Category: Information Technology
Policy No.: IT-2
Subject: E-Signatures Policy
Date Issued: 9/14/2020
Staff Contact: Finance Department
Last Updated: 3/22/2021
PURPOSE
The City Manager adopts this Policy to establish guidelines for the use of electronic signatures by the City of Kenmore (City). This Policy establishes the requirements for the use of electronic signatures in lieu of manual or "wet" signatures. This Policy shall be used by City departments to increase efficiency, reduce waste and ensure the convenient and timely access to City information by using electronic signature technology to collect and preserve documents quickly, securely, and efficiently. This Policy furthers the City’s goal of efficient business practices by reducing the consumption and storage of papers and the maintenance and supply of copiers and printers.
The City also recognizes the need to provide members of the public with convenient access to City services. Advances in technology can assist the City in obtaining these goals while providing security for document management. This Policy balances the need for efficient services against the risks of unauthorized activities by providing the approved electronic signature method and guidelines for certain documents and transactions.
The City entered into an agreement with Adobe on November 23, 2020 for Adobe Sign to provide electronic signature capabilities and services to the City. Adobe Sign, or any entity the City may choose in the future to provide such services, will be used for gathering external signatures and to provide electronic signatures as permitted under this Policy.
This Policy applies to the City’s acceptance of electronic signatures from parties outside of the City and the use of electronic signatures on documents executed on behalf of the City. It does not increase the scope of authority of the City’s authorized signatories, but rather provides an alternative means to execute City-related documents. These are minimum standards. Depending upon the circumstances, the City may require a higher level of signature verification (e.g., for an out-of-state signatory).
Affixing an electronic signature to a document in a manner consistent with this Policy shall satisfy City’s requirement for signing a document. As used in this Administrative Instruction, the term "signature" includes the use of initials on a document as one’s signature. Although the use of electronic signatures is suggested and encouraged when permitted, this Policy does not mandate the use of electronic signatures, nor can the City require that any third party signing a document use electronic signatures.
Nothing in this Policy prohibits a City official or employee, with the City Manager’s consent, from requiring a wet signature or higher form of secure electronic signature if he or she believes it is prudent or necessary. The City Manager may accept or authorize the acceptance of an electronic signature when, in his or her discretion, the circumstances surrounding the transaction address authentication and security concerns.
This Policy does not apply to electronic signatures accepted or utilized before the original effective date, and is intended to provide guidance for electronic signatures accepted thereafter. Any transaction must be analyzed under the facts and circumstances existing at the time a transaction has been executed.
The Washington State Uniform Electronic Transactions Act (UETA) governs electronic records and electronic signatures created, generated, sent, communicated, received, or stored on or after June 11, 2020, excluding transactions as provided in the UETA Section Three, Subsection 2.
The UETA requires government agencies to determine whether, and the extent to which, agencies 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.
Pursuant to the UETA, the Kenmore City Council adopted Resolution No. 20-351 on September 14, 2020, authorizing the use, creation, and acceptance of electronic records and electronic signatures to the fullest extent allowed by state and/or federal law and these rules and regulations.
Resolution No. 20-351 also authorized the City Council, Mayor, City Manager and designees to use electronic signatures. The City Manager or his/her designee were authorized to establish administrative policies such as this to create reasonable rules and regulations regarding electronic records and electronic signatures.
These policies, rules, and regulations, shall give due consideration to security, to govern: (1) the manner and format in which electronic records must be created, generated, sent, communicated, received, and stored and the systems established for those purposes; (2) if electronic records must be signed by electronic means, the type of electronic signature required, the manner and format in which an electronic signature must be affixed to an electronic record, and the identity of, or criteria that must be met by, any third party used by a person filing a document to facilitate the process; (3) control processes and procedures as appropriate to ensure adequate preservation, disposition, integrity, security, confidentiality, and auditability of electronic records; and (4) any other required attributes for electronic records which are specified for corresponding non-electronic records or which are reasonably necessary under the circumstances.
In the United States, there are two primary types of electronic signatures:
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Electronic signature (e-signature) refers to any electronic process that indicates acceptance of an agreement or record. Most electronic signature solutions in the United States fall into this broad category Electronic signatures use a wide variety of common electronic authentication methods to verify signer identity, such as email, corporate ID, password protection, or a PIN sent to a mobile phone Proof of signing is demonstrated via a secured process that often includes an audit trail and a final tamperevident digital certificate embedded into the completed signed document. Under this Policy, the City approves the use of this form of electronic signature.
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Digital signature uses a digital certificate from a trust service provider (TSP), such as a certificate authority (CA), to authenticate a signer’s identity. The digital certificates demonstrate proof of signing by binding the digital certificate associated with each signature to the document using encryption. This form of electronic signature may be considered in the future, but is not approved as part of this Policy, and the additional products and instructions to deploy this form of electronic signature is not being considered under this Policy.
This Policy applies to city personnel when using any type of Electronic Signature or Electronic Record. City staff, as well as elected and appointed officials, shall comply with all provisions of these rules and regulations as well as applicable state and/or federal law. If individuals are uncertain with how to comply with these rules and regulations, as well as applicable state and/or federal law, they shall consult with the City Attorney and/or the City Manager before creating, generating, communicating, storing, accepting, processing, using, and/or relying on electronic records and/or electronic signatures.
The rules and regulations adopted under this Policy are subject to the governance and limitations expressed in state and/or federal law, including but not limited to the Uniform Electronic Transactions Act (UETA) and 15 U.S.C Ch. 96. All electronic records and electronic signatures used, created, and/or accepted by the City shall comply with applicable federal and/or state law.
Authorized User(s) only may use, create, or accept records with all forms of Electronic Signatures, if the individual would otherwise be authorized to use, create, or accept the Record with a Physical Signature.
The City recognizes that Electronic Signatures are valid to the same extent a Physical Signature would be valid, if complying with all applicable state and/or federal laws as well as these rules and regulations.
Electronic Signatures may be used on City records requiring execution by a third party.
This Policy may be modified, or replaced at any time by the City Manager or his/her designee.
Electronic Signatures cannot be applied using another Authorized User’s name and/or signature. Records signed on behalf of another individual by a designee shall user their own Electronic Signature.
This Policy does not affect the City’s ability to conduct a transaction using a physical medium or using Physical Signatures. The City may also require records to be physically signed on a case-by-case basis.
If an Electronic Signature is used for interstate transactions or for documents required by the US Federal government, the Electronic Signature shall comply with the requirements of the Electronic Signatures in Global and Electronic Commerce (ESIGN) Act.
If a document exists only electronically, steps should be taken by each department to ensure that a fixed version of the final document and audit trail, which details the electronic signature process, are provided to, and stored in some manner with, the City Clerk’s Office. All final electronic documents must be stored in a manner consistent with the City’s document retention policies and any applicable laws.
All Electronic Signatures used, created, and/or accepted by the City shall be affixed to records utilizing a Verification Software (such as Adobe Signs). Verification Software is capable of ensuring adequate preservation, disposition, integrity, security, confidentiality, and auditability of Electronic Records and Electronic Signatures.
Contracts, agreements, ordinances, resolutions, meeting minutes, and other documents that state some contractual relationship or grant something, upon the City Attorney’s approval as to form when required.
Documents requiring internal approval or department lead authorization including but not limited to invoices, purchase orders, and agenda bills.
Engineering and building plans, approvals, permits, and other construction records.
While the City may authorize additional records to be used, created, or accepted with Electronic Signatures upon request, staff members should first analyze whether the type of record they wish to electronically sign requires a verifiable Electronic Signature or if another type of signature/approval could be used.
The Finance & Administration Director or designee in consultation with the City Attorney will evaluate request(s) to use Electronic Signatures on records not authorized herein.
City staff accepting Electronic Signatures shall document the facts and circumstances of the transaction, including the method for obtaining the signature, the party’s agreement to use electronic signatures, the method of authenticating the person who signs, or other facts at the time of creation of the signature which establish the authenticity of the signature.
The use of electronic signatures is permitted and shall have the same force and effect as the use of a “wet” or manual signature if all of the following criteria are met:
Electronic signatures, i.e., not traditional wet ink signatures, are only valid and legally binding if both parties intend to sign and execute the agreement electronically.
The City will accept electronic signatures when the parties:
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consent to the transaction, and
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consent that the transaction be completed electronically, and
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consent to receive disclosures electronically. Consent shall be obtained with language similar to:
“The parties agree that this agreement may be electronically signed. The parties agree that the electronic signatures appearing on this agreement are the same as handwritten signatures for the purposes of validity, enforceability, and admissibility.”
No party to a contract or other document may be forced to accept an electronic signature; they must be permitted to decide either way. Consent may be withdrawn by a party such that future documents related to the withdrawn consent transaction must be signed in hard-copy format.
When a document is electronically signed by all parties, the City, the outside party (if an outside party originates the agreement), or a third-party service provider facilitating the signatures on the document will notify the parties of the availability of and/or provide the parties with a copy of the digitally signed document in an electronic format that is capable of being retained and printed.
The electronic signature shall be capable of verification.
The electronic signature is under the sole control of the person using it. This requirement prohibits the use of proxy signatures.
E-mail notifications requesting electronic signatures must not be forwarded unless delegation has been assigned.
The electronic signature is linked to the data in such a manner that it is readily ascertainable if the data is changed after the signature is applied.
All documents submitted for electronic signature must be in PDF form
Only City personnel, elected officials, and/or appointed officials identified in these policies and procedures as an Authorized User may use, create, or accept records with Electronic Signatures.
Authorized User(s) include:
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Mayor;
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Mayor Pro Tem;
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City Manager;
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Assistant City Manager;
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Finance & Administration Director;
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City Clerk;
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Human Resources Manager;
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City Attorney;
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Chief of Police;
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City Engineer;
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Public Works Operations Manager;
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Community Development Director;
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Environmental Services Manager;
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Development Services Director;
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Senior Engineer;
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Principal Planner;
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Project Engineers;
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Other Staff as designated by a Department Director and approved by the Finance & Administration Director