HOUSE BILL No. 4406 March 10, 1999, Introduced by Rep. Mortimer and referred to the Committee on Insurance and Financial Services. A bill to authorize the transmission, receipt, and storage of information and signatures by electronic means. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 1. As used in this act: 2 (a) "Electronic" means the use of electrical, digital, mag- 3 netic, optical, electromagnetic, or any other similar form of 4 technological means for the transmission of data. 5 (b) "Electronic record" means a digital representation of 6 data or information generated, communicated, received, or stored 7 by electronic means for use in an information system or for 8 transmission from 1 information system to another. 9 (c) "Electronic signature" means an electronic identifier 10 whose use is intended by the person using it to have the same 11 force and effect as the use of a manual signature and containing 12 all of the following characteristics: 02135'99 SAT 2 1 (i) It is unique to the person using it. 2 (ii) It is capable of verification. 3 (iii) It is under the sole control of the person using it. 4 (d) "Record" means information that is inscribed, stored, or 5 otherwise fixed on a tangible medium or that is stored in an 6 electronic or other medium and is retrievable in perceivable 7 form. 8 Sec. 2. Except as provided under section 3, if all parties 9 to a private transaction or in dealings with a governmental 10 entity agree to the use of an electronic record or an electronic 11 signature, all of the following apply: 12 (a) Information, records, and electronic signatures shall 13 have legal effect, validity, and enforceability. 14 (b) If a statute or other law requires a "written" signa- 15 ture, an electronic signature shall have the same force and 16 effect as the use of a manual signature. 17 (c) If a statute or other law requires information to be 18 "written", that statute or other law shall be satisfied by an 19 electronic record. 20 (d) If a statute or other law requires information to be 21 presented or retained in its original form, that statute or other 22 law shall be satisfied by an electronic record if there exists 23 reliable assurance as to the integrity of the data or the infor- 24 mation from the time when it was first generated to its final 25 form. 26 Sec. 3. (1) This act does not apply to any of the 27 following: 02135'99 3 1 (a) A situation in which the application of this act would 2 be inconsistent with the express intent of the parties to a writ- 3 ten document. 4 (b) A legal requirement governing the creation or execution 5 of a document that serves to convey rights and obligations under 6 a will or trust. 7 (c) A legal requirement governing the conveyance of an 8 interest in real property. 9 (d) A legal requirement governing the creation or transfer 10 of a negotiable instrument or any instrument establishing title 11 or an interest in title. 12 (2) This act shall not be construed to do any of the 13 following: 14 (a) Require a recipient or any other person asked to rely on 15 an electronic record or an electronic signature to accept the 16 electronic record or electronic signature or to respond to or act 17 upon an electronic record or electronic signature, unless the 18 parties have voluntarily agreed to the use of an electronic 19 record or electronic signature prior to transmission. 20 (b) Preclude the recipient of an electronic record or an 21 electronic signature from establishing the conditions under which 22 the recipient will accept the electronic record or electronic 23 signature, unless the parties have voluntarily agreed to the con- 24 ditions under which the recipient would accept the electronic 25 record or electronic signature prior to transmission. 26 (c) Require a governmental entity to accept an electronic 27 record or electronic signature, unless the entity or agency has 02135'99 4 1 agreed to accept the electronic record or electronic signature in 2 advance of transmission and the manner and medium of transmission 3 is acceptable to the governmental entity. 02135'99 Final page. SAT