BACKGROUND:
Currently electronic signatures are not an authorized format for City documents and all documents require a “wet signature”. This practice often slows down the processing of documents and has the potential to delay projects as well.
DISCUSSION:
Electronic signatures are an effective and efficient way to conduct official business, and are widely used in a variety of industries, including local and state government.
The State of California has authorized the use of digital signatures on most public documents. In 1995, the Legislature adopted Government Code section 16.5, authorizing public entities to accept a “digital signature” instead of a manual signature.
Under Government Code section 16.5, subdivision (d), a “digital signature” means “an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature.” In 1999, California became the first state to adopt a version of the federal Uniform Electronic Transactions Act (“UETA”), codified as Civil Code section 1633.1 – 1633.17, granting “electronic signatures” the same legal effect as manual signatures for most “transactions.” For purposes of the UETA, a digital signature is a type of electronic signature. Unlike an electronic signature, a digital signature is subject to rigorous verification standards adopted by the California Secretary of State, codified as California Code of Regulations, title 2, sections 22000-22005.
The following is a list of suggested forms that would be authorized to accept electronic or digital signatures:
•Contracts for goods or services.
•Contracts approved by resolution or minute order of the City Council. •Settlement agreement contracts approved by the City Council. •Contracts concerning the administrative business of the city, which the City Manager and his /her designee has control over pursuant to employment agreement, personnel resolution, or City municipal code or ordinance. •As approved by City Council, letters / documents authorized by to be signed by the Mayor.
•Routine personnel transactions.
•Reimbursement forms.
•Special Event Permit Applications.
•Request for Public Records.
•All Fair Political Practice Commission forms required to be filed in the City Clerk’s Office.
•Other forms as approved by the City Manager or his/her designee.
The proposed policy will not supersede laws that specifically require a handwritten signature, nor will it limit the right or option of the City to conduct the transaction on paper or in non-electronic form.
The following are examples of forms where the use of Electronic or Digital Signatures would be prohibited:
•Transactions for which electronic signatures are not enforceable by law and/or transactions requiring a handwritten signature.
•Transactions that require a person to sign in the presence of a notary.
The benefits of having a policy in place to accept electronic or digital signatures are to increase productivity and ensure convenient, timely and appropriate access to information by using electronic signature technology to collect and preserve signatures on documents quickly, securely, and efficiently.
Staff has provided a draft Policy to help facilitate discussion and is looking for direction on whether or not it is Council’s desire to direct staff to move forward with an administrative policy authorizing the acceptance of electronic or digital signatures.
FISCAL IMPACT:
There is no fiscal Impact with this item.
FIVE-YEAR STRATEGIC PLAN:
Goal D – Innovation - Action D-4