Reversing Itself, House Passes Electronic Signature Act

The U.S House of Representatives reversed itself Tuesday and passed the Electronic Signatures in Global and National Commerce Act by a vote of 356 to 66.

Nine days ago, the measure, sponsored by Rep. Thomas Bliley was defeated in the House by a vote of 234-122, with 77 abstentions, after a debate that generally followed party lines. The House reconsidered the bill at the urging of Bliley.

The act now goes to the Senate, which is considering similar legislation, the Millennium Digital Commerce Act, sponsored by Sen. Abraham Spencer (R-MI).

Both measures would give an electronic signature–in both interstate and international commerce–the same legal status as one written on paper.

Bliley’s bill would establish the first federal standards for online signatures, defined in the bill as “information or data in electronic form, attached to or logically associated with an electronic record and executed or adopted by a person or an electronic agent of a person, with the intent to sign a contract, agreement or record” that is electronically created, stored, generated, received or communicated by electronic means.

The House approval drew immediate praise from the Direct Marketing Association, the Consumer Bankers Association and the Information Technology Association of America (ITAA).

Richard A. Barton, the DMA’s senior vice president of Congressional matters said the measure would make “it easier and safer” for consumers to make purchases from catalogers and other direct marketers over the Internet.

The CBA said in a statement that the bill “will make electronic commerce more secure, reliable and efficient for consumers and businesses alike….providing consumers with access to a broader array of products and services that can be delivered more efficiently.”

The ITAA, urging the Senate to “pass a bill that complements” Bliley’s measure, is “pleased to see that federal legislation is catching up with the realities of the global e-business marketplace,” Harris N. Miller, its president, said in a statement.