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Item S1County of Monroe <r BOARD OF COUNTY COMMISSIONERS � Mayor David Rice, District 4 IleOI1da Keys ��x t t 0. Mayor Pro Tem Sylvia J. Murphy, District 5 Danny L. Kolhage, District I P f,< George Neugent, District 2 a Heather Carruthers, District 3 County Commission Meeting March 21, 2018 Agenda Item Number: S.1 Agenda Item Summary #3951 BULK ITEM: No DEPARTMENT: County Attorney's Office TIME APPROXIMATE: STAFF CONTACT: Cynthia Hall (305) 292 -3470 3:00 P.M. PUBLIC HEARING AGENDA ITEM WORDING: A Public Hearing to consider approval of an ordinance authorizing the use of electronic signatures and electronic records. ITEM BACKGROUND: The use of electronic signatures in place of hard copy or "wet" signatures on various documents, including but not limited to contracts, and the recognition that the electronic signatures and electronic records are valid for all purposes has been authorized since adoption of the Electronic Signatures in Global and National Commerce Act (ESIGN) in 2000, and on a state level, since passage by the Florida Legislature of the Electronic Signature Act of 1996 and the Florida Uniform Electronic Transaction Act in 2000. On August 16, 2017, the BOCC gave direction to the County Attorney's Office to take steps necessary to allow the use of electronic signatures in County documents permitted by law. Electronic signatures are commonly accepted and used in the marketplace. Since 1996, the Florida legislature has passed over 40 statutes explicitly allowing electronic signatures on various documents, including, but not limited to, contracts; procurement documents; and applications, plans and specifications submitted in connection with building permit, planning, and development approvals. Also included specifically is the ability to accept an electronically signed notary signature, where a notary signature is required on a document. Numerous state agencies have issued regulations allowing or requiring the use of electronic signatures and electronic documents, and numerous cities and counties in the State of Florida have passed ordinances allowing for the use of electronic signatures and electronic records. As outlined in the attached memo, the proposed ordinance would allow for the use of electronic signatures, and electronic records, by the County for all purposes consistent with the Electronic Signature Act and the Florida Uniform Electronic Transaction Act. The ordinance also authorizes the County Administrator to promulgate any internal policies necessary to ensure the security of the electronic signatures and documents bearing the electronic signatures, and to ensure that the storage of the electronic records is consistent with State of Florida electronic records storage policy. PREVIOUS RELEVANT BOCC ACTION: BOCC 8/16/2017 (M6) BOCC directed staff to take steps necessary to allow use of electronic signatures in County documents permitted by law. BOCC 2/21/2018 (P8) BOCC approved advertising a scheduled Public Hearing on 3/21/18 in Key Largo, FL or as soon thereafter as may be heard. CONTRACT /AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval. DOCUMENTATION: Ordinance Electronic Signatures stamped Chart -- other Florida statutes Notice of Intention to Consider Adoption of County Ordinance regarding use of electronic signatures (2 21 18) Memo, electronic signature proposed ordinance 2.22.2018- signed Proof of Publication Key West Citizen PH Ord use of eletronic signatures 3 8 18 FINANCIAL IMPACT: Effective Date: N/A Expiration Date: Total Dollar Value of Contract: N/A Total Cost to County: No cost Current Year Portion: Budgeted: Source of Funds: CPI: N/A Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: If yes, amount: Grant: County Match: Insurance Required: Additional Details: None REVIEWED BY: Cynthia Hall Bob Shillinger Budget and Finance Maria Slavik Kathy Peters Board of County Commissioners Completed 02/22/2018 12:31 PM Completed 02/22/2018 3:55 PM Completed 02/22/2018 4:52 PM Completed 02/23/2018 7:19 AM Completed 03/06/2018 2:52 PM Pending 03/21/2018 9:00 AM ORDINANCE NO. -2018 AN ORDINANCE OF MONROE COUNTY, FLORIDA, PROVIDING FOR THE PERMISSIBLE USE OF ELECTRONIC SIGNATURES AND ELECTRONIC NOTARIZATION ON CERTAIN DOCUMENTS SUBMITTED TO THE COUNTY; PROVIDING FOR PERMISSIBLE USE OF ELECTRONIC RECORDS AND TRANSACTIONS; PROVIDING FOR SEVERABILITY; REPEALING CONFLICTING ORDINANCES; PROVIDING FOR INCLUSION IN THE CODE OF ORDINANCES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, it is becoming a common practice for governments at the local, state and federal levels to accept documents filed electronically, and bearing electronic signatures and notarization; and WHEREAS, the Electronic Signature Act of 1996, § §668.001 through 668.06, Fla. Stat., enacted by the Florida legislature in 1996, states that it is the intention of the legislation to facilitate economic development and efficient delivery of government services by means of use of electronic messages and to foster e- commerce by allowing a government entity to specify whether or not it will accept electronically filed and signed documents, and to prescribe the conditions under which it will do so; and WHEREAS, the Uniform Electronic Transaction Act, § 668.50, Fla. Stat., was enacted by the Florida legislature in 2000, applies to commercial transactions, and provides, among other things, that if a provision of law requires a signature, then an electronic signature satisfies the provision, and further provides that if a law requires a signature to be notarized, then the requirement is satisfied if the signature of the notary is in electronic form; and WHEREAS, the federal E -Sign Act, §§ 15 U.S.C.A. 7001 etseg., adopted by Congress and signed into law in 2000, provides that a signature on a contract with respect to any transaction in interstate or foreign commerce is enforceable and may not be denied legal effect solely because an electronic signature was used to execute the contract; and WHEREAS, acceptance of documents filed and signed electronically is beneficial to citizens and businesses interacting with local governments by permitting the citizens to submit documents electronically rather than by hand delivery, overnight delivery or mailing, and is environmentally friendly in that it eliminates the need for the presentation of multiple paper copies of documents; and WHEREAS, use of electronic signatures and electronic records will save considerable amount of staff time for Monroe County; and WHEREAS, the Monroe County Board of County Commissioners therefore deems it to be in the best interests of the health, safety, welfare and convenience of the citizens and businesses with which the County interacts, to establish a mechanism for acceptance of certain documents filed electronically and bearing electronic signatures; 1 NOW THEREFORE, BE IT ENACTED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: SECTION I. Article XI of the Code of Ordinances of Monroe County, Florida ( "Code "), entitled Electronic Signatures, is hereby created in Chapter 2 of the Code to read as set forth below: Article XI. Electronic Signatures, Records and Transactions Act. Sec. 2 -770. Purpose and Intent. In accordance with F.S. §§ 668.001 through 668.006 and § 668.50, the Electronic Signature Act of 1996 and the Florida Uniform Electronic Transaction Act, respectively, Monroe County intends to treat an electronic document as having the same force and effect as a document obtained by traditional, manual means. Electronic commerce, including but not limited to the implementation and authorization of electronic signatures including signatures of notaries, electronic records and electronic commerce, can benefit Monroe County. Electronic commerce has the potential to facilitate economic development and to improve efficiency of governmental services, expedite business transactions, decrease paper use, and reduce costs associated with manual signatures. Sec. 2-771 Definitions. The following words, terms and phrases, when used in this Article, shall have the meanings ascribed to them, except when the context clearly indicates a different meaning: Electronic signature has the same meaning as in F.S. § 668.003. Digital signature has the same meaning as in F.S. 668.003. Electronic reco7d has the same meaning as in F.S. 668.50. Beco7d has the same meaning as in F.S. § 668.50. Transaction has the same meaning as in F.S. § 668.50. Sec. 2 -772 Permissible use of electronic signatures, records and transactions. (a) Force and effect of an electronic signature. (1) Unless otherwise provided by law, an electronic signature submitted to Monroe County may be used to sign a writing for all purposes and shall have the same force and effect as a manual signature. (2) The county administrator is authorized and directed to adopt control processes and procedures to ensure adequate integrity, security, confidentiality and auditability of electronic signatures, consistent with this ordinance and F.S. §§ 668.001 through 668.006 and § 668.50, and to ensure that the storage of electronic records complies with State of Florida records retention law for electronic records. 2 S.1.a (b) Force and effect of an electronic record. 1- 7nless otherwise provided by law, electronic records shall be considered and ;shall be treated the same as any other records for all purposes, with equal validity. SECTION II. SEVERABILITY. Should any provision of this Ordinance be declarcd by a court of competent jurisdiction to be invalid, the same shall not affect the validity of this Ordinance as whole, or any part thereof, other than the part declared to be invalid. If this ordinance or any provision thereof shall be held to be inapplicable to any person, property or circumstances, such holding shall not affect its applicability to any other person, property or • circumstances. v SECTION III. CONFLICT WITH OTHER ORDINANCES. All ordinances or parts of ordinances in conflict with this Ordinance are hereby repealed to the extent of said conflict. SECTION IV. INCLUSION IN THE CODE OF ORDINANCES. The provisiom of this a Ordinance shall be included and incorporated in the Code of Ordinances of die County of Monroe, v Florida, as an addition or amendment thereto, and shall be appropriately renumbered if necessary to conform to the uniform numbering system of the code. SECTION V. EFFECTIVE DATE. This Ordinance shall take effect upon filing with the Department of ;state as provided in Section 125.66(2), Florida Statutes. PASSED AND ADOPTED at the regular meeting of the Board of County Commissioners . of Monroe County, Florida, held on the day of .2018. Mayor David Rice ______ Mayor Pro Tern Sylvia J. Murphy Commissioner Danny Kolhage Commissioner George Neugent v, Commissioner Heather Carruthers MOROE COUNTY BOARD OF COUNTY COMMISSIONERS BY David Rice, Mayor ATTEST. KEVIN hIADOK, CPA, CLERK Florida Statutes Discussing /Allowing Electronic Signatures (Other Than Florida Electronic Signature Act of 1996, F.S. 668.001 etseq., and Florida Uniform Electronic Transactions Act, F.S. 668.50) 15.16 Reproduction of Subsection (5): The Department of State shall determine for purposes of electronic filing of any document (Secretary of records under its jurisdiction several things, one of which is the manner of execution, which may include an State) electronic signature. 48.21 Return of (1): A person employed by a sheriff may sign the return of service form using an electronic signature (Civil Practice and execution of certified by the sheriff. Procedure) process 97.057 Voter A voter registration application with all of the applicant's information required to establish eligibility must be (Electors and registration by presented to the applicant to review and verify the voter registration information received and provide an Elections) Dept. of electronic signature affirming the accuracy of the information received. Highway Safety and Motor Vehicles 117.021 Electronic Subsection (1): "Any document requiring notarization may be notarized electronically." (Public Offices, notarization Subsection (2): "in performing an electronic notarial act, a notary public shall use an electronic signature Employees, and that is" unique, capable of independent verification, retained under the notary's sole control, and attached Records) to the document such that any subsequent alteration displays evidence of the alteration." Subsection (3): Specifies what must be in the notary's signature. 287.09451 State of Florida, Subsection (4)(m): One of the powers, duties and functions of the office is to certify minority business (Public Office of enterprises. "The certifications may include an electronic signature." Procurement) Supplier Diversity 318.14 Noncriminal Subsection (2): For all noncriminal traffic infractions other than certain exceptions listed in the statute, the (Motor vehicles, traffic infractions officer must certify by signature that the citation was delivered to the person served, and the signature can traffic infractions) be electronic. 381.00651 Periodic Counties with a "first magnitude spring" (defined as a spring with a median water discharge of >— 100 cubic (Public Health) evaluation and feet/second) must adopt an ordinance creating an OSTDS assessment program. The ordinance must assessment of provide that the evaluations will be done by qualified contractors. The evaluation forms must be signed by OSTDSs the qualified contractor "in writing or using electronic signature." 409.902 AHCA — AHCA and DCF will collaborate to create internet -based system for eligibility for Medicaid and CHIP. The (Medicaid) designated system shall allow for completion and submission of online applications using electronic signatures. single state agency for payments 409.920 Medicaid Proof that a false claim was submitted gives rise to an inference that the person signing the claim knew of (Medicaid) provider fraud the false statement, whether the claim was signed I the original or by electronic means. 443.17161 Authorized Allows applicants to indicate consent to release of their information in writing or by electronic signature. (Reemployment electronic Assistance) access to employer information 456.42 Written Doctor Rx prescriptions may be electronically generated and may be signed electronically by the (Regulation of prescriptions for practitioner, which signature "may be in an electronic format as defined in s. 668.003(4)." health professions) medicinal drugs 475.5018 Facsimile "When any act performed under this part must be performed in writing or acknowledged with a signature, (Regulation of real signatures etc. the provision of an instrument or writing by electronic means or facsimile, including a signature transmitted estate brokers, by electronic means or facsimile, is binding and sufficient." sales associates) 481.221 Seals, display of "Final plans, specifications, or reports prepared or issued by a registered architect may be transmitted (Regulation of certificate electronically and may be signed by the registered architect, dated, and sealed electronically with the seal architects) number in accordance with ss. 668.001 - 668.006." 481.321 Seals, display of Finals plans, specifications and reports prepared or issued by the landscape architect may be transmitted (Regulation of certificate electronically, and may also be signed and sealed electronically in accordance it 668.001- 668.006. landscape number architects) 497.466 Sales agents Applications for licenses must be signed. The licensing authority may accept electronic signatures. (Funerals, preneed sales) 538.19 Records Secondary metals recycler must maintain paper records of purchase transactions. This requirement may (Regulation of required, be met if the recycler maintains an electronic dataset as long as it contains the information required in the "with secondhand limitation of statute, along with an electronic oath of ownership an electronic signature of the seller" and an dealers) liability "electronic image of the seller's right thumbprint that has no smudges and smears" can be downloaded onto a paper form in the image of the form approved by FDLE. 605.0102 Definitions Subsection 62: "'Sign' means, with present intent to authenticate or adopt a record:... (b) To attach or (Florida Revised locally associate an electronic symbol, sound, or protect to or with a record, and includes a manual, LLC Act) facsimile, confirmed or electronic signature." 605.1 102 Relation to This chapter nnodiiies, limits, and supersedes the Electronic Signatures in Global acid National Commerce Act, 15 U.S.C. Florida Revised ESIGN s. 7001 et sect.. but does not modify, limit, or supersedes. 101(c) of that act, 15 1 I.S.C. s 7001(c), or authorize electronic LLC Act) delivery of the notices described in s. 103(b) of that act, 15 U.S.C. s. 7003(b). Notwithstanding the foregoing. this chapter does not operate to modify. lima, or supersede, any provisions of s. 15.16, s. 116.34, or s. 668.50. 607.0722 Proxies (10) "Any copy, facsimile transmission, or other reliable reproduction of the writing or electronic transmission created under subsection (2) may be substituted or used in lieu of the original writing or (Florida Bus. Corp. electronic transmission for any purpose for which the original writing or electronic transmission could be Act.) used if the copy, facsimile transmission, or other reproduction is a complete reproduction of the entire original writing or electronic transmission." 607.01401 Definitions (26): "'Sign' or `signature' means any symbol, manual, facsimile, conformed or electronic signature (Florida Bus. Corp. adopted by a person with the intent to authenticate a document." Act) 617.2104 (Florida Corporations Not for Profit) Florida Uniform Prudent Management of Institutional Funds Act Relation to ESIGN Act: "This section modifies, limits and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 USC ss 7001 et seq., but does not modify, limit, or supersede s. 101(c) of that act, 15 USC 7001(c), or authorize electronic delivery of any of the notices described in s. 103(b) of that act, 15 USC s. 7003(b)." 620.2203 (Florida Rev. Uniform LP Act) 671.212 (Florida UCC) 677.103 (Florida UCC, Documents of Title, warehouse receipts, bills of lading etc.) 682.014 (Commercial Relations, Arbitration Code) Relation to Electronic Signatures in Global and National Commerce Act ( ESIGN) Relation to ESIGN Relation of chapter to treaty, statute, classification, or regulation Effect of agreement to arbitrate; non - waivable provisions "This act modifies, limits and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 USC ss 7001 et seq., but this act does not modify, limit, or supersede s. 101(c) of that act, 15 USC 7001(c),' or authorize electronic delivery of any of the notices described in s. 103(b) of that act, 15 USC s. 7003(b), except to the extent permitted pursuant to ss. 15.16, 116.34, and 668.50 of such act." This code modifies, limits and supersedes the federal ESIGN Act, except that nothing in this code modifies, limits or supersedes 15 USC 7001(c) or authorizes electronic delivery of the notices described in 15 USC 7003(b). This chapter modifies, limits and supersedes the federal ESIGN Act, except that nothing in this code modifies, limits or supersedes 15 USC 7001(c) or authorizes electronic delivery of the notices described in 15 USC 7003(b). Subsection (3)(1): A party to an arbitration agreement may waive or vary the requirements in Chapter 682, except that the parties may not waive certain things, one of which is the validity of the ESIGN Act under F.S. 682.23. 1 15 USC 7001(c) provides that if a statute, regulation or other rule of law requires that notices be given to a consumer, the information can be given electronically, provided the consumer has consented to delivery in that manner. 15 USC 7003(b) provides that ESIGN shall not apply to court orders: notices of cancellation of utility services , eviction, cancellation of life or health insurance, product recalls, and documents required to accompany hazardous materials. 4 682.23 Relationship to "The provisions of this chapter governing the legal effect, validity, and enforceability of electronic records ESIGN Act. or electronic signatures and of contracts performed with the use of such records or signatures conform to (Commercial the requirements of s. 102 of the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Relations, s. 7002.°° Arbitration Code) 695.27 Uniform Real "(1)(d) "Electronic signature" means an electronic sound, symbol, or process that is executed or adopted Property by a person with the intent to sign the document and is attached to or logically associated with a (Real and Electronic document such that, when recorded, it is assigned the same document number or a consecutive page Personal Property) Recording Act number immediately following such document." (3) Validity of electronic documents — "(b) If a law requires, as a condition for recording, that a document be signed, the requirement is satisfied by an electronic signature. (c) A requirement that a document or a signature associated with a document be notarized, acknowledged, verified, witnessed, or made under oath is satisfied if the electronic signature of the person authorized to perform that act, and all other information required to be included, is attached to or logically associated with the document or signature. A physical or electronic image of a stamp, impression, or seal need not accompany an electronic signature." Subsection (5)(a): The Department of State shall prescribe standards to implement this section in consultation with the Electronic Recording Advisory Committee, which is hereby created. The Florida Association of Court Clerks and Comptrollers shall provide administrative support to the committee and technical support to the Department of State. Subsection (7): This section modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. ss. 7001 et seq., but this section does not modify, limit, or supersede s. 101(c) of that act, 15 U.S.C. s. 7001(c), or authorize electronic delivery of any of the notices described in s. 103(b) of that act, 15 U.S.C. s. 7003(b). 709.2401 Relation to This part modifies, limits, and supersedes the federal Electronic Signatures in Global and National (Real and electronic Commerce Act, 15 U.S.C. s. 7001 et seq., but does not modify, limit, or supersede s. 101(c) of that act, 1 Personal Property, signatures in or authorize electronic delivery of any of the notices described in s. 103(b) of that act. 2" Powers of federal law attorney) 721.13 Management "Proxies or written consents on votes of any owners' association may be received by electronic mail, shall have legal effect, and may be utilized for votes of an owners' association, provided that the electronic (Vacation and signature is authenticated through use of a password, cryptography software, or other reasonable means Timeshare Plans) and that proof of such authentication is made available to the board of directors." 736.1301 Electronic "Any provisions of this code governing the legal effect, validity, or enforceability of electronic records or records and electronic signatures, and of contracts formed or performed with the use of such records or signatures, (Florida Trust signatures are deemed to conform to the requirements of s. 102 of the Electronic Signatures in Global and National Code) Commerce Act, 15 U.S.C. s. 7002, and supersede, modify, and limit the requirements of the Electronic Signatures in Global and National Commerce Act." 740.07 Fiduciary Access "This chapter modifies, limits, and supersedes the Electronic Signatures in Global and National to Digital Assets Commerce Act, 15 U.S.C. ss. 7001 et seq., but does not modify, limit, or supersede s. 101(c) of that act, (Estates and 15 U.S.C. s. 7001(c), or authorize electronic delivery of any of the notices described in s. 103(b) of that Trusts) act, 15 U.S.C. s. 7003(b)." 832.062 Prosecution for If the check or electronic funds transfer (EFT) was received by the Department of Revenue by mail or worthless delivery to DOR or by electronic means, prima facie evidence of violation is established by showing (Crimes, Violations checks etc original tax return, application for certification or license, enrollment in e- services program, or other Involving Checks . made to pay any document showing amounts owed by that person, bearing the signature or electronic signature of the and Drafts) person who initiated the electronic funds transfer. tax administered by DOR 893.1495 Retail sale of Any person receiving ephedrine must be at least 18 years of age, produce photo ID< and sign his or her ephedrine and name either on paper or on an "electronic signature capture device." (Crimes, Drug Abuse Prevention related and Control) compounds 901.02 Issuance of A judge may electronically sign the arrest warrant if the judge determines that probable cause exists for arrest warrants issuance; the complaint contains the affiant's signature, which may also be electronic; is supported by an (Criminal oath or affirmation administered by the judge or other person authorized by law to administer oaths; if Procedure) submitted electronically, is submitted by reliable means. "As used in this section, the term `electronic signature' has the same meaning as provided in s. 933.40." 933.07 Issuance of Same provisions as for arrest warrants. (Criminal search warrants Procedure) 933.40 Agricultural Subsection (1)(d): " "Electronic signature" means any letters, characters, symbols, or process manifested warrants by electronic or similar means and attached to or logically associated with a record and executed or (Criminal adopted by a person with the intent to sign the record." Procedure) Goes on to provide that search warrants may be signed "by any person competent to issue search warrants under s. 933.01" and the signature may be an electronic signature. 1012.56 Educator Person seeking certification as educator must submit application, which shall include an affidavit stating certification that the person subscribes to and will uphold the principles of the US and Florida constitutions and that (Education Code) the information in the application is true, accurate, and complete. The affidavit shall be by original requirements signature "or by electronic authentication." NOTICE OF INTENTION TO CONSIDER ADOPTION OF COUNTY ORDINANCE NOTICE IS HEREBY GIVEN TO WHOM IT MAY CONCERN that on March 21, 2018 at 3:00 P.M., or as soon thereafter as may be heard, in the Murray E. Nelson Government Center, 102050 Overseas Highway, Key Largo, Monroe County, Florida, the Board of County Commissioners of Monroe County, Florida, intends to consider the adoption of the following County ordinance: AN ORDINANCE OF MONROE COUNTY, FLORIDA, PROVIDING FOR THE PERMISSIBLE USE OF ELECTRONIC SIGNATURES AND ELECTRONIC NOTARIZATION ON CERTAIN DOCUMENTS SUBMITTED TO THE COUNTY; PROVIDING FOR PERMISSIBLE USE OF ELECTRONIC RECORDS AND TRANSACTIONS; PROVIDING FOR SEVERABILITY; REPEALING CONFLICTING ORDINANCES; PROVIDING FOR INCLUSION IN THE CODE OF ORDINANCES; AND PROVIDING AN EFFECTIVE DATE. Pursuant to Section 286.0105, Florida Statutes, notice is given that if a person decides to appeal any decision made by the Board with respect to any matter considered at such hearings or meetings, he will need a record of the proceedings, and that, for such purpose, he may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. ADA ASSISTANCE: If you are a person with a disability who needs special accommodations in order to participate in this proceeding, please contact the County Administrator's Office, by phoning (305) 292 -4441, between the hours of 8:30 a.m. - 5:00 p.m., no later than five (5) calendar days prior to the scheduled meeting; if you are hearing or voice impaired, call "711': Dated at Key West, Florida, this 21" day of February, 2018. (SEAL) KEVIN MADOK, Clerk of the Circuit Court and ex officio Clerk of the Board of County Commissioners of Monroe County, Florida Publication dates: KW Citizen (Wed) 2/28/2018 Keynoter (Wed) 2/28/2018 Reporter (Fr) 3/2/2018 MEMORANDUM Office of the Monroe County Attorney TO: Mayor, Commissioners THROUGH: County Administrator Roman Gastesi County Attorney Bob Shillinger FROM: Cynthia L. Hall, Assistant County Attorney C R DATE: February 22, 2018 SUBJECT: Ordinance, Acceptance and Use of Electronic Signatures and Electronic Records The item on the March 2018 agenda asks for approval of a draft ordinance authorizing the use of electronic signatures on County documents and also allowing for acceptance and use of electronic records by the County. The ordinance also gives the County Administrator the authority to develop and issue internal policies (through Administrative Instructions) to ensure signature security and integrity. KEY POINTS OF THE ORDINANCE 1. The draft ordinance provides that an electronic signature, and an electronic record, can be used in place of an original "wet" signature or original "manual" document, for all purposes allowed under the UETA or ESA. 2. As a practical matter, the ordinance would mean that all County documents could be signed using an electronic or digital signature. (A digital signature is a subset of electronic signatures.) The ordinance would also mean that an electronic document could be used in place and instead of a hard copy document. 3. The ordinance authorizes the County Administrator to adopt internal policies (presumably, Administrative Instructions) to ensure adequate integrity, security, confidentiality and auditability of electronic signatures, consistent with this ordinance and F.S. §§ 668.001 through 668.006 and § 668.50, and to ensure that the storage of electronic records complies with State of Florida records retention law for electronic records. BACKGROUND On August 16, 2017 (item M -6), the Board of County Commissioners directed the County Attorney's Office to regulations that would authorize the use of electronic signatures on all County documents by law. The use of electronic signatures on electronic records has been in place for nearly 20 years by two pieces of Florida legislation, both of which allow for the use of electronic records, and electronic signature, in place of "hard copy" documents with "wet" or "manual" signatures, with the same legal force and effect. See Electronic Signature Act (ESA) (F.S. 668.001 — 668.006), and Florida Uniform Electronic Transaction Act (UETA) (F.S. § 668.50). BENEFITS OF ELECTRONIC SIGNATURES AND ELECTRONIC RECORDS The use of electronic signatures on legally- binding documents has become increasingly prevalent both in the public and private sectors. Numerous cities and counties within the State of Florida, and across the country, now have ordinances in place that allow for the use of electronic signatures and electronic records. Just as the State of Florida has a record retention policy for hard copy documents, which local governments including Monroe County are obligated to follow per F.S. 119.011(2) and 119.021, so too, the State of Florida has issued a records retention policy for electronic records. See State of Florida Electronic Records and Records Management Practices (2010), available at: dos. myflorida. com/ media / 31109/ electronicrecordsmanagementpractices .pdf. The benefits of electronic signatures and electronic records are simply and numerous: They reduce direct costs associated with transmitting and approving physical documents such as paper and postage; they reduce indirect costs associated with the same documents, such as staff time; and they provide an easily accessible audit and evidence trail showing when documents were circulated, what modifications occurred, and when the documents were signed. FISCAL IMPACT The proposed ordinance will result in a projected cost saving to the County, both in direct costs (paper, postage, etc.) and in indirect costs (staff time). The amount of cost savings is difficult to quantify. In 2013, an independent research organization (Ombud) estimated that the estimated savings of an electronic signatures solution was approximately $20 /document. Monroe County generates approximately 500 contracts, 100 ordinances, and 370 resolutions per year. This ordinance could therefore result in savings of approximately $20,000 per year. Numerous vendors now offer solutions that provide of a means of (a) circulating electronic documents (including contracts, ordinances and resolutions) for signatures, (b) generating signatures, (c) storing the electronic documents in accordance with the Florida records retention policy, and (d) maintaining an audit and evidence trail to show to whom the document was sent, on what date, whether any modifications were made to the document, and by whom it was signed (or not). Monroe County staff has identified the leading three vendors in the marketplace, are in the process of evaluating the vendors, and will be making a purchase shortly. Staff reports that the initial cost for the purchase or licensing of the platforms, including document storage costs, is less than $10,000 per year. 2 KEY WEST Me FWtda Keys Only Daffy AWWVPRW, Eat. 7978 Cooke Communications, LLC Florida Keys .# tE Key West FI 0- 0 - Extension ... x219 l wn � a f 4 INTERNET PUBLISHING keywest.com keysnews.com floridakeys.com key - west.com Web Design Services NEWSPAPERS The Citizen Florida Keys Free Press MARKETING SERVICES Commercial Printing Direct Mail FLORIDA KEYS OFFICES Printing 1 Main Facility 3420 Northside Drive Key West, FL 33040 -1800 Tel 305- 292 -7777 Fax 305 - 294 -0768 citizen? levwest.com Internet Division Tel 305 - 292 -1880 Fax 305 - 294 -1699 sales@keywest.co Upper Keys Office 91731 Overseas Hwy Tavernier, FL 33070 Tel 305 - 853 -7277 Fax 305 - 853 -0556 freepress@flo(idakeys.com r Before the undersigned authority personally appeared Paul Clarin, who on oath says that he is Publisher of the Key West Citizen, a daily newspaper published in Key West, in Monroe County, Florida; that the attached copy of advertisement, being a legal notice in the matter of 9 x was published in said newspaper in the issue(s) of 0 6-9 Affiant further says that the Key West Citizen is a newspaper published in Key West, in said Monroe County, Florida and that the said newspaper has heretofore been continuously published in said Monroe County, Florida every day, and has been entered as second -class mail matter at the post office in Key West, in said Monroe County, Florida, for a period of 1 year next preceding the first publication of the attached copy of advertisement; and affant further says that he has neither paid nor promised any person, firm or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in the said newspaper. Signature of Affiant Sworn and subscribed before me this Notary Public: c °?,;�;;;�® Sanded Thru NotaryPu6lic Underwriters , Dawn Kawzmsky Expires: 1/412020 Notary Seal Personally Known x Produced Identification Type of Identification Produced m � �