FLOOR. MR. ABRAHAM: MR. PRESIDENT?
           
           

           THE PRESIDING OFFICER: THE SENATOR FROM MICHIGAN.
           

           MR. ABRAHAM: MR. PRESIDENT, THANK YOU VERY MUCH. I'M PROUD TO
           RISE THIS AFTERNOON -- OR EARLY EVENING NOW -- TO DISCUSS
           LEGISLATION WHICH I'M VERY CONFIDENT WE WILL PASS TOMORROW. THE
           CONFERENCE REPORT TO S. 761, THE ELECTRONIC SICTS AND -- SICTS
           AND GLOBAL NATIONAL COMMERCE ACT. THIS IS A CULMINATION OF
           NEARLY TWO YEARS' EFFORT AND I DEEPLY APPRECIATE ALL THE
           GENEROUS ASSISTANCE ON THE PART OF MY COLLEAGUES ON BOTH SIDES

           OF THIS CAPITOL AND ON BOTH SIDES OF THE AISLE WHO HELPED TO
           MOVE THIS BILL THROUGH THE LEGISLATIVE PROCESS. ALTHOUGH HE HAS
           JUST LEFT THE CHAMBER, I WANT TO ESPECIALLY ACKNOWLEDGE NIGH
           BOOED FRIEND, THE SENATOR FROM ARIZONA AND THE CHAIRMAN OF OUR
           COMMERCE COMMITTEE, SENATOR MCCAIN, WHOSE CONTINUED SUPPORT AND
           LEADERSHIP ON THIS LEGISLATION HAS MADE OUR SUCCESS POSSIBLE.
           RIGHT FROM THE VERY OUTSET, AT THE TIME I INTRODUCED THE
           LEGISLATION, HE WAS A COSPONSOR. HE WAS ALSO QUICK TO MAKE IT

           POSSIBLE FOR THE COMMERCE COMMITTEE TO CONSIDER THIS
           LEGISLATION IN HEARINGS AND TO MOVE IT THROUGH THE COMMITTEE
           AND TO PUT US IN A POSITION ULTIMATELY WHERE WE COULD MAKE THIS
           LEGISLATION -- ITS PASSAGE FEASIBLE. I BELIEVE THAT HINDSIGHT,
           MR. PRESIDENT, WILL PROVE THIS TO BE ONE OF THE MOST IMPORTANT
           PIECES OF LEGISLATION TO EMERGE FROM THE 106TH CONGRESS. THIS
           LEGISLATION WILL ELIMINATE THE SINGLE-MOST SIGNIFICANT
           VULNERABILITY OF ELECTRONIC COMMERCE, WHICH IS THE FEAR THAT

           EVERYTHING IT REVOLVES AROUND, ELECTRONIC SIGNATURES, CONTRACTS
           AND OTHER RECORDS, COULD BE RENDERED INVAN I HAD SOLELY BY
           VIRTUE OF THEIR BEING ON AN ELECTRONIC FORM RATHER NONTHAN IN A
           TANG NEL INK-AND-PAPER FORMAT. THIS WILL PROVIDE THE PAVEMENT
           FOR THE INFORMATION SUPERHIGHWAY. WHAT WE DO TOMORROW TRULY
           CHANGES THE FUTURE AND I AM CERTAIN THAT THIS LEGISLATION WILL
           PROVE TO HAVE A TREMENDOUS POSITIVE IMPACT ON ELECTRONIC

           COMMERCE AND ON THE GENERAL HEALTH OF OUR ECONOMY. -- FOR
           DECADES TO COME. MR. PRESIDENT, THANKS TO THE DEVELOPMENT OF
           SECURE ELECTRONIC SIGNATURES AND RECORDS, INDIVIDUALS,
           BUSINESSES AND EVEN GOVERNMENTS ARE INCREASINGLY ABLE TO ENTER
           TRANSACTIONS WITHOUT EVER HAVING TO TRAVEL, WHETHER THE TRAVEL
           IS A SHORT DISTANCE ACROSS TOWN OR 1,000-MILE-PLUS FLIGHT. THEY
           ARE TURNING ON A COMPUTER AND OPENING E-MAIL RATHER THAN
           SCHEDULING DROPOFFS AT MAILBOXES OR PICKUPS FROM COURIER
           SERVICES. THEY ARE ABLE TO TRANSACT NOW RATHER THAN TOMORROW

           BEFORE
           
           10:00 A.M. OR EVEN THE NEXT FEW DAYS, DEPENDING ON MAIL VOLUME.
           THEY ARE PAYING TRANSACTION COSTS IN THE FRACTIONS OF CENTS
           RATHER THAN IN 33-CENT CREAMT INCREMENTS. AS WE MOVE FORTH IN
           THE LECH TROIN I CAN WORLD, THEY WILL INCREASINGLY INCLUDE EVEN
           THE SMALLEST BUSINESSES AND CONSUMERS WHO WILL FIND THEMSELVES
           ABLE TO TAKE ADVANTAGE OF MANY OF THE TECHNOLOGIES AND
           EFFICIENCIES AVAILABLE PREVIOUSLY ONLY TO THE LARGEST OF THE

           FIRMS. EVEN NOW CONSUMERS ARE REALIZING THE TIME AND COST
           BENEFITS OF LECH TROIN I CAN COMMERCE AT A RAPIDLY ESCALATING
           RATE. ON-LINE CATALOGUES ARE EVERY WITH ALL THE TIME AND ALWAYS
           IN COMPETITION. TO PROVIDE THE BEST SERVICE AT THE LOWEST PRICE
           AND FOR THE AVERAGE FAMILY IN AMERICA, ON-LINE LENDING AND REAL
           ESTATE BROKERAGE SERVICES ARE MAKING THE MOST SIGNIFICANT OF
           ALL PURCHASES -- THE PURCHASE OF A FAMILY HOME -- AVAILABLE
           OVER THE INTERNET. CHANGES TO HOME BUYING OVER THE NEAR-TERM
           WILL BE DRAMATIC DRAMATIC. RAPID DOCUMENT AND SERVICE DELIVERY

           WILL REDUCE A TRANSACTION TYPICALLY MEASURED IN DAYS OR WEEKS
           TO MINUTES OR HOURS. AND THE ABILITY OF A CONSUMER TO QUICKLY
           ASSESS THE RATES OFFERED BY SCORES OF LENDERS WILL INCREASE
           COMPETITION AND LOWER MORTGAGE COSTS AND RATES FOR EVERY
           CONSUMER. MR. PRESIDENT, FRANKLIN RAINES, THE CHAIRMAN AND
           C.E.O. OF FANNIE MAE SAID "THE APPLICATION OF THE LECH TROUNICS
           ECONOMICS TO THE U.S. MORTGAGE INDUSTRY SHOULD HELP THE UNITED

           STATES HOMEOWNERSHIP RATE REACH 70% OVER THE NEXT DECADE." MR.
           PRESIDENT, AND CHAIRMAN RAINES, I LOOK FORWARD TO THE FUTURE.
           BUT FOR E-COMMERCE TO CONTINUE GROWING, WE MUST HAVE A
           CONSISTENT, PREDICTABLE NATIONAL FRAMEWORK OF RULES GOVERNING
           THE USE OF LECH TROIN I CAN SIGNATURES AND RECORDS. CURRENTLY
           LEGAL INCONSISTENCIES ARE DETERRING BUSINESSES FROM FULLY
           UTILIZING ELECTRONIC SIGNATURE TECHNOLOGIES. AND THE ABILITY OF
           ONE COURT IN ONE JURISDICTION TO RULE AGAINST THE VALIDITY OF A
           CONTRACT SOLELY BECAUSE OF ITS ELECTRONIC FORM THREATENS TO

           DESTABILIZE THE ENTIRE LECH TROIN I CAN COMMERCE BRINGING DOWN
           THE WHOLE HOUSE OF CARDS. THE NATIONAL CONFERENCE OF
           COMMISSIONERS ON UNIFORM STATE LAW HAS DEVELOPED A UNIFORM
           SYSTEM FOR THE USE OF LECH TROIN I CAN SIGNATURES. THEIR
           PRODUCT -- THE UNIFORM ELECTRONIC TRANSACTION ACT -- IS AN
           EXCELLENT PIECE OF WORK AND I LOOK FORWARD TO ITS ENACTMENT IN
           ALL 50 STATES. BUT AS SOME STATE LEGISLATURES ARE NOT IN
           SESSION NEXT YEAR AND AS OTHER STATES FACE MORE IMMEDIATELY
           PRESSING ISSUES, IT'LL LIKELY TAKE THREE TO FOUR YEARS FOR ALL

           OF THE STATES TO ENACT THE UETA. NOW, MR. PRESIDENT, THAT'S A
           LONG TIME, PARTICULARLY IN THE HIGH-TECHNOLOGY SECTOR. AND IT'S
           FAR TOO LONG TO PERMIT GIVEN THAT THIS CONGRESS POSSESSES THE
           ABILITY TO BRIDGE THE GAP. MR. PRESIDENT, IN OCTOBER OF 1998,
           THIS BODY PASSED ITS FIRST ELECTRONIC SIGNATURE LEGISLATION --
           THE GOVERNMENT PAPERWORK ELIMINATION ACT. SHORTLY IS
           THEREAFTER, I INITIATED A SERIES OF DISCUSSIONS WITH BOTH
           INDUSTRY AND STATES FOR THE PURPOSE OF DEVELOPING A PLAN TO
           FOSTER THE CONTINUED GROWTH OF ELECTRONIC SICTS AND LECH TROIN

           I CAN COMMERCE. ON JUNE 25 OF 1999, SENATORS WIDEN, MCCAIN,
           BURNS, LOTT AND I INTRODUCED THE MILLENNIUM DIGITAL COMMERCE
           ACT, S. 761, WHICH WAS THE FIRST ELECTRONIC SIGNATURES BILL
           INTRODUCED IN THE 106TH CONGRESS. I'M PLEASED TO SAY THAT WITH
           MUCH EFFORT THE BILL IS BEING -- THAT IS BEING PASSED TOMORROW
           HAS AS CONCEIVED NEARLY TWO YEARS AGO GRANTING LEGAL SECURITY
           IS BEFORE US. MR. PRESIDENT, AT THIS POINT I WOULD LIKE TO
           SPEAK TO SEFERLT KEY PROVISIONS OF THIS LEGISLATION WHICH I

           BELIEVE WILL PROVIDE THE LEGAL FRAMEWORK NEEDED FOR THE
           CONTINUED GROWTH OF E-COMMERCE.
           
           FIRST, THE GENERAL RULE: THE GENERAL RULE OF THIS LEGISLATION
           ENSURES THE LEGAL CERTAINTY OF E-COMMERCE IN VERY CLEAR,
           TARGETED TERMS. IT SAYS THAT A SIGNATURE, CONTRACT, OR OTHER
           RECORD MAY NOT BE DENIED LEGAL EFFECT, VALIDITY OR
           ENFORCEABILITY SOLELY BECAUSE IT IS IN ELECTRONIC FORM. MR.
           PRESIDENT, THE WORD "SOLELY" IS PIVOTAL IN THIS CONTEXT. IT

           MEANS THAT ELECTRONIC WRITE RESIGNATION NOT TO BE DISCRIMINATED
           AGAINST BUT INSTEAD ARE TO BE JUDGED ACCORDING TO EXISTING
           PRINCIPLES OF CONTRACT LAW. WITH THIS LANGUAGE, THE ACHILLES
           HEEL OF ALL E-COMMERCE IS PROTECTED. THE ELECTRONIC NATURE OF A
           CONTRACT CANNOT BE AND WILL NOT BE USE A TACK THE VALIDITY OF A
           CONTRACT. MR. PRESIDENT, I VIEW THIS AS MY SINGLE-MOST
           IMPORTANT CONTRIBUTION TO THE FUTURE OF ELECTRONIC COMMERCE AND
           I WOULD LIKE TO THANK SENATORS MCCAIN, WIDEN,-- --WYDEN, GRAMM

           AND HATCH FOR THEIR COUNSEL AND SUPPORT IN WRITING THIS SECTION
           OF THE LEGISLATION. SECOND, PRESERVATION OF RIGHTS
           
           AND OBLIGATIONS: THIS SECTION OF THE LEGISLATION WAS ADDED TO
           ENSURE THAT NO AMBIGUITY EXIST EXISTED WITH RESPECT TO OUR
           TREATMENT OF EXISTING CONTRACT LAW. IT IS THE STRONG BELIEF OF
           THE CONFERENCE THAT THE DECISION YHORNTS TO PARTICIPATE IN
           ELECTRONIC COMMERCE IS COMPLETELY VOLUNTARY. IF PARTIES DECIDE
           TO DO SO, THE BILL GRANTS THEM THE FREEDOM TO DETERMINE THE
           TECHNOLOGIES AND BUSINESS METHODS TO EMPLOY IN THE EXECUTION OF

           AN LECH TROIN I CAN CONTRACT OR OTHER RECORD.
           
           THIRD, CONSENT: UNDER THE CONSENT PROVISIONS, A CONSUMER MUST
           AFFIRMATIVELY CONSENT TO THE PROVISION OF RECORDS IN ELECTRONIC
           FORM AND THERE MUST BE A REASONABLE DEMONSTRATION THAT THE
           CONSUMER CAN ACCESS ELECTRONIC RECORDS. FOR THE IMMEDIATE
           FUTURE, THE CONFERENCE ENVISIONS THIS ELECTRONIC CONSENT TO
           TAKE THE FORM OF EITHER A WEB PAGE-BASED CONSUMER AFFIRMATION
           OR A REPLY TO A BUSINESS ELECTRONIC MAILING, WHICH INCLUDES AN

           AFFIRMATION BY THE CONSUMER THAT HE OR SHE COULD OPEN PROVIDED
           ATTACHMENTS. I EAGERLY AWAIT FUTURE TECHNOLOGY DEVELOPMENTS
           THAT ENDER THE BURDENS THIS SECTION IMPOSES ON CONSUMERS AND
           BUSINESSES OBSOLETE.
           
           FOURTH, STATE PREEMPTION: AS I HAVE NOTED, THE CENTRAL PURPOSE
           OF THIS LEGISLATION IS TO ESTABLISH A NATIONWIDE BASELINE FOR
           THE LEGAL CERTAINTY OF ELECTRONIC SIGNATURES AND RECORDS. I
           BELIEVE THAT THE EVENTUAL ADOPTION UETA BY ALL 50 STATES IN A
           MANNER CONSISTENT WITH THE VERSION REPORTED BY THE NATIONAL

           COUNSEL OF UNIFORMED STATE LAWS, WILL PROVIDE THE SAME NATIONAL
           UNIFORMITY WHICH IS ESTABLISHED IN THE FEDERAL LEGISLATION. FOR
           THAT REASON AND AT MY INSISTENCE, WHEN A STATE ADOPTS THE
           UNIFORM LE ELECTRONIC TRANSACTIONS ACT, UETA, AS CNTSZLY
           REPORTED, THE FEDERAL PREEMPTION PROVIDED IN THIS BILL IS
           SUPERSEDED. IN THE MEANTIME, THE PREEMPTION CONTAINED IN THE
           FEDERAL ACT WILL ENSURE A UNIFORM STANDARD OF LEGAL CERTAINTY
           FOR BOTH ELECTRONIC SIGNATURES AND ELECTRONIC RECORDS.
           
           FIFTH, SPECIFIC EXCEPTIONS: THE CONSUMER PROTECTION PROVISIONS

           OF THIS LEGISLATION SPECIFY THAT ANY NOTICE OF PRODUCT RECALLS
           OR CANCELLATION OR TERMINATION OF UTILITY SERVICES, AMONG OTHER
           ITEMS, ARE TO BE EXCLUDED FROM THE SCOPE OF THIS LEGISLATION.
           THIS MEANS, OF COURSE, THAT THE VALIDITY OF THESE NOTICES MAY
           BE DENIED SOLELY BECAUSE THEY ARE IN ELECTRONIC FORM. MR.
           PRESIDENT, BECAUSE OF THE BENEFITS OF ANY PLACE, ANYTIME
           NOTICE, AND ESPECIALLY IN LIGHT OF THE STRONG CONSENT
           PROVISIONS IN THE BILL, I BELIEVE CONSUMERS SHOULD BE FREE
           CHOOSE TO RECEIVE ANY TYPE OF RECORD ELECTRONICALLY, EVEN THOSE

           EXPRESSLY PRECLUDEED IN THIS LEGISLATION. I HOPE THE
           APPROPRIATE REGULATORY AGENCIES WILL UTILIZE THE AUTHORITY
           GRANTEDZED IN THIS BILL TO ALLOW ALL RECORDS -- EVEN THOSE
           PRECLUDED FROM ELECTRONIC TRANSMISSION BY THIS LEGISLATION --
           TO EVENTUALLY BE SENT LECH TROINICALLY. SIXTH, APPLICABILITY TO
           
           FEDERAL AND STATE GOVERNMENTS: MR. PRESIDENT, THE LEGISLATION
           DOES NOT PREVENT STATES FROM ESTABLISHING STANDARDS FOR
           ELECTRONIC TRANSACTIONS WITH THEIR CONSTITUENTS. JUST AS THE
           GOVERNMENT PAPERWORK ELIMINATION ACT PROVIDED THE FEDERAL

           GOVERNMENT WITH THE AUTHORITY TO SET STANDARDS FOR ELECTRONIC
           REGULATORY FILING AND REPORTING, SO, TOO, SHOULD THE STATES
           HAVE THE ABILITY TO SET STANDARDS FOR ELECTRONIC SUBMISSION
           WITH A STATE OR POLITICAL SUBDIVISION. AND LIKE ANY BUSINESS,
           THE FEDERAL GOVERNMENT AND THE STATES ALSO HAVE THE ABILITY TO
           ESTABLISH PROCEDURES AND STANDARDS FOR PROCURING GOODS AND
           SERVICES ON-LINE.
           
           SEVENTH, EFFECTIVE DATE: THIS WAS ONE OF THE FINAL SECTIONS OF
           THE LANGUAGE TO BE MODIFIED IN RESPONSE TO CONCERNS EXPRESSED

           BY MYSELF AND SEVERAL OTHER PARTICIPANTS IN THE CONFERENCE. THE
           ORIGINAL PURPOSE -- PROPOSAL BY THE ADMINISTRATION TO DENY
           LEGAL VALIDITY FOR RECORDS REQUIRED TO BE RETAINED BY FEDERAL
           OR STATE LAW OR REGULATION UNTIL OCTOBER 1 IN THE YEERT 2001
           WAS IN MY OPINION NEEDLESSLY EXCESSIVE AND PUNITIVE TO THOSE
           CONSUMERS AND BUSINESSES PREPARED TO LEAP NOW IN THE ELECTRONIC
           AIFMCT I MAINTAIN THAT FEDERAL AND STATE AGENCIES SHOULD BE
           PROVIDED ONLY SIX MONTHS' TIME TO DEVELOP STANDARDS TO ENSURE

           DOCUMENT VALIDITY AND INTEGRITY. SO AS NOT TO INAPPROPRIATELY
           BURDEN THE PRIVATE SECTOR. IN THE EVENT -- NEANTSZ, IN THE END,
           WE EFFECTIVELY AGREED UPON AN EIGHT-MONTH DELAYED
           IMPLEMENTATION. AND FINALLY, LANGUAGE WHICH HOUSE NEGOTIATORS
           INSISTED UPON WHICH WOULD HAVE CREATED AN UNEVEN PLAYING FIELD
           FOR THE FINANCIAL SERVICES INDUSTRY WAS ALSO DROPPED AT MY
           REQUEST IN THE FINAL PROPOSAL, WHICH WE WILL VOTE ON TOMORROW.
           EIGHTH, INTERNATIONAL
           
           PRINCIPLES: SINCE THE INTERNET IS INHERENTLY AN INTERNATIONAL

           MEDIUM, CONSIDERATION MUST BE GIVEN TO THE MANNER IN WHICH THE
           UNITED STATES WILL CONDUCT BUSINESS WITH OVERSEAS GOVERNMENTS
           AND BUSINESSES. THIS LEGISLATION, THEREFORE, SETS FORTH A
           SERIES OF PRINCIPLES FOR THE INTERNATIONAL USE OF ELECTRONIC
           SIGNATURES. MR. PRESIDENT, TWO YEARS AGO I BELIEVED THAT IF WE
           AS A BODY COULD MAINTAIN A SPIRIT OF BIPARTISANSHIP AND A
           STRONG COMMITMENT TO PRINCIPLES OF FREE COMMERCE, THAT WE WERE
           POISED TO PRODUCE THE LANDMARK ACCOMPLISHMENT OF THIS CONGRESS
           CONGRESS. WELL, WE TOOK THOSE COMMITMENTS SERIOUSLY, AND I

           BELIEVE OUR WORK PRODUCT WILL BE HAILED IN THE FUTURE AS THE
           GROUNDS UPON WHICH THE DREAM OF A PROSPEROUS NEW ECONOMY BECAME
           A REALITY. AND WELL BEYOND OUR EXPECTATIONS. I AM PLEASED TO
           SAY THAT WE HAVE ALREADY BEGUN WORK ON THE NEXT LEGISLATIVE
           EFFORT TO HELP THIS NATION SHIFT TO THE ELECTRONIC WORLD.
           ADDRESSING THE APPORTIONMENT OF LIABILITY FOR VIOLATIONS OF
           DUTY AND TRUST AND THE PROTECTION OF INFORMATION AND USER
           CONFIDENTIALITY IN ELECTRONIC COMMERCE. MR. PRESIDENT, I
           WELCOME THE HELP OF MY COLLEAGUES WHO'VE BEEN WITH ME IN THE

           EFFORT TO PROTECT ELECTRONIC SIGNATURES AND RECORDS. I LOOK
           FORWARD TO AGAIN WORKING CLOSELY WITH THE STATES AND INDUSTRY,
           AND I HOPE TO DELIVER TO THE AMERICAN PUBLIC CORRESPONDING
           LEGISLATION THAT IS AS WELL-CONTEMPLATED AND EFFECTIVE AS S.
           761 IN THE NEXT CONGRESS. AND, MR. PRESIDENT, BEFORE I CLOSE,
           THERE ARE A NUMBER OF INDIVIDUALS WHICH -- WHOM I WOULD LIKE TO
           THANK FOR THEIR HARD WORK. AND WITHOUT EXCEPTION FOR THEIR
           ENDURANCE. FIRST, I WOULD LIKE TO AGAIN RECOGNIZE CHAIRMAN
           MCCAIN FOR HIS ASSISTANCE AND DEDICATION TO THIS EFFORT. THE
           CHAIRMAN WAS ONE OF THE ORIGINAL COSPONSORS OF THIS LEGISLATION

           AND LED A GREAT DEAL OF SUPPORT WELL BEFORE ANY OF THE CURRENT
           ATTENTION WAS BEING PAID TO THE ISSUE OF THE LEGAL CERTAINTY OF
           ELECTRONIC COMMERCE. SENATOR MCCAIN'S CONSTANT MOMENTUM
           ELIMINATED MANY OBSTACLES OVER THE PAST 18 MONTHS AND KEPT THIS
           PROCESS MOVING FORWARD. WITHOUT HIS EFFORTS AND THOSE
{END: 2000/06/15 TIME: 19-45 , Thu.  106TH SENATE, SECOND SESSION}