Statement by Rep. Anna Eshoo (D-CA). Hearing: House Telecommunications Subcommittee. Re: Markup of HR 1714, an electronic signatures bill. Date: July 29, 1999. Source: Office of Rep. Anna Eshoo.

Statement by Rep. Anna Eshoo
Telecommunication, Trade and Consumer Protection Subcommittee Mark-Up of H.R. 1714

July 29, 1999

Thank you Mr. Chairman. Today, I believe the Committee is taking an important step to bring our nation's laws in line with the explosive growth of e-commerce.

Last Congress, I introduced legislation requiring federal agencies to make their forms available online and to allow people to sign these forms using electronic signatures. I'm proud this legislation was signed into law last year. It is the foundation of the legislation we're considering here today.

Following on this success in this Congress I introduced a bill to expand the legality of electronic signatures to the private sector. Today, we're marking up a bill that Chairman Bliley introduced. It has the same goal of my bill, but it takes a different approach, especially in the preemption of state contract law.

Chairman Bliley has recognized that validating the use of electronic signatures is in fact a very important step in facilitating the emerging electronic commerce marketplace.

Now it's the responsibility of Congress to ensure that there are no roadblocks impeding the growth of E-commerce. Fortunately, state governments have been working on updating their laws in the hopes that, similar to the Uniform Commercial Code, businesses and consumers will have a uniform standard to operate under for electronic transactions.

Even though the National Conference of Commissioners on State Law is likely to report the final version of the Uniform Electronic Transactions Act this week, it will take some time for every state to adopt this model law, or similar legislation.

That's the reason we're here today. The purpose of my legislation and Mr. Bliley's is to bridge the gap between now and the time when every state has passed a form of the UETA. To do that Congress must pass a law preempting current state law and replacing it with a uniform statute.

The major difference between the bill I introduced and Chairman Bliley's bill is how that preemption issue is dealt with - which frankly, is the heart of any e-commerce legislation we pass. I'm pleased that the amendment being offered includes the section in my bill that ends this preemption upon passage of the UETA and rewards states that act quickly on this model law reported by the National Conference of Commissioners on State Law.

Additionally, the change from two years to four years provides an adequate amount of time for states to pass the UETA. These changes are significant because they recognize the diligent work done by the states. I hope the changes will inspire states to act quickly to pass the UETA so that there is one consistent law governing interstate electronic commerce.

My thanks to Chairman Bliley for working with me to significantly improve this bill. Although a few minor problems may remain, I look forward to supporting the managers' amendment offered by he and Chairman Tauzin. I'd also like to thank Chairman Tauzin for his assistance in shepherding this bill through our Committee.

I look forward to the House passing this bill and quick action by the Senate. Then, I hope, a conference bill can be quickly passed by both the House and Senate and signed into law by the President.