The 2001 legislative session resulted in several changes that affect electronic business in Tennessee. This hot topic highlights some of the more important changes

Cross, Ralph

English

University of Tennessee, Knoxville: Trace

University of Tennessee, Knoxville Trace: Tennessee Research and Creative Exchange MTAS Publications: Hot Topics Municipal Technical Advisory Service (MTAS) 11-26-2001 Hot Topic: Legislation Clarifies and Simplifies E-Commerce Procedures for Tennessee Municipalities Ralph Cross Municipal Technical Advisory Service, Ralph.Cross@tennessee.edu Follow this and additional works at: https://trace.tennessee.edu/utk_mtastop  Part of the Public Administration Commons The MTAS publications provided on this website are archival documents intended for informational purposes only and should not be considered as authoritative. The content contained in these publications may be outdated, and the laws referenced therein may have changed or may not be applicable to your city or circumstances. For current information, please visit the MTAS website at: mtas.tennessee.edu. Recommended Citation Cross, Ralph, "Hot Topic: Legislation Clarifies and Simplifies E-Commerce Procedures for Tennessee Municipalities" (2001). MTAS Publications: Hot Topics. https://trace.tennessee.edu/utk_mtastop/178 This Bulletin is brought to you for free and open access by the Municipal Technical Advisory Service (MTAS) at Trace: Tennessee Research and Creative Exchange. It has been accepted for inclusion in MTAS Publications: Hot Topics by an authorized administrator of Trace: Tennessee Research and Creative Exchange. For more information, please contact trace@utk.edu. HOT TOPICSfor Tennessee cities and townsDec. 3, 2001 #73Legislation Clarifies and Simplifies E-CommerceProcedures for Tennessee MunicipalitiesBy Ralph CrossMTAS Finance ConsultantThe 2001 legislative session resulted in several changes that affect electronicbusiness in Tennessee. This hot topic highlights some of the more importantchanges. However, do not rely solely on these summaries before giving advice ortaking actions. Refer to the act itself.CREDIT CARD FEES MADE OPTIONALChapter No. 348 (SB92/HB154)Property tax season is upon us, and many of your local residents may wish tomake their payments using a credit card. Thanks to new legislation passed duringthe 2001 session, local governments no longer have to charge a processing fee forany credit card transactions.In the previous session, the Tennessee General Assembly approved legislationallowing local governments to receive payments by credit or debit card but stipu-lated that the entity charge a processing fee that could not exceed five percent ofthe payment collected by the card. In an effort to improve this legislation, theGeneral Assembly amended Tennessee Code Annotated (T.C.A.) §9-1-108(c) toallow local governments, utility districts, boards, commissions, or authoritiescreated or authorized by general or local law, to waive the processing fees forcredit or debit card transactions. The amendment also eliminates the subdivisions(c)(5) and (c)(7) of T.C. A. §9-1-108 that required processing fees to be depositedin the general fund and prohibited local government officials from collecting lessthan is required by law for taxes and fees that are paid through transactionsinvolving credit and debit cards.This act became effective June 7, 2001.CONFIDENTIAL INFORMATION PROTECTEDChapter No. 259 (SB1473/HB867)This change amends T.C.A. §10-7-504 to protect confidential information and ensure statesecurity.In order to further discourage computer crime, the Legislature has amended the Public RecordsLaw to protect confidential information and ensure the security of the state of Tennessee and itspolitical branches.The amendment prohibits unauthorized access of confidential information or government prop-erty including electronic information processing systems and telecommunications systems.Confidential records include plans, security codes, passwords, combinations, and computerprograms, as well as information identifying structural or operational vulnerability of the state orits subdivisions. In general, confidential information includes anything that might permit unlaw-ful disruption of services provided by a governmental entity or permit unauthorized access toelectronic information or government property.Section 2 adds a new subdivision to T.C.A. §10-7-504 that specifically protects credit cardnumbers of persons doing business with the state or any political division thereof. PersonalIdentification Numbers (PIN) or other customer authorization codes are protected under thissection whether received by electronic or paper transactions.Nothing in this amendment ensures confidentiality for documents that relate to the cost of pro-tecting governmental property or electronic information and the identity of vendors providinggoods and services related to this effort.This act became effective May 22, 2001.UNIFORM ELECTRONIC TRANSACTION ACTChapter No. 72 (SB376/HB387)In an effort to establish more uniform standards relating to electronic transactions, the TennesseeGeneral Assembly amended the Uniform Electronic Transaction Act during the 2001 session.Title 5, Chapter 24 provides that electronic transactions in relation to records, signatures, andcontracts are legally binding. This law applies in the event that two or more parties agree toconduct business transactions electronically. In no way does this amendment require the use ofelectronic transactions to conduct business, nor does it require the continuance of this method infuture transactions given that parties have previously conducted business in this manner.Transaction agreements between parties requiring information to be delivered in writing aresatisfied by the electronic copy if the record is capable of retention by the recipient at the time itis received. If the recipient is unable to retain or print the electronic record due to the informationprocessing system of the sender, the written delivery requirement is not met.Except as prohibited by law, the information systems council established under T.C.A.§4-3-5501shall determine to what extent the state will retain, create, or convert written records to electronicrecords. Local government officials shall determine, except as prohibited by law, to what extent they willuse electronic records in the course of their business transactions. The information systems council mayspecify the manner and format in which the electronic records are to be created, sent, received, and re-tained, and the systems established for those purposes.Local government officials implementing an electronic business system shall file a statement with theComptroller of the Treasury at least 30 days prior to offering the service in accordance with this section.Remember that an electronic record is a public document and must be available for public inspectionunless considered a confidential record according to law. The same retention requirements apply to arecord whether it is electronic or written. An official must be capable of providing a paper copy of anelectronic record when necessary as prescribed by T.C.A. §10-7-121.This act became effective July 1, 2001.Knoxville (Headquarters)Conference Center Building, Suite 120The University of TennesseeKnoxville  37996-4105(865) 974-0411Fax (865) 974-0423Johnson City3119 Bristol Highway, Suite 302Johnson City  37601(423) 854-9882Fax (423) 854-9223Nashville223 Sixth Avenue, NorthNashville  37219-1804(615) 532-6827Fax (615) 532-4963Jackson605 Airways Blvd., Suite 109Jackson  38301(731) 423-3710Fax (731) 425-4771Martin175 Clement HallP.O. Box 100Martin  38238(731) 587-7055Fax (731) 587-7059Or call MTAS’ Answer Line and receive quickanswers to short questions 1-888-667-6827(MTAS)For more information, please contact the MTAS finance or management consultant in your area.The University of Tennessee does not discriminate on the basis of race, sex, color, religion, national origin, age, disability, or veteran status in provision of educational programs andservices or employment opportunities and benefits. This policy extends to both employment by and admission to The University.The University does not discriminate on the basis of race, sex, or disability in its education programs and activities pursuant to the requirements of Title VI of the Civil Rights Act of 1964,Title IX of the Education Amendments of 1972, Section 504 of the Rehabilitation Act of 1973, and the Americans with Disabilities Act (ADA) of 1990.Inquiries and charges of violation concerning Title VI, Title IX, Section 504, ADA, the Age Discrimination in Employment Act (ADEA), or any of the other above referenced policiesshould be directed to the Office of Diversity Resources (DRES). 2110 Terrace Avenue, Knoxville, Tennessee 37996-0213, (865) 974-2498 (V/TTY available) or (865) 974-2440. Requestsfor accommodation of a disability should be directed  to the ADA Coordinator at the Office of Human Resources, 600 Henley Street, Knoxville, Tennessee  37996-4125.E14-1050-000-009-02

Hot Topic: Legislation Clarifies and Simplifies E-Commerce Procedures for Tennessee Municipalities

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Hot Topic: Legislation Clarifies and Simplifies E-Commerce Procedures for Tennessee Municipalities

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University of Tennessee, Knoxville: Trace