2000 Legislation
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SENATE BILL NO. 1334 – Uniform Electronic Transactions Act

SENATE BILL NO. 1334

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S1334................................................by JUDICIARY AND RULES
UNIFORM ELECTRONIC TRANSACTION ACT - Adds to existing law to establish the
Uniform Electronic Transactions Act; to provide a short title; to provide
definitions; to provide application; to provide for use of electronic
records and signatures; to provide for legal recognition of electronic
records, electronic signatures and electronic contracts; to provide for
treatment of information required to be in writing; to provide for
attribution and effect of electronic records and electronic signatures; to
provide for effect of change or error; to provide notarization and
acknowledgment; to provide for retention of electronic records and use of
originals; to provide for admissibility in evidence; to provide for
treatment of automated transactions; to provide time and place of sending a
receipt; to provide for treatment of transferable records; to provide for
creation and retention of electronic records and conversion of written
records; to provide for acceptance and distribution of electronic records
by governmental agencies; to provide interoperability; and to provide
severability.
                                                                        
02/01    Senate intro - 1st rdg - to printing
02/02    Rpt prt - to Com/HuRes
02/09    Rpt out - rec d/p - to 2nd rdg
02/10    2nd rdg - to 3rd rdg
02/14    To 14th Ord
02/22    Rpt out - w/o amen - to 3rd rdg
03/02    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
      Hawkins, Ingram, Keough, King-Barrutia, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Stennett, Thorne, Wheeler, Whitworth, Williams
      NAYS -- None
      Absent and excused -- Ipsen
    Floor Sponsor - Davis
    Title apvd - to House
03/03    House intro - 1st rdg - to Bus
03/22    Rpt out - rec d/p - to 2nd rdg
03/23    2nd rdg - to 3rd rdg
03/31    3rd rdg - PASSED - 66-0-4
      AYES -- Alltus, Barrett, Bell, Bieter, Black, Boe, Bruneel,
      Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy, Deal,
      Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
      Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet,
      Jones(Jones), Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Linford,
      Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle,
      Pearce, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
      Schaefer, Sellman, Shepherd, Smith, Smylie, Stoicheff, Stone, Taylor,
      Tilman, Trail, Wheeler, Wood, Zimmermann
      NAYS -- None
      Absent and excused -- Barraclough, Loertscher, Stevenson, Mr Speaker
    Floor Sponsor - Chase
    Title apvd - to Senate
04/03    To enrol
04/04    Rpt enrol - Pres signed - Sp signed
04/05    To Governor
04/14    Governor signed
         Session Law Chapter 286
         Effective: 07/01/00

Bill Text


 S1334
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1334
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO COMMERCIAL TRANSACTIONS; AMENDING TITLE 28,  IDAHO  CODE,  BY  THE
  3        ADDITION  OF A NEW CHAPTER 50, TITLE 28, IDAHO CODE, TO ESTABLISH THE UNI-
  4        FORM ELECTRONIC TRANSACTIONS ACT, TO PROVIDE A  SHORT  TITLE,  TO  PROVIDE
  5        DEFINITIONS, TO PROVIDE SCOPE, TO PROVIDE PROSPECTIVE APPLICATION, TO PRO-
  6        VIDE FOR USE OF ELECTRONIC RECORDS AND SIGNATURES, TO PROVIDE CONSTRUCTION
  7        AND  APPLICATION,  TO PROVIDE FOR LEGAL RECOGNITION OF ELECTRONIC RECORDS,
  8        ELECTRONIC SIGNATURES AND ELECTRONIC CONTRACTS, TO PROVIDE  FOR  TREATMENT
  9        OF  INFORMATION  REQUIRED TO BE IN WRITING AND PRESENTATION OF RECORDS, TO
 10        PROVIDE FOR ATTRIBUTION AND EFFECT OF  ELECTRONIC  RECORD  AND  ELECTRONIC
 11        SIGNATURE,   TO  PROVIDE  FOR  EFFECT  OF  CHANGE  OR  ERROR,  TO  PROVIDE
 12        NOTARIZATION AND ACKNOWLEDGMENT, TO PROVIDE FOR  RETENTION  OF  ELECTRONIC
 13        RECORDS AND USE OF ORIGINALS, TO PROVIDE FOR ADMISSIBILITY IN EVIDENCE, TO
 14        PROVIDE  TREATMENT  OF AN AUTOMATED TRANSACTION, TO PROVIDE TIME AND PLACE
 15        OF SENDING AND RECEIPT, TO PROVIDE FOR TREATMENT OF TRANSFERABLE  RECORDS,
 16        TO PROVIDE FOR CREATION AND RETENTION OF ELECTRONIC RECORDS AND CONVERSION
 17        OF WRITTEN RECORDS BY GOVERNMENTAL AGENCIES, TO PROVIDE FOR ACCEPTANCE AND
 18        DISTRIBUTION  OF  ELECTRONIC  RECORDS BY GOVERNMENTAL AGENCIES, TO PROVIDE
 19        INTEROPERABILITY AND TO PROVIDE SEVERABILITY.
                                                                        
 20    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 21        SECTION 1.  That Title 28, Idaho Code, be, and the same is hereby  amended
 22    by  the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
 23    ter 50, Title 28, Idaho Code, and to read as follows:
                                                                        
 24                                      CHAPTER 50
 25                         UNIFORM ELECTRONIC TRANSACTIONS ACT
                                                                        
 26        28-50-101.   SHORT TITLE. This act may be cited as the "Uniform Electronic
 27    Transactions Act."
                                                                        
 28        28-50-102.  DEFINITIONS. In this chapter:
 29        (1)  "Agreement" means the bargain of the parties in  fact,  as  found  in
 30    their  language  or  inferred from other circumstances and from rules, regula-
 31    tions, and procedures given the effect  of  agreements  under  laws  otherwise
 32    applicable to a particular transaction.
 33        (2)  "Automated  transaction"  means a transaction conducted or performed,
 34    in whole or in part, by electronic means or electronic records, in  which  the
 35    acts  or  records of one (1) or both parties are not reviewed by an individual
 36    in the ordinary course in forming a contract,  performing  under  an  existing
 37    contract, or fulfilling an obligation required by the transaction.
 38        (3)  "Computer  program"  means  a set of statements or instructions to be
 39    used directly or indirectly in an information processing system  in  order  to
 40    bring about a certain result.
 41        (4)  "Contract"  means  the total legal obligation resulting from the par-
                                                                        
                                           2
                                                                        
  1    ties' agreement as affected by this chapter and other applicable law.
  2        (5)  "Electronic" means relating to technology having electrical, digital,
  3    magnetic, wireless, optical, electromagnetic or similar capabilities.
  4        (6)  "Electronic agent" means a computer program or an electronic or other
  5    automated means used independently to initiate an action or respond  to  elec-
  6    tronic  records  or performances in whole or in part, without review or action
  7    by an individual.
  8        (7)  "Electronic record" means a record created, generated, sent, communi-
  9    cated, received or stored by electronic means.
 10        (8)  "Electronic signature" means an electronic sound, symbol  or  process
 11    attached to or logically associated with a record and executed or adopted by a
 12    person with the intent to sign the record.
 13        (9)  "Governmental  agency"  means  an executive, legislative, or judicial
 14    agency, department, board, commission, authority, institution,  or  instrumen-
 15    tality of the federal government or of a state or of a county, municipality or
 16    other political subdivision of a state.
 17        (10) "Information"  means data, text, images, sounds, codes, computer pro-
 18    grams, software, databases or the like, but shall not include  the  electronic
 19    transfer of funds to or from the state.
 20        (11) "Information processing system" means an electronic system for creat-
 21    ing,  generating, sending, receiving, storing, displaying or processing infor-
 22    mation.
 23        (12) "Person" means an individual, corporation,  business  trust,  estate,
 24    trust,  partnership,  limited  liability  company, association, joint venture,
 25    governmental agency, public corporation, or  any  other  legal  or  commercial
 26    entity.
 27        (13) "Record"  means information that is inscribed on a tangible medium or
 28    that is stored in  an  electronic  or  other  medium  and  is  retrievable  in
 29    perceivable form.
 30        (14) "Security  procedure"   means a procedure employed for the purpose of
 31    verifying that an electronic signature, record, or performance is  that  of  a
 32    specific  person  or  for detecting changes or errors in the information in an
 33    electronic record.  The term includes a procedure that  requires  the  use  of
 34    algorithms  or  other  codes,  identifying  words  or  numbers, encryption, or
 35    callback or other acknowledgment procedures.
 36        (15) "State" means a state of the United States, the District of Columbia,
 37    Puerto Rico, the United States Virgin Islands, or  any  territory  or  insular
 38    possession  subject  to  the  jurisdiction  of  the  United  States.  The term
 39    includes an Indian tribe or band, or Alaskan native village, which  is  recog-
 40    nized by federal law or formally acknowledged by a state.
 41        (16) "Transaction" means an action or set of actions occurring between two
 42    (2) or more persons relating to the conduct of business, commercial or govern-
 43    mental affairs.
                                                                        
 44        28-50-103.  SCOPE.  (a)  Except as otherwise provided in subsection (b) of
 45    this section, this chapter applies to electronic records and electronic signa-
 46    tures relating to a transaction.
 47        (b)  This chapter does not apply to a transaction to the extent it is gov-
 48    erned by:
 49        (1)  A law governing the creation and execution of wills, codicils or tes-
 50        tamentary trusts; and
 51        (2)  The  uniform  commercial  code,  other  than  sections  28-1-107  and
 52        28-1-206, Idaho Code, chapter 2, title 28, Idaho Code (uniform  commercial
 53        code  --  sales), and chapter 12, title 28, Idaho Code (uniform commercial
 54        code -- leases):
                                                                        
                                           3
                                                                        
  1        (c)  This chapter applies to an electronic record or electronic  signature
  2    otherwise  excluded  from the application of this chapter under subsection (b)
  3    of this section to the extent it is governed by a law other than those  speci-
  4    fied in subsection (b) of this section.
  5        (d)  A transaction subject to this chapter is also subject to other appli-
  6    cable substantive law.
                                                                        
  7        28-50-104.  PROSPECTIVE  APPLICATION.  This  chapter  applies to any elec-
  8    tronic record or electronic signature created, generated, sent,  communicated,
  9    received, or stored on or after the initial effective date of this chapter.
                                                                        
 10        28-50-105.  USE  OF ELECTRONIC RECORDS AND ELECTRONIC SIGNATURES -- VARIA-
 11    TION BY AGREEMENT. (a) This chapter does not require a record or signature  to
 12    be  created,  generated,  sent,  communicated,  received, stored, or otherwise
 13    processed or used by electronic means or in electronic form.
 14        (b)  This chapter applies only to transactions  between  parties  each  of
 15    which has agreed to conduct transactions by electronic means. Whether the par-
 16    ties agree to conduct a transaction by electronic means is determined from the
 17    context and surrounding circumstances, including the parties' conduct.
 18        (c)  A  party that agrees to conduct a transaction by electronic means may
 19    refuse to conduct other transactions by electronic means.  The  right  granted
 20    by this subsection may not be waived by agreement.
 21        (d)  Except  as  otherwise  provided in this chapter, the effect of any of
 22    its provisions may be varied by agreement. The presence in certain  provisions
 23    of  this  chapter  of the words "unless otherwise agreed," or words of similar
 24    import, does not imply that the effect of other provisions may not  be  varied
 25    by agreement.
 26        (e)  Whether an electronic record or electronic signature has legal conse-
 27    quences is determined by this chapter and other applicable law.
                                                                        
 28        28-50-106.  CONSTRUCTION  AND  APPLICATION. This chapter must be construed
 29    and applied:
 30        (1)  To facilitate electronic transactions consistent with other  applica-
 31    ble law;
 32        (2)  To  be  consistent  with  reasonable  practices concerning electronic
 33    transactions and with the continued expansion of those practices; and
 34        (3)  To effectuate its general  purpose  to  make  uniform  the  law  with
 35    respect to the subject of this chapter among states enacting it.
                                                                        
 36        28-50-107.  LEGAL RECOGNITION OF ELECTRONIC RECORDS, ELECTRONIC SIGNATURES
 37    AND  ELECTRONIC  CONTRACTS. (a)  A record or signature may not be denied legal
 38    effect or enforceability solely because it is in electronic form.
 39        (b)  A contract may not be denied legal effect  or  enforceability  solely
 40    because an electronic record was used in its formation.
 41        (c)  If  a  law  requires  a record to be in writing, an electronic record
 42    satisfies the law.
 43        (d)  If a law requires a signature, an electronic signature satisfies  the
 44    law.
                                                                        
 45        28-50-108.  PROVISION   OF  INFORMATION  IN  WRITING  --  PRESENTATION  OF
 46    RECORDS. (a) If parties have agreed to conduct  a  transaction  by  electronic
 47    means  and a law requires a person to provide, send, or deliver information in
 48    writing to another person, the requirement is satisfied if the information  is
 49    provided, sent or delivered, as the case may be, in an electronic record capa-
 50    ble of retention by the recipient at the time of receipt. An electronic record
                                                                        
                                           4
                                                                        
  1    is  not capable of retention by the recipient if the sender or its information
  2    processing system inhibits the ability of the recipient to print or store  the
  3    electronic record.
  4        (b)  If  a law other than this chapter requires a record: (i) to be posted
  5    or displayed in a certain manner; (ii) to be  sent,  communicated,  or  trans-
  6    mitted  by a specified method; or (iii) to contain information that is format-
  7    ted in a certain manner, the following rules apply:
  8        (1)  The record must be posted or displayed in the manner specified in the
  9        other law.
 10        (2)  Except as otherwise provided in subsection (d)(2)  of  this  section,
 11        the  record must be sent, communicated or transmitted by the method speci-
 12        fied in the other law.
 13        (3)  The record must contain the information formatted in the manner spec-
 14        ified in the other law.
 15        (c)  If a sender inhibits the ability of a recipient to store or print  an
 16    electronic record, the electronic record is not enforceable against the recip-
 17    ient.
 18        (d)  The requirements of this section may not be varied by agreement, but:
 19        (1)  To  the  extent a law other than this chapter requires information to
 20        be provided, sent, or delivered in writing but permits that requirement to
 21        be varied by agreement, the requirement under subsection (a) of this  sec-
 22        tion  that  the information be in the form of an electronic record capable
 23        of retention may also be varied by agreement; and
 24        (2)  A requirement under a law other than this chapter to  send,  communi-
 25        cate  or transmit a record by regular United States mail, may be varied by
 26        agreement to the extent permitted by the other law.
                                                                        
 27        28-50-109.  ATTRIBUTION AND EFFECT OF  ELECTRONIC  RECORD  AND  ELECTRONIC
 28    SIGNATURE. (a) An electronic record or electronic signature is attributable to
 29    a  person if it was the act of the person.  The act of the person may be shown
 30    in any manner, including a showing of the efficacy of any  security  procedure
 31    applied  to  determine the person to which the electronic record or electronic
 32    signature was attributable.
 33        (b)  The effect of an electronic record or electronic signature attributed
 34    to a person under subsection (a) of this section is determined from  the  con-
 35    text  and  surrounding circumstances at the time of its creation, execution or
 36    adoption, including the parties' agreement, if any, and otherwise as  provided
 37    by law.
                                                                        
 38        28-50-110.  EFFECT  OF  CHANGE  OR ERROR. If a change or error in an elec-
 39    tronic record occurs in a transmission between parties to a  transaction,  the
 40    following rules apply:
 41        (1)  If  the  parties  have  agreed  to use a security procedure to detect
 42    changes or errors and one (1) party has conformed to the  procedure,  but  the
 43    other  party  has  not,  and  the  nonconforming party would have detected the
 44    change or error had that party also conformed, the conforming party may  avoid
 45    the effect of the changed or erroneous electronic record.
 46        (2)  In  an  automated transaction involving an individual, the individual
 47    may avoid the effect of an electronic record that resulted from an error  made
 48    by  the  individual  in dealing with the electronic agent of another person if
 49    the electronic agent did not provide an opportunity for the prevention or cor-
 50    rection of the error and, at the time the individual learns of the error,  the
 51    individual:
 52        (A)  Promptly notifies the other person of the error and that the individ-
 53        ual  did  not intend to be bound by  the electronic record received by the
                                                                        
                                           5
                                                                        
  1        other person;
  2        (B)  Takes reasonable steps, including steps that  conform  to  the  other
  3        person's  reasonable  instructions,  to  return to the other person or, if
  4        instructed by the other person, to destroy the consideration received,  if
  5        any, as a result of the erroneous electronic record; and
  6        (C)  Has not used or received any benefit or value from the consideration,
  7        if any, received from the other person.
  8        (3)  If  neither  subsection (1) nor (2) of this section apply, the change
  9    or error has the effect provided by other law, including the law  of  mistake,
 10    and the parties' contract, if any.
 11        (4)  Subsections  (2)  and (3) of this section may not be varied by agree-
 12    ment.
                                                                        
 13        28-50-111.  NOTARIZATION AND ACKNOWLEDGMENT. If a law requires a signature
 14    or record to be notarized, acknowledged, verified, or  made  under  oath,  the
 15    requirement  is satisfied if the electronic signature of the person authorized
 16    to perform those acts, together with all  other  information  required  to  be
 17    included  by other applicable law, is attached to or logically associated with
 18    the signature or record.
                                                                        
 19        28-50-112.  RETENTION OF ELECTRONIC RECORDS -- ORIGINALS.  (a)  If  a  law
 20    requires  that a record be retained, the requirement is satisfied by retaining
 21    an electronic record of the information in the record which:
 22        (1)  Accurately reflects the information set forth in the record after  it
 23        was  first  generated  in its final form as an electronic record or other-
 24        wise; and
 25        (2)  Remains accessible for later reference.
 26        (b)  A requirement to retain a record in accordance with subsection (a) of
 27    this section does not apply to any information, the sole purpose of  which  is
 28    to enable the record to be sent, communicated, or received.
 29        (c)  A person may satisfy subsection (a) of this section by using the ser-
 30    vices of another person if the requirements of that subsection are satisfied.
 31        (d)  If  a law requires a record to be presented or retained in its origi-
 32    nal form, or provides consequences if the record is not presented or  retained
 33    in  its  original form, that law is satisfied by an electronic record retained
 34    in accordance with subsection (a) of this section.
 35        (e)  If a law requires retention of a check, that requirement is satisfied
 36    by retention of an electronic record of the information on the front and  back
 37    of the check in accordance with subsection (a) of this section.
 38        (f)  A  record retained as an electronic record in accordance with subsec-
 39    tion (a) of this section satisfies a law requiring a person to retain a record
 40    for evidentiary, audit, or like purposes, unless a law enacted after the  ini-
 41    tial effective date of this chapter specifically prohibits the use of an elec-
 42    tronic record for the specified purpose.
 43        (g)  This  section  does  not preclude a governmental agency of this state
 44    from specifying additional requirements for the retention of a record  subject
 45    to the agency's jurisdiction.
                                                                        
 46        28-50-113.  ADMISSIBILITY  IN  EVIDENCE.  In  a  proceeding, evidence of a
 47    record or signature may not be excluded solely because  it  is  in  electronic
 48    form.
                                                                        
 49        28-50-114.  AUTOMATED  TRANSACTION.  In an automated transaction, the fol-
 50    lowing rules apply:
 51        (1)  A contract may be formed by the interaction of  electronic agents  of
                                                                        
                                           6
                                                                        
  1    the  parties,  even  if  no individual was aware of or reviewed the electronic
  2    agents' actions or the resulting terms and agreements.
  3        (2)  A contract may be formed by the interaction of  an  electronic  agent
  4    and  an  individual, acting on the individual's own behalf or for another per-
  5    son, including by an interaction in which the individual performs actions that
  6    the individual is free to refuse to perform and which the individual knows  or
  7    has reason to know will cause the electronic agent to complete the transaction
  8    or performance.
  9        (3)  The  terms  of  the  contract  are  determined by the substantive law
 10    applicable to it.
                                                                        
 11        28-50-115.  TIME AND PLACE OF SENDING AND RECEIPT. (a)   Unless  otherwise
 12    agreed between the sender and the recipient, an electronic record is sent when
 13    it:
 14        (1)  Is  addressed  properly or otherwise directed properly to an informa-
 15        tion processing system that the recipient has designated or uses  for  the
 16        purpose  of  receiving  electronic records or information of the type sent
 17        and from which the recipient is able to retrieve the electronic record;
 18        (2)  Is in a form capable of being processed by that system; and
 19        (3)  Enters an information processing system outside the  control  of  the
 20        sender  or  of  a  person that sent the electronic record on behalf of the
 21        sender or enters a region of the information processing system  designated
 22        or used by the recipient which is under the control of the recipient.
 23        (b)  Unless  otherwise agreed between a sender and the recipient, an elec-
 24    tronic record is received when:
 25        (1)  It enters an information processing system  that  the  recipient  has
 26        designated  or  uses  for  the  purpose of receiving electronic records or
 27        information of the type sent and from  which  the  recipient  is  able  to
 28        retrieve the electronic record; and
 29        (2)  It is in a form capable of being processed by that system.
 30        (c)  Subsection (b) of this section applies even if the place the informa-
 31    tion  processing  system is located is different from the place the electronic
 32    record is deemed to be received under subsection (d) of this section.
 33        (d)  Unless otherwise expressly  provided  in  the  electronic  record  or
 34    agreed between the sender and the recipient, an electronic record is deemed to
 35    be  sent  from  the  sender's  place  of  business  and  to be received at the
 36    recipient's place of business.  For purposes of this subsection, the following
 37    rules apply:
 38        (1)  If the sender or recipient has more than one (1) place  of  business,
 39        the place of business of that person is the place having the closest rela-
 40        tionship to the underlying transaction.
 41        (2)  If the sender or the recipient does not have a place of business, the
 42        place  of  business  is the sender's or recipient's residence, as the case
 43        may be.
 44        (e)  An electronic record is received under subsection (b) of this section
 45    even if no individual is aware of its receipt.
 46        (f)  Receipt of an electronic acknowledgment from an information  process-
 47    ing  system  described  in  subsection  (b) of this section establishes that a
 48    record was received but, by itself, does not establish that the  content  sent
 49    corresponds to the content received.
 50        (g)  If a person is aware that an electronic record purportedly sent under
 51    subsection  (a)  of this section, or purportedly received under subsection (b)
 52    of this section, was not actually sent or received, the legal  effect  of  the
 53    sending  or  receipt  is  determined  by  other applicable law.  Except to the
 54    extent permitted by the other law, the requirements of   this  subsection  may
                                                                        
                                           7
                                                                        
  1    not be varied by agreement.
                                                                        
  2        28-50-116.  TRANSFERABLE   RECORD.  (a)  In  this  section,  "transferable
  3    record" means an electronic record that:
  4        (1)  Would be a note under chapter 3, title 28, Idaho Code  (uniform  com-
  5        mercial  code  --  negotiable  instruments) or a document under chapter 7,
  6        title 28, Idaho Code (uniform commercial code -- warehouse receipts, bills
  7        of lading and other documents of title) if the electronic record  were  in
  8        writing; and
  9        (2)  The  issuer of the electronic record expressly has agreed is a trans-
 10        ferable record.
 11        (b)  A person has control of a transferable record if  a  system  employed
 12    for  evidencing  the transfer of interests in the transferable record reliably
 13    establishes that person as the person to which  the  transferable  record  was
 14    issued or transferred.
 15        (c)  A  system  satisfies  subsection (b) of this section, and a person is
 16    deemed to have control of a transferable record, if the transferable record is
 17    created, stored and assigned in such a manner that:
 18        (1)  A single authoritative copy of the transferable record  exists  which
 19        is  unique,  identifiable, and, except as otherwise provided in paragraphs
 20        (4), (5) and (6) of this subsection, unalterable;
 21        (2)  The authoritative copy identifies the person asserting control as:
 22             (A)  The person to which the transferable record was issued; or
 23             (B)  If the authoritative copy indicates that the transferable record
 24             has been transferred, the person to which the transferable record was
 25             most recently transferred;
 26        (3)  The authoritative copy is communicated to and maintained by the  per-
 27        son asserting control or its designated custodian;
 28        (4)  Copies  or revisions that add or change an identified assignee of the
 29        authoritative copy can be made only with the consent of the person assert-
 30        ing control;
 31        (5)  Each copy of the authoritative copy and any copy of a copy is readily
 32        identifiable as a copy that is not the authoritative copy; and
 33        (6)  Any revision of the authoritative copy  is  readily  identifiable  as
 34        authorized or unauthorized.
 35        (d)  Except as otherwise agreed, a person having control of a transferable
 36    record  is  the holder, as defined in section 28-1-201(20), Idaho Code, of the
 37    transferable record and has the same rights and defenses as  a  holder  of  an
 38    equivalent record or writing under chapters 1 through 12, title 28, Idaho Code
 39    (uniform commercial code), including, if the applicable statutory requirements
 40    under  section  28-3-302(1),  28-7-501 or 28-9-308, Idaho Code, are satisfied,
 41    the rights and defenses of a holder in due course, a holder to which  a  nego-
 42    tiable  document  of  title  has been duly negotiated, or a purchaser, respec-
 43    tively.  Delivery, possession and indorsement are not required  to  obtain  or
 44    exercise any of the rights under this subsection.
 45        (e)  Except  as  otherwise  agreed, an obligor under a transferable record
 46    has the same rights and defenses as an  equivalent  obligor  under  equivalent
 47    records or writings under chapters 1 through 12, title 28, Idaho Code (uniform
 48    commercial code).
 49        (f)  If  requested  by  a  person against which enforcement is sought, the
 50    person seeking to enforce the transferable  record  shall  provide  reasonable
 51    proof  that  the  person  is  in control of the transferable record. Proof may
 52    include access to the  authoritative  copy  of  the  transferable  record  and
 53    related  business  records  sufficient to review the terms of the transferable
 54    record and to establish the identity of  the  person  having  control  of  the
                                                                        
                                           8
                                                                        
  1    transferable record.
                                                                        
  2        28-50-117.  CREATION AND RETENTION OF ELECTRONIC RECORDS AND CONVERSION OF
  3    WRITTEN  RECORDS  BY   GOVERNMENTAL AGENCIES. Each governmental agency of this
  4    state shall determine whether, and the extent to which,  it  will  create  and
  5    retain electronic records and convert written records to electronic records.
                                                                        
  6        28-50-118.  ACCEPTANCE  AND  DISTRIBUTION OF ELECTRONIC RECORDS BY GOVERN-
  7    MENTAL AGENCIES. (a) Except as otherwise  provided  in  section  28-50-112(f),
  8    Idaho  Code,  each  governmental agency of this state shall determine whether,
  9    and the extent to which, it will send and accept electronic records and  elec-
 10    tronic  signatures  to  and from other persons and otherwise create, generate,
 11    communicate, store, process, use and rely upon electronic  records  and  elec-
 12    tronic signatures.
 13        (b)  To  the extent that a governmental agency uses electronic records and
 14    electronic signatures under subsection (a) of this section,  the  governmental
 15    agency, giving due consideration to security, may specify:
 16        (1)  The  manner  and  format in which the electronic records must be cre-
 17        ated, generated, sent, communicated, received and stored and  the  systems
 18        established for those purposes;
 19        (2)  If electronic records must be signed by electronic means, the type of
 20        electronic  signature  required,  the manner and format in which the elec-
 21        tronic signature must be affixed to the electronic record, and  the  iden-
 22        tity of, or criteria that must be met by, any third party used by a person
 23        filing a document to facilitate the process;
 24        (3)  Control  processes  and  procedures as appropriate to ensure adequate
 25        preservation,  disposition,  integrity,  security,   confidentiality   and
 26        auditability of electronic records; and
 27        (4)  Any other required attributes for electronic records which are speci-
 28        fied for corresponding nonelectronic records or reasonably necessary under
 29        the circumstances.
 30        (c)  Except  as  otherwise  provided  in section 28-50-112(f), Idaho Code,
 31    this chapter does not require a governmental agency of this state  to  use  or
 32    permit the use of electronic records or electronic signatures.
                                                                        
 33        28-50-119.  INTEROPERABILITY.  The governmental agency of this state which
 34    adopts standards pursuant to section 28-50-118, Idaho Code,  may encourage and
 35    promote consistency and interoperability with similar requirements adopted  by
 36    other  governmental  agencies of this and other states and the federal govern-
 37    ment and nongovernmental persons interacting  with  governmental  agencies  of
 38    this  state.  If  appropriate, those standards may specify differing levels of
 39    standards from which governmental agencies of this state may choose in  imple-
 40    menting the most appropriate standard for a particular application.
                                                                        
 41        28-50-120.  SEVERABILITY  CLAUSE.  If any provision of this chapter or its
 42    application to any person or circumstance is held invalid, the invalidity does
 43    not affect other provisions or applications of this chapter which can be given
 44    effect without the invalid provision or application, and to this end the  pro-
 45    visions of this chapter are severable.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                          RS 09533 Cl      

This legislation enacts the Uniform Electronic Transactions Act 
("UETA") approved by the National Conference of Commissioners 
on Uniform State Laws at its 1999 Annual meeting.  UETA is 
designed to support the use of electronic commerce. The primary 
objective of this Act is to establish the legal equivalence of 
electronic records and signatures with paper writings and 
manually-signed signatures, removing barriers to electronic 
commerce.

                    FISCAL NOTE

This legislation will have no fiscal impact. 

Contact: 
Idaho Commission on Uniform State Laws
Rex Blackburn, Commissioner
(208) 384-1800

STATEMENT OF PURPOSE/FISCAL NOTE                       S 1314