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    The Modern Wisdom of Epostmarks

    Entries in UETA (3)

    Friday
    Jan302009

    How did Maryland and Delaware get Ahead of the Curve?

    Maryland and Delaware have a lot going for them: legendary boating, lovely beaches, great fishing, and close proximity to the East Coast's major metro areas. These two states have also have taken a lead role in developing a promising corner of the Internet.

    As I've mentioned before on this blog, the Uniform Electronic Transactions Act (UETA) represents a cornerstone of the "e" economy. UETA led to the Electronic Signatures in Global and National Commerce Act (ESIGN) and together these laws have expanded across the entire country to create a foundation for e-business to grow upon. 

    Maryland and Delaware have taken the next step in revising UETA to better serve the evolving eCommerce environment. They have both amended their UETA laws to define electronic messages, protected with an EPM, as the equivalent of U.S. Postal mail. Additionally, these amendments apply to any agreement governed by the laws of those states even if the organizations don't reside there.

    This simple concept--supported unanimously by the legislatures in both states--enables those states to take advantage of existing technology, infrastructure, and policy investments in entirely new ways. The technology, deployed years ago by the USPS, just waits for the right application. The infrastructure of U.S. Postal inspectors, retail outlets and brand awareness stand in the same position. From a policy perspective, this single amendment allows thousands of existing laws and regulations--that all reference mail--to apply. Talk about a highly leveraged move of those legislatures.

    So you ask "What if my state hasn't amended the UETA statute?" Never fear my friends. Most laws and regulations don't require the use of mail exclusively, they just explicitly approve of the mail. The EPM usually fulfills requirements of electronic transactions anyway, it just takes a few extra steps like digging into other parts of the regulation or referencing other laws or precedents. I enjoy explicit approval so much more for ease, clarity, and the peace of mind it provides our customers.

    Here's a list from Section 18 of the US Code where the USPS has jurisdiction to enforce protection of the EPM in any state:

    18 U.S.C. - 1028. Fraud and related activity in connection with identification documents and information
    18 U.S.C. - 1029. Fraud and related activity in connection with access devices
    18 U.S.C. - 1030. Fraud and related activity in connection with computers
    18 U.S.C. - 1343. Wire Fraud
    18 U.S.C. - 2701. Unlawful Access to Stored Communications  
    18 U.S.C. - 2510. Definition of "electronic communications"

    Maybe you would expect these policy advances from states known for their nature and leisure...but they seem to have figured out more than just fine living. They've figured how to live fine while keeping an eye on continuing such a lifestyle in the future. Way to go Del Mar.

    Thursday
    Jan292009

    EPM goes to Washington

    This week Postmaster General Jack Potter testified before the Senate Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security (what a mouthful). Senator Tom Carper chairs the subcommittee and hails from Delaware.

    General Potter had two agenda items of serious import:

    1. He requested the ability to begin 5-day delivery
    2. He requested a restructuring of the USPS requirement to prefund future retiree benefits

    These agenda items received a bulk of the allotted time (transcripts) although one quote from Potter struck me as notable. He predicted that "Revenue growth that is based on business growth...is also a key element that is necessary for our long term viability."

    Apparently Mr. Carper heard the same quote because near the end of the hearing he asked a series of probing questions about potential business growth opportunities including a very intriguing question about the EPM. Listen to this short segment from the hearing:

     

    You see, Delaware has done some trailblazing when it comes to the EPM. As Senator Carper eluded, earlier this year the Delaware legislature unanimously passed an amendment to their UETA statute giving electronic messages protected by an EPM the legal equivalence to physical mail (stay tuned for a post explaining this in more detail).

    The folks from Delaware have identified that this program provides an amazing opportunity to leverage the trust of the USPS outside of the traditional logistics business. I believe that the USPS entered the market incorrectly--twice, but that three is a charm--when they chose single vendors to provision the service. They have finally come up with an industry supported model that promises to overcome the earlier challenges.

    I'm happy to hear the General Potter intends to continue pursuing growth of the EPM program. I believe that it represents an ideal way for the USPS to remain relevant in a world where the communications mix skews heavily electronic. What other opportunities are available to grow revenues with such a low cost basis?

    I think we'll hear more about this. Senator Carper's closing comments indicated that "mostly I want to focus on opportunities that are out there for growth and growing revenues and some that are going well and maybe a couple that we have touched on here today as possibilities."

    The next hearing should take place before March so stay tuned. 

    Postmaster General Potter Senate Testimony

    Friday
    Jan162009

    UETA (& ESIGN) in Plain English

    Imagine you wanted to conduct business online in the nineties, not just buy a single item on Amazon, but to set up a brokerage account for example. You would have to sign the application and a bunch of other forms so...you couldn't finish your sign-up online.

    Beginning in 1999, states started to pass the Universal Electronic Transactions Act (UETA) legally granting electronically signed records the same as hand signed ones. Then in 2000 Congress passed ESIGN, the Federal version for interstate commerce, making a national framework that removes barriers to electronic commerce. Now 46 states plus D.C., Puerto Rico, and the U.S. Virgin Islands have passed UETA. Yay!

    What does UETA actually say though? Here's a short list of the most important points:

    • Everyone must consent! Nobody can force you to go electronic.
    • Signatures, contracts, and documents can't be denied simply because they are electronic.
    • You can get an electronic notary if you want one.
    • It's just like you sent the transaction from your place of business.
    • Everything counts even if there is just a computer on the other side.

    Ten years ago this simple law began proliferating across the country and has played a large part in helping the Internet grow into one of the pillars of our current economy.

    Happy 10 Years UETA!!