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S.B. 55





Chief Sponsor: Stephen H. Urquhart

House Sponsor: Bradley M. Daw

             7      LONG TITLE
             8      General Description:
             9          This bill addresses the acceptance of electronic signatures by a governmental agency.
             10      Highlighted Provisions:
             11          This bill:
             12          .    requires a governmental agency to adopt a policy concerning electronic signatures
             13      before the governmental agency may accept an electronic signature; and
             14          .    makes technical changes.
             15      Money Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          None
             19      Utah Code Sections Affected:
             20      AMENDS:
             21          46-4-201, as enacted by Laws of Utah 2000, Chapter 74
             22          46-4-501, as last amended by Laws of Utah 2008, Chapter 382
             23          46-4-502, as last amended by Laws of Utah 2003, Chapter 20
             25      Be it enacted by the Legislature of the state of Utah:
             26          Section 1. Section 46-4-201 is amended to read:
             27           46-4-201. Legal recognition of electronic records, electronic signatures, and

             28      electronic contracts.
             29          (1) A record, or signature subject to Section 46-4-501 , may not be denied legal effect
             30      or enforceability solely because it is in electronic form.
             31          (2) A contract may not be denied legal effect or enforceability solely because an
             32      electronic record was used in its formation.
             33          (3) If a law requires a record to be in writing, an electronic record satisfies the law.
             34          (4) [If] Subject to Section 46-4-501 , if a law requires a signature, an electronic
             35      signature satisfies the law.
             36          Section 2. Section 46-4-501 is amended to read:
             37           46-4-501. Creation and retention of electronic records and conversion of written
             38      records by governmental agencies.
             39          (1) (a) Notwithstanding any other provision of law, a non-federal governmental agency
             40      located in the state may not accept an electronic signature unless the governmental agency
             41      makes a rule, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             42      identifying:
             43          (i) the types of documents, transactions, or other filings that will be accepted with an
             44      electronic signature affixed; and
             45          (ii) the manner and format in which the electronic signature must be affixed to the
             46      document, transaction, or other filing.
             47          (b) Subsection (1)(a) applies to an electronic signature without regard to whether the
             48      governmental agency is a party to the document, transaction, or other filing.
             49          [(1)] (2) A state governmental agency may, [by following the procedures and
             50      requirements of] in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             51      Act, make rules that:
             52          (a) identify specific transactions that the agency is willing to conduct by electronic
             53      means;
             54          (b) identify specific transactions that the agency will never conduct by electronic
             55      means;
             56          (c) specify the manner and format in which electronic records must be created,
             57      generated, sent, communicated, received, and stored, and the systems established for those
             58      purposes;

             59          (d) if law or rule requires that the electronic records must be signed by electronic
             60      means, specify the type of electronic signature required, the manner and format in which the
             61      electronic signature must be affixed to the electronic record, and the identity of, or criteria that
             62      must be met, by any third party used by a person filing a document to facilitate the process;
             63          (e) specify control processes and procedures as appropriate to ensure adequate
             64      preservation, disposition, integrity, security, confidentiality, and auditability of electronic
             65      records; and
             66          (f) identify any other required attributes for electronic records that are specified for
             67      corresponding nonelectronic records or that are reasonably necessary under the circumstances.
             68          [(2)] (3) A state governmental agency that makes rules under this section shall submit
             69      copies of those rules, and any amendments to those rules, to[: (a)] the chief information officer
             70      established by Section 63F-1-201 [; and].
             71          [(b) the Utah Technology Commission established by Section 63D-1a-201 .]
             72          [(3)] (4) (a) The chief information officer may prepare model rules and standards
             73      relating to electronic transactions that encourage and promote consistency and interoperability
             74      with similar requirements adopted by other Utah government agencies, other states, the federal
             75      government, and nongovernmental persons interacting with Utah governmental agencies.
             76          (b) In preparing those model rules and standards, the chief information officer may
             77      specify different levels of standards from which governmental agencies may choose in order to
             78      implement the most appropriate standard for a particular application.
             79          [(c) Before submitting any model rules or standards to state governmental agencies for
             80      their adoption as permanent rules, the chief information officer shall submit the model rules
             81      and standards to the Utah Technology Commission for its review and suggestions.]
             82          [(d)] (c) Nothing in this Subsection [(3)] (4) requires a state agency to use the model
             83      rules and standards prepared by the chief information officer when making rules under this
             84      section.
             85          [(4)] (5) Except as provided in Subsection 46-4-301 (6), nothing in this chapter requires
             86      any [state] governmental agency to:
             87          (a) conduct transactions by electronic means; or
             88          (b) use or permit the use of electronic records or electronic signatures.
             89          [(5)] (6) Each state governmental agency shall:

             90          (a) establish record retention schedules for any electronic records created or received in
             91      an electronic transaction according to the standards developed by the Division of Archives
             92      under Subsection 63A-12-101 (2)(e); and
             93          (b) obtain approval of those schedules from the State Records Committee as required
             94      by Subsection 63G-2-502 (1)(b).
             95          Section 3. Section 46-4-502 is amended to read:
             96           46-4-502. Providing services or information electronically -- Interpretation of
             97      terms in Utah Code.
             98          (1) To provide services or information electronically, a state governmental entity may
             99      implement the terms listed in Subsection (2) in accordance with this section:
             100          (a) when the term is used in the Utah Code; and
             101          (b) if the implementation is not:
             102          (i) inconsistent with the manifest intent of the Legislature; or
             103          (ii) repugnant to the context of the statute.
             104          (2) Subsection (1) applies to the terms listed in this Subsection (2).
             105          (a) "Copy" may include an electronic version of a document.
             106          (b) "Mail" may include sending a document electronically if the recipient can accept
             107      and process the electronic writing.
             108          (c) "Mailing address" may include an electronic mailing address capable of receiving
             109      and processing an electronic writing.
             110          (d) "Sign" or "signature" may include any form of electronic signature authorized by
             111      the governmental agency in accordance with Section 46-4-501 .
             112          (e) "Written" or "writing" may include information that is:
             113          (i) inscribed on a tangible medium; or
             114          (ii) (A) stored in an electronic or other medium; and
             115          (B) is retrievable in a perceivable form.

Legislative Review Note
    as of 1-28-11 7:46 PM

Office of Legislative Research and General Counsel

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