In late September, Governor Pataki signed into law the landmark legislation designed to unleash the unlimited economic growth potential of electronic commerce, while also making it easier for New Yorkers to take advantage of this 21st Century technology. This legislation, Chapter 4 of the Laws of 1999, creates a new State Technology Law that for the first time provides a broad statewide approach intended to make it easier for businesses and consumers to use technology.

Prior law did not adequately address the fast-growing e-commerce market or take into consideration that advances in electronic technology enable government, consumers and businesses to integrate e-commerce into their daily activities. In response to the demands of the industry, government and consumers, New York State enacted the Electronic Signatures and records Act ("the Act") as part of the new State Technology Law.

The Act enhances and clarifies the authority to use of electronic signatures and record in the creation and management of information. It provides that "signatures" made by electronic means and records created, stored or maintained electronically will be legally binding, just as hand-written signatures and paper records are currently. This means, for example, that, consistent with the law, businesses are empowered to enter into contracts electronically with confidence that the document will not be denied legal admissibility merely because it is electronic. The potential of the Act is virtually limitless for facilitating citizens in their transactions in and with the state.

The Act designates the state Office for Technology (OFT) as the electronic facilitator responsible for promulgating rules and regulations for programs authorized by the Act. Importantly, the implementation and use of electronic signatures and records is voluntary unless required by law.

As OFT prepares to implement the electronic signature and records program and promulgate rules and regulations to enable its use, a statewide advisory committee and work groups are being established to provide input and comment regarding issues in the areas of technology and legal and business policy as they relate to the implementation of the Act. This committee and the work groups will consist of both public and private sector representatives. In order to begin the process of gathering input and selecting committee and work group members, meetings will be held around the state the first week of February. The following locations are planned: Long Island, New York City, Albany, Binghamton, Syracuse, Buffalo and Lake Placid. OFT will be notifying local officials regarding the details of the meeting in your area shortly. Please feel free to contact OFT at 518-402-2017.

I look forward to moving New York State into the exciting world of electronic commerce with you.

James G. Natoli