Links to Regulations and Articles
Federal: Sarbanes-Oxley Act of 2002
The 2002 passage of the Sarbanes-Oxley Act has intensified the
growing necessity for businesses to take seriously their policies and practices
regarding document retention. The Act further establishes the legitimacy of
electronic documents, including e-mail and deleted files, as legally admissible
evidence. Compliance with the Act requires systematic policies governing
document retention, archiving, and destruction.
Following are links to current articles that discuss facts and
opinions about how this legislation is changing the way business looks at the
exchange of information.
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Federal: Government Paperwork Elimination Act (GPEA)
- "The
Government Paperwork Elimination Act (GPEA) requires
Federal agencies, by October 21, 2003, to allow individuals or entities that
deal with the agencies the option to submit information or transact with the
agency electronically, when practicable, and to maintain records electronically,
when practicable. The Act specifically states that electronic records and their
related electronic signatures are not to be denied legal effect, validity, or
enforceability merely because they are in electronic form, and encourages
Federal government use of a range of electronic signature alternatives."
-
HUD - Government Paperwork Elimination Act (GPEA): "As public awareness of electronic communications and Internet usage
continues to increase, demand for on-line interactions with Federal agencies
also increases. Under the Government Paperwork Elimination Act persons required
to submit information to the agencies, or maintain information, must be given
the option to do so electronically when practicable. Agencies must implement
this electronic option by October 21, 2003.
GPEA states that electronic records and their related electronic signatures
are not to be denied legal effect, validity or enforceability merely because
they are in electronic form."
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Michigan: Uniform Electronic Transactions Act (Act 305
of 2000)
Uniform Electronic Transactions Act (Excerpt) Act 305 of 2000
"450.837 Record or signature in electronic form; legal effect;
enforcement.
Sec. 7.
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A record or signature shall not
be denied legal effect or enforceability solely because it is in electronic
form.
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A contract shall not be denied
legal effect or enforceability solely because an electronic record was used in
its formation.
-
If a law requires a record to
be in writing, an electronic record satisfies the law.
-
If a law requires a signature,
an electronic signature satisfies the law."
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Michigan: Maintaining Real Estate Records in
Electronic Format
Q: Broker's books and
records can become a large storage problem. Does the
Michigan Department of Labor & Economic Growth see any violation if these
records are maintained in a medium other than paper? And for how long?
A: Rule 313(3), effective
9-1-03, requires that "all trust or escrow account records shall be maintained
for a period of not less than 3 years from the date of inception of the
records." The previous retention requirement was 5 years.
Further, the Code and Rules are silent regarding scanning of
those files on to a hard drive, backed up by CD, for future reference, or being
stored on microfilm or some other method. Audit Supervisor, Tim Teague, recently
confirmed that as long as the records are kept for three years in a manner that
can be retrieved, that is acceptable. He further clarified that as long as the
scanned images contain all the information that is required (See Rule Section
2512 and Rule 313(4) for a detailed description), the
fact that the records are scanned rather than hard-copy or paper makes no
difference and would be found acceptable.
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Michigan: Mortgage Brokers, Lenders, and Servicers Licensing Act (Act 173 of
1987)
Section 445.1671 on Record Keeping: "A licensee or registrant shall maintain
books, accounts, records, and documents of the business, as prescribed by the
commissioner, conducted under the license or registration to enable the
commissioner to determine whether the business of the licensee or registrant is
conducted pursuant to this act and the rules promulgated under this act.
The preservation of records by reproduction pursuant
to the records media act constitutes compliance with this section."
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Michigan: Records Reproduction Act
Act 116 of 1992: "AN ACT to designate and regulate the method and medium for
the storage and reproduction of certain records; to provide for the
certification of certain records; and to prescribe the powers and duties of
certain governmental entities and officials."
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