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HomeMy WebLinkAboutReso 2017-190RESOLUTION NO. 2017-190 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A CITY COUNCIL POLICY REGARDING ELECTRONIC SIGNATURE USE WHEREAS, electronic signatures that meet certain requirements are recognized as valid and legally binding under the United States Electronic Signatures in Global and National Commerce (ESIGN) Act, the California Uniform Electronic Transactions Act (UETA), and California Government Code section 16.5; and WHEREAS, the use of electronic signatures on legally binding documents has become increasingly prevalent in the private sector but has yet to find widespread adoption by public entities; and WHEREAS, benefits of using electronic signatures include: reduction of paper generation; significant decrease in time and cost associated with transmitting, approving, and retaining physical documents; as well as creation of an audit trail of the modification, editing, and approval/signing of documents; and WHEREAS, the City wishes to authorize situations in accordance with Council Policy No. hereto as Exhibit 1. the use of electronic signatures in certain 112-02 (Electronic Signature Use), attached NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby adopts Council Policy No. 112-02 (Electronic Signature Use) to allow for acceptance of electronic signatures that meet certain requirements, as set forth in Exhibit 1 to this Resolution, attached and incorporated by this reference. Presented by Kerry igelo City C k Approved as to form by G1%n R. Googins Atto Ci rne 1 Resolution No. 2017-190 Page No. 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 17th day of October 2017 by the following vote: AYES: Councilmembers: Aguilar, Diaz, McCann, Padilla, and Salas NAYS: Councilmembers: None ABSENT: Councilmembers: None Mary las, Mayor ATTEST: Kerry Bigelow, MMC, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2017-190 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 17th day of October 2017. Executed this 17th day of October 2017. Kerry K. UgelowVMC, City Clerk COUNCIL POLICY Page No. 3 CITY OF CHULA VISTA SUBJECT: ELECTRONIC SIGNATURE USE POLICY EFFECTIVE NUMBER DATE PAGE 112-02 10/17/2017 1 OF 2 ADOPTED BY: Resolution No. 2017-190 DATED: 10/17/2017 AMENDED BY: N/A BACKGROUND The use of electronic signatures on legally binding documents has become increasingly prevalent in the private sector but has yet to find widespread adoption by public entities. Benefits of using electronic signatures include: reduction of paper generation; significant decrease in time and cost associated with transmitting, approving, and retaining physical documents; as well as creation of an audit trail of the modification, editing, and approval/signing of documents. The United States Electronic Signatures in Global and National Commerce (ESIGN) Act, and the California Uniform Electronic Transactions Act (UETA) require the following four elements for an electronic signature to be recognized as valid under U.S. and State law: 1. Intent to sign — Electronic signatures, like traditional, handwritten signatures, are valid only if each party intended to sign. 2. Consent to do business electronically — The parties to the transaction must consent to do business electronically. Electronic records may be used in transactions with consumers only when the consumer has: - Received UETA Consumer Consent Disclosures - Affirmatively agreed to use electronic records for the transaction - Has not withdrawn such consent 3. Association of signature with the record — In order to qualify as an electronic signature under the ESIGN Act and UETA, the system used to capture the transaction must keep an associated record that reflects the process by which the signature was created, or generate a textual or graphic statement (which is added to the signed record) proving that it was executed with an electronic signature. 4. Record retention — U.S. laws on electronic signatures and transactions require that electronic signature records be capable of retention and accurate reproduction for reference by all parties or persons entitled to retain the contract or record. PURPOSE To enable the City of Chula Vista to use and accept approved electronic signatures, in lieu of written signatures, that comply with the requirements of California Government Code section 16.5, the UTEA, the ESIGN Act, and other applicable laws and regulations. POLICY Acceptance of electronic signatures. It is the policy of the City of Chula Vista to encourage the use of electronic signatures in internal and external activities, documents, and transactions when it is operationally feasible, where technology permits, and when it is otherwise appropriate in the discretion of the City Manager, in accordance with provisions that follow. We No. 4 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: ELECTRONIC SIGNATURE USE POLICY EFFECTIVE NUMBER DATE PAGE 112-02 10/17/2017 2 OF 2 ADOPTED BY: Resolution No. 2017-190 DATED: 10/17/2017 AMENDED BY: N/A To the extent permitted by law, the City accepts electronic signatures as legally binding and equivalent to handwritten signatures to signify an agreement in accordance with applicable laws and regulations. The parties to a transaction must agree to conduct the transaction by electronic means with the use of a City-approved electronic signature method that complies with applicable laws and regulations, including the capability of all parties to retain and accurately reproduce the electronically signed document or record. This policy does not supersede laws that specifically require a handwritten signature, nor does it limit the right or option of the City to conduct the transaction on paper or in non -electronic form. Prohibited Uses of Electronic Signatures. Use of electronic signatures is prohibited in the following situations: - Transactions for which electronic signatures are not enforceable by law and/or transactioi requiring a handwritten signature, such as transfers of real property. - Transactions that require a person to sign in the presence of a notary public. Electronic Signature Methods The City Manager shall determine acceptable technologies and vendors that are consistent with industry best practices to ensure the security and integrity of the data and the signatures. The City Manager shall further determine the documents for which the City will accept electronic signatures. Administrative Policies and Procedures. The City Manager and City Clerk, in consultation with the City Attorney, shall have the authority to develop administrative policies and procedures to the extent necessary to implement the terms of this policy.