House Bill 1891c1

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    Florida House of Representatives - 2000             CS/HB 1891

        By the Committee on Utilities & Communications and
    Representative Arnall





  1                      A bill to be entitled

  2         An act relating to electronic commerce;

  3         providing a short title; providing definitions;

  4         providing scope; providing for prospective

  5         application; providing for use of electronic

  6         records and signatures; providing for variation

  7         by agreement among parties using electronic

  8         records and electronic signatures; providing

  9         construction and application; providing for

10         uniformity; providing for legal recognition of

11         electronic records, signatures, and contracts;

12         providing for provision of information in

13         writing; providing for presentation of records;

14         providing for attribution and effect of

15         electronic records and electronic signatures;

16         providing for the effect of changes or errors

17         in electronic records; providing for

18         notarization and acknowledgment; providing for

19         retention of electronic records and originals;

20         providing for admissibility of electronic

21         records as evidence; providing for rules

22         applying to automated transactions; providing

23         for time and place of sending and receiving

24         electronic records and signatures; providing

25         for transferable records; providing for

26         creation and retention of electronic records by

27         governmental agencies; providing for conversion

28         of written records by governmental agencies;

29         providing for acceptance and distribution of

30         electronic records by governmental agencies;

31         providing for interoperability; providing

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  1         severability; requiring the clerks of court to

  2         provide a statewide index of official records

  3         available on the Internet by a time certain;

  4         providing for security; requiring that the

  5         Internet information shall not be admissible in

  6         court; authorizing charging a reasonable fee

  7         for certain purposes; providing that the

  8         official records must be made available for

  9         electronic retrieval on the statewide site by a

10         time certain; providing an effective date.

11

12  Be It Enacted by the Legislature of the State of Florida:

13

14         Section 1.  (1)  SHORT TITLE.--This section may be

15  cited as the "Uniform Electronic Transaction Act."

16         (2)  DEFINITIONS.--As used in this section:

17         (a)  "Agreement" means the bargain of the parties in

18  fact, as found in their language or inferred from other

19  circumstances and from rules, regulations, and procedures

20  given the effect of agreements under provisions of law

21  otherwise applicable to a particular transaction.

22         (b)  "Automated transaction" means a transaction

23  conducted or performed, in whole or in part, by electronic

24  means or electronic records, in which the acts or records of

25  one or both parties are not reviewed by an individual in the

26  ordinary course in forming a contract, performing under an

27  existing contract, or fulfilling an obligation required by the

28  transaction.

29         (c)  "Computer program" means a set of statements or

30  instructions to be used directly or indirectly in an

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  1  information processing system in order to bring about a

  2  certain result.

  3         (d)  "Contract" means the total legal obligation

  4  resulting from the parties' agreement as affected by this

  5  section and other applicable provisions of law.

  6         (e)  "Electronic" means relating to technology having

  7  electrical, digital, magnetic, wireless, optical,

  8  electromagnetic, or similar capabilities.

  9         (f)  "Electronic agent" means a computer program or an

10  electronic or other automated means used independently to

11  initiate an action or respond to electronic records or

12  performances in whole or in part, without review or action by

13  an individual.

14         (g)  "Electronic record" means a record created,

15  generated, sent, communicated, received, or stored by

16  electronic means.

17         (h)  "Electronic signature" means an electronic sound,

18  symbol, or process attached to or logically associated with a

19  record and executed or adopted by a person with the intent to

20  sign the record.

21         (i)  "Governmental agency" means an executive,

22  legislative, or judicial agency, department, board,

23  commission, authority, institution, or instrumentality of the

24  Federal Government or of a state or of a county, municipality,

25  or other political subdivision of a state and any other public

26  or private agency, person, partnership, corporation, or

27  business entity acting on behalf of any public agency.

28         (j)  "Information" means data, text, images, sounds,

29  codes, computer programs, software, databases, or other

30  similar representations of knowledge.

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  1         (k)  "Information processing system" means an

  2  electronic system for creating, generating, sending,

  3  receiving, storing, displaying, or processing information.

  4         (l)  "Person" means an individual, corporation,

  5  business trust, estate, trust, partnership, limited liability

  6  company, association, joint venture, governmental agency,

  7  public corporation, or any other legal or commercial entity.

  8         (m)  "Record" means information that is inscribed on a

  9  tangible medium or that is stored in an electronic or other

10  medium and is retrievable in perceivable form, including

11  public records as defined in s. 119.011(1), Florida Statutes.

12         (n)  "Security procedure" means a procedure employed

13  for the purpose of verifying that an electronic signature,

14  record, or performance is that of a specific person or for

15  detecting changes or errors in the information in an

16  electronic record. The term includes a procedure that requires

17  the use of algorithms or other codes, identifying words or

18  numbers, encryption, or callback or other acknowledgment

19  procedures.

20         (o)  "State" means a state of the United States, the

21  District of Columbia, Puerto Rico, the United States Virgin

22  Islands, or any territory or insular possession subject to the

23  jurisdiction of the United States. The term includes an Indian

24  tribe or band, or Alaskan native village, which is recognized

25  by federal law or formally acknowledged by a state.

26         (p)  "Transaction" means an action or set of actions

27  occurring between two or more persons relating to the conduct

28  of business, commercial, or governmental affairs.

29         (3)  SCOPE.--

30

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  1         (a)  Except as otherwise provided in paragraph (b),

  2  this section applies to electronic records and electronic

  3  signatures relating to a transaction.

  4         (b)  This section does not apply to a transaction to

  5  the extent the transaction is governed by:

  6         1.  A provision of law governing the creation and

  7  execution of wills, codicils, or testamentary trusts;

  8         2.  The Uniform Commercial Code other than Sections

  9  1-107 and 1-206, Article 2, and Article 2A;

10         3.  The Uniform Computer Information Transactions Act;

11  or

12         4.  Rules relating to judicial procedure.

13         (c)  This section applies to an electronic record or

14  electronic signature otherwise excluded from the application

15  of this section under paragraph (b) to the extent such record

16  or signature is governed by a provision of law other than

17  those specified in paragraph (b).

18         (d)  A transaction subject to this section is also

19  subject to other applicable provisions of substantive law.

20         (4)  PROSPECTIVE APPLICATION.--This section applies to

21  any electronic record or electronic signature created,

22  generated, sent, communicated, received, or stored on or after

23  July 1, 2000.

24         (5)  USE OF ELECTRONIC RECORDS AND ELECTRONIC

25  SIGNATURES; VARIATION BY AGREEMENT.--

26         (a)  This section does not require a record or

27  signature to be created, generated, sent, communicated,

28  received, stored, or otherwise processed or used by electronic

29  means or in electronic form.

30         (b)  This section applies only to transactions between

31  parties each of which has agreed to conduct transactions by

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  1  electronic means. Whether the parties agree to conduct a

  2  transaction by electronic means is determined from the context

  3  and surrounding circumstances, including the parties' conduct.

  4         (c)  A party that agrees to conduct a transaction by

  5  electronic means may refuse to conduct other transactions by

  6  electronic means. The right granted by this paragraph may not

  7  be waived by agreement.

  8         (d)  Except as otherwise provided in this section, the

  9  effect of any provision of this section may be varied by

10  agreement. The presence in certain provisions of this section

11  of the words "unless otherwise agreed," or words of similar

12  import, does not imply that the effect of other provisions may

13  not be varied by agreement.

14         (e)  Whether an electronic record or electronic

15  signature has legal consequences is determined by this section

16  and other applicable provisions of law.

17         (6)  CONSTRUCTION AND APPLICATION.--This section shall

18  be construed and applied to:

19         (a)  Facilitate electronic transactions consistent with

20  other applicable provisions of law.

21         (b)  Be consistent with reasonable practices concerning

22  electronic transactions and with the continued expansion of

23  those practices.

24         (c)  Effectuate its general purpose to make uniform the

25  law with respect to the subject of this section among states

26  enacting similar legislation.

27         (7)  LEGAL RECOGNITION OF ELECTRONIC RECORDS,

28  ELECTRONIC SIGNATURES, AND ELECTRONIC CONTRACTS.--

29         (a)  A record or signature may not be denied legal

30  effect or enforceability solely because the record or

31  signature is in electronic form.

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  1         (b)  A contract may not be denied legal effect or

  2  enforceability solely because an electronic record was used in

  3  the formation of the contract.

  4         (c)  If a provision of law requires a record to be in

  5  writing, an electronic record satisfies such provision.

  6         (d)  If a provision of law requires a signature, an

  7  electronic signature satisfies such provision.

  8         (8)  PROVISION OF INFORMATION IN WRITING; PRESENTATION

  9  OF RECORDS.--

10         (a)  If parties have agreed to conduct a transaction by

11  electronic means and a provision of law requires a person to

12  provide, send, or deliver information in writing to another

13  person, the requirement is satisfied if the information is

14  provided, sent, or delivered, as the case may be, in an

15  electronic record capable of retention by the recipient at the

16  time of receipt. An electronic record is not capable of

17  retention by the recipient if the sender or the sender's

18  information processing system inhibits the ability of the

19  recipient to print or store the electronic record.

20         (b)  If a provision of law other than this section

21  requires a record to be posted or displayed in a certain

22  manner; to be sent, communicated, or transmitted by a

23  specified method; or to contain information that is formatted

24  in a certain manner, the following rules apply:

25         1.  The record must be posted or displayed in the

26  manner specified in the other provision of law.

27         2.  Except as otherwise provided in subparagraph (d)2.,

28  the record must be sent, communicated, or transmitted by the

29  method specified in the other provision of law.

30         3.  The record must contain the information formatted

31  in the manner specified in the other provision of law.

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  1         (c)  If a sender inhibits the ability of a recipient to

  2  store or print an electronic record, the electronic record is

  3  not enforceable against the recipient.

  4         (d)  The requirements of this subsection may not be

  5  varied by agreement, provided:

  6         1.  To the extent a provision of law other than this

  7  section requires information to be provided, sent, or

  8  delivered in writing but permits that requirement to be varied

  9  by agreement, the requirement under paragraph (a) that the

10  information be in the form of an electronic record capable of

11  retention may also be varied by agreement.

12         2.  A requirement under a law other than this section

13  to send, communicate, or transmit a record by first-class

14  mail, postage prepaid, or other regular United States mail,

15  may be varied by agreement to the extent permitted by the

16  other provision of law.

17         (9)  ATTRIBUTION AND EFFECT OF ELECTRONIC RECORD AND

18  ELECTRONIC SIGNATURE.--

19         (a)  An electronic record or electronic signature is

20  attributable to a person if the record or signature was the

21  act of the person. The act of the person may be shown in any

22  manner, including a showing of the efficacy of any security

23  procedure applied to determine the person to which the

24  electronic record or electronic signature was attributable.

25         (b)  The effect of an electronic record or electronic

26  signature attributed to a person under paragraph (a) is

27  determined from the context and surrounding circumstances at

28  the time of its creation, execution, or adoption, including

29  the parties' agreement, if any, and otherwise as provided by

30  law.

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  1         (10)  EFFECT OF CHANGE OR ERROR.--If a change or error

  2  in an electronic record occurs in a transmission between

  3  parties to a transaction, the following rules apply:

  4         (a)  If the parties have agreed to use a security

  5  procedure to detect changes or errors and one party has

  6  conformed to the procedure, but the other party has not, and

  7  the nonconforming party would have detected the change or

  8  error had that party also conformed, the conforming party may

  9  avoid the effect of the changed or erroneous electronic

10  record.

11         (b)  In an automated transaction involving an

12  individual, the individual may avoid the effect of an

13  electronic record that resulted from an error made by the

14  individual in dealing with the electronic agent of another

15  person if the electronic agent did not provide an opportunity

16  for the prevention or correction of the error and, at the time

17  the individual learns of the error, the individual:

18         1.  Promptly notifies the other person of the error and

19  that the individual did not intend to be bound by the

20  electronic record received by the other person.

21         2.  Takes reasonable steps, including steps that

22  conform to the other person's reasonable instructions, to

23  return to the other person or, if instructed by the other

24  person, to destroy the consideration received, if any, as a

25  result of the erroneous electronic record.

26         3.  Has not used or received any benefit or value from

27  the consideration, if any, received from the other person.

28         (c)  If paragraphs (a) and (b) do not apply, the change

29  or error has the effect provided by the other provision of

30  law, including the law of mistake, and the parties' contract,

31  if any.

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  1         (d)  Paragraphs (b) and (c) may not be varied by

  2  agreement.

  3         (11)  NOTARIZATION AND ACKNOWLEDGMENT.--

  4         (a)  If a law requires a signature or record to be

  5  notarized, acknowledged, verified, or made under oath, the

  6  requirement is satisfied if the electronic signature of the

  7  person authorized by applicable law to perform those acts,

  8  together with all other information required to be included by

  9  other applicable law, is attached to or logically associated

10  with the signature or record.  Neither a rubber stamp nor an

11  impression type seal is required for an electronic

12  notarization.

13         (b)  A first-time applicant for a notary commission

14  must submit proof that the applicant has, within 1 year prior

15  to the application, completed at least 3 hours of interactive

16  or classroom instruction, including electronic notarization,

17  and covering the duties of the notary public. Courses

18  satisfying this section may be offered by any public or

19  private sector person or entity registered with the Executive

20  Office of the Governor and must include a core curriculum

21  approved by that office.

22         (12)  RETENTION OF ELECTRONIC RECORDS; ORIGINALS.--

23         (a)  If a law requires that a record be retained, the

24  requirement is satisfied by retaining an electronic record of

25  the information in the record which:

26         1.  Accurately reflects the information set forth in

27  the record after the record was first generated in final form

28  as an electronic record or otherwise.

29         2.  Remains accessible for later reference.

30         (b)  A requirement to retain a record in accordance

31  with paragraph (a) does not apply to any information the sole

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  1  purpose of which is to enable the record to be sent,

  2  communicated, or received.

  3         (c)  A person may satisfy paragraph (a) by using the

  4  services of another person if the requirements of paragraph

  5  (a) are satisfied.

  6         (d)  If a provision of law requires a record to be

  7  presented or retained in its original form, or provides

  8  consequences if the record is not presented or retained in its

  9  original form, that law is satisfied by an electronic record

10  retained in accordance with paragraph (a).

11         (e)  If a provision of law requires retention of a

12  check, that requirement is satisfied by retention of an

13  electronic record of the information on the front and back of

14  the check in accordance with paragraph (a).

15         (f)  A record retained as an electronic record in

16  accordance with paragraph (a) satisfies a provision of law

17  requiring a person to retain a record for evidentiary, audit,

18  or similar purposes, unless a provision of law enacted after

19  July 1, 2000, specifically prohibits the use of an electronic

20  record for the specified purpose.

21         (g)  This subsection does not preclude a governmental

22  agency of this state from specifying additional requirements

23  for the retention of a record subject to the agency's

24  jurisdiction.

25         (13)  ADMISSIBILITY IN EVIDENCE.--In a proceeding,

26  evidence of a record or signature may not be excluded solely

27  because the record or signature is in electronic form.

28         (14)  AUTOMATED TRANSACTIONS.--In an automated

29  transaction, the following rules apply:

30         (a)  A contract may be formed by the interaction of

31  electronic agents of the parties, even if no individual was

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  1  aware of or reviewed the electronic agents' actions or the

  2  resulting terms and agreements.

  3         (b)  A contract may be formed by the interaction of an

  4  electronic agent and an individual, acting on the individual's

  5  own behalf or for another person, including by an interaction

  6  in which the individual performs actions that the individual

  7  is free to refuse to perform and which the individual knows or

  8  has reason to know will cause the electronic agent to complete

  9  the transaction or performance.

10         (d)  The terms of the contract are determined by the

11  substantive law applicable to the contract.

12         (15)  TIME AND PLACE OF SENDING AND RECEIVING.--

13         (a)  Unless otherwise agreed between the sender and the

14  recipient, an electronic record is sent when the record:

15         1.  Is addressed properly or otherwise directed

16  properly to an information processing system that the

17  recipient has designated or uses for the purpose of receiving

18  electronic records or information of the type sent and from

19  which the recipient is able to retrieve the electronic record.

20         2.  Is in a form capable of being processed by that

21  system.

22         3.  Enters an information processing system outside the

23  control of the sender or of a person that sent the electronic

24  record on behalf of the sender or enters a region of the

25  information processing system designated or used by the

26  recipient which is under the control of the recipient.

27         (b)  Unless otherwise agreed between a sender and the

28  recipient, an electronic record is received when the record

29  enters an information processing system that the recipient has

30  designated or uses for the purpose of receiving electronic

31  records or information of the type sent and from which the

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  1  recipient is able to retrieve the electronic record; and it is

  2  in a form capable of being processed by that system.

  3         (c)  Paragraph (b) applies even if the place the

  4  information processing system is located is different from the

  5  place the electronic record is deemed to be received under

  6  paragraph (d).

  7         (d)  Unless otherwise expressly provided in the

  8  electronic record or agreed between the sender and the

  9  recipient, an electronic record is deemed to be sent from the

10  sender's place of business and to be received at the

11  recipient's place of business. For purposes of this paragraph,

12  the following rules apply:

13         1.  If the sender or recipient has more than one place

14  of business, the place of business of that person is the place

15  having the closest relationship to the underlying transaction.

16         2.  If the sender or the recipient does not have a

17  place of business, the place of business is the sender's or

18  recipient's residence, as the case may be.

19         (e)  An electronic record is received under paragraph

20  (b) even if no individual is aware of its receipt.

21         (f)  Receipt of an electronic acknowledgment from an

22  information processing system described in paragraph (b)

23  establishes that a record was received but, by itself, does

24  not establish that the content sent corresponds to the content

25  received.

26         (g)  If a person is aware that an electronic record

27  purportedly sent under paragraph (a), or purportedly received

28  under paragraph (b), was not actually sent or received, the

29  legal effect of the sending or receipt is determined by other

30  applicable provisions of law. Except to the extent permitted

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  1  by the other provisions of law, the requirements of this

  2  paragraph may not be varied by agreement.

  3         (h)  An automated transaction does not establish the

  4  acceptability of an electronic record for recording purposes.

  5         (16)  TRANSFERABLE RECORDS.--

  6         (a)  For purposes of this subsection, "transferable

  7  record" means an electronic record that:

  8         1.  Would be a note under Article 3 of the Uniform

  9  Commercial Code or a document under Article 7 of the Uniform

10  Commercial Code if the electronic record were in writing.

11         2.  The issuer of the electronic record expressly has

12  agreed is a transferable record.

13         (b)  A person has control of a transferable record if a

14  system employed for evidencing the transfer of interests in

15  the transferable record reliably establishes that person as

16  the person to which the transferable record was issued or

17  transferred.

18         (c)  A system satisfies paragraph (b), and a person is

19  deemed to have control of a transferable record, if the

20  transferable record is created, stored, and assigned in such a

21  manner that:

22         1.  A single authoritative copy of the transferable

23  record exists which is unique, identifiable, and, except as

24  otherwise provided in subparagraphs 4., 5., and 6.,

25  unalterable.

26         2.  The authoritative copy identifies the person

27  asserting control as the person to which the transferable

28  record was issued or, if the authoritative copy indicates that

29  the transferable record has been transferred, the person to

30  which the transferable record was most recently transferred.

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  1         3.  The authoritative copy is communicated to and

  2  maintained by the person asserting control or its designated

  3  custodian.

  4         4.  Copies or revisions that add or change an

  5  identified assignee of the authoritative copy can be made only

  6  with the consent of the person asserting control.

  7         5.  Each copy of the authoritative copy and any copy of

  8  a copy is readily identifiable as a copy that is not the

  9  authoritative copy.

10         6.  Any revision of the authoritative copy is readily

11  identifiable as authorized or unauthorized.

12         (d)  Except as otherwise agreed, a person having

13  control of a transferable record is the holder, as defined in

14  Section 1-201(20) of the Uniform Commercial Code, of the

15  transferable record and has the same rights and defenses as a

16  holder of an equivalent record or writing under the Uniform

17  Commercial Code, including, if the applicable statutory

18  requirements under Section 3-302(a), 7-501, or 9-308 of the

19  Uniform Commercial Code are satisfied, the rights and defenses

20  of a holder in due course, a holder to which a negotiable

21  document of title has been duly negotiated, or a purchaser,

22  respectively. Delivery, possession, and endorsement are not

23  required to obtain or exercise any of the rights under this

24  paragraph.

25         (e)  Except as otherwise agreed, an obligor under a

26  transferable record has the same rights and defenses as an

27  equivalent obligor under equivalent records or writings under

28  the Uniform Commercial Code.

29         (f)  If requested by a person against which enforcement

30  is sought, the person seeking to enforce the transferable

31  record shall provide reasonable proof that the person is in

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  1  control of the transferable record. Proof may include access

  2  to the authoritative copy of the transferable record and

  3  related business records sufficient to review the terms of the

  4  transferable record and to establish the identity of the

  5  person having control of the transferable record.

  6         (17)  CREATION AND RETENTION OF ELECTRONIC RECORDS AND

  7  CONVERSION OF WRITTEN RECORDS BY GOVERNMENTAL AGENCIES.--Each

  8  governmental agency shall determine whether, and the extent to

  9  which, such agency will create and retain electronic records

10  and convert written records to electronic records.

11         (18)  ACCEPTANCE AND DISTRIBUTION OF ELECTRONIC RECORDS

12  BY GOVERNMENTAL AGENCIES.--

13         (a)  Except as otherwise provided in paragraph (11)(f),

14  each governmental agency shall determine whether, and the

15  extent to which, such agency will send and accept electronic

16  records and electronic signatures to and from other persons

17  and otherwise create, generate, communicate, store, process,

18  use, and rely upon electronic records and electronic

19  signatures.

20         (b)  To the extent that a governmental agency uses

21  electronic records and electronic signatures under paragraph

22  (a), the state technology office, in consultation with the

23  governmental agency, giving due consideration to security, may

24  specify:

25         1.  The manner and format in which the electronic

26  records must be created, generated, sent, communicated,

27  received, and stored and the systems established for those

28  purposes.

29         2.  If electronic records must be signed by electronic

30  means, the type of electronic signature required, the manner

31  and format in which the electronic signature must be affixed

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  1  to the electronic record, and the identity of, or criteria

  2  that must be met by, any third party used by a person filing a

  3  document to facilitate the process.

  4         3.  Control processes and procedures as appropriate to

  5  ensure adequate preservation, disposition, integrity,

  6  security, confidentiality, and auditability of electronic

  7  records.

  8         4.  Any other required attributes for electronic

  9  records which are specified for corresponding nonelectronic

10  records or reasonably necessary under the circumstances.

11         (c)  Except as otherwise provided in paragraph (11)(f),

12  this section does not require a governmental agency of this

13  state to use or permit the use of electronic records or

14  electronic signatures.

15         (d)  Service charges and fees otherwise established by

16  law applicable to the filing of nonelectronic records shall

17  apply in kind to the filing of electronic records.

18         (19)  INTEROPERABILITY.--The governmental agency which

19  adopts standards pursuant to subsection (18) may encourage and

20  promote consistency and interoperability with similar

21  requirements adopted by other governmental agencies of this

22  and other states and the Federal Government and

23  nongovernmental persons interacting with governmental agencies

24  of this state. If appropriate, those standards may specify

25  differing levels of standards from which governmental agencies

26  of this state may choose in implementing the most appropriate

27  standard for a particular application.

28         (20)  SEVERABILITY.--If any provision of this section

29  or its application to any person or circumstance is held

30  invalid, the invalidity does not affect other provisions or

31  applications of this section which can be given effect without

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CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000             CS/HB 1891

    193-155-00






  1  the invalid provision or application, and to this end the

  2  provisions of this section are severable.

  3         Section 2.  (1)  The Legislature finds that a proper

  4  and legitimate state purpose is served by providing the public

  5  with access to public records and information on the Internet

  6  and hereby determines that the provisions of this act fulfill

  7  and further an important state interest.

  8         (2)  No later than January 1, 2002, the county recorder

  9  in each county shall provide a current index of documents

10  recorded in the official records of the county for the period

11  beginning no later than January 1, 1990, on a publicly

12  available Internet website which shall also contain a document

13  requisition point for obtaining images or copies of the

14  documents reflected in the index and which has the capability

15  of electronically providing the index data to a central

16  statewide search site.

17         (3)  Each county recorder shall use appropriate

18  Internet security measures to ensure that no person has the

19  ability to alter or to modify any public record.

20         (4)  Unless otherwise provided by law, no information

21  retrieved electronically pursuant to this section shall be

22  admissible in court as an authenticated document.

23         (5)  By January 1, 2006, each county recorder shall

24  provide for electronic retrieval, at a minimum, images of

25  documents referenced as the index required to be maintained on

26  the county's official records website by this section.

27         Section 3.  This act shall take effect July 1, 2000.

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