ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

Senate: FIN DPA 9-0-1-0 | 3rd Read 29-0-1-0


SB 1021: department of revenue; electronic signatures

Sponsor:  Senator Ugenti-Rita, LD 23

Committee on Ways & Means

Overview

Requires the Arizona Department of Revenue (ADOR) to accept electronic signatures and outline requirements that an electronic signature must meet.

History

ADOR may prescribe rules that establish alternative methods for signing, subscribing or verifying a return, statement or other document required to be filed with ADOR. Prescribed alternative methods for signing have the same validity and consequence as the actual signature or written declaration of the taxpayer or other person (A.R.S. § 42-1105).

The Arizona Administrative Code currently allows a taxpayer who signs an individual federal income tax return to electronically sign a state income tax return. (A.A.C. R15-10-503).

Provisions

1.    ☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteRequires ADOR to accept or require an electronic signature to serve as a functional equivalent of a written signature on a document that is submitted to ADOR. (Sec. 1)

2.    Requires the following to be a valid electronic signature:

a)    Executed or adopted by a person with the intent to sign the document to indicate the person's approval of the information contained within the document;

b)    Attached to or logically associated with the information contained in the document;

c)    Capable of reliable identification and authentication of the person as the signer;

d)    Linked to the document in a manner that invalidates the electronic signature if the document is changed;

e)    Linked to the document to preserve its integrity as an accurate and complete record for the full retention period of the document; and

f)     Compatible with standards and technology for electronic signatures that are generally used in commerce and industry and by state governments. (Sec. 2)

3.    Mandates ADOR to prescribe the following for documents that are signed electronically:

a)    Type of electronic signature required; and

b)    The manner and format in which the electronic signature must be affixed to the electronic record. (Sec. 2)

4.    Defines Electronic signature as an electronic sound, symbol, or process that is attached to or logically associated with a record that is executed or adopted by an individual with the intent to sign the record. (Sec. 2)

5.    States that use and acceptance of electronic signatures by ADOR are subject to current statute pertaining to Electronic Transactions, Secure Electronic Records and Signatures (Title 44, Chapter 26, Article 3). (Sec. 2)

6.    Includes electronic signatures attached to returns filed under this title as a verified declaration that is made under penalties of perjury. (Sec. 3)

7.    Exempts ADOR from rulemaking requirements relating to electronic signatures for one-year after the effective date of this act. (Sec. 4)

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11.                    SB 1021

12.  Initials: VP/BG      Page 0 Ways & Means

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