REPORT TITLE:
Electronic Commerce


DESCRIPTION:
Clarifies the legal status of electronic records and electronic
signatures in the context of contract formation. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2041
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO ELECTRONIC COMMERCE. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The Hawaii Revised Statutes is amended by adding
 
 2 a new chapter to be appropriately designated and to read as
 
 3 follows:
 
 4                             "CHAPTER
 
 5                       DIGITAL COMMERCE ACT 
 
 6 
 
 7      §  -1  Title.  This chapter shall be known and may be cited
 
 8 as the Digital Commerce Act.
 
 9      §  -2  Definitions.  As used in this chapter:
 
10      "Electronic" means relating to technology having electrical,
 
11 digital, magnetic, wireless, optical, electromagnetic, or similar
 
12 capabilities.
 
13      "Electronic agent" means a computer program or an electronic
 
14 or other automated means used to initiate an action or respond to
 
15 electronic records or performances in whole or in part without
 
16 review by an individual at the time of the action or response.
 
17      "Electronic record" means a record created, generated, sent,
 
18 communicated, received, or stored by electronic means.
 
19      "Electronic signature" means an electronic sound, symbol, or
 

 
Page 2                                                     
                                     S.B. NO.           2041
                                                        
                                                        

 
 1 process attached to or logically associated with a record and
 
 2 executed or adopted by a person with the intent to sign the
 
 3 record. 
 
 4      "Governmental agency" means an executive, legislative, or
 
 5 judicial agency, department, board, commission, authority, or
 
 6 institution of the federal government or of a state or of any
 
 7 county, municipality, or other political subdivision of a state. 
 
 8      "Record" means information that is inscribed on a tangible
 
 9 medium or that is stored in an electronic or other medium and is
 
10 retrievable in perceivable form.
 
11      "Transaction" means an action or set of actions relating to
 
12 the conduct of commerce, between two or more persons, neither of
 
13 which is the United States government, a state, or an agency,
 
14 department, board, commission, authority, or institution of the
 
15 United States government or of a state.
 
16      §  -3  Interstate contract certainty; methods; presentation
 
17 of contracts; exclusions.(a)  In any commercial transaction
 
18 affecting interstate commerce, a contract may not be denied legal
 
19 effect or enforceability solely because an electronic signature
 
20 or electronic record was used in its formation.
 
21      (b)  Parties to a transaction are permitted to determine the
 
22 appropriate electronic signature technologies for their
 
23 transaction and the means of implementing these technologies. 
 

 
Page 3                                                     
                                     S.B. NO.           2041
                                                        
                                                        

 
 1      (c)  Notwithstanding subsection (a), if a law requires that
 
 2 a contract be in writing, the legal effect or enforceability of
 
 3 an electronic record of the contract shall be denied under the
 
 4 law, unless it is delivered to all parties to the contract in a
 
 5 form that can be:
 
 6      (1)  Retained by the parties for later reference; and
 
 7      (2)  Used to prove the terms of the agreement. 
 
 8      (d)  This section shall not apply to a statute, regulation,
 
 9 or other rule of law governing any of the following:
 
10      (1)  The Uniform Commercial Code, chapter 490, other than
 
11           sections 490:1-107 and 490:1-206, and Article 2 and
 
12           Article 2A of chapter 490;
 
13      (2)  Premarital agreements, marriage, adoption, divorce, or
 
14           other matters of family law;
 
15      (3)  Documents of title that are filed of record with a
 
16           governmental unit;
 
17      (4)  Residential landlord-tenant relationships; or
 
18      (5)  The Uniform Health-Care Decisions Act (Modified),
 
19           chapter 327E.
 
20      (e)  A contract relating to a commercial transaction
 
21 affecting interstate commerce may not be denied legal effect or
 
22 enforceability solely because its formation involved the
 
23 interaction of:
 

 
Page 4                                                     
                                     S.B. NO.           2041
                                                        
                                                        

 
 1      (1)  Electronic agents of the parties; or
 
 2      (2)  An electronic agent of a party and an individual who
 
 3           acts on that individual's own behalf or as an agent for
 
 4           another person.
 
 5      (f)  It is the specific intent of the legislature that this
 
 6 section apply to the business of insurance."                     
 
 7      SECTION 2.  This Act shall take effect upon its approval.
 
 8 
 
 9                           INTRODUCED BY:  _______________________