2000 -- H 7344

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LC02227
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S  T  A  T  E     O  F     R  H  O  D  E     I  S  L  A  N  D    

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2000

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A  N     A   C   T

RELATING TO COMMERCIAL LAW -- ELECTRONIC COMMERCE SECURITY ACT

Introduced By:  Representatives Kennedy, Naughton, Henseler, Barr and Coderre Date Introduced:  February 3, 2000 Referred To:  Committee on Judiciary

It is enacted by the General Assembly as follows:

SECTION 1. Title 6 of the General Laws entitled "Commercial Law - General Regulatory Provisions" is hereby amended by adding thereto the following chapter:

CHAPTER 48
THE RHODE ISLAND ELECTRONIC COMMERCE SECURITY ACT

6-48-1. Short title. -- This chapter shall be known and may be cited as the Rhode Island Electronic Commerce Security Act of 2000.

6-48-2. Definitions. - When used in this chapter:

(1) "Electronic" means without limitation, analog, digital, electronic, magnetic, mechanical, optical, chemical, electromagnetic, electromechanical, electrochemical, or other similar means;

(2) "Electronic record" means information created, transmitted, received, or stored by electronic means and retrievable in human perceivable form;

(3) "Electronic signature" means a signature created, transmitted, received, or stored by electronic means and includes but is not limited to a secure electronic signature;

(4) "Person" means a natural person, corporation, trust, partnership, incorporated or unincorporated association, or any other legal entity, and also includes any department, agency, authority, or instrumentality of the state or its political subdivisions;

(5) "Record" means information created, transmitted, received, or stored either in human perceivable form or in a form that is retrievable in human perceivable form;

(6) "Secure electronic signature" means an electronic or digital method executed or adopted by a party with the intent to be bound by or to authenticate a record, which is unique to the person using it, is capable of verification, is under the sole control of the person using it, and is linked to data in such a manner that if the data are changed the electronic signature is invalidated;

(7) "Signature" means any symbol or method that a person causes to be attached to or logically associated with a record with the intent to sign such record.

6-48-3. Purpose - Rules of construction. - (a) Records and signatures shall not be denied legal effect or validity solely on the grounds that they are electronic.

(b) In any legal proceeding, an electronic record or electronic signature shall not be inadmissible as evidence solely on the basis that it is electronic.

(c) When a rule of law requires a writing, an electronic record satisfies that rule of law.

(d) When a rule of law requires a signature, an electronic signature satisfies that rule of law.

(e) When a rule of law requires an original record or signature, an electronic record or electronic signature shall satisfy such rule of law.

(f) Nothing in this section shall prevent a party from contesting an electronic record or signature on the basis of fraud.

(g) Nothing in this section shall relieve any party to a legal proceeding from complying with applicable rules of evidence requiring authentication or identification of a record or signature as a condition precedent to its admission into evidence.

(h) Notwithstanding the preceding subsections of this section, the legal validity, effect, and admissibility of electronic records and electronic signature shall be limited as follows:

(1) Each department, agency, authority or instrumentality of the state or its political subdivisions shall determine how and the extent to which it will create, send, receive, store, recognize, accept, be bound by, or otherwise use electronic records or electronic signatures. Nothing in this chapter shall be construed to require any department, agency, authority, or instrumentality of the state or its political subdivisions to create, send, receive, store, recognize, accept, be bound by, or otherwise use electronic records or electronic signatures; and

(2) A consumer shall not be required to create, send, receive, recognize, accept, be bound by, or otherwise use electronic records or electronic signatures without such consumer's consent, either electronically or otherwise. This paragraph shall apply to natural persons when engaged in transactions involving money, property, or services primarily used for household purposes.

(i) Any rule of law which requires a notary shall be deemed satisfied by the secure electronic signature of such notary.

SECTION 2. This act shall take effect upon passage.

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LC02227
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF

A  N     A   C   T

RELATING TO COMMERCIAL LAW -- ELECTRONIC COMMERCE SECURITY ACT

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This act would address the legal sufficiency and admissibility of electronic records.

This act would take effect upon passage.


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