Dan Greenwood, Deputy General Counsel, Information Technology Division, Massachusetts, described the need for legislation. “Clearly, state governments have been in the lead when it comes to enacting innovative electronic authentication legislation. This resolution articulates a coordinated set of legislative principles that will, if followed create an interoperable policy base-line that removes legal obstacles to electronic commerce at the state government level without creating regulatory mandates. Perhaps most importantly, the resolution puts forward a sound and constructive model for coordinating law and policy at each level of government and within the existing jurisdictions of each government.”

“We need small but smart governments that work better and cost less,” said J. D. Williams, Idaho State Controller, on behalf of the ECCC. “The answer to this is full use of electronic commerce by governments. Our citizens deserve to be on-line, not in line, when they deal with government.”

The Electronic Commerce Coordinating Council is a partnership of the National Association of State Comptrollers (NASC), the National Association of State Information Resource Executives (NASIRE), and the National Association of State Purchasing Officials (NASPO). It was established in February of 1998 to promote the development of electronic commerce applications. Membership is comprised of persons representing government interests, such as leadership and policy officials from state governments, and persons representing the interests of the private sector.

WHEREAS, the Electronic Commerce Coordinating Council, and each of its constituent members, the National Association of State Information Resource Executives, the National Association of State Purchasing Officials, and the National Association of State Comptrollers (hereinafter, the "Sponsors") are national organizations representing all fifty states and territories; and

WHEREAS, the Sponsors believe the growth of electronic commerce and electronic government transactions represent a powerful force for economic growth, consumer choice, and improved civic participation; and

WHEREAS, the Sponsors are addressing the business and legal issues associated with the

electronic delivery of government services; and

WHEREAS, the Sponsors are also interested in promoting the growth of private sector electronic commerce; and

WHEREAS, the Sponsors believe that a consistent legal foundation, across multiple jurisdictions, for online government and electronic commerce will promote the growth of such transactions; and

WHEREAS, the Sponsors believe that a consistent legal foundation should be based on a simple, technology neutral, non-regulatory, and market-based approach,

THEREFORE BE IT RESOLVED, that the Sponsors believe that governments at all levels

should work to enact a consistent legal foundation for electronic commerce and electronic

government based upon the principles that:

1. Information may not be denied legal effect, validity, or enforceability solely because it is in the form of an electronic record. If a rule of law requires information to be in writing, or provides consequences if it is not, an electronic record satisfies that rule of law.

2. A signature may not be denied legal effect, validity or enforceability solely because it is in the form of an electronic signature. If a rule of law requires a signature, or provides consequences in the absence of a signature, an electronic signature satisfies that rule of law.

3. In any legal proceeding, nothing in the application of the rules of evidence shall apply so as to deny the admissibility of an electronic record or electronic signature into evidence on the sole ground that it is an electronic record or electronic signature or on the grounds that it is not in its original form or is not an original.

4. If a rule of law requires that a record be retained or presented in its original form, or provides consequences if the record is not so retained or presented, that requirement is met by retaining an electronic record that accurately reproduces the original record as it existed at the time in question, provided that government entities are not precluded from specifying additional requirements for the retention of records, either written or electronic, that are subject to the jurisdiction of that government entity.

5. In the context of contract formation, unless otherwise agreed by the parties, an offer and the acceptance of an offer may be expressed by means of an electronic record. Where an electronic record is used in the formation of a contract, that contract shall not be denied validity or enforceability on the sole ground that an electronic record was used for that purpose.

AND BE IT FURTHER RESOLVED, that each jurisdiction that enacts such laws should have the right to determine the need for any exceptions or other provision that may be required within a particular jurisdiction, with due regard to the fundamental need for adequate consistency.

AND BE IT FURTHER RESOLVED, that the best legal system for electronic commerce will result from continuing experimentation by individual jurisdictions, provided, however, that such jurisdictions also adopt the minimalist baseline advocated in this resolution, and further, that any such experimentation should not unduly burden inter-jurisdictional commerce.

AND BE IT FURTHER RESOLVED, that each jurisdiction and level of government should ensure that its legislative efforts are focused on making its relevant body of law consistent with these principles, and not on superseding the law of other jurisdictions and levels of government.

AND BE IT FURTHER RESOLVED, that the Sponsors support the efforts underway to

establish an International Convention on Electronic Transactions that is consistent with the foregoing.

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