CHAPTER........
AN ACT relating to commercial transactions; providing for the establishment of provisions
regarding the use of digital signatures; authorizing the secretary of state to adopt
regulations regarding digital signatures; providing a penalty; and providing other
matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS is hereby amended by adding thereto a new Title,
designated Title 59 of NRS, and adding to that Title a new chapter to
consist of the provisions set forth as sections 2 to 21, inclusive, of this act.
Sec. 2.
As used in this chapter, unless the context otherwise requires,the words and terms defined in sections 3 to 14, inclusive, of this act have
the meanings ascribed to them in those sections.
Sec. 3.
"Asymmetric cryptosystem" means an algorithm or series ofalgorithms that provide a secure key pair.
Sec. 4.
"Certificate" means a computer-based record that:1. Identifies the certification authority using it;
2. Identifies a subscriber;
3. Sets forth the public key of the subscriber; and
4. Is digitally signed by the certification authority issuing it.
Sec. 5.
"Certification authority" means a person who issues acertificate.
Sec. 6.
"Correspond" means, with reference to keys, belonging tothe same key pair.
Sec. 7.
"Digital signature" means a transformation of a messageusing an asymmetric cryptosystem.
Sec. 8.
"Hold a private key" means to be authorized to use a privatekey.
Sec. 9.
"Key pair" means a private key and its corresponding publickey in an asymmetric cryptosystem, which may be used in such a manner
that the public key can verify a digital signature created by the private
key.
Sec. 10.
"Message" means a digital representation of information.Sec. 11.
"Private key" means the key of a key pair used to create adigital signature.
Sec. 12.
"Public key" means the key of a key pair used to verify adigital signature.
Sec. 13.
"Subscriber" means a person who:1. Is identified as such in a certificate;
2. Accepts the certificate; and
3. Holds the private key that corresponds to the public key set forth
Sec. 14.
"Verify a digital signature" means, in relation to a givendigital signature, message and public key, to determine accurately that:
1. The digital signature was created by the private key corresponding
to the public key; and
2. The message has not been altered since the digital signature was
created.
Sec. 15.
The provisions of this chapter apply to any transaction forwhich a digital signature may be used to satisfy a requirement that a
document or record be signed or in writing as set forth in section 16 of
this act, including, without limitation, transactions carried out by private
businesses and transactions carried out by governmental entities.
Sec. 16.
1. Except as otherwise provided in subsection 2, if eachperson or governmental entity who will be involved in the submission and
acceptance of a record or other document agrees to the use of a digital
signature, where a statute or rule of law requires that the record or other
document be signed or in writing, the use of a message which:
(a) Represents the record or other document; and
(b) Is transformed by a digital signature,
shall be deemed to satisfy the statute or rule of law with respect to the
requirement that the record or other document be signed or in writing.
2. The provisions of this section do not apply with respect to:
(a) A sworn statement;
(b) An acknowledgment;
(c) A record or other document that is required to be signed in the
presence of a third party; or
(d) A record or other document with respect to which the requirement
that the record or other document must be signed or in writing is
accompanied by an additional qualifying requirement.
Sec. 17.
1. Except as otherwise provided by specific statute, apublic agency may provide that any document submitted to the public
agency may be submitted electronically if the document is transformed by
a digital signature.
2. As used in this section, "public agency" means an agency, bureau,
board, commission, department or division of the State of Nevada or a
political subdivision thereof.
Sec. 18.
1. A person shall not conduct business as a certificationauthority without first obtaining a license as a certification authority
from the secretary of state.
2. The secretary of state may charge a reasonable fee for such
licensure.
Sec. 19.
The secretary of state may:1. Issue injunctions and orders to enforce the provisions of this
chapter and any regulations adopted by the secretary of state pursuant
2. Impose a civil penalty not to exceed $10,000 for a willful violation
of a provision of this chapter or a regulation adopted by the secretary of
state pursuant thereto.
Sec. 20.
1. It is unlawful for a person to:(a) Forge a digital signature; or
(b) Provide false information knowingly to the secretary of state with
respect to any provision of this chapter or a regulation adopted pursuant
thereto that requires such a person to provide information to the
secretary of state.
2. A person who violates the provisions of subsection 1 is guilty of a
gross misdemeanor.
3. As used in this section, "forge a digital signature" means to create
a digital signature that:
(a) Is not authorized by the person who holds the private key used to
create the digital signature; or
(b) Although verifiable by a public key, the certificate that contains
the public key identifies a subscriber who:
(1) Does not exist; or
(2) Does not hold the private key that corresponds to the public key
contained in the certificate.
Sec. 21.
The secretary of state shall adopt regulations regardingdigital signatures, including, without limitation, regulations pertaining
to:
1. The use of a digital signature, including, without limitation,
standards for the commercial use of a digital signature;
2. Licensure of a certification authority, including, without
limitation, professional standards that a certification authority must meet
in conducting its business;
3. The verification of a digital signature;
4. The liability that may be incurred by a subscriber, certification
authority or recipient of a message transformed by a digital signature,
including, without limitation, the limitation of such liability;
5. The use of a digital signature as an acknowledgment, as that term
is defined in NRS 240.002;
6. The issuance of injunctions and orders and the imposition of civil
penalties pursuant to section 19 of this act;
7. The status of a private key as personal property;
8. The responsibilities of a subscriber with respect to the use and
handling of a private key;
9. The confidentiality of information represented in a message that is
transformed by a digital signature; and
10. Any other aspect of the use or verification of digital signatures
that the secretary of state determines to be necessary.
Sec. 22.
NRS 239.041, 239.042, 239.043 and 239.044 are herebySec. 23. The amendatory provisions of this act do not apply to
offenses committed before the effective date of this act.
Sec. 24. This act becomes effective upon passage and approval.
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