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.