[Weekly Compilation of Presidential Documents Volume 36, Number 27 (Monday, July 10, 2000)]
[Pages 1577-1578]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's Internet Address

July 1, 2000

    Good afternoon. Two hundred and thirteen years ago, about a hundred 
feet from where I'm sitting now, in a summer as sweltering as this one, 
the Founding Fathers drafted the Constitution of the United States. In 
the very first article of that doctrine, they wrote that Government 
shall make no law, quote, ``impairing the obligation of contracts.''
    James Madison called this contract clause ``a constitutional bulwark 
in favor of personal security and private rights.'' He and his fellow 
framers understood that the right of individuals to enter into 
commercial contracts was fundamental, not just for economic growth but 
for the preservation of liberty itself.
    Yesterday I had the privilege of signing into law legislation that 
carries the spirit of the Founders' wisdom into the information age. The 
Electronic Signatures in Global and National Commerce Act, which passed 
with overwhelming support from both parties in both Houses, will open up 
new frontiers of economic opportunity while protecting the rights of 
America's consumers.
    This new law will give fresh momentum to what is already the longest 
economic expansion in our history, an expansion driven largely by the 
phenomenal growth in information technologies, particularly the 
Internet, with its almost unlimited potential to expand our 
opportunities and broaden our horizons.
    Yet that potential is now being held back, ironically, by old laws 
written to protect the sanctity of contracts, laws that require pen and 
ink signatures on paper documents for contracts to be enforceable.
    Under this landmark new legislation, on-line contracts will now have 
the same legal force as equivalent paper ones. Companies will have the 
legal certainty they need to invest and expand in electronic commerce. 
They will be able not only to purchase products and services on-line but 
to contract to do so. And they could potentially save billions

[[Page 1578]]

of dollars by sending and retaining monthly statements and other records 
in electronic form. Eventually, vast warehouses of paper will be 
replaced by servers the size of VCR's.
    Customers will soon enjoy a whole new universe of on-line services. 
With the swipe of a smart card and the click of a mouse, they will be 
able to finalize mortgages, sign insurance contracts, or open brokerage 
accounts.
    Just as importantly, the law affords consumers who contract on-line 
the same kinds of protections and records, such as financial 
disclosures, they currently receive when they sign paper contracts. 
Consumers will be able to choose whether to do business and receive 
records on paper or on-line. They will have the power to decide if they 
want to receive notices and disclosures electronically. It will not be 
their responsibility but the company's to ensure that the data sent to a 
consumer can be read on the consumer's computer. No more E-mail 
attachments with gibberish inside.
    Finally, government agencies will have the authority to enforce the 
laws, protect the public interest, and carry out their missions in the 
electronic world.
    For 8 years now, I have set forth a new vision of government and 
politics, one that marries our most enduring values to the demands of 
the new information age. In many ways, the Electronic Signatures Act 
exemplifies that vision. It shows what we in Washington can accomplish 
when we put progress above partisanship, cross party lines, think of the 
future, and work together for the American people.
    Thank you, and happy Independence Day.

 Note: The address was recorded at 10:35 a.m. on June 30 at Independence 
National Historical Park in Philadelphia, PA, for broadcast at 10 a.m. 
on July 1. The transcript was made available by the Office of the Press 
Secretary on June 30 but was embargoed for release until the broadcast. 
S. 761, the Electronic Signatures in Global and National Commerce Act, 
approved June 30, was assigned Public Law No. 106-229.