HomeMy WebLinkAbout2014-03-11; City Council; 21520; Adoption City Council Policy Electronic SignatureCITY OF CARLSBAD - AGENDA BILL
AB# 21,520 ADOPTION OF A NEW CITY COUNCIL
POLICY: ELECTRONIC SIGNATURE
DEPT.DIRECTOR
MTG. 3/11/14 ADOPTION OF A NEW CITY COUNCIL
POLICY: ELECTRONIC SIGNATURE CITY ATTY.
DEPT. IT
ADOPTION OF A NEW CITY COUNCIL
POLICY: ELECTRONIC SIGNATURE CITY MGR. yf\^
RECOMMENDED ACTION:
Adopt Resolution No. 2014-036 approving a new City Council Policy regarding electronic
signatures.
ITEM EXPLANATION:
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. The
benefits of electronic signatures are simple and numerous: they cut down on the paper, time
and cost associated with transmitting and approving physical documents, and they can offer
an easily accessible audit trail of when documents were modified and when they were
signed.
For several years, the federal government has tried to support electronic commerce, but the
requirement for a signature has been a problem. As a result, the federal government passed
the Federal Electronic Records and Signature in Commerce Act (e-Sign Law), on electronic
transactions effective in late 2000. Normally, a federal law would override a state law, but
this federal law specifically states that if the state law is not in conflict with the federal law, the
state law takes precedence.
The State of California passed California Government Code Section 16.5, whicti allows
electronic signatures. The regulation states that digital signatures either received or sent by
public entities shall by created using a technology that is accepted by the state. The state
also indicates which technologies are acceptable and provides a list of companies who have
been approved to work with the state.
DEPARTMENT CONTACT: City Technology Officer, Tina Steffan, (760) 602-2450
FOR C/TY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED CONTINUED TO DATE UNKNOWN •
WITHDRAWN • RETURNED TO STAFF •
AMENDED • COUNCIL RECEIVED THE
REPORT/PRESENTATION
OTHER-SEE MINUTES
•
•
An electronic signature means an electronic sound, symbol, or process attached to or logically
associated with an electronic record and executed or adopted by a person with the intent to sign
the electronic record. This record or signature may not be denied legal effect or enforceability
solely because it is in electronic form. Examples of potential electronic signatures include but
are not limited to:
• Click OK on a screen
• Password
. PIN Number
• Digitized Signature
• Digital Signature
• Fingerprint Scan
• Retina Scan
The definition was intentionally broad so it would not favor any existing technology or prevent
the use of new technologies that will be available in the future. It was assumed technology
would progress more rapidly than specific laws could be enacted.
The city will determine whether, and the extent to which, it will send and accept electronic
records and electronic signatures to and from other persons and otherwise create, generate,
communicate, store, process, use, and rely upon electronic records and electronic signatures.
The Administrative Services department has developed the attached council resolution
(Exhibiti) and policy (Exhibit 2) and requests that the council formally adopt it as Council Policy
No. 80 to fill this need.
FISCAL IMPACT:
No Fiscal Impact
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code section 21065, this action does not constitute a "project"
within the meaning of CEQA in that it has no potential to cause either a direct physical
change in the environment, or a reasonably foreseeable indirect physical change in the
environment, and therefore does not require environmental review.
EXHIBITS:
1. City Council Resolution No. 2014-036
2. Adopting City Council Policy No. 80
EXHIBITI
1 RESOLUTION NO. 2014-036
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ADOPTING A CITY COUNCIL POLICY REGARDING
ELECTRONIC SIGNATURES
5 The City Council of the City of Carlsbad, California does hereby resolve as
follows:
WHEREAS, federal and state regulations have provided sufficient guidelines to allow for
8 the implementation of electronic content, electronic transactions and electronic signatures;
and
WHEREAS, the city will oversee and determine which signatures may or may not be
transacted electronically; and
WHEREAS, technology has developed to a level of sophistication to enable secure and
9
10
11
12
13
j4 verifiable signatures; and
15 WHEREAS, it is a best practice to adopt an electronic signature policy in order to allow
content automation and improve city staff efficiency.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows that:
1. The above recitations are true and correct.
17
l:
19
20
21 2. That City Council Policy No. 80 is adopted as shown in Exhibit A to this resolution.
22
23
24
25
26
27 //
28
//
//
//
3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 11*^ day of March, 2014, by the following vote to wit:
AYES:
NOES:
ABSENT:
Council Members Hall, Packard, Wood and Blackburn.
None.
None.
MATT HALL^ Mayor
ATTEST:
SHELLEY COLLINS/ Assistant City Clerk
(SEAL)
<C*S^^ ^'TY Policy No. 80
CARLSBAD Date issued: March 11,2014
Effective Date: IVIarch 11,2014
Resolution No. 2014-036
Cancellation Date:
Council Policy Statement supersedes NO.
Category:
Specific Subject: Electronic Signatures
PURPOSE:
To enable the City of Carlsbad to accept an approved electronic signature, in lieu of a written signature,
on a document in which a signature is required or used, which complies with the requirements of
Government Code section 16.5. This policy does not supersede laws that specifically require a written
signature. This policy does not limit the right or option to conduct the transaction on paper or in non-
electronic form and the right to have documents provided or made available on paper.
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. The benefits of electronic
signatures are simple and numerous: they cut down on the paper, time and cost associated with
transmitting and approving physical documents, and they can offer an easily accessible audit trail of the
modification, editing, and approval / signature of documents.
This policy will authorize the use of electronic signatures on the City of Carlsbad documents while
allowing the city to strike a balance between flexibility and the need for signature security and integrity.
POLICY:
1. To the fullest extent permitted by law, the City of Carlsbad accepts e-signatures as legally binding
and equivalent to handwritten signatures to signify an agreement in accordance with California
Government Code section 16.5.
2. This policy applies to all employees of the City of Carlsbad, and governs all uses of electronic
signatures and electronic records used to conduct the official business of the City of Carlsbad. Such
business may include, but not be limited to electronic communications, transactions, contracts,
permits and other official purposes, both internal and external to the city.
3. Where a city policy requires that a record have the signature of an authorized person that
requirement is met when the electronic record has associated with it an electronic signature using a
city approved electronic signature method.
4. Where a city policy requires a written document, that requirement is met when an electronic record
has associated with it an electronic signature using a city approved electronic signature method.
Page lof 2
Policy No. 80
5. The City of Carlsbad's right or option to conduct a transaction on paper or in non-electronic form
shall not affect the City of Carlsbad's right, option or obligation to have documents provided or
made available in paper format.
6. Approved and automated processes for a City of Carlsbad transaction are automatically subject to
the provisions of this policy.
7. Periodic reviews will be implemented for appropriateness and continued applicability of electronic
signatures.
8. If the parties have agreed to conduct a transaction by electronic means, the parties are required to
utilize the city's electronic signature system for approved, electronically signed documents and that
all applicable security processes for authentication be followed.
9. Where a legal requirement, beyond city policy, requires a written document, that requirement is
met when an electronic record has associated with it an electronic signature using an approved
electronic signature method, which complies with California state law.
10. Appropriate procedures must be used to confirm that the person signing the record has the
appropriate authority.
11. This policy applies only to transactions between parties, which have agreed to conduct transactions
by electronic means with the use ofthe city's approved electronic signature method.
12. If parties have agreed to conduct a transaction by electronic means and a law requires a person to
provide, send, or deliver information in writing to another person, the requirement is satisfied if the
information is provided, sent or delivered, in an electronic record capable of retention by the
recipient at the time of receipt. An electronic record is not capable of retention by the recipient if
the sender or its information processing system inhibits the ability of the recipient to print or store
the electronic record.
13. This policy shall not apply to any transaction that requires a person's signature to be signed in the
presence of a notary public.
14. The final approval of any electronic signature method will be by the City Manager and City Attorney,
with the recommendation ofthe Information Technology Director. In determining whether to
approve an electronic signature method, consideration will be given to the systems and procedures
associated with using that electronic signature, and whether the use of the electronic signature is at
least as reliable as the existing method being used.
15. In the event that it is determined that an approved electronic signature method is no longer
trustworthy, the City Manager must revoke the approval of that electronic signature method. If
there is continued significance forthe electronic signatures, which used the revoked method, the
City Manager will take steps to see that any valid records signed with the revoked electronic
signature method are signed again either with a written signature or with an approved electronic
signature method.
Page 2 of 2