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

ABA APPROVES TWO UNIFORM ACTS
New Electronic Transactions Act Among Acts Approved

February 16, 2000 - A new uniform state law dealing with electronic signatures was one of two uniform acts approved by the American Bar Association's House of Delegates at its midyear meeting in Dallas, Texas, February 9-15. The Uniform Electronic Transactions Act (UETA), drafted by the National Conference of Commissioners on Uniform State Laws (NCCUSL), 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 removes perceived barriers to electronic commerce and supports the development of the information economy, the fastest growing segment of the U.S. economy. UETA has already been adopted in California and Pennsylvania, and is currently pending in the legislatures of 18 other states.

"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.

The ABA House of Delegates also voted to endorse the Uniform Disclaimer of Property Interests Act. A disclaimer, in the context of this legislation, is a refusal to accept property. The planning for individual estates, including increases in real estate values, insurance benefits, retirement plans, living trusts benefits, and benefits from others, have required the expansion of the existing disclaimers laws. This new act is a powerful estate planning tool that will help cope with gaps in existing estate plans beyond the traditional settings.
The Uniform Electronic Transactions Act and the Uniform Disclaimer of Property Interests Act were both approved by the National Conference of Commissioners on Uniform State Laws at its 108th Annual Meeting in July 1999. The ABA is customarily asked to endorse uniform acts promulgated by the NCCUSL.