
national baseline or such undue burdens, the best legal system
for electronic commerce will result from continuing
experimentation by individual jurisdictions.
(6) With due regard to the fundamental need for a
consistent national baseline, each jurisdiction that enacts
such laws should have the right to determine the need for any
exceptions to protect consumers and maintain consistency with
existing related bodies of law within a particular
jurisdiction.
(7) Industry has developed several electronic signature
technologies for use in electronic transactions, and the public
policies of the United States should serve to promote a dynamic
marketplace within which these technologies can compete.
Consistent with this Act, States should permit the use and
development of any authentication technologies that are
appropriate as practicable as between private parties and in
use with State agencies.
SEC. 3. PURPOSES.
The purposes of this Act are--
(1) to permit and encourage the continued expansion of
electronic commerce through the operation of free market forces
rather than proscriptive governmental mandates and regulations;
(2) to promote public confidence in the validity, integrity
and reliability of electronic commerce and online government
under Federal law;
(3) to facilitate and promote electronic commerce by
clarifying the legal status of electronic records and
electronic signatures in the context of contract formation;
(4) to facilitate the ability of private parties engaged in
interstate transactions to agree among themselves on the
appropriate electronic signature technologies for their
transactions; and
(5) to promote the development of a consistent national
legal infrastructure necessary to support of electronic
commerce at the Federal and State levels within areas of
jurisdiction.
SEC. 4. DEFINITIONS.
In this Act:
(1) Electronic.--The term ``electronic'' means relating to
technology having electrical, digital, magnetic, wireless,
optical, electromagnetic, or similar capabilities.
(2) Electronic agent.--The term ``electronic agent'' means
a computer program or an electronic or other automated means
used to initiate an action or respond to electronic records or
performances in whole or in part without review by an
individual at the time of the action or response.
(3) Electronic record.--The term ``electronic record''
means a record created, generated, sent, communicated,
received, or stored by electronic means.
(4) Electronic signature.--The term ``electronic
signature'' means an electronic sound, symbol, or process
attached to or logically associated with a record and executed
or adopted by a person with the intent to sign the record.
(5) Governmental agency.--The term ``governmental agency''
means an executive, legislative, or judicial agency,
department, board, commission, authority, or institution of the
Federal Government or of a State or of any county,
municipality, or other political subdivision of a State.
(6) Record.--The term ``record'' means information that is
inscribed on a tangible medium or that is stored in an
electronic or other medium and is retrievable in perceivable
form.
(7) Transaction.--The term ``transaction'' means an action
or set of actions relating to the conduct of commerce, between
2 or more persons, neither of which is the United States
Government, a State, or an agency, department, board,
commission, authority, or institution of the United States
Government or of a State.
(8) Uniform electronic transactions act.--The term
``Uniform Electronic Transactions Act'' means the Uniform
Electronic Transactions Act as provided to State legislatures
by the National Conference of Commissioners on Uniform State
Law in the form or any substantially similar variation.
SEC. 5. INTERSTATE CONTRACT CERTAINTY.
(a) In General.--In any transaction affecting interstate commerce,
a contract may not be denied legal effect or enforceability solely
because an electronic signature or electronic record was used in its
formation.
(b) Methods.--Parties to a transaction are permitted to determine
the appropriate electronic signature technologies for their
transaction, and the means of implementing such technologies.
(c) Presentation of Contracts.--Notwithstanding subsection (a), if
a law requires that a contract be in writing, the legal effect, or
enforceability of an electronic record of such contract shall be denied
under such law, unless it is delivered to all parties in a form that--
(1) can be retained by all parties for later reference; and
(2) can be used to prove the terms of the agreement.
(d) Specific Exclusions.--The provisions of this section shall not
apply to a statute, regulation, or other rule of law governing any of
the following:
(1) The Uniform Commercial Code, as in effect in a State,
other than section 1-107 and 1-206, article 2, and article 2A.
(2) Premarital agreements, marriage, adoption, divorce or
other matters of family law.
(3) Documents of title which are filed of record with a
governmental unit until such time that a State or subdivision
thereof chooses to accept filings electronically.
(4) Residential landlord-tenant relationships.
(5) The Uniform Health-Care Decisions Act as in effect in a
State.
(e) Electronic Agents.--A contract relating to a commercial
transaction affecting interstate commerce may not be denied legal
effect solely because its formation involved--
(1) the interaction of electronic agents of the parties; or
(2) the interaction of an electronic agent of a party and
an individual who acts on that individual's own behalf or as an
agent, for another person.
(f) Insurance.--It is the specific intent of the Congress that this
section apply to the business of insurance.
(g) Application in UETA States.--This section does not apply in any
State in which the Uniform Electronic Transactions Act is in effect.
SEC. 6. PRINCIPLES GOVERNING THE USE OF ELECTRONIC SIGNATURES IN
INTERNATIONAL TRANSACTIONS.
To the extent practicable, the Federal Government shall observe the
following principles in an international context to enable commercial
electronic transaction:
(1) Remove paper-based obstacles to electronic transactions
by adopting relevant principles from the Model Law on
Electronic Commerce adopted in 1996 by the United Nations
Commission on International Trade Law (UNCITRAL).
(2) Permit parties to a transaction to determine the
appropriate authentication technologies and implementation
models for their transactions, with assurance that those
technologies and implementation models will be recognized and
enforced.
(3) Permit parties to a transaction to have the opportunity
to prove in court or other proceedings that their
authentication approaches and their transactions are valid.
(4) Take a nondiscriminatory approach to electronic
signatures and authentication methods from other jurisdictions.
SEC. 7. STUDY OF LEGAL AND REGULATORY BARRIERS TO ELECTRONIC COMMERCE.
(a) Barriers.--Each Federal agency shall, not later than 6 months
after the date of enactment of this Act, provide a report to the
Director of the Office of Management and Budget and the Secretary of
Commerce identifying any provision of law administered by such agency,
or any regulations issued by such agency and in effect on the date of
enactment of this Act, that may impose a barrier to electronic
transactions, or otherwise to the conduct of commerce online or be
electronic means. Such barriers include, but are not limited to,
barriers imposed by a law or regulation directly or indirectly
requiring that signatures, or records of transactions, be accomplished
or retained in other than electronic form. In its report, each agency
shall identify the barriers among those identified whose removal would
require legislative action, and shall indicate agency plans to
undertake regulatory action to remove such barriers among those
identified as are caused by regulations issued by the agency.
(b) Report to Congress.--The Secretary of Commerce, in consultation
with the Director of the Office of Management and Budget, shall, within
18 months after the date of enactment of this Act, and after the
consultation required by subsection (c) of this section, report to the
Congress concerning--
(1) legislation needed to remove barriers to electronic
transactions or otherwise to the conduct of commerce online or
by electronic means; and
(2) actions being taken by the Executive Branch and
individual Federal agencies to remove such barriers as are
caused by agency regulations or policies.
(c) Consultation.--In preparing the report required by this
section, the Secretary of Commerce shall consult with the General
Services Administration, the National Archives and Records
Administration, and the Attorney General concerning matters involving
the authenticity of records, their storage and retention, and their
usability for law enforcement purposes.
(d) Include Findings If No Recommendations.--If the report required
by this section omits recommendations for actions needed to fully
remove identified barriers to electronic transactions or to online or
electronic commerce, it shall include a finding or findings, including
substantial reasons therefore, that such removal is impracticable or
would be inconsistent with the implementation or enforcement of
applicable laws.
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