National Conference of Commissioners on Uniform State Laws

211 E. Ontario St., Suite 1300, Chicago, IL 60611
tel 312-915-0195, fax 312-915-0187

For Immediate Release

NEW E-COMMERCE LEGISLATION MOVING THROUGH THE STATES

December 17, 1999 - Pennsylvania this week became the second state to adopt new legislation that facilitates the use of electronic commerce. Governor Tom Ridge signed SB 555, the Uniform Electronic Transactions Act, on December 16. Pennsylvania now joins California, which enacted the bill in September, as the first two states to adopt this important legislation.

The Uniform Electronic Transactions Act (UETA) supports the use of e-commerce, primarily by establishing the legal equivalence of electronic records and signatures with paper writings and manually-signed signatures. UETA was drafted and approved by the National Conference of Commissioners on Uniform State Laws (NCCUSL) at its July 1999 annual meeting. UETA removes perceived barriers to electronic commerce and supports the development of the information economy, the fastest growing segment of the U.S. economy.

"Electronic commerce is generating opportunities across all sectors, and is dramatically reducing the cost of communication, information, and transactions," says John McCabe, Legislative Director of NCCUSL. "This act provides a solid legal framework to allow for the continued development of innovative technology to facilitate electronic transactions."

UETA is a procedural statute. It does not mandate either electronic signatures or records, but provides a means to effectuate transactions when they are used. One of the most important provisions of the Act is the provision defining and giving validity to electronic signatures.

UETA assures that writing requirements and signature requirements will not be barriers to electronic transactions. It insures that contracts and transactions are not denied enforcement because electronic media are used, and that courts accept electronic records into evidence. It avoids having the selection of "paper vs. electronic" govern the outcome of any disputes or disagreements, and it assures that parties have the freedom to select the medium for their transactions by agreement.

UETA also authorizes state governmental entities to create, communicate, receive and store records electronically, and encourages state governmental entities to move to electronic media.

UETA puts electronic commerce and paper-based commerce on the same legal footing, and does not discriminate between different forms of technology.