House passes bill to make e-signatures legally valid

June 14, 2000
Web posted at: 5:29 PM EDT (2129 GMT)

WASHINGTON (CNN) -- In a victory for high-tech industries, the House easily passed a bill Wednesday to give electronic signatures and records the same legal validity as their handwritten counterparts.

The measure, which is expected to pass the Senate by the end of the week and be signed by President Clinton soon after, should be a boost for companies that do business online but are slowed by relying on handwritten signatures for contracts and other transactions.

Democrats blocked passage of the bill for many months until they were satisfied consumers would be adequately protected when conducting business online.

"Electronic signatures and records will help grow the digital economy by giving American consumers greater confidence in their online business transactions," Commerce Committee Chairman Thomas Bliley, a Virginia Republican, said in a statement. The bill passed 426-4.

The measure will enable consumers to buy a car, apply for a loan or close a mortgage with the tap of a computer key. It means companies can supply their customers with contracts, documents and information online rather than with paper through the mail.

Capitol Hill Producer Ted Barrett and The Associated Press contributed to this report.

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United States House of Representatives - 106th Congress

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