Thursday, March 3, 2011

Concern, support, greet Nebraska’s “Smart Initiatives” bill, LB 566, during committee hearing

LB 566, a bill now pending in Nebraska’s unique unicameral legislature, would create a system of “Smart Initiatives” in that state, allowing Nebraskans to electronically sign initiative, referendum, and recall petitions online. The bill, authored by State Senator Paul Schumacher, was heard by the Government, Military, and Veterans Affairs Committee on March 2nd.

According to Senator Schumacher’s staff member Peg Jones, the Senator “felt good about the reception the bill got and the questions that were asked.” A transcript of the hearing won’t be available until next week, so Etopia News is relying at this point principally on Ms. Jones’ account of what happened at the hearing.

She related that Neal Erickson, Deputy Secretary of State for Elections, appearing before the committee on behalf of Secretary of State John Gale, expressed some concerns about the bill, principally the fact that it would cost, by his estimate, $385,000 to implement its provisions for a system that would allow Nebraska citizens to read and electronically sign online versions of proposed initiatives, referendums, and recalls. Contacted directly for comment on his concerns, Mr. Erickson said that “the record speaks for itself.”

Also appearing to testify with reservations about the legislation, according to the official transcript of the hearing, was Jason Kvols, director for District 3 on the Nebraska Farm Bureau Federation's Board of Directors. Mr. Kvols' concerns focused on the alleged inability of people on farms to access the Internet, which would exclude them from taking advantage of a Smart Initiatives system. He also expressed concern that the measure would empower potential attacks on farmers' interests by their urban opponents. The continued manual circulation and signature of official initiative, referendum, and recall petitions would still be allowed if LB 566 becomes law.

A single witness appeared before the committee to testify in its favor. He was Kent Bernbeck, a “petition veteran,” according to an article in the Lexington Clipper-Herald. Contacted by Etopia News, Mr. Bernbeck promptly provided by e-mail text containing his description of the hearing and an elucidation of his reasons for supporting LB 566.

Here’s what he had to say about the hearing:

“The Government Committee heard testimony today on a online petition bill. Senator Schumacher acknowledged that it would be better to advance a comprehensive election/petition rights bill after an interim study and combine it with other election-related bills. Paul Schumacher (former petition sponsor) was excellent as he gave the committee a history lesson of the doubling of signature thresholds to the ban on payment per signature.”

“Thanks, Paul,” he added. He continued:

“This legislation gained momentum today although the Deputy Secretary of State, Neal Erickson, opposed the bill based on costs and [that] it would be difficult to implement. Watch this one next session...along with the bill to restrict reasons for recall.”

Mr. Bernbeck then provided a general statement in support of the bill and a list of reasons why he thought the bill would make a desirable change in Nebraska’s laws governing the collection of signatures on official petitions, which now, among other restrictions, prohibit the payment of signature gatherers on a per-signature basis for the signatures they collect, which makes it difficult to find people to circulate these petitions.

He endorsed the bill by saying that:

“LB 566 is a logical and well-thought-out advancement of the deliberative process of citizen-led legislation by allowing petition signers to go to a secure, Secretary of State website, read and understand the measure and register their support for an initiative, referendum or recall petition.”

He gave a dozen specific reasons for supporting LB 566:

1.) Facilitate the initiative and referendum rights
2.) The need to overcome obstacles in exercising these rights
3.) Advance existing, modern technology
4.) Provide for a contemplative environment for those rights to be exercised
5.) Provide for a secure and valid method to prevent fraud
6.) Long overdue definition of sponsor
7.) Opt-out provision
8.) Provides for cost to be paid by sponsor yet allows for low budget, grassroots access
9.) Will save county election commissioners money
10.) Provides for an audit trail to help prevent fraud
11.) Allows for privacy of voter information
12.) Less reliance on circulators

He concluded by saying that:

“Most importantly, this measure would help level the playing field for low-budget, grassroots petitions while promoting a 'contemplative environment' to evaluate the measures being advanced through I&R [initiative and referendum].”

Senator Schumacher’s staff member Peg Jones explained that the Government, Military and Veterans Affairs Committee could now “advance, kill or hold” LB 566. She said that if it were to be “held,” this would give Senator Schumacher “time to look at the issues raised” by the spokespeople for the Secretary of State and the Nebraska Farm Bureau Federation. She expressed hope that the bill would be “held over the interim,” the period between June 8, 2011, when the Nebraska Unicameral adjourns for the year, and January, 2012, when the second session of this term of the legislature will begin.

While the Nebraska Unicameral is considering LB 566, the 500-million strong European Union (EU) already has in place a Smart Initiatives process, known as the European Citizens' Initiative (ECI). Under the terms of the ECI, if one million citizens of the 27-member EU sign an initiative petition, either manually or electronically online, the proposed legislation is officially submitted to the European Commission for consideration by the European Parliament.

For an update on the status of the European Smart Initiatives ECI, watch a February 1, 2011, remotely-recorded video interview with Bruno Kaufmann, President of the Institute for Initiative and Referendum-Euope, here.

Monday, February 28, 2011

S.B. 55 is still on hold and nobody knows why except its sponsor, who isn’t saying

S.B. 55, now pending in the Utah State Senate, “requires a governmental agency to adopt a policy concerning electronic signatures before the governmental agency may accept an electronic signature.” It is widely understood to represent an effort by the state’s Lieutenant Governor, Greg Bell, to reverse last year’s Utah Supreme Court decision in Anderson v. Bell that required his office to accept electronic signatures on independent gubernatorial candidate Farley Anderson’s ballot access petition. It is also understood to be intended to preempt the possibility of letting people in Utah electronically sign initiative or referendum petitions.

While most of the bills pending a few days ago on the Utah Senate’s Second Reading Calendar have been considered by that body, S.B. 55 remains, as it has been for several days, “circled,” or put on hold, as of 4:00 pm Mountain Standard Time on February 28th. Meanwhile, the clock is ticking down for consideration of the bill. After March 2nd, there are no more committee hearings, so if S.B. 55 does pass the Senate, it may have to be taken directly to the House floor without consideration in a House committee. The legislature itself is set to adjourn on March 10th. If the bill is still circled then, it will die, unpassed.

The bill’s Senate sponsor, Senator Stephen Urquhart, hasn’t said why the bill is circled or how long it will stay in that status. The bill’s sponsor in the Utah House of Representatives, Bradley Daw, said through a spokesperson that he “has no idea why it’s circled.” He also said that he thought the bill would be “fairly easy to pass in the House.”

Senator Urquhart’s intern, Abby Pike, told Etopia News today that she would ask her boss about the bill, but there’s been no word yet from him or her as this article was posted around 4:00 pm Mountain Standard Time on Monday, February 28th.

Asked for a comment on the bill from Utah Governor Gary Herbert, the governor’s spokesperson said that as “a general position, we can’t comment on bills until they reach the governor’s desk,” due to the fact that until then the bill’s final content is unknown. The spokesperson referred the inquiry to the Lieutenant Governor’s office, which has already stated its intention not to accept electronic signatures if S.B. 55 is passed and has commended Senator Urquhart for “running” this bill through the legislature.

Thursday, February 24, 2011

S.B. 55 is still “circled”; another electronic signature executive weighs in

As of 3:37 pm Mountain Standard Time on Thursday, February 24, 2011, S.B. 55, which would require each state agency in Utah to go through a formal rule-making process before it could accept electronic signatures, is still “circled” on the legislative calendar there, meaning that it is on hold until further notice.

According to Leslie McLean, Manager of Senate Services, “they’re still working on it.” She said she didn’t “know if they’re amending it or substituting it.” She said what would be done with the bill was entirely up to its sponsor, Utah State Senator Stephen Urquhart.

Meanwhile, another leading electronic signature industry executive has commented on this proposed law. Ken Moyle, Chief Legal Officer at DocuSign told Etopia News today that he finds S.B. 55 “disappointing.” He said that passage of that bill into law would “have the effect of holding up electronic transactions in regulated industries in Utah until the secretary of state got around to adopting rules. That runs counter to the whole intent of UETA and ESIGN.”

UETA is the Uniform Electronic Transactions Act, currently in place in 47 U.S. states, including Utah. ESIGN is the Electronic Signatures in Global and National Commerce Act, which, according to Wikipedia, is intended “to facilitate the use of electronic records and signatures in interstate and foreign commerce by ensuring the validity and legal effect of contracts entered into electronically.”

He was fulsome in his praise for the Utah Supreme Court’s decision in Anderson v. Bell, which S.B. 55 would overturn, calling it “eloquent” and “brilliant.” He said that “The eloquence is in the way the Court concisely dispelled the myth that a pen and paper document was somehow self-authenticating; the brilliance was in the way the Court interpreted the UETA to require state agencies to demonstrate the need for paper on an exception basis, rather than allowing them to hold up e-commerce until they get around to adopting rules.”

Mr. Moyle was also supportive of efforts in Nebraska to pass LB 566, which would allow Nebraskans to electronically sign initiative, referendum, and recall petitions online, calling it a “positive” development. “They want to affirmatively say that they support ESIGN. That makes sense.” It was, he said, a way of “saying that we really mean it” when it comes to the acceptance of electronic signatures.

Apologizing for the use of what is by now a somewhat hackneyed term, Mr. Moyle referred to the “paradigm shift” involved in the transition to the routine acceptance and use of electronic signatures. He agreed with Thomas Kuhn’s contention in The Structure of Scientific Revolutions (published in 1962) that this transition would only fully take place as new people come to power in the institutions undergoing this change.

Moyle said that young people more familiar with new technology coming to fill positions in various sectors of the economy brings about a “tipping point” in the adoption of a new way of looking at things. He said that such a tipping point was now being reached in the financial services sector and that the governmental and judicial sectors “were getting there.”

Wednesday, February 23, 2011

Leading e-signature executive endorses Nebraska’s Smart Initiatives bill; sponsor works cautiously to move it forward

Michael Laurie, VP and co-founder of Silanis, a leading electronic signature company, today endorsed the passage of LB 566, Nebraska’s pending Smart Initiatives legislation, which would allow Nebraskans to electronically sign official initiative, referendum, and recall petitions online.

In a prepared statement, Mr. Laurie said:

“We applaud the Nebraska Smart Initiatives Bill as a great potential step toward making collaborative, accessible government a reality in Nebraska. There is no reason that a smart initiative could not succeed – affordable, proven technology is available and citizens are certainly ready to embrace the convenience and cost-cutting benefits of electronic processes.”

For more about the history and development of the Smart Initiatives concept, click here.

Meanwhile, the bill’s author, Nebraska State Senator Paul Schumacher is moving forward cautiously in his efforts to get the bill passed into law.

A hearing on LB 566 is scheduled for March 2nd before the Government, Military and Veterans Affairs Committee. His goal during this session of the legislature, according to a spokesperson in his office, is “just to get the issue in front of the committee.” State Senator Schumacher won’t be bringing anyone to testify on the bill’s behalf, but welcomes walk-ins who might want to support it. “He’s not soliciting testimony,” the spokesperson said, adding that “he’s just feeling his way through” in educating legislators about the idea of using the Internet to collect electronic signatures on official government petitions, something not yet explicitly authorized in any of the 50 states.

The current session of the unicameral Nebraska legislature runs until June 3rd. According to his spokesperson, Senator Schumacher “may push more during the next session of the legislature,” which will meet in 2012.


Previous Etopia News coverage of the Nebraska Smart Initiatives bill, LB 566, can be found in these three articles:

Nebraska's LB 566 would implement Smart Initiatives in the Cornhusker State

Mixed prospects ahead for LB 566 in committee

Governor of Nebraska has not taken a position on LB 566, Nebraska’s “Smart Initiative” bill

For more about Smart Initiatives in the global context, go to:

A spectre is haunting more than Europe--the spectre of Smart Initiatives

Egypt, Utah, EU: Support for, and opposition to, Internet-mediated efforts to expand democratic governance

S.B. 55 is still “circled”; leading electronic signature executive calls it “a step back for digital government in Utah”

As this article is being posted, at 2:16 pm Mountain Standard Time on Wednesday, February 23, 2011, Utah’s S.B. 55, a bill that would require rule-making by each state agency in that state before it could accept electronic signatures, is still “circled” on the Utah State Senate’s legislative calendar, meaning that it is on hold while its sponsor, Utah State Senator Stephen Urquhart, says he is “working some things out, working some bugs out” of the proposed law.

Meanwhile, Michael Laurie, VP and co-founder of leading electronic signature company Silanis, issued the following statement regarding S.B. 55, which he characterized as “a step back for digital government in Utah at a time when citizens are looking for greater convenience in interacting with government.”

Here’s what Mr. Laurie said:

“The Uniform Electronic Transactions Act is intended to provide a consistent, technology-neutral framework for electronic signatures and records in government and business. While it doesn’t require state agencies to accept e-signatures, it does give electronic signatures the same legal weight as their paper counterparts. Legislating that individual state agencies need to make their own rules related to the acceptance of electronic signatures would be a step back for digital government in Utah at a time when citizens are looking for greater convenience in interacting with government. Any concerns over security and fraud in electronic petitions are unfounded. The reality is that viable technology solutions are available to make the electronic process not only as secure, but more secure than paper.”

Brent Manning, a Utah attorney who argued for the plaintiff in Anderson v. Bell, in which the Utah Supreme Court decided that electronic signatures could be used to qualify an independent gubernatorial candidate for the ballot, today re-iterated to Etopia News his view that S.B. 55 “won’t do what they are trying to accomplish” while it will create new problems.

The Anderson decision, he said, “was cautious and mandated by state law.” He went on to say that “there was nothing wrong with the decision and there’s nothing wrong with accepting electronic signatures.”

“I’m hopeful,” he concluded “that they’ll just abandon the whole thing.”

Tuesday, February 22, 2011

S.B. 55 is “circled” and state Democratic spokesperson calls it “bad law”

Democrats are a beleaguered minority in Utah. They hold seven out of twenty-nine seats in the State Senate and seventeen out of seventy-five in the State House. But they can still make their voice heard on important issues such as S.B. 55, a bill supporters claim will rationalize the state’s electronic signature law and which opponents say will stifle the free exercise of democratic rights in the signing of official state documents electronically.

Todd Taylor, Executive Director of the Utah State Democratic Committee today responded to an inquiry about S.B. 55 from Etopia News with a detailed statement expressing the Democratic Party’s views on this proposed legislation, which was, as this article was being composed, a “circled” bill, meaning that it was on hold for a "second reading" in the Utah State Senate.

According to Leslie McKean, Manager of Senate Services, its sponsor, State Senator Stephen Urquhart, told her that he had had it circled because he “was still working some things out, still working out some bugs.” “At this time,” she said, “he doesn’t know when he’ll uncircle it.” This was at 5:30 pm, Mountain Standard Time, on February 22nd.

Here’s what Mr. Taylor had to say about S.B. 55, on behalf of the Democratic Party of Utah:

“The Utah Legislature is entertaining a provision SB055 Electronic Signatures that could severely limit electronic transactions with the State of Utah. Under the provision, the State of Utah will no longer consider electronic signatures valid unless there has been an agency rule making procedure to allow them.

“As with many things, this issue stems from an election controversy. But it could have unintended consequences for commerce and legal situations far beyond the intended issue by the State Elections Department.

“A little history: In early November 2009, the Utah Democratic Party was approached by the sponsors of more than one citizens’ initiative about the prospect of devising an on-line system to collect petition signatures for these initiatives. Our initial reaction was one of resistance and skepticism. It was quickly overcome.

“It became apparent that there was no impediment in law. It was simply a matter of getting the state election department to acknowledge that the Uniform Electronic Transaction Act was applicable to the election law dealing with initiatives and referenda. It also became apparent that there was no ethical impediment in that we could ensure the validity of the transaction at the same level or better with protection against fraudulent signers as would be the case with the current “in person” process.

“The circulation and collection of petition signatures is not the function of government, but a private function given to the sponsors of the measure. The government’s function is limited to verification and counting to determine if the number collected is sufficient. Electronic signatures make both of these government functions easier and more accurate. The current verification process does not require a comparison of holographic signatures between the petition and the voter registration. It only looks at the name, address and optional date of birth for a match. Common law has long recognized that signatures could be holographic, a mark, or fingerprint, and under Utah law an electronic indication of assent (or electronic signature).

“There has been case law established that contracts are valid where the actor simply checks the “I agree” button on a contract thereby providing their electronic signature. An example is that Microsoft licensing agreements are done in this manner. The State of Utah already uses electronic signatures for renewal of professional and driver’s licenses; application for hunting and fishing licenses; filing tax returns for individual income taxes, sales and use taxes, unemployment insurance; many court documents; registration of products, brands, corporation names, motor vehicles; applications for unemployment, health and insurance benefits, and many, many more services and transactions amounting to millions of dollars. The State of Utah has also already passed a law to allow for electronic voter registration where holographic signatures are required by using links to the driver’s license database.

“In addition to the new voter registration law allowing voter registration with an electronic signature, they have long been in use for filing lobbyist finance disclosure reports, signing the polling books, and campaign finance reports.

“So we were somewhat surprised when we were met with uncompromising resistance from the State Election Department. They tried every method possible to shut down the process. Eventually, the Utah Supreme Court, in a case about signatures allowing candidate access to the ballot, required the State Election Department to accept electronic signatures.

“Utah’s State Election Department is still opposed to setting up a process to accept such signatures and therefore is supporting SB055 to allow them to prevent future acceptance. They claim that their support is to provide for thoughtful rule making but instead it provides a prohibition unless they affirmatively set a rule.

“Commercial entities need to be very careful about doing business with the State of Utah if this measure passes. Unless a state agency has adopted a rule on electronic signatures, they would not be valid. Software licenses, products order online by employees of the agencies, requests for proposals, purchase orders delivered via facsimile or e-mail may all be invalid unless the agency has promulgated a rule.

The Utah Democratic Party understands the need for an orderly process for things like petition signatures and encourages the State Election Department to adopt a workable rule. SB055 is bad law. State agencies will have no impetus to accept electronic submissions if they can “Just say No!” Rule making should not be a matter of whether electronic signatures are acceptable, but rather the appropriate manner. All electronic signatures should be valid unless rule making has provided a more specific manner of submission.”

Sunday, February 20, 2011

Sponsor of Utah’s S.B. 55 proclaims his support for referenda, initiatives, and electronic signatures, but doubts remain

Utah State Senator Stephen Urquhart is the author of Senate Bill 55 (S.B. 55), which would require state agencies to engage in a formal rule-making procedure regarding the acceptance of electronic signatures before any such signatures could be accepted. Critics of the bill say it is an attempt to contravene a recent Utah State Supreme Court decision (Anderson v. Bell) legitimizing the use of electronic signatures on official state petitions, such as those used to qualify independent gubernatorial candidates for the state ballot.

At a hearing on this bill before the Utah legislature’s Business and Labor committee on February 15th, Senator Urquhart spoke out strongly in support of the referendum and initiative processes and of electronic signatures. He offered no assurances, however, that, should his bill pass, Utahns would be able to sign referendum or initiative petitions, or ballot access petitions, electronically.

In a February 10th interview with Etopia News, Paul Neuenschwander, Chief of Staff to Utah Lieutenant Governor Greg Bell, the state’s chief election officer, said that, in his view, S.B. 55 would return regulation of electronic signatures “back to the way it was” before the Supreme Court’s decision in Anderson v. Bell and indicated that the Lieutenant Governor’s office would not be accepting electronic signatures for ballot access if the bill passed.

During the February 15th meeting, after accepting an amendment of the bill by its author that he said was designed to narrow its applicability, the committee favorably recommended the bill, sending it on to a second reading in the Utah State Senate, where it is now pending.

As currently worded, S.B. 55 would prohibit the acceptance of electronic signatures in Utah by any “state agency” that had not first gone through a rule-making procedure to determine the criteria for accepting such signatures.

The only member of the general public to testify before the committee was attorney Brent Manning, who represented Farley Anderson, the independent gubernatorial candidate in Anderson v. Bell who sought to use electronic signatures to gain access to the state ballot.

He told the committee, as he had previously told Etopia News, that the passage of S.B. 55 “would absolutely cripple the ability of the state to conduct electronic commerce” because it would render invalid even the most commonly-occurring instances of electronic commerce involving electronic signatures, such as buying a book online.

Asked by Senator Karen Mayne why, if the bill would do so much damage to electronic commerce in Utah, he was the only person testifying against it, Mr. Manning attributed this to the fact that “it’s been under the radar,” and went on to say that “the ACLU alerted me to this happening and I looked at the bill and commented upon it in the Internet press. I think that sparked the amendment that was made just now.”

Also appearing before the panel was Mark Thomas, Director of Elections for the Lieutenant Governor’s office, who thanked “the sponsor for running this bill.”

During consideration of the bill, Senator Urquhart spoke passionately about his support for the initiative and referendum processes, electronic signatures, and the digital domain generally, saying at one point that “I think I’ve been out on the digital frontier for a while and I like being there and I like our state being there. It is so convenient for our citizens and, as Mr. Manning said, this can be done with tremendous reliability.”

He asserted his support for referenda and initiatives, saying, during his summation of the legislation, that “On my blog I’ve talked repeatedly about referenda and initiative, having the distinction of being the only legislator ever to have a piece of legislation overturned by referendum. I have opinions on the topic and my opinion is that they’re great. I’m an enthusiastic supporter of referenda and initiatives. I do not want to chill democratic participation at all. We need more of it, and so let’s make it easier, but anything we love and want to encourage we have to make sure that it works and that’s the intent of this.”

But he was vague about actually saying if his bill would allow for the electronic signing of referendum, initiative and ballot access petitions. Asked by Senator Gene Davis, “Does that mean that the Lieutenant Governor’s office or a clerk in one of the counties could recognize those signatures and they would be valid or would that have to go to the Lieutenant Governor’s office and they’d have to set the policy to be able to do those?,” Senator Urquhart replied:

“Well, if it’s a statewide referendum then that would go through our elections office and they would have to set a policy for accepting electronic signatures. You know, let me state I want us to be very active in this. I would love for us to be the state that is the most aggressive on accepting electronic signatures but let’s just do this in a thought-out manner.”

Asked further by Senator Davis “Would the electronic signature have to go through the Lieutenant Governor’s office or a portal that was set up by those who were trying to put the referendum in place?,” Senator Urquhart said:

“Well, I wouldn’t want to tell the Lieutenant Governor’s office, the Elections Office, how it would best go about this, so it would set the rules determining the answer to your question, it would look at this situation, it would look to see the ways that it could be the most convenient for the citizenry, the most conducive to democratic participation and also the way best to secure against fraud. And so it would come up with the answer to your question. I can’t do that right here and now.”

To repeat, what Senator Urquhart said during the February 15th hearing on S.B. 55 in no way contradicted what was said in the February 10th interview with Etopia News by Paul Neuenschwander, Chief of Staff to Utah Lieutenant Governor Greg Bell, the state’s chief election officer, when he said that, in his view, S.B. 55 would return regulation of electronic signatures “back to the way it was” before the Supreme Court’s decision in Anderson v. Bell and indicated that the Lieutenant Governor’s office would not be accepting electronic signatures for ballot access (nor, presumably, for initiatives or referenda, either) if the bill is enacted into law.