EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Title 8 of NRS is hereby amended by adding thereto a new

1-2 chapter to consist of the provisions set forth as sections 2 to 19, inclusive,

1-3 of this act.

1-4 Sec. 2. As used in this chapter, unless the context otherwise requires,

1-5 the words and terms defined in sections 3 to 14, inclusive, of this act have

1-6 the meanings ascribed to them in those sections.

1-7 Sec. 3. "Asymmetric cryptosystem" means an algorithm or series of

1-8 algorithms that provide a secure key pair.

1-9 Sec. 4. "Certificate" means a computer-based record that:

1-10 1. Identifies the certification authority using it;

1-11 2. Identifies a subscriber;

1-12 3. Sets forth the public key of the subscriber; and

1-13 4. Is digitally signed by the certification authority issuing it.

1-14 Sec. 5. "Certification authority" means a person who issues a

1-15 certificate.

2-1 Sec. 6. "Correspond" means, with reference to keys, belonging to

2-2 the same key pair.

2-3 Sec. 7. "Digital signature" means a transformation of a message

2-4 using an asymmetric cryptosystem.

2-5 Sec. 8. "Hold a private key" means to be authorized to use a private

2-6 key.

2-7 Sec. 9. "Key pair" means a private key and its corresponding public

2-8 key in an asymmetric cryptosystem, which may be used in such a manner

2-9 that the public key can verify a digital signature created by the private

2-10 key.

2-11 Sec. 10. "Message" means a digital representation of information.

2-12 Sec. 11. "Private key" means the key of a key pair used to create a

2-13 digital signature.

2-14 Sec. 12. "Public key" means the key of a key pair used to verify a

2-15 digital signature.

2-16 Sec. 13. "Subscriber" means a person who:

2-17 1. Is identified as such in a certificate;

2-18 2. Accepts the certificate; and

2-19 3. Holds the private key that corresponds to the public key set forth

2-20 in the certificate.

2-21 Sec. 14. "Verify a digital signature" means, in relation to a given

2-22 digital signature, message and public key, to determine accurately that:

2-23 1. The digital signature was created by the private key corresponding

2-24 to the public key; and

2-25 2. The message has not been altered since the digital signature was

2-26 created.

2-27 Sec. 15. If a statute or rule of law requires that a document or

2-28 record be signed or in writing, the use of a message which:

2-29 1. Represents the document or record; and

2-30 2. Is transformed by a verified digital signature,

2-31 shall be deemed to satisfy such statute or rule of law with respect to the

2-32 requirement that the document or record be signed or in writing.

2-33 Sec. 16. 1. A person shall not conduct business as a certification

2-34 authority without first obtaining a license as a certification authority

2-35 from the secretary of state.

2-36 2. The secretary of state may charge a reasonable fee for such

2-37 licensure.

2-38 Sec. 17. The secretary of state may:

2-39 1. Issue injunctions and orders to enforce the provisions of this

2-40 chapter and any regulations adopted by the secretary of state pursuant

2-41 thereto.

3-1 2. Impose a civil penalty not to exceed $10,000 for a willful violation

3-2 of a provision of this chapter or a regulation adopted by the secretary of

3-3 state pursuant thereto.

3-4 Sec. 18. 1. It is unlawful for a person to:

3-5 (a) Forge a digital signature; or

3-6 (b) Provide false information knowingly to the secretary of state with

3-7 respect to any provision of this chapter or a regulation adopted pursuant

3-8 thereto that requires such a person to provide information to the

3-9 secretary of state.

3-10 2. A person who violates the provisions of subsection 1 is guilty of a

3-11 gross misdemeanor.

3-12 3. As used in this section, "forge a digital signature" means to create

3-13 a digital signature that:

3-14 (a) Is not authorized by the person who holds the private key used to

3-15 create the digital signature; or

3-16 (b) Although verifiable by a public key, the certificate that contains

3-17 the public key identifies a subscriber who:

3-18 (1) Does not exist; or

3-19 (2) Does not hold the private key that corresponds to the public key

3-20 contained in the certificate.

3-21 Sec. 19. The secretary of state shall adopt regulations regarding

3-22 digital signatures, including, without limitation, regulations pertaining

3-23 to:

3-24 1. The use of a digital signature, including, without limitation,

3-25 standards for the commercial use of a digital signature;

3-26 2. Licensure of a certification authority, including, without

3-27 limitation, professional standards that a certification authority must meet

3-28 in conducting its business;

3-29 3. The verification of a digital signature;

3-30 4. The liability that may be incurred by a subscriber, certification

3-31 authority or recipient of a message transformed by a digital signature,

3-32 including, without limitation, the limitation of such liability;

3-33 5. The use of a digital signature as an acknowledgment, as that term

3-34 is defined in NRS 240.002;

3-35 6. The issuance of injunctions and orders and the imposition of civil

3-36 penalties pursuant to section 17 of this act;

3-37 7. The status of a private key as personal property;

3-38 8. The responsibilities of a subscriber with respect to the use and

3-39 handling of a private key;

3-40 9. The confidentiality of information represented in a message that is

3-41 transformed by a digital signature; and

3-42 10. Any other aspect of the use or verification of digital signatures

3-43 that the secretary of state determines to be necessary.

4-1 Sec. 20. NRS 239.042 is hereby amended to read as follows:

4-2 239.042 1. Except as otherwise provided by specific statute, a public

4-19 political subdivision thereof.

4-20 Sec. 21. NRS 239.041, 239.043 and 239.044 are hereby repealed.

4-21 Sec. 22. The amendatory provisions of this act do not apply to

4-22 offenses committed before the effective date of this act.

4-23 Sec. 23. This act becomes effective upon passage and approval.

4-24 TEXT OF REPEALED SECTIONS

4-25 239.041 "Public agency" defined. As used in NRS 239.041 to

4-26 239.044, inclusive, "public agency" means any agency, bureau, board,

4-27 commission, department or division of the State of Nevada or any political

4-28 subdivision thereof.

4-29 239.043 Electronic symbols as substitute or supplement to

4-30 signature: Regulations of secretary of state. The secretary of state shall

4-31 provide by regulation for the use of electronic symbols to substitute or

4-32 supplement the handwritten or facsimile signature of a person as provided

4-33 in NRS 239.042. Such regulations must include, without limitation:

4-34 1. The manner in which a public agency may accept an electronic

4-35 symbol as a substitute or supplement to a handwritten or facsimile

4-36 signature; and

4-37 2. The manner in which an electronic symbol must be verified.

5-1 239.044 Licensing of business to verify electronic symbols used as

5-2 substitute or supplement to signature: Fees; regulations.

5-3 1. The secretary of state may license a business to verify an electronic

5-4 symbol that is used as a substitute or supplement to a handwritten or

5-5 facsimile signature.

5-6 2. The secretary of state may charge a reasonable fee for such

5-7 licensure.

5-8 3. The secretary of state may adopt regulations to carry out the

5-9 provisions of this section.