Tag Archives: UETA

Post-Session Follow-up on the Uniform Electronic Transactions Act

Back on 02/15/2011, we informed readers about S.B. 55 that would have amended the Uniform Electronic Transactions Act (UETA).  S.B. 55 failed to pass.

H.B. 235, Technology Technical Amendments, removed a reference to the defunct Utah Technology Commission at Subsection 46-4-501(2).

Taking into account the changes made by H.B. 235, UETA Section 46-4-501 provides:

(1) A state governmental agency may, by following the procedures and requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules that:
(a) identify specific transactions that the agency is willing to conduct by electronic means;
(b) identify specific transactions that the agency will never conduct by electronic means;
(c) specify the manner and format in which electronic records must be created, generated, sent, communicated, received, and stored, and the systems established for those purposes;
(d) if law or rule requires that the electronic records must be signed by electronic means, specify the type of electronic signature required, the manner and format in which the electronic signature must be affixed to the electronic record, and the identity of, or criteria that must be met, by any third party used by a person filing a document to facilitate the process;
(e) specify control processes and procedures as appropriate to ensure adequate preservation, disposition, integrity, security, confidentiality, and auditability of electronic records; and
(f) identify any other required attributes for electronic records that are specified for corresponding nonelectronic records or that are reasonably necessary under the circumstances.
(2) A state governmental agency that makes rules under this section shall submit copies of those rules, and any amendments to those rules, to the chief information officer established by Section 63F-1-201.

Agencies should refer questions about UETA to their counsel in the Attorney General’s Office.

See also “Uniform Electronic Transaction Act and Rulemaking” at http://www.rules.utah.gov/rulesnews/?p=870.

S.B. 55 Will Require Rulemaking for Electronic Signatures

As amended, S.B. 55, Electronic Signatures, beginning on line 39, provides:

state governmental agency may not accept an electronic signature unless the state governmental agency makes a rule, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, identifying: (i) the type of documents, transactions, or other filings that will be accepted with an electronic signature affixed; and (ii) the manner and format in which the electronic signature must be affixed to the document, transaction, or other filing.

This language changes the presumption that exists in the current law which the Utah Supreme Court described as follows:

The language of section 46-4-501(1) plainly permits governmental agencies to dictate what transactions they are willing to conduct through electronic means and what transactions they are unwilling to do via electronic means. Id. § 46-4-501(1)(a) & (b).  But this subsection also requires the state agency to make this determination through the rulemaking procedures required by Title 63G. (2010 UT 47, ¶21; Emphasis added)

The Division of Administrative Rules encourages state agencies to review S.B. 55, as amended, with counsel.  More information about S.B. 55 is available from the Legislature’s web site at http://le.utah.gov/~2011/htmdoc/sbillhtm/SB0055.htm .

Uniform Electronic Transactions Act and Rulemaking

On 06/22/2010, the Utah Supreme Court reminded state agencies about the rulemaking requirements found in Section 46-4-501.  In Anderson v. Bell, the Court said:

The rulemaking requirement is critical; the statute does not authorize government agencies to make informal decisions on what type of transactions cannot be supported by electronic signatures outside of the rulemaking process of Title 63G.

Anderson v. Bell, 2010 UT 47, ¶ 23.

For more information, the Anderson case is available online at http://www.utcourts.gov/opinions/supopin/Anderson7062210.pdf.  The Uniform Electronic Transactions Act is available online at http://le.utah.gov/UtahCode/section.jsp?code=46-4.