U.S. Sens. Todd Young (R-IN), John Thune (R-SD), Marsha Blackburn (R-TN), and Jerry Moran (R-KS) on March 1 offered legislation that would streamline how consumers consent to receiving electronic documents, such as contracts, bank statements and account information.
The senators, who serve on the U.S. Senate Commerce, Science, and Transportation Committee, which has jurisdiction over technology and consumer protection, introduced the Electronic Signatures in Global and National Commerce (E-SIGN) Modernization Act of 2022, S. 3715. Sen. Thune sponsored the bill while his colleagues signed on as original cosponsors.
“Computers, smartphones and other devices are more reliable and accessible than ever before,” Sen. Thune said on Tuesday. “As technology continues to advance and transform, so too should the laws that govern it.”
The legislation will ensure “necessary updates to E-SIGN that reflect those advancements in technology, while, at the same time, retaining important protections for consumers that are currently in place,” added Sen. Thune.
To accommodate emerging technologies, S. 3715 would amend the Electronic Signatures in Global and National Commerce Act, which became law in 2000 to validate the use of electronic signatures and electronic documents in transactions involved in interstate or foreign commerce.
The law currently requires consumers to reasonably demonstrate that they can access documents electronically before they may receive them electronically, an action the lawmakers consider outdated given advancements in technology since E-SIGN became law, according to information provided by their offices.
If enacted, S. 3715 would remove that requirement so that once a consumer is provided with disclosure information and consents to receiving documents electronically, he or she may obtain them through those means, the information says.
“It’s time we bring our banking systems to the 21st century by allowing more people to access their bank information from a computer or other electronic device,” said Sen. Young. “Our E-SIGN Modernization Act will help Hoosiers easily access their finances electronically as they look for critical documents and bank statements.”
The American Bankers Association, Independent Community Bankers of America, and the Credit Union National Association support the bill.