TN 14 (03-26)

SL 40001.421 Electronic Signatures for Modifications and Notices

CITATIONS:

Social Security Act, Section 218(a), (b)(5) & (c)(4)

A. Background on Section 218 electronic signature option

States may choose to accept electronic signatures on Section 218 modifications and notices, which may simplify submission and handling of these items compared with paper-based processing.

A State can opt into the electronic signing process for Section 218 modifications and notices by submitting to SSA an Opt-in Certification (see SL 40001.490, Exhibit 32) confirming that the electronic signing process complies with applicable State law (e.g., applicable state law accepts electronic signatures as valid), and the State agrees not to contest any electronic signatures used in its Section 218 agreement on the basis that they are electronic instead of handwritten.

States that opt into the electronic signing process are still free to submit paper modifications and notices with handwritten signatures, but SSA will convert these documents to an electronic format to be signed electronically unless the State requests paper processing.

States that do not opt into the electronic signing process may continue to submit paper modifications and notices with handwritten signatures for paper processing. The instructions in this section do not apply when processing items submitted by a State that has not opted into the electronic signing process.

Although electronic modifications and notices are equivalent to paper counterparts, the difference in document format requires us to alter clearance procedures for electronic documents. We describe these alterations below (see SL 40001.421D). Aside from these minor format-related differences, we follow the same procedures for electronic and paper items.

B. Definitions

Electronic document: An electronic version of a paper document.

Electronic modification: A modification submitted as or converted to an electronic document.

Electronic notice: A notice submitted as or converted to an electronic document.

Electronic signature: A method of signing an electronic message that identifies and authenticates a particular person as the source of the electronic message and indicates such person’s approval of the information contained in the electronic message. An electronic signature may look like a handwritten signature or may appear in another acceptable format.

Electronic signature acknowledgement: A statement that accompanies the signature block of a document that is signed electronically:

The signatories may sign this document electronically by using an approved electronic signature process. By signing this document electronically, the signatories agree that the signature they provide has the same meaning, validity, and effect as a handwritten signature.

Opt-in Certification: A certification a State completes to opt-in to the electronic signing process for Section 218 modifications and notices (see SL 40001.490, Exhibit 32). The State certifies that the electronic signing process complies with applicable State law and that the State will not contest any electronic signatures used in its Section 218 agreement on the basis that they are electronic instead of handwritten.

Portable document format (PDF): A common format for electronic documents that preserves document layout.

C. SSA acceptance of electronic signatures

SSA requires that agreements, modifications, and certain notices under Section 218 of the Social Security Act (42 U.S.C. 418) be signed by the State and SSA. The Government Paperwork Elimination Act states that electronic signatures may not be denied legal effect, validity, or enforceability because they are in electronic form. The SSR 96-10p Ruling provided that customer use of electronic service delivery technologies will be considered the functional equivalent of information submitted using traditional paper-based methods, so long as the electronic service delivery technologies meet accepted industry standards and SSA’s privacy, security, fraud detection, and authentication standards. It also expanded the term “signature” to include electronic signatures.

Accordingly, SSA accepts electronic signatures on modifications and notices in States that submit the Opt-in Certification.

D. Electronic signing process

1. State opts into electronic signing process

Step

Action

1

An official designated by the State to administer the State’s Section 218 Agreement completes the Opt-In Certification and applies a handwritten signature. The State mails or delivers the signed Opt-In Certification to the Section 218 specialist.

NOTE: The Opt-In Certification requires the State to verify that the electronic signing process complies with applicable State law. The State may wish to consult a State legal officer before completing the Certification. SSA cannot advise whether the electronic signing process complies with State law.

2

The Section 218 specialist reviews the Opt-In Certification, verifies the signer’s authority, and adds the receipt date. After accepting the Opt-In Certification, the Section 218 specialist will:

  • Notify the State by email that we have received and accepted the State’s Opt-In Certification;

  • Scan and save a copy of the Opt-in Certification for Agency records; and

  • Notify policy to add the State to the list of States that opted into electronic signing process (see SL 40001.421E).

NOTE: If the Section 218 specialist is unable to verify an individual’s authority to sign the Opt-In Certification or has any concerns regarding that authority, the Section 218 specialist will work with the Program, Fiscal, and Disclosure Law (PFDL) in SSA's Central Office to verify the individual’s authority to sign the Opt-In Certification.

2. Written notice to discontinue electronic signatures

If a State opted into the electronic signing process but then wishes to opt out for any reason, it may provide written notice to discontinue the electronic signing process after a specific date. The State must give SSA at least 60 days notice before the discontinuation date. This means that the discontinuation date will be the date requested by the State or 60 days after the receipt of notice, whichever is later.

The written notice to discontinue electronic signatures must specify whether the electronic signing process continues to apply to modifications and notices still pending with SSA, or whether the State intends to resubmit the pending items in paper format.

After receiving the State’s notice to discontinue electronic signing process, the Section 218 specialist will:

  • Notify policy to annotate the “Remarks” section of the State’s entry in POMS SL 40001.421E to reflect the discontinuation date after which SSA will no longer apply the electronic signing process.

  • Send email confirmation to the State documenting receipt and acceptance of the notice and advising the State of the discontinuation date.

  • Attach a copy of the notice and any related communications with the State to the previously filed Opt-In Certification in SSA's file.

    After the discontinuation date, SSA will no longer execute electronic modifications and notices with the State. The State should submit all items by mail with handwritten signature, and SSA will use the paper process for all items it receives.

NOTE: Nothing precludes a State from later submitting a new Opt-In Certification after discontinuing the electronic signing process if it wishes to resume the option.

3. Requirement to notify SSA of change in State law

If the State’s laws no longer recognize the legal effect, validity, or enforceability of electronic signatures, or the electronic signing process no longer complies with applicable State law, the State must notify the Section 218 specialist of that fact as soon as possible, provide written notice to discontinue electronic signatures, resubmit all pending items by paper, and request paper-only processing of those items. This will ensure that all pending items receive handwritten signatures consistent with the State’s requirements during the 60-day period before discontinuation of electronic signatures.

The Section 218 specialist will forward a copy of the written notice to PFDL, which will evaluate any legal issues resulting from the State law change.

4. Modifications

If the State has opted into the electronic signing process, it may submit a modification in electronic or paper format. The Section 218 specialist will scan a paper modification to convert it to an electronic document that can be signed electronically unless the State requests handling as a paper modification. The following instructions only apply when a State has opted into the electronic signing process and has not requested paper processing. For States that have not opted into the electronic signing process or for modifications where the State is requesting paper processing, the State should follow the paper process (see SL 40001.420B).

States and SSA should follow the instructions in SL 4001.420 as modified by the instructions in the chart below when submitting/receiving electronic modifications:

NOTE: The Section 218 specialist will confirm that a State has opted into the electronic signing process before taking these steps (see SL 40001.421E).

SL 40001.420

Alterations for electronic modifications to the Agreement

A. Purpose of modifications

No changes

B. Preparing modifications

The State may submit an electronic modification in PDF with electronic signature by email, rather than submitting two or more paper copies with handwritten signatures. The modification must include the following acknowledgment:

Electronic Signature Acknowledgement: The signatories may sign this document electronically by using an approved electronic signature process. By signing this document electronically, the signatories agree that the signature they provide has the same meaning and legal validity and effect as a handwritten signature.

Alternatively, the State may submit one paper copy of the modification with handwritten signature, and the Section 218 specialist will scan the modification to convert it to an electronic modification.

NOTE: SSA cannot convert electronic modifications to paper and execute them with handwritten signatures. If the State requires one or more paper copies of the modification with handwritten signatures, it should submit paper copies and request handling as a paper modification.

C. Forwarding additional information with a modification No changes
D. Reviewing the modification packet

If the State submits an electronic modification, the date of submittal or mailing date (see SL 30001.375 and SL 40001.435) is the date of the email submission. We will use the email timestamp as proof of the date of submission. There is no envelope to photocopy. The Section 218 specialist will retain a PDF copy of the email, including its timestamp, as part of the modification packet.

For electronic modifications, any paper documents will be scanned for the modification packet.

E. Corrections before executing the modification

After the State provides appropriate authority for minor corrections (written authority or documented verbal request), the Section 218 specialist will annotate the corrections by inserting or crossing out text within the electronic modification.

If an electronic modification does not include the Electronic Signature Acknowledgment, the Section 218 specialist will contact the State by email to request authority to add this language through the minor correction process, and will retain the email and the State’s response (providing authority for the correction) in the modification packet.

If the State chooses to resubmit in paper format a modification originally submitted as an electronic document, the date of the original email submission establishes the submittal date.

F. Withdrawal of the modification

If the State withdraws an electronic modification, the Section 218 specialist will retain an electronic copy of the modification for our records and return any paper copies submitted by the State.

G. SSA disapproval of the modification

If SSA disapproves an electronic modification, the Section 218 specialist will retain an electronic copy of the modification for our records and return any paper copies submitted by the State.

H. Execution of the modification

SSA's delegated official will execute an electronic modification by applying an electronic signature.

The Section 218 specialist will:

  • Scan and save a copy of the modification packet for Agency records.

  • Email the state administrator a notice of approval letter with the executed modification (in PDF), and

  • e-fax the modification to IRS.

I. Effective date of coverage

No changes

J. Closing agreements for modifications requesting more than three tax years of retroactive coverage No changes

5. Notices of legal dissolution

If the State has opted into electronic signatures, it may submit a notice of dissolution in electronic or paper format. The Section 218 specialist will scan a paper notice of dissolution to convert it to an electronic document unless the State requests handling as a paper notice. The following instructions only apply when a State has opted into the electronic signing process and has not requested paper processing. For States that have not opted into the electronic signing process or for notices where the State is requesting paper processing, the State should follow the paper process (see SL 40001.485).

States and SSA should follow the instructions in SL 40001.485 as modified by the chart below for electronic notices of legally dissolved entities:

The Section 218 specialist will confirm that a State has opted into the electronic signing process before taking these steps (see SL 40001.421E).

SL 40001.485

Alterations for electronic notices of legally dissolved entities

A. Overview

The State may submit an electronic notice of dissolution in PDF with electronic signature by email, rather than submitting a paper copy with handwritten signature. The notice must include the following acknowledgment:

Electronic Signature Acknowledgement: The signatories may sign this document electronically by using an approved electronic signature process. By signing this document electronically, the signatories agree that the signature they provide has the same meaning and legal validity and effect as a handwritten signature.

If the State submits the notice of dissolution in paper format, SSA will scan the notice to convert it to an electronic document unless the State requests handling as a paper notice.

Upon approval, SSA's delegated official in the region will execute an electronic notice of dissolution by applying an electronic signature. The Section 218 specialist will:

  • Provide the template SSA will use to reply to the State by email (see SL 40001.490, Exhibit 32),

  • Scan and save a copy of the dissolution packet for Agency records, and

  • e-fax the notice of dissolution and SSA reply to IRS.

NOTE: SSA cannot convert electronic notices of dissolution to paper and execute them with handwritten signatures. If the State requires a paper copy of the notice of dissolution with a handwritten signature, it should submit a paper notice of dissolution and request handling as a paper notice.

B. Evidence of legal dissolution

No changes

C. Erroneous dissolution of a political entity

The State may submit a notice of erroneous dissolution in PDF with electronic signature by email, rather than submitting a paper copy with handwritten signature.

If the State submits a notice of erroneous dissolution in paper format, the Section 218 specialist will scan the notice to convert it to an electronic document unless the State requests handling as a paper notice.

Upon approval, SSA's delegated official will execute an electronic notice of erroneous dissolution by applying an electronic signature. The Section 218 specialist will provide the template SSA will use to reply (in PDF) to the State by email (see SL 40001.490 Exhibit 21 ).. The Section 218 specialist will scan and save a copy of the dissolution packet for Agency records and e‑fax the notice of erroneous dissolution and SSA reply to IRS.

6. Other notices

If the State has opted into the electronic signing process, it may submit notices of name change (see SL 40001.475A), notices of new government components (see SL 40001.477 and SL 40001.490 Exhibit 24), and other notices in electronic or paper format. The Section 218 specialist will scan a paper notice to convert it to an electronic document that can be signed electronically unless the State requests handling as a paper notice.

The Section 218 specialist will confirm that a State has opted into the electronic signing process before processing the notice (see SL 40001.421E).

E. List of States that opted into electronic signatures by submitting the Opt-in Certification to SSA

Name of State

Date that SSA received the State’s Opt-In Certification

Remarks


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/1940001421
SL 40001.421 - Electronic Signatures for Modifications and Notices - 03/17/2026
Batch run: 03/17/2026
Rev:03/17/2026