[Congressional Record (Bound Edition), Volume 145 (1999), Part 5]
[Senate]
[Pages 6230-6231]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  THE MILLENNIUM DIGITAL COMMERCE ACT

  Mr. LOTT. Mr. President, I want to recognize the efforts of Senator 
Abraham who authored and spearheaded the effort to pass the Government 
Paperwork Elimination Act during the 105th Congress.
  This good government measure, which the President signed into law 
last year, requires federal agencies to automate their forms and allows 
computer users to complete, electronically sign, and submit government 
forms online.
  Aside from saving thousands of square feet of storage space, this 
landmark legislation will significantly reduce the amount of time it 
takes Americans to complete government paperwork. The millions of hours 
freed up translates into billions of dollars saved over time. This 
legislation, which was supported by the Administration, will also help 
the federal government transition to a paperless document management 
system. One that allows agencies to collect and maintain forms and 
other records faster, easier, and cheaper.
  Mr. President, Senator Abraham, my friend and colleague, has once 
again demonstrated his leadership on electronic commerce issues by 
recently introducing the Millennium Digital Commerce Act. This 
bipartisan measure, which I cosponsored, is a direct outgrowth of and a 
natural extension to the Government Paperwork Elimination Act. It 
provides a national framework for online business to business 
transactions. This important interstate commerce measure provides legal 
standing for electronic signatures on contracts and other business 
transactions without preempting state law on intrastate commerce.
  Electronic signatures are the equivalent of an online ``royal seal.'' 
Electronic signatures are highly controlled and are far more secure 
than manual signatures. As my colleagues are aware, it is not difficult 
to mimic someone's handwritten ``John Hancock.'' An electronic 
signature, however, is verifiable and it becomes invalid if any of the 
data in the electronic document is altered or eliminated. This 
revolutionary communication tool can also time and date stamp someone's 
unique electronic signature. It is an emerging technology that will 
serve as a springboard for electronic commerce.
  Over the last few years, states have recognized the importance of 
authentication technology on trade and have already adopted rules 
governing its use. However, of the more than forty states that now have 
laws on the books, none has adopted the same approach. Congress should 
not allow an electronic signature hodgepodge to thwart the exponential 
growth occurring in electronic commerce.

[[Page 6231]]

  In our fast-paced global and highly technical environment, where time 
is money, companies transacting business across state lines need 
assurance that electronically signed documents are fully and legally 
executable. Senator Abraham's Millennium Digital Commerce Act will 
ensure that businesses located in different states are held to their 
agreements and obligations even if their respective states have 
different rules and approaches concerning electronically signed 
documents.
  This much needed and timely legislation is a necessary precursor to 
state-by-state adoption of the Uniform Electronic Transactions Act 
(UETA). Once UETA is finalized, its enactment by all fifty states is 
not expected to occur for several years.
  The Millennium Digital Commerce Act is an important interim step 
towards eventual national uniformity. It merely establishes the legal 
certainty of electronic signatures when used for interstate business 
transactions. It strikes a necessary balance between a state's 
individual interests and the need for reciprocity among and between 
states. It fosters the expansion of trade on a state-wide, national, 
and international basis while promoting continued innovation.
  The Millennium Digital Commerce Act is technology neutral and allows 
businesses to determine the methods they want to utilize for executing 
an online transaction. This legislation also establishes guiding 
principles for the use of electronic signatures for international 
transactions. A framework based on open, non-discriminatory standards. 
Lastly, Senator Abraham's bill requires federal agencies to identify 
rules or regulations that impede electronic commerce and 
recommendations for improvements.
  Mr. President, the United States cannot lag behind our industrial 
trading partners. Already, the United Kingdom has called for the legal 
recognition of electronic signatures.
  I look forward to working with Senator Abraham and Chairman McCain as 
the Commerce Committee gives prompt consideration to this important 
pro-technology, pro-electronic commerce legislation.
  The Millennium Digital Commerce Act will help move our nation's 
economy forward into the 21st Century. I hope the rest of my colleagues 
will support this responsible measure which will benefit both American 
consumers and American businesses.

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