1-1 By: Hochberg (Senate Sponsor - Sibley) H.B. No. 984 1-2 (In the Senate - Received from the House April 11, 1997; 1-3 April 14, 1997, read first time and referred to Committee on 1-4 Jurisprudence; May 12, 1997, reported favorably, as amended, by the 1-5 following vote: Yeas 6, Nays 0; May 12, 1997, sent to printer.) 1-6 COMMITTEE AMENDMENT NO. 1 By: Wentworth 1-7 Amend H.B. 984 as follows: 1-8 (1) In SECTION 2, Section 2054.060(e) (page 2, line 8), 1-9 between "791.003" and the period, insert ", but does not include an 1-10 agency in the judicial branch of local government" 1-11 (2) In SECTION 2, Section 2054.060(e) (page 2, after line 8) 1-12 add the following new subsection: 1-13 "(3) "State agency" does not include an agency in the 1-14 judicial branch of state government." 1-15 A BILL TO BE ENTITLED 1-16 AN ACT 1-17 relating to a digital signature. 1-18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-19 SECTION 1. Subchapter A, Chapter 2, Business & Commerce 1-20 Code, is amended by adding Section 2.108 to read as follows: 1-21 Sec. 2.108. DIGITAL SIGNATURE. (a) A written electronic 1-22 communication sent from within or received in this state in 1-23 connection with a transaction governed by this chapter is 1-24 considered signed if a digital signature is transmitted with the 1-25 communication. 1-26 (b) This section does not preclude any symbol from being 1-27 valid as a signature under other applicable law, including Section 1-28 1.201(39). 1-29 (c) The use of a digital signature under this section is 1-30 subject to criminal laws pertaining to fraud and computer crimes, 1-31 including Chapters 32 and 33, Penal Code. 1-32 (d) In this section "digital signature" means an electronic 1-33 identifier intended by the person using it to have the same force 1-34 and effect as the use of a manual signature. 1-35 SECTION 2. Subchapter C, Chapter 2054, Government Code, is 1-36 amended by adding Section 2054.060 to read as follows: 1-37 Sec. 2054.060. DIGITAL SIGNATURE. (a) A digital signature 1-38 may be used to authenticate a written electronic communication sent 1-39 to a state agency if it complies with rules adopted by the 1-40 department. Before adopting the rules, the department shall 1-41 consult with the comptroller, state auditor, attorney general, 1-42 secretary of state, and office of court administration, and with 1-43 representatives of county and municipal governments, regarding the 1-44 content of the rules. When adopting the rules, the department 1-45 shall consider factors that may affect the reliability of a digital 1-46 signature, including whether a digital signature is: 1-47 (1) unique to the person using it; 1-48 (2) capable of independent verification; 1-49 (3) under the sole control of the person using it; and 1-50 (4) transmitted in a manner that will make it 1-51 infeasible to change the data in the communication or digital 1-52 signature without invalidating the digital signature. 1-53 (b) A digital signature may be used to authenticate a 1-54 written electronic communication sent to a local government if it 1-55 complies with rules adopted by the governing body of the local 1-56 government. Before adopting the rules, the governing body of the 1-57 local government shall consider the rules adopted by the department 1-58 and, to the extent possible and practicable, shall make the 1-59 governing body's rules consistent with the department's rules. 1-60 (c) This section does not preclude any symbol from being 1-61 valid as a signature under other applicable law, including Section 1-62 1.201(39), Business & Commerce Code. 1-63 (d) The use of a digital signature under this section is 1-64 subject to criminal laws pertaining to fraud and computer crimes, 2-1 including Chapters 32 and 33, Penal Code. 2-2 (e) In this section: 2-3 (1) "Digital signature" means an electronic identifier 2-4 intended by the person using it to have the same force and effect 2-5 as the use of a manual signature. 2-6 (2) "Local government" has the meaning assigned by 2-7 Section 791.003. 2-8 SECTION 3. This Act takes effect September 1, 1997. 2-9 SECTION 4. The importance of this legislation and the 2-10 crowded condition of the calendars in both houses create an 2-11 emergency and an imperative public necessity that the 2-12 constitutional rule requiring bills to be read on three several 2-13 days in each house be suspended, and this rule is hereby suspended. 2-14 * * * * *