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.

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