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. NRS is hereby amended by adding thereto a new Title,

1-2 designated Title 59 of NRS, and adding to that Title a new chapter to

1-3 consist of the provisions set forth as sections 2 to 21, inclusive, 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. The provisions of this chapter apply to any transaction for

2-28 which a digital signature may be used to satisfy a requirement that a

2-29 document or record be signed or in writing as set forth in section 16 of

2-30 this act, including, without limitation, transactions carried out by private

2-31 businesses and transactions carried out by governmental entities.

2-32 Sec. 16. 1. Except as otherwise provided in subsection 2, if each

2-33 person or governmental entity who will be involved in the submission and

2-34 acceptance of a record or other document agrees to the use of a digital

2-35 signature, where a statute or rule of law requires that the record or other

2-36 document be signed or in writing, the use of a message which:

2-37 (a) Represents the record or other document; and

2-38 (b) Is transformed by a digital signature,

2-39 shall be deemed to satisfy the statute or rule of law with respect to the

2-40 requirement that the record or other document be signed or in writing.

2-41 2. The provisions of this section do not apply with respect to:

2-42 (a) A sworn statement;

2-43 (b) An acknowledgment;

3-1 (c) A record or other document that is required to be signed in the

3-2 presence of a third party; or

3-3 (d) A record or other document with respect to which the requirement

3-4 that the record or other document must be signed or in writing is

3-5 accompanied by an additional qualifying requirement.

3-6 Sec. 17. 1. Except as otherwise provided by specific statute, a

3-7 public agency may provide that any document submitted to the public

3-8 agency may be submitted electronically if the document is transformed by

3-9 a digital signature.

3-10 2. As used in this section, "public agency" means an agency, bureau,

3-11 board, commission, department or division of the State of Nevada or a

3-12 political subdivision thereof.

3-13 Sec. 18. 1. A person shall not conduct business as a certification

3-14 authority without first obtaining a license as a certification authority

3-15 from the secretary of state.

3-16 2. The secretary of state may charge a reasonable fee for such

3-17 licensure.

3-18 Sec. 19. The secretary of state may:

3-19 1. Issue injunctions and orders to enforce the provisions of this

3-20 chapter and any regulations adopted by the secretary of state pursuant

3-21 thereto.

3-22 2. Impose a civil penalty not to exceed $10,000 for a willful violation

3-23 of a provision of this chapter or a regulation adopted by the secretary of

3-24 state pursuant thereto.

3-25 Sec. 20. 1. It is unlawful for a person to:

3-26 (a) Forge a digital signature; or

3-27 (b) Provide false information knowingly to the secretary of state with

3-28 respect to any provision of this chapter or a regulation adopted pursuant

3-29 thereto that requires such a person to provide information to the

3-30 secretary of state.

3-31 2. A person who violates the provisions of subsection 1 is guilty of a

3-32 gross misdemeanor.

3-33 3. As used in this section, "forge a digital signature" means to create

3-34 a digital signature that:

3-35 (a) Is not authorized by the person who holds the private key used to

3-36 create the digital signature; or

3-37 (b) Although verifiable by a public key, the certificate that contains

3-38 the public key identifies a subscriber who:

3-39 (1) Does not exist; or

3-40 (2) Does not hold the private key that corresponds to the public key

3-41 contained in the certificate.

4-1 Sec. 21. The secretary of state shall adopt regulations regarding

4-2 digital signatures, including, without limitation, regulations pertaining

4-3 to:

4-4 1. The use of a digital signature, including, without limitation,

4-5 standards for the commercial use of a digital signature;

4-6 2. Licensure of a certification authority, including, without

4-7 limitation, professional standards that a certification authority must meet

4-8 in conducting its business;

4-9 3. The verification of a digital signature;

4-10 4. The liability that may be incurred by a subscriber, certification

4-11 authority or recipient of a message transformed by a digital signature,

4-12 including, without limitation, the limitation of such liability;

4-13 5. The use of a digital signature as an acknowledgment, as that term

4-14 is defined in NRS 240.002;

4-15 6. The issuance of injunctions and orders and the imposition of civil

4-16 penalties pursuant to section 19 of this act;

4-17 7. The status of a private key as personal property;

4-18 8. The responsibilities of a subscriber with respect to the use and

4-19 handling of a private key;

4-20 9. The confidentiality of information represented in a message that is

4-21 transformed by a digital signature; and

4-22 10. Any other aspect of the use or verification of digital signatures

4-23 that the secretary of state determines to be necessary.

4-24 Sec. 22. NRS 239.041, 239.042, 239.043 and 239.044 are hereby

4-25 repealed.

4-26 Sec. 23. The amendatory provisions of this act do not apply to

4-27 offenses committed before the effective date of this act.

4-28 Sec. 24. This act becomes effective upon passage and approval.

4-29 TEXT OF REPEALED SECTIONS

4-30 239.041 "Public agency" defined. As used in NRS 239.041 to

4-31 239.044, inclusive, "public agency" means any agency, bureau, board,

4-32 commission, department or division of the State of Nevada or any political

4-33 subdivision thereof.

4-34 239.042 Electronic submission of records authorized; use of and

4-39 submitted electronically and may be signed with an electronic symbol; and

5-1 (b) If the recipient of a document so authorizes, use an electronic

5-2 symbol as the signature of a public officer or employee of the agency on

5-3 any document for which a signature is required.

5-4 2. An electronic symbol may be accepted pursuant to subsection 1 only

5-5 if it is:

5-6 (a) Unique to the person for whom it is used as a signature;

5-7 (b) Capable of verification; and

5-8 (c) Linked to data in such a manner that the signature is invalidated if

5-9 the data is altered.

5-10 239.043 Electronic symbols as substitute or supplement to

5-11 signature: Regulations of secretary of state. The secretary of state shall

5-12 provide by regulation for the use of electronic symbols to substitute or

5-13 supplement the handwritten or facsimile signature of a person as provided

5-14 in NRS 239.042. Such regulations must include, without limitation:

5-15 1. The manner in which a public agency may accept an electronic

5-16 symbol as a substitute or supplement to a handwritten or facsimile

5-17 signature; and

5-18 2. The manner in which an electronic symbol must be verified.

5-19 239.044 Licensing of business to verify electronic symbols used as

5-20 substitute or supplement to signature: Fees; regulations.

5-21 1. The secretary of state may license a business to verify an electronic

5-22 symbol that is used as a substitute or supplement to a handwritten or

5-23 facsimile signature.

5-24 2. The secretary of state may charge a reasonable fee for such

5-25 licensure.

5-26 3. The secretary of state may adopt regulations to carry out the

5-27 provisions of this section.