Transcript: Clinton on Signing Electronic Signatures Act

(Says new law will spur growth of e-commerce) (1460)







President Clinton has signed into law legislation that makes

electronic signatures legally binding.





The Electronic Signatures in Global and National Commerce Act will

spur the growth of the new, Internet-based economy, Clinton said at

the signing ceremony in Philadelphia June 30.





"Companies will have the legal certainty they need to invest and

expand in electronic commerce. They will be able not only to purchase

products and services, but to contract to do so. And they could

potentially save billions of dollars by sending and retaining monthly

statements and other records in electronic form," Clinton said moments

before he signed the bill with a swipe of a magnetic card containing

his digital identification.





Previous laws required pen and ink signatures on paper contracts to

make them enforceable. The time needed to transmit paper contracts

through the mail has slowed the speed of business transactions in the

Internet-based economy.





Clinton said electronic signatures will give consumers the same legal

protections provided by paper and ink signatures.





"Consumers will be able to choose whether to do business and receive

records on paper or on-line. They will have the power to decide if

they want to receive notice and disclosures electronically," Clinton

said. "It will be the company's responsibility to ensure that the data

it sends to a consumer can be read on that consumer's computer -- no

more e-mail attachments with gibberish inside."





Congress passed the electronic signatures legislation with

overwhelming majorities.





Following is a transcript of the president's remarks: 







(begin transcript)







June 30, 2000







REMARKS BY THE PRESIDENT AT SIGNING OF ELECTRONIC SIGNATURES IN GLOBAL

AND NATIONAL COMMERCE ACT





THE WHITE HOUSE



June 30, 2000







REMARKS BY THE PRESIDENT AT SIGNING OF ELECTRONIC SIGNATURES IN GLOBAL

AND NATIONAL COMMERCE ACT





Congress Hall Independence National Historical Park



Philadelphia, Pennsylvania







THE PRESIDENT: I would like to begin by acknowledging the presence

here of Congressman Joe Hoeffel from Pennsylvania. He represents the

district adjoining Philadelphia, and I thank you, Joe. (Applause.) And

Martha Akins, the Superintendent of the Independence National Historic

Park, where we are -- thank you, Martha. (Applause.)





To all the other Park Service employees -- that's one of the few

federal jobs that I haven't held that I'd like to hold. (Laughter.)

And I'd also like to say a special word of appreciation to Dave

Barram, the Administrator of the General Services Administration that

manages our federal buildings and has also played a critical role in

putting so much of the federal government on-line. Thank you, Dave.

(Applause.) He took a modest pay cut to leave Silicon Valley to work

for me several years ago, and I'm very grateful.





Two hundred and thirteen years ago, about 100 feet from where we are

now, in a summer as hot as this one, the Founding Fathers drafted the

Constitution of the United States. In the very first article of that

document, they wrote that, government shall make no laws, "impairing

the obligation of contracts." James Madison called the contract clause

-- and I quote again -- "a constitutional bulwark in favor of personal

security and private rights." He and his fellow framers understood

that the right of individuals to enter into commercial contracts was

fundamental not just for economic growth, but for the preservation of

liberty itself.





Just a few moments ago I had the privilege of signing into law

legislation that carries the spirit of the Founders' wisdom into the

Information Age. The Electronic Signatures in Global and National

Commerce Act will open up new frontiers of economic opportunity while

protecting the rights of American consumers. The new law will give

fresh momentum to what is already the longest economic expansion in

our history, an expansion driven largely by the phenomenal growth in

information technologies -- particularly the Internet.





Firms across America are moving their supply and sales channels

on-line, improving customer service and reducing costs. The resulting

productivity gains are rippling throughout our economy, helping wages

to rise, businesses to start, jobs to be created without causing

inflation. And individuals are not just buying and selling on-line,

they're gaining information that is empowering them as consumers and

as citizens.





Perhaps no invention since the railroad has had such potential to

expand our opportunities and broaden our horizons -- I would argue,

more profound potential. But that potential is now being held back by

old laws that were written, ironically, to protect the sanctity of

contracts. Laws that require pen and ink signatures on paper contracts

for them to be enforceable.





In order to unleash the full potential of the digital economy, Vice

President Gore and I unveiled, three years ago, our Framework for

Global Electronic Commerce. In that document, we set out the

principles we believe should shape the rules governing electronic

conflicts. We said that the rules should be simple and nonregulatory,

that they should not favor one technology over another, and they

should give individuals and organizations maximum freedom to form

electronic contracts as they see fit.





I'm grateful that Congress has kept those principles in mind as it

drafted the Electronic Signatures Act. Under this landmark legislation

-- which I want to point out, passed by overwhelming majorities of

both parties in both Houses, and I compliment both the Republicans and

the Democrats for their support of this -- on-line contracts will now

have the same legal force as equivalent paper contracts. Companies

will have the legal certainty they need to invest and expand in

electronic commerce. They will be able not only to purchase products

and services, but to contract to do so. And they could potentially

save billions of dollars by sending and retaining monthly statements

and other records in electronic form.





Eventually, vast warehouses of paper will be replaced by servers about

the size of VCRs. Customers will soon enjoy a whole new universe of

on-line services. With the swipe of a smart card and the click of a

mouse, they will be able to finalize mortgages, sign insurance

contracts, or open brokerage accounts.





Just as importantly, the law affords consumers who contract on-line

the very same kind of protections and records, such as financial

disclosures, they currently receive when they sign paper contracts.

Consumers will be able to choose whether to do business and receive

records on paper or on-line. They will have the power to decide if

they want to receive notice and disclosures electronically. It will be

the company's responsibility to ensure that the data it sends to a

consumer can be read on that consumer's computer -- no more e-mail

attachments with gibberish inside.





Finally, government agencies will have the authority to enforce the

laws, protect the public interest, and carry out their missions in the

electronic world.





For eight years now, I have worked to set forth a new vision of

government and politics that marries our most enduring values to the

demands of the new Information Age. In many ways, the Electronic

Signatures Act exemplifies that vision. It shows what we in Washington

can accomplish when we put progress above partisanship, when we reach

across party lines to work for the American people and our common

future.





I want to congratulate the many organizations and again, the lawmakers

in both parties, and the members of our administration who worked so

hard to get this bill passed, and offer a special thanks to Vice

President Gore who long ago had the vision to understand the potential

of this technology, and who has led our administration's efforts to

harness that potential to benefit all Americans.





Now, let me see if this works. Now, we have to wait a while while the

act comes up and the magic has worked. It's amazing to think that

Americans will soon be using cards like this one for everything from

hiring a lawyer to closing a mortgage. Just imagine if this had

existed 224 years ago, the Founding Fathers wouldn't have had to come

all the way to Philadelphia on July 4th for the Declaration of

Independence. They could have e-mailed their John Hancocks in.





(The act is signed.) (Applause.)







Well, it works, and it will work for you. And all of you young people

will someday look back on this day that you were here and marvel that

we thought it was any big deal. (Laughter.) And that will be the

ultimate test of success. I wish you well, I hope we've done a good

job of preparing your future. Happy 4th of July weekend. Thank you

very much. (Applause.)





(end transcript)







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