By Hochberg, Solomons, et al.                          H.B. No. 984

         75R9594 DWS-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to a digital signature.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subchapter A, Chapter 2, Business & Commerce

 1-5     Code, is amended by adding Section 2.108 to read as follows:

 1-6           Sec. 2.108.  DIGITAL SIGNATURE.  (a)  A written electronic

 1-7     communication sent from within or received in this state in

 1-8     connection with a transaction governed by this chapter is

 1-9     considered signed if a digital signature is transmitted with the

1-10     communication.

1-11           (b)  This section does not preclude any symbol from being

1-12     valid as a signature under other applicable law, including Section

1-13     1.201(39).

1-14           (c)  The use of a digital signature under this section is

1-15     subject to criminal laws pertaining to fraud and computer crimes,

1-16     including Chapters 32 and 33, Penal Code.

1-17           (d)  In this section "digital signature" means an electronic

1-18     identifier intended by the person using it to have the same force

1-19     and effect as the use of a manual signature.

1-20           SECTION 2.  Subchapter C, Chapter 2054, Government Code, is

1-21     amended by adding Section 2054.060 to read as follows:

1-22           Sec. 2054.060.  DIGITAL SIGNATURE.  (a)  A digital signature

1-23     may be used to authenticate a written electronic communication sent

 2-1     to a state agency if it complies with rules adopted by the

 2-2     department.  Before adopting the rules, the department shall

 2-3     consult with the comptroller, state auditor, attorney general,

 2-4     secretary of state, and office of court administration, and with

 2-5     representatives of county and municipal governments, regarding the

 2-6     content of the rules.  When adopting the rules, the department

 2-7     shall consider factors that may affect the reliability of a digital

 2-8     signature, including whether a digital signature is:

 2-9                 (1)  unique to the person using it;

2-10                 (2)  capable of independent verification;

2-11                 (3)  under the sole control of the person using it; and

2-12                 (4)  transmitted in a manner that will make it

2-13     infeasible to change the  data in the communication or digital

2-14     signature without invalidating the digital signature.

2-15           (b)  A digital signature may be used to authenticate a

2-16     written electronic communication sent to a local government if it

2-17     complies with rules adopted by the governing body of the local

2-18     government.  Before adopting the rules, the governing body of the

2-19     local government shall consider the rules adopted by the department

2-20     and, to the extent possible and practicable, shall make the

2-21     governing body's rules consistent with the department's rules.

2-22           (c)  This section does not preclude any symbol from being

2-23     valid as a signature under other applicable law, including Section

2-24     1.201(39), Business & Commerce Code.

2-25           (d)  The use of a digital signature under this section is

 3-1     subject to criminal laws pertaining to fraud and computer crimes,

 3-2     including Chapters 32 and 33, Penal Code.

 3-3           (e)  In this section:

 3-4                 (1)  "Digital signature" means an electronic identifier

 3-5     intended by the person using it to have the same force and effect

 3-6     as the use of a manual signature.

 3-7                 (2)  "Local government" has the meaning assigned by

 3-8     Section 791.003.

 3-9           SECTION 3.  This Act takes effect September 1, 1997.

3-10           SECTION 4.  The importance of this legislation and the

3-11     crowded condition of the calendars in both houses create an

3-12     emergency and an imperative public necessity that the

3-13     constitutional rule requiring bills to be read on three several

3-14     days in each house be suspended, and this rule is hereby suspended.