Colorado Legislative Council Staff

STATE and LOCAL

CONDITIONAL FISCAL IMPACT

TITLE:            CONCERNING ELECTRONIC TRANSACTIONS.

Summary of Legislation

            This bill establishes the "Government Electronic Transactions Act" to clarify the legal status of electronic records and electronic signatures in the context of writing and signing requirements imposed by law upon public entities. The provisions of the bill do not require public entities to use or permit the use of electronic records or signatures, but are to be considered supplemental to any state law authorizing public entities to use electronic records. Any local public entity is authorized to utilize the provisions of the bill upon approval of the local public entity's governing body.

            The bill establishes the legal validity of an electronic record and signature. The bill specifies the governmental bodies responsible for promulgating rules for electronic signatures to be used by state agencies, local public entities, and the state judicial system. The bill establishes the validity of electronic records and signatures with regard to admissibility into evidence, originals, and records retention.

            The bill requires the Department of Personnel to adopt rules, standards, and policies for the use of electronic records and signatures by public entities. Each state agency is to ensure compliance with the rules, however, the Executive Director of the Department of Personnel is not authorized to approve or disapprove any proposed use of electronic records by another state agency. The bill authorizes the Supreme Court to adopt rules that are necessary to implement the Act. The bill requires the governing body of any local public entity that elects to use electronic signatures to adopt rules and policies for its own use, or allows the use of the rules adopted by the department.

            The bill amends provisions of House Bill 99-1079 regarding electronic signatures, and makes conforming amendments to other related statutes.

State Expenditures

            This bill requires the Department of Personnel to adopt rules, standards, and policies for the used of electronic records and signatures by public entities. The department may incur additional legal services costs to adopt rules, standards, and policies. However, those costs are anticipated to be minimal and will be absorbed within existing resources.

            The bill authorizes the state Supreme Court to adopt rules necessary to implement the Article. This fiscal note assumes if the Supreme Court elects to adopt rules, any associated costs are anticipated to be minimal and will be absorbed within existing resources.

            The bill requires state agencies to comply with the provisions of the bill, the rules adopted by the Department of Personnel, and the rules adopted by the state Supreme Court. Some state agencies currently utilize electronic records and signatures for certain documents that are filed electronically. These agencies have developed procedures based upon current industry standards for electronic filing. In the event the rules adopted by the Department of Personnel or the Supreme Court require any agencies to revise electronic filing procedures, the affected agencies may incur additional operating costs and/or may realize operating efficiencies. The amount of any cost increases or decreases cannot be estimated until rules and standards have been developed. This fiscal note assumes any affected agencies will identify any resulting impact to budgeted resource requirements at that time.

Local Government Impact

            The bill requires any local public entity that authorizes the use of electronic signatures to adopt rules, standards, and policies, or to follow the rules adopted by the Department of Personnel. Local public entities may incur additional operating costs to adopt those rules, and may incur additional operating costs and/or realize operating efficiencies once those rules are implemented.

State Appropriations

            This bill will require no new state appropriations for FY 1999-2000.

Departments Contacted

            All departments