15 U.S.C. § 7004: Applicability to Federal and…

Summary

Federal and state agencies still must follow any rule that makes them file records in a particular format. If an agency already has power to make rules under another law, it can explain how the rule about electronic records (section 7001) works with that law by making regulations, orders, or guidance — but only if the agency’s own statute lets it do that. Any new rule from an agency must match section 7001, must not add extra requirements, must have a strong reason, must use methods that are basically as good as paper records and won’t add unreasonable costs, and cannot require or favor a specific technology. Agencies may set performance standards for accuracy, integrity, and access, and in rare cases may require paper for law enforcement or national security. Rules about government buying are not limited by the ban on naming specific technology. Agencies must still follow the Government Paperwork Elimination Act. A federal agency may exempt a whole category of records from the consent rule (section 7001(c)) if doing so removes a big burden on electronic commerce and won’t increase consumer harm, and such exemptions must follow notice and public comment. The Securities and Exchange Commission had to issue such an exemption within 30 days after June 30, 2000 for certain records related to advertising or sales materials for registered investment companies. The Federal Communications Commission must treat electronic contracts or letters of agency for carrier changes as valid if they meet the FCC’s rules.

Title 15, §7004

Commerce and Trade, Source: USLM XML via OLRC

(a)Filing and access requirements

Subject to subsection (c)(2), nothing in this subchapter limits or supersedes any requirement by a Federal regulatory agency, self-regulatory organization, or State regulatory agency that records be filed with such agency or organization in accordance with specified standards or formats.

(b)Preservation of existing rulemaking authority

(1)Use of authority to interpret

Subject to paragraph (2) and subsection (c), a Federal regulatory agency or State regulatory agency that is responsible for rulemaking under any other statute may interpret section 7001 of this title with respect to such statute through—

(A)the issuance of regulations pursuant to a statute; or

(B)to the extent such agency is authorized by statute to issue orders or guidance, the issuance of orders or guidance of general applicability that are publicly available and published (in the Federal Register in the case of an order or guidance issued by a Federal regulatory agency).

This paragraph does not grant any Federal regulatory agency or State regulatory agency authority to issue regulations, orders, or guidance pursuant to any statute that does not authorize such issuance.

(2)Limitations on interpretation authority

Notwithstanding paragraph (1), a Federal regulatory agency shall not adopt any regulation, order, or guidance described in paragraph (1), and a State regulatory agency is preempted by section 7001 of this title from adopting any regulation, order, or guidance described in paragraph (1), unless—

(A)such regulation, order, or guidance is consistent with section 7001 of this title;

(B)such regulation, order, or guidance does not add to the requirements of such section; and

(C)such agency finds, in connection with the issuance of such regulation, order, or guidance, that—

(i)there is a substantial justification for the regulation, order, or guidance;

(ii)the methods selected to carry out that purpose—

(I)are substantially equivalent to the requirements imposed on records that are not electronic records; and

(II)will not impose unreasonable costs on the acceptance and use of electronic records; and

(iii)the methods selected to carry out that purpose do not require, or accord greater legal status or effect to, the implementation or application of a specific technology or technical specification for performing the functions of creating, storing, generating, receiving, communicating, or authenticating electronic records or electronic signatures.

(3)Performance standards

(A)Accuracy, record integrity, accessibility

Notwithstanding paragraph (2)(C)(iii), a Federal regulatory agency or State regulatory agency may interpret section 7001(d) of this title to specify performance standards to assure accuracy, record integrity, and accessibility of records that are required to be retained. Such performance standards may be specified in a manner that imposes a requirement in violation of paragraph (2)(C)(iii) if the requirement (i) serves an important governmental objective; and (ii) is substantially related to the achievement of that objective. Nothing in this paragraph shall be construed to grant any Federal regulatory agency or State regulatory agency authority to require use of a particular type of software or hardware in order to comply with section 7001(d) of this title.

(B)Paper or printed form

Notwithstanding subsection (c)(1), a Federal regulatory agency or State regulatory agency may interpret section 7001(d) of this title to require retention of a record in a tangible printed or paper form if—

(i)there is a compelling governmental interest relating to law enforcement or national security for imposing such requirement; and

(ii)imposing such requirement is essential to attaining such interest.

(4)Exceptions for actions by government as market participant

Paragraph (2)(C)(iii) shall not apply to the statutes, regulations, or other rules of law governing procurement by the Federal or any State government, or any agency or instrumentality thereof.

(c)Additional limitations

(1)Reimposing paper prohibited

Nothing in subsection (b) (other than paragraph (3)(B) thereof) shall be construed to grant any Federal regulatory agency or State regulatory agency authority to impose or reimpose any requirement that a record be in a tangible printed or paper form.

(2)Continuing obligation under Government Paperwork Elimination Act

Nothing in subsection (a) or (b) relieves any Federal regulatory agency of its obligations under the Government Paperwork Elimination Act (title XVII of Public Law 105–277).

(d)Authority to exempt from consent provision

(1)In general

A Federal regulatory agency may, with respect to matter within its jurisdiction, by regulation or order issued after notice and an opportunity for public comment, exempt without condition a specified category or type of record from the requirements relating to consent in section 7001(c) of this title if such exemption is necessary to eliminate a substantial burden on electronic commerce and will not increase the material risk of harm to consumers.

(2)Prospectuses

Within 30 days after June 30, 2000, the Securities and Exchange Commission shall issue a regulation or order pursuant to paragraph (1) exempting from section 7001(c) of this title any records that are required to be provided in order to allow advertising, sales literature, or other information concerning a security issued by an investment company that is registered under the Investment Company Act of 1940 [15 U.S.C. 80a–1 et seq.], or concerning the issuer thereof, to be excluded from the definition of a prospectus under section 77b(a)(10)(A) of this title.

(e)Electronic letters of agency

The Federal Communications Commission shall not hold any contract for telecommunications service or letter of agency for a preferred carrier change, that otherwise complies with the Commission’s rules, to be legally ineffective, invalid, or unenforceable solely because an electronic record or electronic signature was used in its formation or authorization.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Government Paperwork Elimination Act, referred to in subsec. (c)(2), is title XVII of Pub. L. 105–277, div. C, Oct. 21, 1998, 112 Stat. 2681–749, which amended section 3504 of Title 44, Public Printing and Documents, and enacted provisions set out as a note under section 3504 of Title 44. For complete classification of this Act to the Code, see Tables. The Investment Company Act of 1940, referred to in subsec. (d)(2), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, which is classified generally to subchapter I (§ 80a–1 et seq.) of chapter 2D of this title. For complete classification of this Act to the Code, see section 80a–51 of this title and Tables.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Oct. 1, 2000, with exceptions relating to record retention and certain loans, see section 107 of Pub. L. 106–229, set out as a note under section 7001 of this title.

§7004 Applicability to Federal and State Governments