Opening Statement by Rep. Tom Bliley (R-VA). Re: Hearing on HR 1714, E-SIGN Act (electronic signatures). Date: June 9, 1999. Source: House Commerce Committee.

"You know I represent a district in the Commonwealth of Virginia, better known as the Internet Capital of the World - home to numerous Internet companies both large and small. As a result, I have the chance to talk with leading Internet business executives and visit cutting-edge technology companies. Everywhere I go and everyone I speak to tells me how important it is for Congress to pass legislation that provides legal recognition to electronic signature and electronic records.

"While I am speaking of Virginia, I want to welcome Don Upson, the Secretary of Technology from Virginia. Virginia was the first state in the nation to create a cabinet level position for a technology secretary and I think this clearly shows the commitment by Governor Gilmore and others in the state to promoting the growth of electronic commerce and information technology.

"We saw the explosion of electronic commerce during last year's Christmas shopping season - far in excess of all of the predictions - and the pace has not let up.

"When many people think of electronic commerce they think of buying books or airplane tickets. But recently we have seen people starting to buy automobiles, getting approved for a mortgage or investing their retirement funds online - something we could not have imagined just a few years ago.

"As the value and the complexity of online transactions grows, the need for knowing that the transaction is legally binding becomes even more important.

"That is where H.R. 1714, the Electronic Signatures in Global and National Commerce Act comes in. By clearing away the legal uncertainty surrounding electronic signatures and records, more businesses will use electronic signatures and consumers will feel more comfortable doing business online.

"The technologies used to create and transmit electronic signatures also provides much greater safety and security to online transactions.

"As I stated many times during last year's series of hearings on electronic commerce, I want to see that the safety, security and privacy of online consumers protected. Encouraging businesses and consumers to use electronic authentication will help do just that.

"I believe that HR 1714, the Electronic Signatures in Global and National Commerce Act is the correct approach to creating a legal framework for accepting electronic signatures and records.

"This legislation lays out a single, nationwide standard for the acceptance of electronic signatures and electronic records. We do not pick or choose a specific type of electronic authentication, nor do we choose what types of businesses should be allowed to offer electronic signature services.

"The legislation also provides guidance to the Department of Commerce in their international negotiations on electronic authentication. I believe that the principles laid out in this bill - such as technological and business neutrality and market leadership should be promoted overseas.

"I do not want to see foreign nations instituting electronic authentication regimes that would discriminate against American manufacturers or providers of electronic authentication technologies.

"H.R. 1714 also amends Federal securities law to provide for the legal acceptance of electronic signatures and records. This provision will be the subject of an upcoming legislative hearing in Mr. Oxley's subcommittee.

"I do want to recognize the efforts that states have been making in this area. Today, more than forty states have enacted legislation that provides recognition of electronic signatures. My concern is that every law is different - many only allow state agencies to accept electronic signatures and some provide legal recognition only to signatures generated by a specific technology.

"It is clear that for unfettered interstate commerce to take place, we must establish a single nationwide standard. I understand that a uniform state law on electronic signatures is being developed and I believe HR 1714 recognizes this effort by allowing states to enact their own electronic signature bills that follow the principles laid out in HR 1714.

"I look forward to hearing the comments and issues raised in this hearing and the future hearing on H.R. 1714. I am hopeful that we will move HR 1714 through Committee and to the House floor before the end of the year and these hearings move far down the road to having this bill signed into law."