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PAG LIN 1 1 Section 1. NEW SECTION. 554D.101 SHORT TITLE. 1 2 This chapter shall be known and may be cited as the 1 3 "Uniform Electronic Transactions Act". 1 4 Sec. 2. NEW SECTION. 554D.102 LEGISLATIVE INTENT. 1 5 It is the intent of the general assembly in enacting this 1 6 chapter to effectuate all of the following purposes: 1 7 1. Facilitate electronic communications by means of 1 8 reliable electronic records. 1 9 2. Facilitate and promote electronic commerce, by 1 10 eliminating barriers resulting from uncertainties over writing 1 11 and signature requirements, and promote the development of the 1 12 legal and business infrastructure necessary to implement 1 13 secure electronic commerce. 1 14 3. Facilitate electronic filing of documents with state 1 15 and local government agencies and promote efficient delivery 1 16 of government services by means of reliable electronic 1 17 records. 1 18 4. Minimize the incidence of forged electronic records, 1 19 intentional and unintentional alteration of records, and fraud 1 20 in electronic commerce. 1 21 5. Promote public confidence in the integrity, 1 22 reliability, and legality of electronic records and electronic 1 23 commerce. 1 24 Sec. 3. NEW SECTION. 554D.103 DEFINITIONS. 1 25 As used in this chapter, unless the context otherwise 1 26 requires: 1 27 1. "Agreement" means the bargain of the parties in fact, 1 28 as found in their language or inferred from other 1 29 circumstances and from rules, regulations, and procedures 1 30 given the effect of agreements under laws otherwise applicable 1 31 to a particular transaction. 1 32 2. "Automated transaction" means a transaction conducted 1 33 or performed, in whole or in part, by electronic means or 1 34 electronic records, in which the acts or records of one or 1 35 both parties are not reviewed by an individual in the ordinary 2 1 course of forming a contract, performing under an existing 2 2 contract, or fulfilling an obligation required by the 2 3 transaction. 2 4 3. "Computer program" means a set of statements or 2 5 instructions to be used directly or indirectly in an 2 6 information processing system in order to bring about a 2 7 certain result. 2 8 4. "Consumer" means an individual engaged in a transaction 2 9 for personal, family, or household purposes. 2 10 5. "Consumer transaction" means a transaction by an 2 11 individual for personal, family, or household use. 2 12 6. "Contract" means the total legal obligation resulting 2 13 from the parties' agreement as affected by this chapter and 2 14 other applicable law. 2 15 7. "Digital signature" means a type of electronic 2 16 signature consisting of a transformation of electronic record 2 17 using a message digest function that is encrypted with an 2 18 asymmetric cryptosystem using the signer's private key in a 2 19 manner providing that any person having the initial 2 20 untransformed electronic record, the encrypted transformation, 2 21 and the signer's public key may accurately determine all of 2 22 the following: 2 23 a. Whether the transformation was created using the 2 24 private key that corresponds to the signer's public key. 2 25 b. Whether the initial electronic record has been altered 2 26 since the transformation was made. 2 27 8. "Electronic" means relating to technology having 2 28 electrical, digital, magnetic, wireless, optical, 2 29 electromagnetic, or similar capabilities. 2 30 9. "Electronic agent" means a computer program or an 2 31 electronic or other automated means used independently to 2 32 initiate an action or respond to electronic records or 2 33 performances in whole or in part, without review or action by 2 34 an individual. 2 35 10. "Electronic record" means a record created, generated, 3 1 sent, communicated, received, or stored by electronic means. 3 2 11. "Electronic signature" means an electronic sound, 3 3 symbol, or process attached to or logically associated with a 3 4 record and executed or adopted by a person with the intent to 3 5 sign the record. 3 6 12. "Governmental agency" means an executive, legislative, 3 7 or judicial agency, department, board, commission, authority, 3 8 institution, or instrumentality of the federal government or 3 9 of a state or of a county, municipality, or other political 3 10 subdivision of a state. 3 11 13. "Information" means data, text, images, sounds, codes, 3 12 computer programs, software, databases, or the like. 3 13 14. "Information processing system" means an electronic 3 14 system for creating, generating, sending, receiving, storing, 3 15 displaying, or processing information. 3 16 15. "Person" means an individual, corporation, business 3 17 trust, estate, trust, partnership, limited liability company, 3 18 association, joint venture, governmental agency, public 3 19 corporation, or any other legal or commercial entity. 3 20 16. "Record" means information that is inscribed on a 3 21 tangible medium or that is stored in an electronic or other 3 22 medium and is retrievable in perceivable form. 3 23 17. "Security procedure" means a procedure employed for 3 24 the purpose of verifying that an electronic signature, record, 3 25 or performance is that of a specific person or for detecting 3 26 changes or errors in the information in an electronic record. 3 27 "Security procedure" includes a procedure that requires the 3 28 use of algorithms or other codes, identifying words or 3 29 numbers, encryption, or callback or other acknowledgment 3 30 procedures, and includes digital signature technology. 3 31 18. "State" means a state of the United States, the 3 32 District of Columbia, Puerto Rico, the United States Virgin 3 33 Islands, or any territory or insular possession subject to the 3 34 jurisdiction of the United States. "State" includes an Indian 3 35 tribe or band, or Alaskan native village, which is recognized 4 1 by federal law or formally acknowledged by a state. 4 2 19. "Transaction" means an action or set of actions 4 3 occurring between two or more persons relating to the conduct 4 4 of business, consumer, commercial, or governmental affairs. 4 5 Sec. 4. NEW SECTION. 554D.104 SCOPE. 4 6 1. Except as provided in subsection 2, this chapter 4 7 applies to electronic records and electronic signatures 4 8 relating to a transaction. 4 9 2. a. (1) This chapter does not apply to the following: 4 10 (a) An application which would involve construction of a 4 11 rule of law that is clearly inconsistent with the manifest 4 12 intent of the body imposing the requirement or repugnant to 4 13 the context of the same rule of law. However, the mere 4 14 requirement that information be in writing, written, or 4 15 printed shall not by itself be sufficient to establish an 4 16 intent which is inconsistent with the requirement of this 4 17 section. 4 18 (b) With respect to a consumer transaction, a record that 4 19 serves as a unique and transferable physical expression of 4 20 rights and obligations including, without limitation, 4 21 negotiable instruments and other instruments of title where 4 22 possession of the instrument is deemed to confer title. 4 23 (c) An electronic transaction initiated at a satellite 4 24 terminal, as defined in section 527.2, or the processing and 4 25 routing of transaction data by a central routing unit or a 4 26 data processing center, each as defined in section 527.2. 4 27 (2) Except as provided under paragraph "b", this chapter 4 28 does not apply to a transaction to the extent it is governed 4 29 by any of the following: 4 30 (a) A disclosure requirement associated with a consumer 4 31 transaction, including, but not limited to, such disclosures 4 32 required under chapter 13C, sections 321.69 and 321.71, 4 33 chapters 516D, 523A, 523B, 523E, 523G, 533D, 537, 537B, 538A, 4 34 552, 552A, 555A, 557A, 557B, 558A, 562A, and 562B, section 4 35 714.16, and chapters 714B and 714D, or an administrative rule 5 1 adopted pursuant to such sections or chapters. 5 2 (b) A rule of law governing the creation or execution of a 5 3 will or trust, living will, a general, durable, or healthcare 5 4 power of attorney, or a voluntary, involuntary, or standby 5 5 guardianship or conservatorship. 5 6 (c) Chapter 554 other than articles 2 and 13 and sections 5 7 554.1107 and 554.1206. 5 8 b. This chapter applies to an electronic record or 5 9 electronic signature otherwise excluded from the application 5 10 of this chapter under paragraph "a" to the extent it is 5 11 governed by a law other than those specified in paragraph "a", 5 12 subparagraph (2). 5 13 3. A transaction subject to this chapter is also subject 5 14 to other applicable substantive law. 5 15 4. A choice of law provision, which is contained in a 5 16 computer information agreement that governs a transaction 5 17 subject to this chapter, that provides that the contract is to 5 18 be interpreted pursuant to the laws of a state that has 5 19 enacted the uniform computer information transactions Act, as 5 20 proposed by the national conference of commissioners on 5 21 uniform state laws, or any substantially similar law, is 5 22 voidable and the agreement shall be interpreted pursuant to 5 23 the laws of this state if the party against whom enforcement 5 24 of the choice of law provision is sought is a resident of this 5 25 state or has its principal place of business located in this 5 26 state. For purposes of this subsection, a "computer 5 27 information agreement" means an agreement that would be 5 28 governed by the uniform computer information transactions Act 5 29 or substantially similar law as enacted in the state specified 5 30 in the choice of laws provision if that state's law were 5 31 applied to the agreement. 5 32 Sec. 5. NEW SECTION. 554D.105 PROSPECTIVE APPLICATION. 5 33 This chapter applies to an electronic record or electronic 5 34 signature created, generated, sent, communicated, received, or 5 35 stored on or after the effective date of this Act. 6 1 Sec. 6. NEW SECTION. 554D.106 USE OF ELECTRONIC RECORDS 6 2 AND ELECTRONIC SIGNATURES – VARIATION BY AGREEMENT. 6 3 1. This chapter does not require a record or signature to 6 4 be created, generated, sent, communicated, received, stored, 6 5 or otherwise processed or used by electronic means or in 6 6 electronic form. 6 7 2. This chapter applies only to transactions between 6 8 parties each of which has agreed to conduct transactions by 6 9 electronic means. Whether the parties agree to conduct a 6 10 transaction by electronic means is determined from the context 6 11 and surrounding circumstances, including the parties' conduct. 6 12 3. A party who agrees to conduct a transaction by 6 13 electronic means may refuse to conduct other transactions by 6 14 electronic means. The right granted by this subsection may 6 15 not be waived by agreement. 6 16 4. Except as otherwise provided in this chapter, the 6 17 effect of any of its provisions may be varied by agreement. 6 18 The presence in certain provisions of this chapter of the 6 19 words "unless otherwise agreed", or words of similar import, 6 20 does not imply that the effect of other provisions may not be 6 21 varied by agreement. 6 22 5. Whether an electronic record or electronic signature 6 23 has legal consequences is determined by this chapter and other 6 24 applicable law. 6 25 Sec. 7. NEW SECTION. 554D.107 CONSTRUCTION AND 6 26 APPLICATION. 6 27 This chapter shall be construed and applied as follows: 6 28 1. To facilitate electronic transactions consistent with 6 29 other applicable law. 6 30 2. To be consistent with reasonable practices concerning 6 31 electronic transactions and with the continued expansion of 6 32 those practices. 6 33 3. To effectuate its general purpose to make uniform the 6 34 law with respect to the subject of this chapter among states 6 35 enacting the uniform law. 7 1 Sec. 8. NEW SECTION. 554D.108 LEGAL RECOGNITION OF 7 2 ELECTRONIC RECORDS, ELECTRONIC SIGNATURES, AND ELECTRONIC 7 3 CONTRACTS. 7 4 1. A record or signature shall not be denied legal effect 7 5 or enforceability solely because it is in electronic form. 7 6 2. A contract shall not be denied legal effect or 7 7 enforceability solely because an electronic record was used in 7 8 its formation. 7 9 3. If a law requires a record to be in writing, an 7 10 electronic record satisfies the law. 7 11 4. If a law requires a signature, an electronic signature 7 12 satisfies the law. 7 13 Sec. 9. NEW SECTION. 554D.108A LEGAL RECOGNITION OF 7 14 ELECTRONIC RECORDS AFFECTING INTERESTS IN REAL PROPERTY. 7 15 An electronic record that grants a legal or equitable 7 16 interest in real property, including a deed, mortgage, deed of 7 17 trust, pledge, security interest, or other lien or 7 18 encumbrance, and any disclosure required under chapter 558A 7 19 shall comply with all of the following: 7 20 1. Be created using a security procedure and signed by use 7 21 of a digital signature. 7 22 2. Shall not be recorded or have effect against third 7 23 parties until a duplicate paper original of the electronic 7 24 record is executed in writing by the parties, acknowledged, 7 25 and recorded. The burden of proof that the duplicate paper 7 26 original of the electronic record is identical to the original 7 27 electronic record rests upon the party submitting the 7 28 duplicate paper original. 7 29 3. Comply with all requirements of Iowa law regarding the 7 30 recording of instruments and all other applicable state 7 31 requirements. 7 32 Sec. 10. NEW SECTION. 554D.109 PROVISION OF INFORMATION 7 33 IN WRITING – PRESENTATION OF RECORDS. 7 34 1. If parties have agreed to conduct a transaction by 7 35 electronic means and a law requires a person to provide, send, 8 1 or deliver information in writing to another person, the 8 2 requirement is satisfied if the information is provided, sent, 8 3 or delivered in an electronic record capable of retention by 8 4 the recipient at the time of receipt. An electronic record is 8 5 not capable of retention by the recipient if the sender or its 8 6 information processing system inhibits the ability of the 8 7 recipient to print or store the electronic record. 8 8 2. If a law other than this chapter requires a record to 8 9 be posted or displayed in a certain manner; to be sent, 8 10 communicated, or transmitted by a specified method; or to 8 11 contain information that is formatted in a certain manner, all 8 12 of the following apply: 8 13 a. The record must be posted or displayed in the manner 8 14 specified in the other law. 8 15 b. Except as otherwise provided in subsection 4, paragraph 8 16 "b", the record must be sent, communicated, or transmitted by 8 17 the method specified in the other law. 8 18 c. The record must contain the information formatted in 8 19 the manner specified in the other law. 8 20 3. If a sender inhibits the ability of a recipient to 8 21 store or print an electronic record, the electronic record is 8 22 not enforceable against the recipient. 8 23 4. The requirements of this section shall not be varied by 8 24 agreement, except as follows: 8 25 a. To the extent a law other than this chapter requires 8 26 information to be provided, sent, or delivered in writing but 8 27 permits that requirement to be varied by agreement, the 8 28 requirement under subsection 1 that the information be in the 8 29 form of an electronic record capable of retention may also be 8 30 varied by agreement. 8 31 b. A requirement under a law other than this chapter to 8 32 send, communicate, or transmit a record by delivery in person, 8 33 by mail postage prepaid, or by courier may be varied by 8 34 agreement to the extent permitted by the other law. 8 35 Sec. 11. NEW SECTION. 554D.110 ATTRIBUTION AND EFFECT OF 9 1 ELECTRONIC RECORD AND ELECTRONIC SIGNATURE. 9 2 1. An electronic record or electronic signature is 9 3 attributable to a person if it was the act of the person. The 9 4 act of the person may be shown in any manner, including a 9 5 showing of the efficacy of any security procedure applied to 9 6 determine the person to which the electronic record or 9 7 electronic signature was attributable. 9 8 2. The effect of an electronic record or electronic 9 9 signature attributed to a person under subsection 1 is 9 10 determined from the context and surrounding circumstances at 9 11 the time of its creation, execution, or adoption, including 9 12 the parties' agreement, if any, and otherwise as provided by 9 13 law. 9 14 3. In addition to subsections 1 and 2, in a consumer 9 15 transaction, the attribution and effect of an electronic 9 16 record and an electronic signature is determined by the 9 17 substantive law governing the transaction. 9 18 Sec. 12. NEW SECTION. 554D.111 EFFECT OF CHANGE OR 9 19 ERROR. 9 20 If a change or error in an electronic record occurs in a 9 21 transmission between parties to a transaction, the following 9 22 rules apply: 9 23 1. If the parties have agreed to use a security procedure 9 24 to detect changes or errors and one party has conformed to the 9 25 procedure, but the other party has not, and the nonconforming 9 26 party would have detected the change or error had that party 9 27 also conformed, the conforming party may avoid the effect of 9 28 the changed or erroneous electronic record. 9 29 2. In an automated transaction involving an individual, 9 30 the individual may avoid the effect of an electronic record 9 31 that resulted from an error made by the individual in dealing 9 32 with the electronic agent of another person if the electronic 9 33 agent did not provide an opportunity for the prevention or 9 34 correction of the error and, at the time the individual learns 9 35 of the error, all of the following apply: 10 1 a. The individual promptly notifies the other person of 10 2 the error and that the individual does not intend to be bound 10 3 by the electronic record received by the other person. 10 4 b. The individual takes reasonable steps, including steps 10 5 that conform to the other person's reasonable instructions, to 10 6 return to the other person or, if instructed by the other 10 7 person, to destroy the consideration received, if any, as a 10 8 result of the erroneous electronic record. 10 9 c. The individual has not used or received any benefit or 10 10 value from the consideration, if any, received from the other 10 11 person. 10 12 3. If subsection 1 or 2 does not apply, the change or 10 13 error has the effect provided by other law, including the law 10 14 of mistake, and the parties' contract, if any. 10 15 4. In a consumer transaction, any substantive law limiting 10 16 a consumer's liability shall apply to an electronic 10 17 transaction. 10 18 5. Subsections 2, 3, and 4 shall not be varied by 10 19 agreement of the parties. 10 20 Sec. 13. NEW SECTION. 554D.112 NOTARIZATION AND 10 21 ACKNOWLEDGMENT. 10 22 If a law requires a signature or record to be notarized, 10 23 acknowledged, verified, or made under oath, the requirement is 10 24 satisfied if the electronic signature of the person authorized 10 25 to perform those acts, together with all other information 10 26 required to be included by other applicable law, is attached 10 27 to or logically associated with the signature or record. 10 28 Sec. 14. NEW SECTION. 554D.113 RETENTION OF ELECTRONIC 10 29 RECORDS – ORIGINALS. 10 30 1. If a law requires that a record be retained, the 10 31 requirement is satisfied by retaining an electronic record of 10 32 the information in the record which does both of the 10 33 following: 10 34 a. Accurately reflects the information set forth in the 10 35 record after it was first generated in its final form as an 11 1 electronic record or otherwise. 11 2 b. Remains accessible for later reference. 11 3 2. A requirement to retain a record in accordance with 11 4 subsection 1 does not apply to any information the sole 11 5 purpose of which is to enable the record to be sent, 11 6 communicated, or received. 11 7 3. A person may satisfy subsection 1 by using the services 11 8 of another person if the requirements of that subsection are 11 9 satisfied. 11 10 4. If a law requires a record to be presented or retained 11 11 in its original form, or provides consequences if the record 11 12 is not presented or retained in its original form, that law is 11 13 satisfied by an electronic record retained in accordance with 11 14 subsection 1. 11 15 5. If a law requires retention of a check, that 11 16 requirement is satisfied by retention of an electronic record 11 17 of the information on the front and back of the check in 11 18 accordance with subsection 1. 11 19 6. A record retained as an electronic record in accordance 11 20 with subsection 1 satisfies a law requiring a person to retain 11 21 a record for evidentiary, audit, or like purposes, unless a 11 22 law enacted after the effective date of this Act specifically 11 23 prohibits the use of an electronic record for the specified 11 24 purpose. 11 25 7. This section does not preclude a governmental agency 11 26 from specifying additional requirements for the retention of a 11 27 record subject to the agency's jurisdiction. 11 28 Sec. 15. NEW SECTION. 554D.114 ADMISSIBILITY IN 11 29 EVIDENCE. 11 30 In a proceeding, evidence of a record or signature shall 11 31 not be excluded solely because it is in electronic form. 11 32 Sec. 16. NEW SECTION. 554D.115 AUTOMATED TRANSACTION. 11 33 In an automated transaction, the following rules apply: 11 34 1. A contract may be formed by the interaction of 11 35 electronic agents of the parties, even if no individual was 12 1 aware of or reviewed the electronic agents' actions or the 12 2 resulting terms and agreements. 12 3 2. A contract may be formed by the interaction of an 12 4 electronic agent and an individual, acting on the individual's 12 5 own behalf or for another person, including by an interaction 12 6 in which the individual performs actions that the individual 12 7 is free to refuse to perform and which the individual knows or 12 8 has reason to know will cause the electronic agent to complete 12 9 the transaction or performance. 12 10 3. The terms of the contract are determined by the 12 11 substantive law applicable to it. 12 12 Sec. 17. NEW SECTION. 554D.116 TIME AND PLACE OF SENDING 12 13 AND RECEIPT. 12 14 1. Unless otherwise agreed between the sender and the 12 15 recipient, an electronic record is sent when all of the 12 16 following occur: 12 17 a. The electronic record is addressed properly or 12 18 otherwise directed properly to an information processing 12 19 system that the recipient has designated or uses for the 12 20 purpose of receiving electronic records or information of the 12 21 type sent and from which the recipient is able to retrieve the 12 22 electronic record. 12 23 b. The electronic record is in a form capable of being 12 24 processed by that information processing system. 12 25 c. The electronic record enters an information processing 12 26 system outside the control of the sender or of a person who 12 27 sent the electronic record on behalf of the sender or enters a 12 28 region of the information processing system designated or used 12 29 by the recipient which is under the control of the recipient. 12 30 2. Unless otherwise agreed between a sender and the 12 31 recipient, an electronic record is received when both of the 12 32 following occur: 12 33 a. The electronic record enters an information processing 12 34 system that the recipient has designated or uses for the 12 35 purpose of receiving electronic records or information of the 13 1 type sent and from which the recipient is able to retrieve the 13 2 electronic record. 13 3 b. The electronic record is in a form capable of being 13 4 processed by that information processing system. 13 5 3. Subsection 2 applies even if the place the information 13 6 processing system is located is different from the place the 13 7 electronic record is deemed to be received under subsection 4. 13 8 4. Unless otherwise expressly provided in the electronic 13 9 record or agreed between the sender and the recipient, an 13 10 electronic record is deemed to be sent from the sender's place 13 11 of business and to be received at the recipient's place of 13 12 business. For purposes of this subsection, both of the 13 13 following apply: 13 14 a. If the sender or recipient has more than one place of 13 15 business, the place of business of such person is the place 13 16 having the closest relationship to the underlying transaction. 13 17 b. If the sender or the recipient does not have a place of 13 18 business, the place of business is the sender's or recipient's 13 19 residence, as the case may be. 13 20 5. An electronic record is received under subsection 2 13 21 even if no individual is aware of its receipt. 13 22 6. Receipt of an electronic acknowledgment from an 13 23 information processing system described in subsection 2 13 24 establishes that a record was received but, by itself, does 13 25 not establish that the content sent corresponds to the content 13 26 received. 13 27 7. If a person is aware that an electronic record 13 28 purportedly sent under subsection 1, or purportedly received 13 29 under subsection 2, was not actually sent or received, the 13 30 legal effect of the sending or receipt is determined by other 13 31 applicable law. Except to the extent permitted or required by 13 32 the other law, the requirements of this subsection shall not 13 33 be varied by agreement. 13 34 Sec. 18. NEW SECTION. 554D.117 TRANSFERABLE RECORDS. 13 35 1. For purposes of this section, "transferable record" 14 1 means an electronic record that satisfies both of the 14 2 following: 14 3 a. The electronic record would be a note under chapter 14 4 554, article 3, or a document under chapter 554, article 7, if 14 5 the electronic record were in writing. 14 6 b. The issuer of the electronic record expressly has 14 7 agreed such electronic record is a transferable record. 14 8 2. A person has control of a transferable record if a 14 9 system employed for evidencing the transfer of interests in 14 10 the transferable record reliably establishes that person as 14 11 the person to which the transferable record was issued or 14 12 transferred. 14 13 3. A system satisfies subsection 2, and a person is deemed 14 14 to have control of a transferable record, if the transferable 14 15 record is created, stored, and assigned in such a manner that 14 16 satisfies all of the following: 14 17 a. A single authoritative copy of the transferable record 14 18 exists which is unique, identifiable, and, except as otherwise 14 19 provided in paragraphs "d", "e", and "f", unalterable. 14 20 b. The authoritative copy identifies the person asserting 14 21 control as one of the following: 14 22 (1) The person to which the transferable record was 14 23 issued. 14 24 (2) If the authoritative copy indicates that the 14 25 transferable record has been transferred, the person to which 14 26 the transferable record was most recently transferred. 14 27 c. The authoritative copy is communicated to and 14 28 maintained by the person asserting control or such person's 14 29 designated custodian. 14 30 d. Copies or revisions that add or change an identified 14 31 assignee of the authoritative copy can be made only with the 14 32 consent of the person asserting control. 14 33 e. Each copy of the authoritative copy and any copy of a 14 34 copy is readily identifiable as a copy that is not the 14 35 authoritative copy. 15 1 f. A revision of the authoritative copy is readily 15 2 identifiable as authorized or unauthorized. 15 3 4. Except as otherwise agreed, a person having control of 15 4 a transferable record is the holder, as defined in section 15 5 554.1201, of the transferable record and has the same rights 15 6 and defenses as a holder of an equivalent record or writing 15 7 under chapter 554, including, if the applicable statutory 15 8 requirements under section 554.3302, subsection 1, section 15 9 554.7501, or section 554.9308 are satisfied, the rights and 15 10 defenses of a holder in due course, a holder to which a 15 11 negotiable document of title has been duly negotiated, or a 15 12 purchaser, respectively. Delivery, possession, and 15 13 endorsement are not required to obtain or exercise any of the 15 14 rights under this subsection. 15 15 5. Except as otherwise agreed, an obligor under a 15 16 transferable record has the same rights and defenses as an 15 17 equivalent obligor under equivalent records or writings under 15 18 chapter 554. 15 19 6. If requested by a person against which enforcement is 15 20 sought, the person seeking to enforce the transferable record 15 21 shall provide reasonable proof that the person is in control 15 22 of the transferable record. Proof may include access to the 15 23 authoritative copy of the transferable record and related 15 24 business records sufficient to review the terms of the 15 25 transferable record and to establish the identity of the 15 26 person having control of the transferable record. 15 27 Sec. 19. NEW SECTION. 554D.118 CREATION AND RETENTION OF 15 28 ELECTRONIC RECORDS AND CONVERSION OF WRITTEN RECORDS BY 15 29 GOVERNMENTAL AGENCIES. 15 30 A governmental agency of this state shall determine 15 31 whether, and the extent to which, the governmental agency will 15 32 create and retain electronic records and convert written 15 33 records to electronic records. 15 34 Sec. 20. NEW SECTION. 554D.119 ACCEPTANCE AND 15 35 DISTRIBUTION OF ELECTRONIC RECORDS BY GOVERNMENTAL AGENCIES. 16 1 1. Except as otherwise provided in section 554D.113, 16 2 subsection 6, a governmental agency of this state other than a 16 3 state executive branch agency, department, board, commission, 16 4 authority, or institution, shall determine whether, and the 16 5 extent to which, the governmental agency will send and accept 16 6 electronic records and electronic signatures to and from other 16 7 persons and otherwise create, generate, communicate, store, 16 8 process, use, and rely upon electronic records and electronic 16 9 signatures. 16 10 2. Except as otherwise provided in section 554D.113, 16 11 subsection 6, on or before July 1, 2003, a state executive 16 12 branch agency, department, board, commission, authority, or 16 13 institution, in consultation and cooperation with the 16 14 information technology services division of the department of 16 15 general services, shall send and accept electronic records and 16 16 electronic signatures to and from other persons and otherwise 16 17 create, generate, communicate, store, process, use, and rely 16 18 upon electronic records and signatures. The department of 16 19 management, upon the written request of a state executive 16 20 branch agency, department, board, commission, authority, or 16 21 institution and for good cause shown, may grant a waiver from 16 22 the July 1, 2003, deadline established in this section to the 16 23 state executive branch agency, department, board, commission, 16 24 authority, or institution. 16 25 3. To the extent that a governmental agency of this state 16 26 uses electronic records and electronic signatures under 16 27 subsection 1 or 2, the office of the secretary of state and 16 28 the division of information technology services of the 16 29 department of general services, jointly, and in consultation 16 30 with the office of the attorney general, giving due 16 31 consideration to security, may specify by rule all of the 16 32 following: 16 33 a. The manner and format in which the electronic records 16 34 must be created, generated, sent, communicated, received, and 16 35 stored and the information processing systems established for 17 1 those purposes. 17 2 b. If electronic records must be signed by electronic 17 3 means, the type of electronic signature required, the manner 17 4 and format in which the electronic signature must be affixed 17 5 to the electronic record, and the identity of, or criteria 17 6 that must be met by, any third party used by a person filing a 17 7 document to facilitate the process. 17 8 c. Control processes and procedures as appropriate to 17 9 ensure adequate preservation, disposition, integrity, 17 10 security, confidentiality, and auditability of electronic 17 11 records. 17 12 d. Any other required attributes for electronic records 17 13 which are specified for corresponding nonelectronic records or 17 14 reasonably necessary under the circumstances. 17 15 4. Except as otherwise provided in section 554D.113, 17 16 subsection 6, this chapter does not require a governmental 17 17 agency of this state to use or permit the use of electronic 17 18 records or electronic signatures. 17 19 5. Notwithstanding this section, an institution governed 17 20 under chapter 262 shall conform with national standards with 17 21 respect to electronic records and electronic signatures, as 17 22 such standards are developed. 17 23 Sec. 21. NEW SECTION. 554D.120 INTEROPERABILITY. 17 24 The standards adopted pursuant to section 554D.119 should 17 25 encourage and promote consistency and interoperability with 17 26 similar requirements adopted by another governmental agency 17 27 and nongovernmental persons interacting with governmental 17 28 agencies of this state. If appropriate, such standards may 17 29 specify differing levels of standards from which a 17 30 governmental agency of this state may choose in implementing 17 31 the most appropriate standard for a particular application. 17 32 Sec. 22. NEW SECTION. 554D.121 FRAUDULENT PURPOSE – 17 33 PENALTY. 17 34 A person shall not knowingly create, publish, alter, or 17 35 otherwise use an electronic record or an electronic signature 18 1 for a fraudulent or other unlawful purpose. A person 18 2 convicted of violating this section is guilty of a serious 18 3 misdemeanor. A person convicted of a second or subsequent 18 4 violation of this section is guilty of a class "D" felony. 18 5 Sec. 23. NEW SECTION. 554D.122 FALSE OR UNAUTHORIZED 18 6 REQUEST – PENALTY. 18 7 A person shall not knowingly misrepresent the person's 18 8 identity or authorization to obtain a private key for use in a 18 9 digital signature or in requesting suspension or revocation of 18 10 a private key for use in a digital signature. "Private key" 18 11 means the key of a key pair used to create a digital 18 12 signature. A person convicted of violating this section is 18 13 guilty of a serious misdemeanor. A person convicted of a 18 14 second or subsequent violation of this section is guilty of a 18 15 class "D" felony. 18 16 Sec. 24. Section 4.1, subsection 39, unnumbered paragraph 18 17 1, Code Supplement 1999, is amended to read as follows: 18 18 The words "written" and "in writing" may include any mode 18 19 of representing words or letters in general use, and includes 18 20 an electronic record as defined in section554C.201554D.103. 18 21 A signature, when required by law, must be made by the writing 18 22 or markings of the person whose signature is required. 18 23 "Signature" includes an electronic or digital signature as 18 24 defined in section554C.201554D.103. If a person is unable 18 25 due to a physical disability to make a written signature or 18 26 mark, that person may substitute either of the following in 18 27 lieu of a signature required by law: 18 28 Sec. 25. Section 22.7, subsection 38, Code Supplement 18 29 1999, is amended to read as follows: 18 30 38. a. Records containing information that would 18 31 disclose, or might lead to the disclosure of, private keys 18 32 used in a digital signature or other similar technologies as 18 33 provided in chapter554C554D. 18 34 b. Records which if disclosed might jeopardize the 18 35 security ofan issued certificate or a certificate to be19 1issuedan electronic transaction pursuant to chapter554C19 2 554D. 19 3 Sec. 26. NEW SECTION. 75.14 ELECTRONIC BIDDING. 19 4 Notwithstanding contrary provisions of this chapter, a 19 5 public body authorized to issue bonds, notes, or other 19 6 obligations may elect to receive bids to purchase such bonds, 19 7 notes, or other obligations by means of electronic, internet 19 8 or wireless communication, a proprietary bidding procedure or 19 9 system, or by facsimile transmission to a location deemed 19 10 appropriate by the governing body, in each instance as may be 19 11 approved by the governing body and provided for in the notice 19 12 of sale. An electronic bid shall be submitted in substantial 19 13 conformity with the requirements of chapter 554D and any rules 19 14 adopted pursuant to that chapter with respect to the 19 15 acceptance of electronic records by a governmental agency. 19 16 Additionally, before approving the use of an electronic 19 17 bidding procedure, the public body shall find and determine 19 18 that the specific procedure to be used will provide reasonable 19 19 security and maintain the integrity of the competitive bidding 19 20 process, and facilitate the delivery of bids by interested 19 21 parties under the circumstances of the particular sale. 19 22 Sec. 27. ADVISORY COMMITTEE CREATED. An advisory 19 23 committee is created to study issues associated with the 19 24 electronic filing, recording, and indexing of instruments 19 25 affecting real property pursuant to chapter 558, and the 19 26 electronic use of real property disclosures required pursuant 19 27 to chapter 558A. The advisory committee shall consider 19 28 matters relating to the facilitation of electronic filing, 19 29 recording, and indexing of instruments affecting real 19 30 property. The advisory committee may consider matters 19 31 including, but not limited to, access to electronic 19 32 transactions, reliability and security, storage of records, 19 33 training of public officials, conversion from a paper 19 34 recording system to an electronic system, and other issues as 19 35 are necessary and appropriate with respect to establishing a 20 1 statewide uniform electronic filing system for real property 20 2 transactions. The membership of the advisory committee shall 20 3 be appointed by the legislative council and shall include, but 20 4 is not limited to, representatives of the Iowa county 20 5 recorders association, the Iowa state bar association, the 20 6 Iowa state association of counties, Iowa title guaranty, the 20 7 Iowa land title association, the Iowa bankers association, the 20 8 Iowa independent bankers association, the Iowa association of 20 9 realtors, the Iowa mortgage bankers association, and the 20 10 office of the attorney general. The advisory committee shall 20 11 provide an initial written report, including any 20 12 recommendations, to the general assembly by no later than 20 13 January 20, 2001. Such report shall include a recommendation 20 14 for the initiation of a pilot program for electronic land 20 15 transfers, including a date certain by which such program may 20 16 be initiated and the cost of such pilot program. The advisory 20 17 committee shall provide a written report to the general 20 18 assembly in January of each year subsequent to the 20 19 commencement of the pilot program including the results of the 20 20 pilot program; any additional recommendations; a schedule for 20 21 the implementation of a statewide uniform electronic land 20 22 transfer system, if appropriate; and the costs associated with 20 23 such implementation including any identifiable ongoing costs 20 24 and costs for training associated with the system. 20 25 Sec. 28. Section 421.60, subsection 2, Code 1999, is 20 26 amended by adding the following new paragraph: 20 27 NEW PARAGRAPH. m. (1) The director may abate unpaid 20 28 state sales and use taxes and local sales and services taxes 20 29 owed by a retailer in the event that the retailer failed to 20 30 collect tax from the purchaser as a result of erroneous 20 31 written advice issued by the department that was specially 20 32 directed to the retailer by the department and the retailer is 20 33 unable to collect the tax, interest, or penalties from the 20 34 purchaser. Before the tax, interest, and penalties shall be 20 35 abated on the basis of erroneous written advice, the retailer 21 1 must present a copy of the retailer's request for written 21 2 advice to the department and a copy of the department's reply. 21 3 The department shall not maintain a position against the 21 4 retailer that is inconsistent with the erroneous written 21 5 advice, except on the basis of subsequent written advice sent 21 6 by the department to that retailer, or a change in state or 21 7 federal law, a reported court case to the contrary, a contrary 21 8 rule adopted by the department, a change in material facts or 21 9 circumstances relating to the retailer, or the retailer's 21 10 misrepresentation or incomplete or inadequate representation 21 11 of material facts and circumstances in requesting the written 21 12 advice. 21 13 (2) The director shall abate the unpaid state sales and 21 14 use taxes and any local sales and services taxes owed by a 21 15 retailer where the retailer failed to collect the tax from the 21 16 purchaser on the charges paid for access to on-line computer 21 17 services as a result of erroneous written advice issued by the 21 18 department regarding the taxability of charges paid for access 21 19 to on-line computer services. To qualify for the abatement 21 20 under this subparagraph, the erroneous written advice shall 21 21 have been issued by the department prior to July 1, 1999, and 21 22 shall have been specially directed to the retailer by the 21 23 department. 21 24 (3) The director shall prepare quarterly reports 21 25 summarizing each case in which abatement of tax, interest, or 21 26 penalties was made. However, the report shall not disclose 21 27 the identity of the taxpayer. An abatement authorized by this 21 28 paragraph to a retailer shall not preclude the department from 21 29 proceeding to collect the liability from a purchaser. 21 30 Sec. 29. Section 422.45, subsection 56, Code Supplement 21 31 1999, is amended to read as follows: 21 32 56. The gross receipts from charges paid to a provider for 21 33 access to on-line computer services. For purposes of this 21 34 subsection, "on-line computer service" means a service that 21 35 provides or enables computer access by multiple users to the 22 1 internet or to other information made available through a 22 2 computer server. 22 3 Sec. 30. Section 422.52, subsection 6, paragraph a, Code 22 4 Supplement 1999, is amended to read as follows: 22 5 a. If a purchaser fails to pay tax imposed by this 22 6 division to the retailer required to collect the tax, then in 22 7 addition to all of the rights, obligations, and remedies 22 8 provided, the tax is payable by the purchaser directly to the 22 9 department, and sections 422.50, 422.51, 422.52, 422.54, 22 10 422.55, 422.56, 422.57, 422.58, and 422.59 apply to the 22 11 purchaser. For failure, the retailer and purchaser are 22 12 liable, unless the circumstances described in section 421.60, 22 13 subsection 2, paragraph "m", or section 422.47, subsection 3, 22 14 paragraph "b" or "e", or subsection 4, paragraph "b" or "d", 22 15 are applicable. 22 16 Sec. 31. Chapter 554C, Code Supplement 1999, is repealed. 22 17 Sec. 32. REPEAL – EFFECTIVE DATE. 22 18 1. Section 554D.104, subsection 4, as enacted in this Act, 22 19 is amended by striking the subsection. 22 20 2. This section of this Act takes effect July 1, 2001. 22 21 Sec. 33. LEGISLATIVE INTENT. It is the intent of the 22 22 general assembly that the general assembly consider the 22 23 proposed uniform computer information transactions Act, as 22 24 adopted by the national conference of commissioners on uniform 22 25 state laws, during the 2001 regular session. 22 26 Sec. 34. EFFECTIVE DATE. Sections 28, 29, and 30 of this 22 27 Act, being deemed of immediate importance, take effect upon 22 28 enactment. 22 29 HF 2205 22 30 mj/jg/25
Text: HF02204 Text: HF02206 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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