Digital signature bill hits Congress

There are numerous forms of digital/electronic signatures, which raises a swarm of legal and liability issues. E-signatures range from the equivalent to hand-signed paper documents to certified IDs similar to a passport or driver’s license. The most talked-about digital signatures are secured by encryption and attached to email messages and other digital documents and handed out by a “certificate authority” that takes steps to verify a person’s true identity.

This legislation ensures that state and federal regulations do not interrupt the rapid growth of e-commerce, This legislation would establish a national uniform legal framework for e-commerce.

The bill defines electronic signature as a signature in electronic form, attached to or logically associated with an electronic record, any symbol, sound, or process executed or adopted by a person or entity, with intent to authenticate or accept a record.

The legislation also would authorize a federal study to determine if government agencies imposing any barriers to electronic transactions. And in some instances, the new bill could override state efforts, but leaves room for interpretation.

There are three reasons to pass electronic signature legislation:

1.  To resolve the questions of its legality

2. To address whether you can trust messages signed with digital signature

3. To specify the rules for using them