4.2 ERMUSR 08-08-2023______________________________________________________________________________
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Tony Mauren – Governance & Communications Manager
MEETING DATE:
August 8, 2023
AGENDA ITEM NUMBER:
4.2
SUBJECT:
Electronic Signature Policy
ACTION REQUESTED:
Approve ERMU Commission Policy G.2i Electronic Signatures
BACKGROUND:
As an organization, ERMU continuously works to increase efficiencies and further sustainability
measures. Part of these efforts include, whenever possible, implementing paperless processes
that reduce material costs and administration time. For example, ERMU’s accounting
department has been utilizing paperless processing through National Information Solutions
Cooperative since 2020.
Currently, the service agreements available to customers on ERMU’s website require applicants
to print the form and sign it by hand in order to submit it. This has been the procedure since the
forms were first made available on the website and was intended to aid in identity verification.
Feedback from customers has been that this process is inconvenient and uncommon among
other utilities they work with.
The State of Minnesota authorizes and encourages the use of electronic signatures by
governmental agencies, including municipalities commissions, and instrumentalities of
municipalities, as an efficient and cost-effective method of operation. The state also requires
that government agencies determine the extent to which it will use and accept electronic
signatures.
DISCUSSION:
Accordingly, this policy establishes the use and acceptability of electronic signatures for ERMU.
Its approval will allow staff to create new agreement documents with a built-in signature
function that also immediately emails a copy of the form to the appropriate department for
processing and data retention.
ATTACHMENTS:
• ERMU Policy - G.2i - Electronic Signature
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COMMISSION POLICY
Section: Category:
Governance Governance Policies
Policy Reference: Policy Title:
G.2i Electronic Signature
PURPOSE:
Elk River Municipal Utilities (“ERMU”) continuously works to increase efficiencies and further
sustainability measures. ERMU’s efforts include the reduction of printing and paper use, and
the increase in paperless forms of communication and approval processes. The purpose of this
policy is to establish procedures to allow the use of electronic or digital signatures in place of
handwritten (or “wet”) signatures pursuant to Minnesota’s Uniform Electronic Transactions Act
(Minn. Stat., Ch. 325L) (“the Act”).
The State of Minnesota authorizes and encourages the use of electronic signatures by
governmental agencies, including municipalities commissions, and instrumentalities of
municipalities, as an efficient and cost-effective method of operations. Specifically, the State
requires government agencies to determine whether and to what extent they will use and accept
electronic signatures (Minn. Stat. § 325L.18). As more governmental services and forms are
offered online, agencies and municipalities need the ability and authority to review, comment
upon, approve, sign, and otherwise process these forms and information in a digital and paperless
medium.
The Minnesota Legislature codified this encouragement with the passage of the Act. The Act
provides the basis for electronic or digital signatures to be given the same legal recognition,
function, and weight as handwritten signatures in all circumstances outlined in the Act. The Act
applies to any electronic record or electronic signature created, generated, communicated,
received, or stored after August 1, 2000.
Under the Act, “electronic signature” means an electronic sound, symbol, or process attached to
or logically associated with a record and executed or adopted by a person with the intent to sign
the record. A record or signature may not be denied enforceability solely because it is in an
electronic form (Minn. Stat. § 325L.07 (a)). Further, if a law requires a record to be in writing,
an electronic record satisfies the law (Minn. Stat. § 325L.07(c)). If a law requires a signature, an
electronic signature satisfies the law (Minn. Stat. § 325L.07(d)).
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ERMU Commission Policy – G.2i Electronic Signature
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To recognize these efficiencies in ERMU operations, the Elk River Public Utilities Commission
(“Commission”) authorizes the use of electronic and/or digital signatures as a valid signature to
issue checks and other orders of public funds; and execute documents and agreements.
POLICY:
To the fullest extent permitted by law, ERMU may utilize electronic digital signatures as legally
binding and equivalent to handwritten signatures whenever feasible, prudent, and efficient.
This policy hereby adopts the Definitions of the Act (Minn. Stat. § 325L.02). This policy does
not apply to certain documents and transactions governed by the Uniform Commercial Code.
A legible and acceptable electronic signature should have the following components:
A. The name of the signer and is applied in a manner to execute or validate the document;
B. The typed or printed name of the signer below or adjacent to the signature when the
signature uses a digitized or scanned version of the signer’s hand scribed signature or the
name is in a cursive font;
C. The signer’s corporate, managerial, or partnership title as part of or adjacent to the digital
signature when the signer is signing on behalf of an organization or legal entity;
D. When required or capable, evidence of authentication of the signer’s identity such as the
text “digitally signed by” along with the software provider’s seal/watermark, date and
time of execution; or, have an authentication code or key identifying the software
provider; and,
E. A font, size and color density that is clearly legible and reproducible when reviewed,
copied and scanned into a black on white format.
PROCEDURES:
All legally binding electronic documents and agreements shall be executed in accordance with
the Uniform Electronic Transactions Act (UETA) and the Minnesota Act.
A. ERMU staff and appointed officials are authorized to accept and use electronic signatures
in all situations where requirement of a signature or approval is stated or implied. This
policy does not supersede situations where laws specifically require a written signature,
nor the specific signature policies of other government agencies.
B. ERMU staff and appointed officials are authorized to use electronic signatures for
documents, such as ERMU service agreements, purchase orders, expense reports, checks,
and other customary and routine documents that are electronically generated. Other
documents may be deemed appropriate by the General Manager or Commission
Attorney.
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ERMU Commission Policy – G.2i Electronic Signature
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C. ERMU staff and appointed officials may utilize third party certification methods to
authenticate electronic or digital signatures with vendors, contractors, or other
government departments and agencies whenever prudent or at the direction of the
General Manager or Commission Attorney.
D. ERMU staff are authorized to use the signature field in Adobe or other similar electronic
signature tool as a means of signing the document electronically.
E. Electronic signatures must apply to individuals only, and not for roles, positions, or titles.
F. ERMU reserves the right to refuse to use or accept an electronic or digital signature that
does not comply with the Act or other applicable Minnesota Statutes.
G. ERMU will retain an electronic copy of all electronically signed documents and
agreements in accordance with the State Record Retention Policy.
RESPONSIBILITY AND AUTHORITY:
Administrative implementation of policy as permitted by the Act, the Minnesota Electronic
Authentication Act (Minn. Stat., Ch. 325K), and Minnesota Statutes §§ 47.41 and 47.42.
POLICY HISTORY:
Adopted August 8, 2023
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