Contractors who do business with the state are often required to submit original signatures on paper contract forms. But that could change soon.
Legislation moving through the state Assembly would require the Department of General Services to develop procedures to enable state entities to accept electronic signatures.
“Requiring handwritten wet signatures on all contracting documents is not only outdated but is costly and inefficient,” bill author Jay Obernolte, R-Big Bear Lake, said in a statement to Techwire.
Under the State Contracting Manual, entities must submit original signatures on certain forms, as well as make multiple copies of agreements and forms, according to the bill analysis.
AB 639 would require DGS to develop procedures that authorize the submittal of electronic signatures and documents by any party covered under the State Contracting Manual.
The Assembly Committee on Accountability and Administrative Review approved the bill by a unanimous vote on Wednesday. It now goes to the Assembly Appropriations Committee for consideration.
Obernolte said the measure will make state government more efficient and actually save taxpayer money. For example, setting up electronic signatures and documents would reduce the need to mail paper documents to various parties throughout the state, save paper and reduce storage costs for paper files.
“We have the technology to allow for electronic signatures on these documents so it’s paramount that we start utilizing it throughout our government agencies and departments,” Obernolte said. “It’s my goal that the Legislature modernize this antiquated process and move into the 21st century.”
DGS is already researching how it might transition to electronic signatures. The department has convened an “active internal workgroup that is examining the costs, feasibility and statewide implications of implementing electronic signatures,” DGS spokesman Brian Ferguson said.
There is no timeline for when the working group is scheduled to finish its review.
California lawmakers have long sought to facilitate advances in technology when it comes to digital and electronic signatures. In 1995, the Legislature authorized the use of digital signature by public entities in an effort to promote e-commerce. Four years later, lawmakers enacted a law known as the Uniform Electronic Transactions Act, which ensured an “electronic signature” was a valid and enforceable signature in any transaction between two or more persons, including a government agency.
And last year, Gov. Jerry Brown signed into law AB 2296 by Assemblyman Evan Low, D-Campbell, that clarified a digital signature also qualifies an electronic signature — clearing up what some argued was confusion in the marketplace about what kind of signature is required for electronic transactions.
