SB1540 104TH GENERAL ASSEMBLY

LRB104 03522 BDA 13545 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1540

Introduced 2/4/2025, by Sen. Ram Villivalam

SYNOPSIS AS INTRODUCED:

815 ILCS 333/18

Amends the Uniform Electronic Transactions Act. In provisions regarding the acceptance and distribution of electronic records and electronic signatures by governmental agencies, provides that, to the extent that a governmental agency uses electronic records and electronic signatures, the governmental agency (rather than the Department of Innovation and Technology and the Secretary of State) may specify (rather than shall adopt rules specifying) the required format and attributes of the electronic records and electronic signatures and the specific processes and procedures governing their use. Authorizes the Secretary of State and the Department of Innovation and Technology to adopt rules setting forth minimum requirements concerning the required format and attributes of electronic records and electronic signatures and the processes and procedures governing their use. Provides that the rules adopted by the Secretary of State shall apply only with respect to the Secretary of State. Further provides that the rules adopted by the Department of Innovation and Technology shall apply only with respect to client agencies, as that term is defined in the Department of Innovation and Technology Act.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Uniform Electronic Transactions Act is amended by changing Section 18 as follows:

(815 ILCS 333/18)

Sec. 18. Acceptance and distribution of electronic records by governmental agencies.

(a) Except as otherwise provided in Section 12(f), each governmental agency of this State shall determine whether, and the extent to which, it 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.

(b) To the extent that a governmental agency uses electronic records and electronic signatures under subsection (a), the governmental agency, giving due consideration to security, may Department of Innovation and Technology and the Secretary of State, pursuant to their rulemaking authority under other law and giving due consideration to security, shall, no later than 6 months after the effective date of this amendatory Act of the 103rd General Assembly, adopt administrative rules that specify:

(1) the manner and format in which the 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 the electronic signature must be affixed to the 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 nonelectronic records or reasonably necessary under the circumstances.

(b-5) Pursuant to their rulemaking authority under other laws, the Secretary of State and the Department of Innovation and Technology may adopt rules setting forth their respective minimum requirements under subsection (b) of this Section. Any rules adopted by the Secretary of State under this subsection shall only apply with respect to the Secretary of State and any rules adopted by the Department of Innovation and Technology under this subsection shall only apply with respect to client agencies, as that term is defined in the Department of Innovation and Technology Act.

(c) Except as otherwise provided in Section 12(f), this Act does not require a governmental agency of this State to use or permit the use of electronic records or electronic signatures.

(Source: P.A. 102-38, eff. 6-25-21; 103-390, eff. 7-28-23.)