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Local E-sign law clears House
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Posted on Nov 08 2000
Citing the need to develop electronic commerce and on-line government in the CNMI, the House of Representatives finally cleared legislation that will authorize the use of and granting legal effect to electronic records and signatures on the islands.
Sponsored by Rep. William S. Torres, HB 12-226 or “the Commonwealth Electronic Records and Signatures Act of 2000” is the first step taken by the island government to respond to the latest global mode of doing business which is the Internet.
The 14-page measure, which now heads to the Senate for voting, sets up the scheme here following the signing of similar legislation under the “E-Sign Act” by President Clinton in June of this year.
That law, which took effect last month across the nation, is expected to promote and facilitate the sale of goods and services on-line by abolishing uncertainty over whether on-line signatures are legally binding and enforceable, according to the local legislators.
CNMI agencies and businesses backed HB 12-226 during the public hearings conducted by House members in the past few weeks.
Proponents believed it would encourage companies, on-line government and individuals on the islands to conduct business with security and to serve the public’s interest in relation to electronic or on-line transactions.
“Non-discrimination provides that no contract, signature or record shall be denied legal effect, validity or enforcement solely because an electronic signature or electronic record was used in its formation,” said the House communications committee in its report.
“Therefore, consumers and businesses alike can feel secure that electronic signatures are just as binding as paper signatures,” added the report that endorsed the bill for passage.
HB 12-226 seeks to facilitate and promote electronic commerce and on-line government by clarifying the legal status of records and signatures in terms of the writing and signing requirements.
It also aims to permit and encourage the continued expansion of such business practices through the operation of free market forces, while guaranteeing public confidence in their validity, integrity and reliability, according to Mr. Torres.
