REPRESENTATIVE Vincent “Kobre” Aldan is proposing to adopt the Uniform Electronic Transaction Act or UETA to create a “more robust digital economy” in the Commonwealth.
Published by the Uniform Law Commission in 1999, the UETA gives electronic signatures and records the same legal effect as handwritten signatures and paper documents. It is adopted on a state-by-state basis. Forty-nine states, along with the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, have adopted it.
Aldan said he will introduce the bill in the next House session.
The still-unnumbered bill, he said, is critical to furthering the digital economy that he seeks to promote in the CNMI. He said his bill aims to modernize the CNMI’s legal framework for electronic records and signatures, aligning it with national and international best practices while incorporating CNMI-specific safeguards.
Its benefits to businesses include:
• Legal certainty. Provides assurance that electronic signatures, contracts, and records are fully enforceable in CNMI courts, matching the U.S. federal Electronic Signatures in Global and National Commerce Act and the practices of 49 U.S. states.
• Uniformity. Ensures that the CNMI is consistent with the rest of the U.S. and internationally, reducing legal friction for investors and businesses operating across borders.
• Cybersecurity confidence. Mandated encryption, authentication, and audit trails increase trust in CNMI’s digital commerce environment, reassuring international investors about fraud prevention and dispute resolution.
• Predictable transition. A 180-day delayed effective date gives businesses, banks, and government agencies time to upgrade IT systems, train staff, and prepare for compliance without disruption.
