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In late 2018, the 21st Century Integrated Digital Experience (IDEA) Act was signed into law. The legislation was heralded by the software industry for requiring government agencies to make public-facing documents more digitally accessible, and allowing for electronic signatures. 

However, like private industry, the public sector is facing a host of challenges in making e-signature technology a reality, including tight budgets and having to assure the integrity of the data collection and storage process. 

“Legacy technology [and the] crisis du jour makes people not focus on e-signature,” said Margo Tank, DLA Piper’s financial services sector U.S. co-chair. “The laws and regulations are there to enable electronic signature but there’s resistance.”

Indeed, while the 21st Century IDEA Act was enacted last December, software companies see varying adoption rates of e-signature software.

“Since the bill was signed into law, we have seen an uptick in government agencies adopting e-signature services to meet the ongoing mandates of the 21st Century IDEA [Act]” wrote Dan Puterbaugh, director of strategic development with Adobe Document Cloud, in an email. 

However, DocuSign vice president of enterprise sales Barton Phillips said he hasn’t seen an increase in the public sector adopting e-signature tech. “Part of that is because the 21st Century IDEA Act didn’t come with funding,” 

To be sure, the transition from paper to electronic comes with a host of challenges besides just funding. 

“I think there’s been a lot of pause on, not so much about the signature but the other issues related to the transactions,” Tank said, pointing to problems in authenticating the parties involved in the transaction and maintaining the records’ integrity. 

Plus, regulators have been silent over enforcement of the 21st Century IDEA Act, while case law is only beginning to trickle in, Tank added. 

Tank and software companies agreed e-signature is used more often in the private sector, and the onus is now on the government to catch up.

“[The] ‘I agree’ button is an electronic signature so yes, consumer commercial private industries are absolutely utilizing electronic signature,” Tank said. “The government needs a little bit of a push.”

To be sure, the use and acceptance of e-signatures and digital records has been encouraged by U.S. lawmakers for 20-plus years, Tank said .

In 1999, the Uniform Electronic Transactions Act guaranteeing electronic transactions’ enforceability was adopted by the National Conference of Commissioners on Uniform State Laws and later by all states, Tank noted.

Likewise, in 2000, the E-Sign Act made clear that electronic signatures and documents could be accepted by the U.S. government, while by 2003 the Government Paperwork Elimination Act allowed individuals or entities that deal with federal agencies to submit signatures, information or maintain records electronically, Tank added.

“The Government Paperwork Elimination Act says, ‘Hey government, you need to be more efficient. Look at laws and regulations and start thinking through what can be done electronically.’ The 21st Century IDEA Act is following those footsteps basically of the Government Paperwork Elimination Act and saying the government needs to go electronic,” she said.