Clinton to E-Sign Digital Signature Law

[Paul Howell]

At http://dailynews.yahoo.com/h/nm/20000630/ts/clinton_digital_dc_1.html

Friday June 30 9:23 AM ET 

Clinton to E-Sign Digital Signature Law

By Deborah Charles

PHILADELPHIA (Reuters) - President Clinton on Friday
traveled to the city where America's founding fathers signed
the Declaration of Independence to ``e-sign'' a bill that
makes electronic signatures as valid as their ink counterparts.

On the grounds where the Declaration of Independence was
signed with a quill pen, Clinton will use a more modern way
of signing the ``Digital Signature'' bill -- a smart card encoded
with numbers.

The bill, officially known as the Electronic Signatures in
Global and National Commerce Act, gives electronic
signatures and documents the same force in law as those
done with ink on paper.

The act eliminates legal barriers to using electronic
technology to form and sign contracts, collect and store
documents and send and receive notices and disclosures.

In an effort to boost and broaden e-commerce, the law will
allow consumers and businesses to sign checks, complete
applications for loans or services without need for a paper
signature.

White House officials said Clinton -- who describes himself
as ``technologically challenged'' -- was first signing the law in
the traditional manner, with a pen, before doing so
electronically at the 11 a.m. EDT (1500 GMT) ceremony.

``At this point we're still exploring whether it would be
constitutionally acceptable for the president to e-sign a bill
and whether it's advisable in light of the 200 years of
tradition,'' White House spokesman Jake Siewert said.

The digital signature legislation, which was approved by the
House of Representatives and the Senate by overwhelming
margins earlier in June, is seen as paving the way for a new
era of electronic commerce in which companies could
complete transactions online instead of in person.

The measure, similar to laws already approved in dozens of
states, requires that consumers consent to doing business on
line and that they are assured consumer protections
equivalent to those in the paper world.

It also ensures that government agencies have the authority to
enforce the laws, protect the public interest and carry out
their missions in the electronic world, the White House said in
a statement.

Under the legislation, no contract, signature or record can be
denied legal effect solely because it is in electronic form.

Proponents of the legislation say the measure will cut costs
while bolstering confidence among consumers who have
concerns about security and protection when using the
Internet to conduct business.

The White House said the legislation should help boost
e-commerce. It will save time and space and once the law
goes into effect companies will be able to contract online to
buy and sell products worth millions of dollars, the White
House said.

Consumers will still be able to decide whether they want to
use an electronic or handwritten signature but the bill requires
some documents to still be sent on paper.

Clinton will talk about the digital signature bill in an Internet
address to the nation on Saturday.

While in Philadelphia, Clinton will speak to a convention of
the federal and local employees union and will also travel to
Englewood, N.J. for a fund-raising lunch.