For decades, largely since the passage of the federal Electronic Signatures in Global and National Commerce (ESIGN) law in 2000 (as well as the Uniform Electronic Transactions Act, or UETA), electronic signatures are allowed on most types of documents and transactions throughout the US.
You can also use digital signatures/certificates, but this best practice focuses on electronic signatures – the sending/sharing of a document electronically with one or multiple parties signing.
Electronic signatures have a number of benefits versus “hard” or “wet” paper-based signatures, including:
1. They are far more secure, with various protocols in place such as IP/location tracking and data logging, that actually ensure that someone signing is who they say they are.
2. Likely will reduce hard and soft costs from printing/postage as well as staff time.
3. Reduces the environmental impact of printing on paper and shipping documents by vehicle, especially for time sensitive documents that may previously have been overnighted by air.
4. Reduces the amount of time required to process documents, for example, allowing multiple parties in different locations to counter-sign and execute contracts in just minutes.
5. Can improve the speed at which certain processes can be accomplished, which may have a benefit to other stakeholders, such as residents, vendors, or contractors in your town.
There are a number of widely accepted services, some of which may integrate with existing tools that your organization uses. Most available services come with free plans or trial periods that might allow you to evaluate features, usability and compare to costs.
For many smaller organizations, it may make sense to start small, and keep in mind expanding with more features later but just finding a way to streamline certain processes through an esignature service to start. Starting small can sometimes help you vet and identify any potentially issues before a larger rollout, as well as build trust with stakeholders such as a governing body, staff, or legal.
Some popular services for esignatures include:
– Pandadoc
– Hellosign/Dropbox Sign
– Rightsignature
– Adobe/Acrobat
– Docusign
These services come with wide variety of potential features, including mobile signatures, email notifications, archival of signed documents, assigning signer order, capturing multiple documents, and security features.
Some services (though they usually require paid plans) may also allow for a degree of “contract management.” Having some type of contract management system in place to help identify upcoming expiring contracts can help you keep your contracts organized and ensure that you don’t miss critical deadlines.
Before implementing any sort of process such as this, it would be wise to consult with your municipal attorney and/or your state association for further advice. They may also have some resources and/or experience with certain vendors that can assist in your thinking. Like with many new programs, it is worth considering whether you should put in place a policy first.
