15 U.S.C. § 7004 — Applicability to Federal and State govern-

Page 2307 TITLE 15—COMMERCE AND TRADE § 7004 (1) a statute, regulation, or other rule of law governing the creation and execution of wills, codicils, or testamentary trusts; (2) a State statute, regulation, or other rule of law governing adoption, divorce, or other matters of family law; or (3) the Uniform Commercial Code, as in ef- fect in any State, other than sections 1–107 and 1–206 and Articles 2 and 2A. (b) Additional exceptions The provisions of section 7001 of this title shall not apply to— (1) court orders or notices, or official court documents (including briefs, pleadings, and other writings) required to be executed in con- nection with court proceedings; (2) any notice of— (A) the cancellation or termination of util- ity services (including water, heat, and power); (B) default, acceleration, repossession, foreclosure, or eviction, or the right to cure, under a credit agreement secured by, or a rental agreement for, a primary residence of an individual; (C) the cancellation or termination of health insurance or benefits or life insurance benefits (excluding annuities); or (D) recall of a product, or material failure of a product, that risks endangering health or safety; or (3) any document required to accompany any transportation or handling of hazardous mate- rials, pesticides, or other toxic or dangerous materials. (c) Review of exceptions (1) Evaluation required The Secretary of Commerce, acting through the Assistant Secretary for Communications and Information, shall review the operation of the exceptions in subsections (a) and (b) to evaluate, over a period of 3 years, whether such exceptions continue to be necessary for the protection of consumers. Within 3 years after June 30, 2000, the Assistant Secretary shall submit a report to the Congress on the results of such evaluation. (2) Determinations If a Federal regulatory agency, with respect to matter within its jurisdiction, determines after notice and an opportunity for public comment, and publishes a finding, that one or more such exceptions are no longer necessary for the protection of consumers and elimi- nating such exceptions will not increase the material risk of harm to consumers, such agency may extend the application of section 7001 of this title to the exceptions identified in such finding. (Pub. L. 106–229, title I, § 103, June 30, 2000, 114 Stat. 468.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 2000, with exceptions relating to record retention and certain loans, see section 107 of Pub. L. 106–229, set out as a note under section 7001 of this title. § 7004. Applicability to Federal and State govern- ments (a) Filing and access requirements Subject to subsection (c)(2), nothing in this subchapter limits or supersedes any requirement by a Federal regulatory agency, self-regulatory organization, or State regulatory agency that records be filed with such agency or organiza- tion in accordance with specified standards or formats. (b) Preservation of existing rulemaking author- ity (1) Use of authority to interpret Subject to paragraph (2) and subsection (c), a Federal regulatory agency or State regu- latory agency that is responsible for rule- making under any other statute may interpret section 7001 of this title with respect to such statute through— (A) the issuance of regulations pursuant to a statute; or (B) to the extent such agency is authorized by statute to issue orders or guidance, the issuance of orders or guidance of general ap- plicability that are publicly available and published (in the Federal Register in the case of an order or guidance issued by a Fed- eral regulatory agency). This paragraph does not grant any Federal regulatory agency or State regulatory agency authority to issue regulations, orders, or guid- ance pursuant to any statute that does not au- thorize such issuance. (2) Limitations on interpretation authority Notwithstanding paragraph (1), a Federal regulatory agency shall not adopt any regula- tion, order, or guidance described in paragraph (1), and a State regulatory agency is pre- empted by section 7001 of this title from adopting any regulation, order, or guidance described in paragraph (1), unless— (A) such regulation, order, or guidance is consistent with section 7001 of this title; (B) such regulation, order, or guidance does not add to the requirements of such sec- tion; and (C) such agency finds, in connection with the issuance of such regulation, order, or guidance, that— (i) there is a substantial justification for the regulation, order, or guidance; (ii) the methods selected to carry out that purpose— (I) are substantially equivalent to the requirements imposed on records that are not electronic records; and (II) will not impose unreasonable costs on the acceptance and use of electronic records; and (iii) the methods selected to carry out that purpose do not require, or accord greater legal status or effect to, the imple- mentation or application of a specific technology or technical specification for performing the functions of creating, stor- ing, generating, receiving, communicating, or authenticating electronic records or electronic signatures. Page 2308 TITLE 15—COMMERCE AND TRADE § 7005 (3) Performance standards (A) Accuracy, record integrity, accessibility Notwithstanding paragraph (2)(C)(iii), a Federal regulatory agency or State regu- latory agency may interpret section 7001(d) of this title to specify performance stand- ards to assure accuracy, record integrity, and accessibility of records that are required to be retained. Such performance standards may be specified in a manner that imposes a requirement in violation of paragraph (2)(C)(iii) if the requirement (i) serves an im- portant governmental objective; and (ii) is substantially related to the achievement of that objective. Nothing in this paragraph shall be construed to grant any Federal reg- ulatory agency or State regulatory agency authority to require use of a particular type of software or hardware in order to comply with section 7001(d) of this title. (B) Paper or printed form Notwithstanding subsection (c)(1), a Fed- eral regulatory agency or State regulatory agency may interpret section 7001(d) of this title to require retention of a record in a tangible printed or paper form if— (i) there is a compelling governmental interest relating to law enforcement or na- tional security for imposing such require- ment; and (ii) imposing such requirement is essen- tial to attaining such interest. (4) Exceptions for actions by government as market participant Paragraph (2)(C)(iii) shall not apply to the statutes, regulations, or other rules of law governing procurement by the Federal or any State government, or any agency or instru- mentality thereof. (c) Additional limitations (1) Reimposing paper prohibited Nothing in subsection (b) (other than para- graph (3)(B) thereof) shall be construed to grant any Federal regulatory agency or State regulatory agency authority to impose or re- impose any requirement that a record be in a tangible printed or paper form. (2) Continuing obligation under Government Paperwork Elimination Act Nothing in subsection (a) or (b) relieves any Federal regulatory agency of its obligations under the Government Paperwork Elimination Act (title XVII of Public Law 105–277). (d) Authority to exempt from consent provision (1) In general A Federal regulatory agency may, with re- spect to matter within its jurisdiction, by reg- ulation or order issued after notice and an op- portunity for public comment, exempt without condition a specified category or type of record from the requirements relating to con- sent in section 7001(c) of this title if such ex- emption is necessary to eliminate a substan- tial burden on electronic commerce and will not increase the material risk of harm to con- sumers. (2) Prospectuses Within 30 days after June 30, 2000, the Secu- rities and Exchange Commission shall issue a regulation or order pursuant to paragraph (1) exempting from section 7001(c) of this title any records that are required to be provided in order to allow advertising, sales literature, or other information concerning a security issued by an investment company that is reg- istered under the Investment Company Act of 1940 [15 U.S.C. 80a–1 et seq.], or concerning the issuer thereof, to be excluded from the defini- tion of a prospectus under section 77b(a)(10)(A) of this title. (e) Electronic letters of agency The Federal Communications Commission shall not hold any contract for telecommuni- cations service or letter of agency for a pre- ferred carrier change, that otherwise complies with the Commission’s rules, to be legally inef- fective, invalid, or unenforceable solely because an electronic record or electronic signature was used in its formation or authorization. (Pub. L. 106–229, title I, § 104, June 30, 2000, 114 Stat. 469.) Editorial Notes REFERENCES IN TEXT The Government Paperwork Elimination Act, re- ferred to in subsec. (c)(2), is title XVII of Pub. L. 105–277, div. C, Oct. 21, 1998, 112 Stat. 2681–749, which amended section 3504 of Title 44, Public Printing and Documents, and enacted provisions set out as a note under section 3504 of Title 44. For complete classifica- tion of this Act to the Code, see Tables. The Investment Company Act of 1940, referred to in subsec. (d)(2), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, which is classified generally to subchapter I (§ 80a–1 et seq.) of chapter 2D of this title. For complete classification of this Act to the Code, see section 80a–51 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 2000, with exceptions relating to record retention and certain loans, see section 107 of Pub. L. 106–229, set out as a note under section 7001 of this title. § 7005. Studies (a) Delivery Within 12 months after June 30, 2000, the Sec- retary of Commerce shall conduct an inquiry re- garding the effectiveness of the delivery of elec- tronic records to consumers using electronic mail as compared with delivery of written records via the United States Postal Service and private express mail services. The Secretary shall submit a report to the Congress regarding the results of such inquiry by the conclusion of such 12-month period. (b) Study of electronic consent Within 12 months after June 30, 2000, the Sec- retary of Commerce and the Federal Trade Com- mission shall submit a report to the Congress evaluating any benefits provided to consumers by the procedure required by section 7001(c)(1)(C)(ii) of this title; any burdens imposed