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PAG LIN
1 1 DIVISION I
1 2 SUBCHAPTER 1
1 3 GENERAL
1 4 Section 101. NEW SECTION. 554C.101 SHORT TITLE.
1 5 This chapter shall be known and may be cited as the "Iowa
1 6 Electronic Commerce Security Act".
1 7 Sec. 102. NEW SECTION. 554C.102 PURPOSES AND
1 8 CONSTRUCTION.
1 9 This chapter shall be construed consistently with what is
1 10 commercially reasonable under the circumstances and to
1 11 effectuate all of the following purposes:
1 12 1. Facilitate electronic communications by means of
1 13 reliable electronic records.
1 14 2. Facilitate and promote electronic commerce, by
1 15 eliminating barriers resulting from uncertainties over writing
1 16 and signature requirements, and promoting the development of
1 17 the legal and business infrastructure necessary to implement
1 18 secure electronic commerce.
1 19 3. Facilitate electronic filing of documents with state
1 20 and local government agencies and promote efficient delivery
1 21 of government services by means of reliable electronic
1 22 records.
1 23 4. Minimize the incidence of forged electronic records,
1 24 intentional and unintentional alteration of records, and fraud
1 25 in electronic commerce.
1 26 5. Establish uniformity of rules, regulations, and
1 27 standards regarding the authentication and integrity of
1 28 electronic records.
1 29 6. Promote public confidence in the integrity,
1 30 reliability, and legality of electronic records and electronic
1 31 commerce.
1 32 Sec. 103. NEW SECTION. 554C.103 VARIATION BY AGREEMENT
1 33 – USE OF ELECTRONIC MEANS OPTIONAL.
1 34 1. As between parties involved in generating, sending,
1 35 receiving, storing, or otherwise processing electronic
2 1 records, the provisions of this chapter may be varied by
2 2 agreement of the parties. However, an agreement shall not
2 3 vary requirements provided in section 554C.203, subsection 2;
2 4 section 554C.204, subsection 4; section 554C.305, subsection
2 5 2; sections 554C.422, 554C.423, 554C.424, and 554C.442; and
2 6 section 554C.444, subsection 2.
2 7 2. This chapter shall not be construed to require a person
2 8 to create, store, transmit, accept, or otherwise use or
2 9 communicate information, records, or signatures by electronic
2 10 means or in electronic form.
2 11 SUBCHAPTER 2
2 12 ELECTRONIC RECORDS AND SIGNATURES GENERALLY
2 13 Sec. 104. NEW SECTION. 554C.201 DEFINITIONS.
2 14 As used in this chapter, unless the context otherwise
2 15 requires:
2 16 1. "Commissioner" means the commissioner of insurance
2 17 appointed pursuant to section 505.2.
2 18 2. "Consumer transaction" means a transaction by an
2 19 individual for personal, household, or family use.
2 20 3. "Electronic" includes electrical, digital, magnetic,
2 21 optical, electromagnetic, or any other form of technology that
2 22 entails capabilities similar to these technologies.
2 23 4. "Electronic record" means a record generated,
2 24 communicated, received, or stored by electronic means for use
2 25 in an information system or for transmission from one
2 26 information system to another.
2 27 5. "Electronic signature" means a signature in electronic
2 28 form attached to or logically associated with an electronic
2 29 record.
2 30 6. "Government agency" means any executive, legislative,
2 31 or judicial agency, department, board, commission, authority,
2 32 institution, or instrumentality of this state or of any
2 33 county, city, or other political subdivision of this state.
2 34 7. "Information" includes but is not limited to data,
2 35 text, images, sound, codes, computer programs, software, and
3 1 databases.
3 2 8. "Party" means a person involved in an electronic
3 3 transaction governed by the provisions of this chapter.
3 4 9. "Record" means information that is inscribed, stored,
3 5 or otherwise fixed on a tangible medium or that is stored in
3 6 an electronic or other medium and is retrievable in
3 7 perceivable form.
3 8 10. "Rule of law" means any statute, rule of or order by a
3 9 government agency, regulation, ordinance, common law rule, or
3 10 court decision enacted, adopted, established, or rendered by
3 11 the general assembly, government agency, court, political
3 12 subdivision of, or other authority of, this state.
3 13 11. "Security procedure" means a methodology or procedure
3 14 for the purpose of doing any of the following:
3 15 a. Verifying that an electronic record is the record of a
3 16 specific person.
3 17 b. Detecting an error or alteration in the communication,
3 18 content, or storage of an electronic record since a specific
3 19 point in time. A security procedure may require the use of
3 20 algorithms or codes, identifying words or numbers, encryption,
3 21 answer back, acknowledgment procedures, or similar security
3 22 devices.
3 23 12. "Signed" or "signature" includes any symbol executed
3 24 or adopted, or any security procedure employed or adopted,
3 25 including by use of electronic means, by or on behalf of a
3 26 person with a present intention to authenticate a record.
3 27 Definitions used in any part of this chapter shall apply in
3 28 all other parts of this chapter.
3 29 Sec. 105. NEW SECTION. 554C.202 LEGAL RECOGNITION.
3 30 Information shall not be denied legal effect, validity, or
3 31 enforceability solely on the grounds that it is in the form of
3 32 an electronic record or an electronic signature.
3 33 Sec. 106. NEW SECTION. 554C.203 ELECTRONIC RECORDS.
3 34 1. Where a rule of law requires information to be written
3 35 or in writing or provides for certain consequences if it is
4 1 not, an electronic record satisfies that rule of law
4 2 requirement.
4 3 2. The provisions of this section shall not apply to any
4 4 of the following:
4 5 a. When its application involves a construction of a rule
4 6 of law that is clearly inconsistent with the manifest intent
4 7 of the body imposing the requirement or repugnant to the
4 8 context of the same rule of law. However, the mere
4 9 requirement that information be in writing, written, or
4 10 printed shall not by itself be sufficient to establish an
4 11 intent which is inconsistent with the requirement of this
4 12 section.
4 13 b. To any rule of law governing the creation or execution
4 14 of a will or trust, living will, a general, durable, or
4 15 healthcare power of attorney, or a voluntary, involuntary, or
4 16 standby guardianship or conservatorship.
4 17 c. To any record that serves as a unique and transferable
4 18 physical expression of rights and obligations including,
4 19 without limitation, negotiable instruments and other
4 20 instruments of title wherein possession of the instrument is
4 21 deemed to confer title in a consumer transaction.
4 22 d. To any record that grants a legal or equitable interest
4 23 in real property, including a deed, mortgage, deed of trust,
4 24 pledge, security interest, or other lien or encumbrance in a
4 25 consumer transaction.
4 26 Sec. 107. NEW SECTION. 554C.204 ELECTRONIC SIGNATURES.
4 27 1. Where a rule of law requires a signature, or provides
4 28 for certain consequences if a document is not signed, an
4 29 electronic signature satisfies that requirement.
4 30 2. An electronic signature may be proved in any manner,
4 31 including by showing that a procedure exists by which a person
4 32 must of necessity have executed a symbol or security procedure
4 33 for the purpose of verifying that an electronic record is the
4 34 record of that person in order to proceed further with a
4 35 transaction.
5 1 3. Absent an agreement to the contrary, the recipient of a
5 2 signed electronic record is entitled to establish reasonable
5 3 requirements to ensure that the symbol or security procedure
5 4 adopted as an electronic signature by the person signing is
5 5 authentic.
5 6 4. The provisions of this section shall not apply to any
5 7 of the following:
5 8 a. When its application would involve a construction of a
5 9 rule of law that is clearly inconsistent with the manifest
5 10 intent of the body imposing the requirement or repugnant to
5 11 the context of the same rule of law. However, the mere
5 12 requirement that information be in writing, written, or
5 13 printed shall not by itself be sufficient to establish an
5 14 intent which is inconsistent with the requirement of this
5 15 section.
5 16 b. To any rule of law governing the creation or execution
5 17 of a will or trust, living will, a general, durable, or
5 18 healthcare power of attorney, or a voluntary, involuntary, or
5 19 standby guardianship or conservatorship.
5 20 c. To any record that serves as a unique and transferable
5 21 physical expression of rights and obligations including, but
5 22 is not limited, to negotiable instruments and other
5 23 instruments of title wherein possession of the instrument is
5 24 deemed to confer title in a consumer transaction.
5 25 d. To any record that grants a legal or equitable interest
5 26 in real property, including a deed, mortgage, deed of trust,
5 27 pledge, security interest, or other lien or encumbrance in a
5 28 consumer transaction.
5 29 Sec. 108. NEW SECTION. 554C.205 REQUIREMENT FOR ORIGINAL
5 30 INFORMATION.
5 31 1. Where a rule of law requires information to be
5 32 presented or retained in its original form, or provides
5 33 consequences for information not being presented or retained
5 34 in its original form, that rule of law is satisfied by an
5 35 electronic record if there exists reliable assurance as to the
6 1 integrity of the information from the time when it was first
6 2 generated in its final form, as an electronic record or
6 3 otherwise.
6 4 2. The criteria for assessing the integrity of information
6 5 shall be whether the information has remained complete and
6 6 unaltered, apart from the addition of any endorsement and any
6 7 change that arises in the normal course of communication,
6 8 storage, and display. The standard of reliability required
6 9 shall be assessed in the light of all relevant circumstances,
6 10 including but not limited to the purpose for which the
6 11 information was generated.
6 12 3. The provisions of this section do not apply to any
6 13 record that serves as a unique and transferable physical
6 14 expression of rights and obligations including, but not
6 15 limited to, negotiable instruments and other instruments of
6 16 title wherein possession of the instrument is deemed to confer
6 17 title.
6 18 Sec. 109. NEW SECTION. 554C.206 ADMISSIBILITY INTO
6 19 EVIDENCE.
6 20 1. In any legal proceeding, nothing in the application of
6 21 the rules of evidence shall apply so as to deny the
6 22 admissibility of an electronic record or electronic signature
6 23 into evidence based on any of the following:
6 24 a. On the sole ground that it is an electronic record or
6 25 electronic signature.
6 26 b. On the grounds that it is not in its original form or
6 27 is not an original.
6 28 2. Information in the form of an electronic record shall
6 29 be given due evidential weight by the trier of fact. In
6 30 assessing the evidential weight of an electronic record or
6 31 electronic signature where its authenticity is in issue, the
6 32 trier of fact may consider all relevant information or
6 33 circumstances, including but not limited to the manner in
6 34 which it was generated, stored, or communicated, the
6 35 reliability of the manner in which its integrity was
7 1 maintained, the manner in which its originator was identified,
7 2 and the manner in which the electronic record was signed.
7 3 Sec. 110. NEW SECTION. 554C.207 RETENTION OF ELECTRONIC
7 4 RECORDS.
7 5 1. a. Where a rule of law requires that certain
7 6 documents, records, or information be retained, that
7 7 requirement is met by retaining electronic records of the
7 8 information, provided that all of the following conditions are
7 9 satisfied:
7 10 (1) The electronic record and the information contained in
7 11 the electronic record must be accessible so as to be usable
7 12 for subsequent reference at all times when such information
7 13 must be retained.
7 14 (2) The information must be retained in the format in
7 15 which it was originally generated, sent, or received; or in a
7 16 format that can be demonstrated to represent accurately the
7 17 information originally generated, sent, or received.
7 18 (3) Data is retained which enables the identification of
7 19 the origin and destination of the information, the
7 20 authenticity and integrity of the information, and the date
7 21 and time when it was generated, sent, or received.
7 22 b. An obligation to retain documents, records, or
7 23 information in accordance with this subsection does not extend
7 24 to any data the sole purpose of which is to enable the record
7 25 to be sent or received.
7 26 2. Nothing in this section shall preclude any federal or
7 27 government agency from specifying additional requirements for
7 28 the retention of records that are subject to the jurisdiction
7 29 of such agency.
7 30 SUBCHAPTER 3
7 31 SECURE ELECTRONIC RECORDS AND SIGNATURES
7 32 Sec. 111. NEW SECTION. 554C.301 SECURE ELECTRONIC
7 33 RECORD.
7 34 1. Subject to the provisions of section 554C.303, if, by
7 35 the application of a qualified security procedure, it can be
8 1 verified that an electronic record has not been altered since
8 2 a specified point in time, such electronic record shall be
8 3 considered to be a secure electronic record from such
8 4 specified point in time to the time of verification.
8 5 2. For purposes of this subchapter, a qualified security
8 6 procedure is a security procedure to detect changes in content
8 7 that is any of the following:
8 8 a. Authorized by, and implemented in accordance with the
8 9 requirements of, this chapter.
8 10 b. Previously agreed to by the parties, and implemented in
8 11 accordance with the terms of such agreement.
8 12 c. Certified by the commissioner as providing reliable
8 13 evidence that an electronic record has not been altered, and
8 14 implemented in a manner specified by the certification.
8 15 Sec. 112. NEW SECTION. 554C.302 SECURE ELECTRONIC
8 16 SIGNATURE.
8 17 1. Subject to the provisions of section 554C.303, if, by
8 18 the application of a qualified security procedure, it can be
8 19 authenticated that an electronic signature is the signature of
8 20 a specific person, the electronic signature shall be
8 21 considered to be a secure electronic signature at the time of
8 22 verification.
8 23 2. A qualified security procedure for purposes of this
8 24 section is a security procedure for identifying a party that
8 25 is any of the following:
8 26 a. Authorized by, and implemented in accordance with the
8 27 requirements of, this chapter.
8 28 b. Previously agreed to by the parties to an agreement,
8 29 and implemented in accordance with the terms of the agreement.
8 30 c. Certified by the commissioner as being capable of
8 31 creating an electronic signature that meets all of the
8 32 following conditions:
8 33 (1) Is unique to the signer within the context in which it
8 34 is used.
8 35 (2) Can be used to promptly, objectively, and
9 1 automatically identify the person signing the electronic
9 2 record.
9 3 (3) Was reliably created by such identified person.
9 4 (4) Is linked to the electronic record to which it relates
9 5 in a manner which ensures that if the record or signature is
9 6 changed the electronic signature is invalidated, provided that
9 7 the security procedure is implemented in a manner required by
9 8 the certification.
9 9 Sec. 113. NEW SECTION. 554C.303 COMMERCIALLY REASONABLE
9 10 – RELIANCE.
9 11 1. An electronic record or electronic signature that
9 12 qualifies for secure status pursuant to section 554C.301,
9 13 554C.302, 554C.412, or 554C.413 shall not be considered secure
9 14 unless the proponent establishes all of the following:
9 15 a. Use of the applicable security procedure was
9 16 commercially reasonable.
9 17 b. The security procedure was implemented in a trustworthy
9 18 manner or, where applicable, in a manner specified by this
9 19 chapter or the commissioner, to the extent such information is
9 20 within the knowledge of the proponent.
9 21 c. Reliance on the security procedure was reasonable and
9 22 in good faith in light of all the circumstances known to the
9 23 proponent at the time of the reliance, having due regard for
9 24 all of the following:
9 25 (1) Information that the proponent knew or had notice of
9 26 at the time of reliance, including all facts, statements, and
9 27 limitations contained in any statement by any third party
9 28 involved in the authentication process.
9 29 (2) The value or importance of the electronic record
9 30 signed with the secure electronic signature, if known.
9 31 (3) Any course of dealing between the proponent and the
9 32 purported sender and the available indicia of reliability or
9 33 unreliability apart from the secure electronic signature.
9 34 (4) Any usage of trade, particularly trade conducted by
9 35 trustworthy systems or other computer-based means.
10 1 (5) Whether the authentication was performed with the
10 2 assistance of an independent third party.
10 3 (6) Any other evidence relating to facts of which the
10 4 proponent was aware that would suggest that reliance was or
10 5 was not reasonable.
10 6 2. The commercial reasonableness of a security procedure
10 7 is to be determined by the trier of fact in light of the
10 8 purposes of the procedure and the commercial circumstances at
10 9 the time the procedure was used, including but not limited to
10 10 the nature of the transaction, sophistication of the parties,
10 11 volume of similar transactions engaged in by either or both of
10 12 the parties, availability of alternatives offered to but
10 13 rejected by either of the parties, cost of alternative
10 14 procedures, and procedures in general use for similar types of
10 15 transactions.
10 16 Sec. 114. NEW SECTION. 554C.304 PRESUMPTIONS.
10 17 1. In resolving a civil dispute involving a secure
10 18 electronic record, it shall be rebuttably presumed that the
10 19 electronic record has not been altered since the specific
10 20 point in time to which the secure status relates.
10 21 2. In resolving a civil dispute involving a secure
10 22 electronic signature, all of the following shall be rebuttably
10 23 presumed:
10 24 a. The secure electronic signature is the signature of the
10 25 person to whom it correlates.
10 26 b. The secure electronic signature was affixed by that
10 27 person with the intention of signing the electronic record.
10 28 3. The effect of the presumptions provided in this section
10 29 is to place on the party challenging the integrity of a secure
10 30 electronic record or challenging the genuineness of a secure
10 31 electronic signature both the burden of going forward with
10 32 evidence to rebut the presumption and the burden of persuading
10 33 the trier of fact that the falsity of the presumed fact is
10 34 more probable than the truth of its existence.
10 35 4. In the absence of a secure electronic record or a
11 1 secure electronic signature, nothing in this chapter shall
11 2 change existing rules regarding legal or evidentiary rules
11 3 regarding the burden of proving the authenticity and integrity
11 4 of an electronic record or an electronic signature.
11 5 Sec. 115. NEW SECTION. 554C.305 ATTRIBUTION OF SIGNATURE
11 6 TO A PARTY.
11 7 1. Except as provided by another applicable rule of law,
11 8 and subject to the provisions of section 554C.304, a secure
11 9 electronic signature is attributable to the person to whom it
11 10 correlates, whether or not authorized, if all of the following
11 11 apply to the electronic signature:
11 12 a. The signature resulted from acts of a person who
11 13 obtained the access numbers, codes, computer programs, or
11 14 other information necessary to create the signature from a
11 15 source under the control of the alleged signer, creating the
11 16 appearance that it came from the person to whom it correlates.
11 17 b. The access occurred under circumstances constituting a
11 18 failure to exercise reasonable care by the person to whom it
11 19 correlates.
11 20 c. The recipient reasonably relied to the recipient's
11 21 detriment on the apparent source of the electronic record,
11 22 taking into account the factors provided in section 554C.303.
11 23 2. The provisions of this section shall not apply to
11 24 consumer transactions, including but not limited to credit
11 25 card and automatic teller machines, except to the extent
11 26 allowed by applicable consumer law.
11 27 Sec. 116. NEW SECTION. 554C.306 CERTIFICATION BY THE
11 28 COMMISSIONER.
11 29 1. A security procedure may be certified by the
11 30 commissioner as meeting the requirements of section 554C.301
11 31 or 554C.302, following an appropriate investigation or review,
11 32 if all of the following apply:
11 33 a. The technology utilized by the security procedure is
11 34 completely open and fully disclosed to the public in order to
11 35 facilitate a comprehensive evaluation of its suitability for
12 1 its intended purpose.
12 2 b. The certification is in accordance with the rules
12 3 adopted by the commissioner pursuant to chapter 17A.
12 4 c. The certification specifies at least all of the
12 5 following:
12 6 (1) A full and complete identification of the security
12 7 procedure.
12 8 (2) A specification of one or more acceptable trustworthy
12 9 methods by which the security procedure may be implemented
12 10 consistent with the certification.
12 11 (3) A term for the certification which shall not exceed
12 12 five years.
12 13 2. At the end of the term for each certified security
12 14 procedure, or earlier as determined by the commissioner, the
12 15 security procedure may be reevaluated in light of then-current
12 16 technology and recertified or decertified as appropriate.
12 17 SUBCHAPTER 4
12 18 DIGITAL SIGNATURES
12 19 PART 1
12 20 DEFINITIONS
12 21 Sec. 117. NEW SECTION. 554C.401 DEFINITIONS.
12 22 As used in this subchapter, unless the context otherwise
12 23 requires:
12 24 1. "Asymmetric cryptosystem" means a computer-based system
12 25 capable of generating and using a key pair, consisting of a
12 26 private key for creating a digital signature, and a public key
12 27 to verify the digital signature.
12 28 2. "Certificate" means a record that at a minimum provides
12 29 all of the following:
12 30 a. Identifies the certification authority issuing the
12 31 certificate.
12 32 b. Names or otherwise identifies its subscriber.
12 33 c. Contains a public key that corresponds to a private key
12 34 under the control of the subscriber.
12 35 d. Identifies its operational period.
13 1 e. Is digitally signed by the certification authority
13 2 issuing the certification.
13 3 3. "Certification authority" means a person who authorizes
13 4 and causes the issuance of a certificate.
13 5 4. "Certification practice statement" means a statement
13 6 published by a certification authority or person operating a
13 7 repository that specifies the policies or practices that the
13 8 certification authority employs in issuing, suspending, and
13 9 revoking certificates, and providing access to a certificate.
13 10 5. "Correspond" means to belong to the same key pair.
13 11 6. "Digital signature" means a type of an electronic
13 12 signature consisting of a transformation of an electronic
13 13 record using a message digest function that is encrypted with
13 14 an asymmetric cryptosystem using the signer's private key in a
13 15 manner providing that any person having the initial
13 16 untransformed electronic record, the encrypted transformation,
13 17 and the signer's public key may accurately determine all of
13 18 the following:
13 19 a. Whether the transformation was created using the
13 20 private key that corresponds to the signer's public key.
13 21 b. Whether the initial electronic record has been altered
13 22 since the transformation was made. A digital signature is a
13 23 security procedure.
13 24 7. "Key pair" means, in an asymmetric cryptosystem, two
13 25 mathematically related keys, having the properties that
13 26 provide all of the following:
13 27 a. One key can encrypt a message which only the other key
13 28 can decrypt.
13 29 b. Even knowing one key, it is computationally infeasible
13 30 to discover the other key.
13 31 8. "Message digest function" means an algorithm that maps
13 32 or translates the sequence of bits comprising an electronic
13 33 record into another, generally smaller, set of bits, referred
13 34 to as the message digest, without requiring the use of any
13 35 secret information such as a key, in a manner which provides
14 1 all of the following:
14 2 a. A record yields the same message digest every time the
14 3 algorithm is executed using such record as input.
14 4 b. It is computationally infeasible that any two
14 5 electronic records can be found or deliberately generated that
14 6 would produce the same message digest using the algorithm
14 7 unless the two records are identical.
14 8 9. "Operational period of a certificate" means a period
14 9 beginning and ending as follows:
14 10 a. The period begins on the date and at the time the
14 11 certificate is issued by a certification authority or on a
14 12 later date and at a time certain if stated in the certificate.
14 13 b. The period ends on the date and at the time the
14 14 certificate expires as noted in the certificate or on an
14 15 earlier date if the certificate is revoked or suspended in
14 16 accordance with this chapter.
14 17 10. "Private key" means the key of a key pair used to
14 18 create a digital signature.
14 19 11. "Public key" means the key of a key pair used to
14 20 verify a digital signature.
14 21 12. "Repository" means a system for storing and retrieving
14 22 certificates or other information relevant to certificates.
14 23 13. "Revoke a certificate" means to permanently end the
14 24 operational period of a certificate from a specified time
14 25 forward.
14 26 14. "Subscriber" means a person to whom all of the
14 27 following applies:
14 28 a. The person is the subject named or otherwise identified
14 29 in a certificate issued to the person.
14 30 b. The person controls a private key that corresponds to
14 31 the public key listed in that certificate.
14 32 c. The digitally signed messages verified by reference to
14 33 the certificate are to be attributed to the person.
14 34 15. "Suspend a certificate" means to temporarily suspend
14 35 the operational period of a certificate for a specified time
15 1 period or from a specified time forward.
15 2 16. "Trustworthy system" means a system of computer
15 3 hardware, software, and procedures that satisfies all of the
15 4 following:
15 5 a. Is reasonably secure from intrusion and misuse.
15 6 b. Provides a reasonable level of availability,
15 7 reliability, and correct operation.
15 8 c. Is reasonably suited to performing the system's
15 9 intended functions.
15 10 d. Adheres to generally accepted security procedures.
15 11 e. Meets or exceeds the requirements of rules adopted by
15 12 the commissioner.
15 13 17. "Valid certificate" means a certificate that meets the
15 14 following conditions:
15 15 a. The certificate has been issued by a certification
15 16 authority.
15 17 b. The subscriber listed in the certificate has accepted
15 18 the certificate in accordance with this chapter.
15 19 18. "Verify a digital signature" means to use the public
15 20 key listed in a certificate, together with an appropriate
15 21 message digest function and public key algorithm, to evaluate
15 22 a digitally signed electronic record in order to determine all
15 23 of the following:
15 24 a. That the digital signature was created using the
15 25 private key corresponding to the public key listed in the
15 26 certificate.
15 27 b. The electronic record has not been altered since its
15 28 digital signature was created.
15 29 PART 2
15 30 EFFECT OF A DIGITAL SIGNATURE
15 31 Sec. 118. NEW SECTION. 554C.411 SECURE ELECTRONIC
15 32 RECORD.
15 33 Subject to the provisions of section 554C.303, an
15 34 electronic record or any portion thereof that is signed with a
15 35 digital signature shall be considered to be a secure
16 1 electronic record if the digital signature was created during
16 2 the operational period of a valid certificate and is verified
16 3 by reference to the public key listed in such certificate.
16 4 Sec. 119. NEW SECTION. 554C.412 SECURE ELECTRONIC
16 5 SIGNATURE.
16 6 Subject to the provisions of section 554C.303, when all or
16 7 any portion of an electronic record is signed with a digital
16 8 signature, the digital signature shall be considered a secure
16 9 electronic signature with respect to all or that portion of
16 10 the record, if all of the following apply:
16 11 1. The digital signature was created during the
16 12 operational period of a valid certificate, was used within any
16 13 limits specified or incorporated by reference in the
16 14 certificate, and can be verified by reference to the public
16 15 key listed in the certificate.
16 16 2. The certificate shall be considered trustworthy, if one
16 17 of the following is determined by the trier of fact:
16 18 a. The certificate was issued by a certification authority
16 19 in accordance with standards, procedures, and other
16 20 requirements specified by rule of the commissioner.
16 21 b. A trier of fact independently finds one of the
16 22 following:
16 23 (1) That the certificate was issued in a trustworthy
16 24 manner by a certification authority that properly
16 25 authenticated the subscriber and the subscriber's public key.
16 26 (2) The material information set forth in the certificate
16 27 is true.
16 28 3. The process and systems utilized to create and verify a
16 29 digital signature are considered trustworthy because one of
16 30 the following applies:
16 31 a. They comply with standards, procedures, and other
16 32 requirements specified by the commissioner.
16 33 b. A trier of fact independently finds that they are
16 34 trustworthy.
16 35 Sec. 120 NEW SECTION. 554C.413 COMMISSIONER AUTHORITY TO
17 1 ADOPT RULES.
17 2 1. The commissioner may adopt rules applicable to the
17 3 public or private sector which define when a certificate and a
17 4 digital signature is considered sufficiently trustworthy in
17 5 order to ensure that a digital signature verified by reference
17 6 to the certificate will qualify as a secure electronic
17 7 signature. The rules may include but are not limited to any
17 8 of the following:
17 9 a. Establishing or adopting standards applicable to
17 10 certification authorities or certificates. Compliance with
17 11 the standards may be measured by obtaining a voluntary
17 12 certification from the commissioner or becoming accredited by
17 13 one or more independent accrediting entities recognized by the
17 14 commissioner.
17 15 b. Establishing or adopting standards applicable to the
17 16 digital signature creation or verification process.
17 17 2. In adopting rules as provided in this section, the
17 18 commissioner shall consult with the office of the attorney
17 19 general and representatives of the division of information
17 20 technology services of the department of general services.
17 21 The commissioner shall adopt rules that will provide maximum
17 22 flexibility in the implementation of digital signature
17 23 technology and the business models necessary to support it,
17 24 establish a clear basis for the recognition of certificates
17 25 issued by foreign certification authorities, and, to the
17 26 extent reasonably possible, maximize the opportunities for
17 27 uniformity with the laws of other jurisdictions, both within
17 28 the United States and internationally.
17 29 PART 3
17 30 DUTIES GENERALLY
17 31 Sec. 121. NEW SECTION. 554C.421 RELIANCE ON
17 32 CERTIFICATES.
17 33 A person relying on a digital signature may also rely on a
17 34 valid certificate containing the public key by which the
17 35 digital signature can be verified.
18 1 Sec. 122. NEW SECTION. 554C.422 RESTRICTIONS ON
18 2 PUBLICATION OF CERTIFICATE.
18 3 A person shall not publish a certificate, or otherwise make
18 4 it available to anyone known by that person to be in a
18 5 position to rely on the certificate or on a digital signature
18 6 that is verifiable with reference to the public key listed in
18 7 the certificate, if that person knows that any of the
18 8 following apply:
18 9 1. The certification authority listed in the certificate
18 10 has not issued the certificate.
18 11 2. The subscriber listed in the certificate has not
18 12 accepted the certificate.
18 13 3. The certificate has been revoked or suspended, unless
18 14 the publication is for the purpose of verifying a digital
18 15 signature created prior to such suspension or revocation.
18 16 Sec. 123. NEW SECTION. 554C.423 FRAUDULENT PURPOSE.
18 17 A person shall not knowingly create, publish, alter, or
18 18 otherwise use a certificate for a fraudulent or other unlawful
18 19 purpose. A person convicted of violating this section is
18 20 guilty of a serious misdemeanor. A person convicted of a
18 21 second or subsequent violation is guilty of a class "D"
18 22 felony.
18 23 Sec. 124. NEW SECTION. 554C.424 FALSE OR UNAUTHORIZED
18 24 REQUEST.
18 25 A person shall not knowingly misrepresent the person's
18 26 identity or authorization in requesting or accepting a
18 27 certificate or in requesting suspension or revocation of a
18 28 certificate. A person convicted of violating this section is
18 29 guilty of a serious misdemeanor. A person convicted of a
18 30 second or subsequent violation is guilty of a class "D"
18 31 felony.
18 32 PART 4
18 33 DUTIES OF CERTIFICATION AUTHORITIES AND REPOSITORIES
18 34 Sec. 125. NEW SECTION. 554C.431 TRUSTWORTHY SYSTEM.
18 35 A certification authority and a person maintaining a
19 1 repository shall utilize a trustworthy system in performing
19 2 their services.
19 3 Sec. 126. NEW SECTION. 554C.432 DISCLOSURE.
19 4 1. For each certificate it issues, a certification
19 5 authority must publish to relying parties all of the
19 6 following:
19 7 a. Its certification practice statement, if the authority
19 8 has one.
19 9 b. Its certification authority certificate that identifies
19 10 the certification authority as a self-certifying subscriber
19 11 and that contains the public key corresponding to the private
19 12 key used by that certification authority to digitally sign the
19 13 certificate.
19 14 c. Notice of a revocation or suspension of its
19 15 certification authority certificate, and any other fact
19 16 material relating to either the reliability of a certificate
19 17 that it has issued or its ability to perform its services.
19 18 2. In the event of an occurrence that materially and
19 19 adversely affects a certification authority's trustworthy
19 20 system or its certification authority certificate, the
19 21 certification authority must do all of the following:
19 22 a. Use reasonable efforts to notify persons who are known
19 23 to be or foreseeably will be affected by that occurrence.
19 24 b. Act in accordance with procedures governing this type
19 25 of occurrence specified in its certification practice
19 26 statement.
19 27 3. If a certification authority certifies itself as a
19 28 certification authority, it shall disclose to all relying
19 29 parties that it is self-certified. The certification
19 30 authority shall publish a copy of its own certification
19 31 authority certificate that is verifiable by reference to a
19 32 public key listed in a certificate issued by the certification
19 33 authority.
19 34 Sec. 127. NEW SECTION. 554C.433 ISSUANCE OF A
19 35 CERTIFICATE.
20 1 A certification authority may issue a certificate to a
20 2 prospective subscriber for the purpose of verifying digital
20 3 signatures only after the certification authority does all of
20 4 the following:
20 5 1. Receives a request for the issuance from the
20 6 prospective subscriber.
20 7 2. Does either of the following:
20 8 a. Complies with all of the practices and procedures set
20 9 forth in its applicable certification practice statement,
20 10 including procedures regarding identification of the
20 11 perspective subscriber.
20 12 b. In the absence of a certification practice statement,
20 13 confirms one of the following:
20 14 (1) The prospective subscriber is the person to be listed
20 15 in the certificate to be issued.
20 16 (2) The information in the certificate to be issued is
20 17 accurate.
20 18 (3) The prospective subscriber rightfully holds a private
20 19 key capable of creating a digital signature, and the public
20 20 key to be listed in the certificate can be used to verify a
20 21 digital signature affixed by such private key.
20 22 Sec. 128. NEW SECTION. 554C.434 REPRESENTATIONS UPON
20 23 ISSUANCE OF CERTIFICATE.
20 24 By issuing a certificate, a certification authority
20 25 represents to any person who reasonably relies on the
20 26 certificate or a digital signature verifiable by the public
20 27 key listed in the certificate, that the certification
20 28 authority has issued the certificate in accordance with any
20 29 applicable certification practice statement stated or
20 30 incorporated by reference in the certificate, or of which the
20 31 relying person has notice, and the requirements and
20 32 representations imposed by the law under which it was issued.
20 33 In the absence of a certification practice statement or law,
20 34 the certification authority represents that as of the time the
20 35 certificate is issued it has confirmed all of the following:
21 1 1. The certification authority has complied with all
21 2 applicable requirements of this chapter in issuing the
21 3 certificate, and if the certification authority has published
21 4 the certificate or otherwise made it available to a relying
21 5 person, that the subscriber identified in the certificate has
21 6 accepted it.
21 7 2. The subscriber identified in the certificate,
21 8 rightfully holds the private key corresponding to the public
21 9 key listed in the certificate.
21 10 3. The subscriber's public key and private key constitute
21 11 a functioning key pair.
21 12 4. All information in the certificate is accurate as of
21 13 the date it was issued, unless the certification authority has
21 14 stated in the certificate or incorporated by reference in the
21 15 certificate a statement that the accuracy of specified
21 16 information is not confirmed.
21 17 5. To the knowledge of the certification authority, there
21 18 are no known material facts omitted from the certificate which
21 19 would, if known, adversely affect the reliability of the
21 20 representations required to be provided by the certification
21 21 authority under this section.
21 22 Sec. 129. NEW SECTION. 554C.435 SUSPENSION OF A
21 23 CERTIFICATE.
21 24 The certification authority that issues a certificate, and
21 25 any person maintaining a repository where the certificate is
21 26 published, shall suspend the certificate pursuant to any of
21 27 the following:
21 28 1. The receipt of an order issued by a court of competent
21 29 jurisdiction.
21 30 2. In accordance with the policies and procedures
21 31 governing suspension specified in its certification practice
21 32 statement. In the absence of policies and procedures
21 33 governing suspension, the certificate shall be suspended as
21 34 soon as possible after receiving a request by a person whom
21 35 the certification authority or person maintaining a repository
22 1 reasonably believes to be any of the following:
22 2 a. The subscriber listed in the certificate.
22 3 b. A person duly authorized to act for that subscriber.
22 4 c. A person acting on behalf of that subscriber, who is
22 5 unavailable.
22 6 Sec. 130. NEW SECTION. 554C.436 REVOCATION OF A
22 7 CERTIFICATE.
22 8 The certification authority that issues a certificate, and
22 9 any person maintaining a repository where the certificate is
22 10 published, shall revoke the certificate pursuant to any of the
22 11 following:
22 12 1. Upon receipt of an order issued by a court of competent
22 13 jurisdiction.
22 14 2. In accordance with the policies and procedures
22 15 governing revocation specified in its certification practice
22 16 statement. In the absence of policies and procedures
22 17 governing revocation, the certificate shall be revoked as soon
22 18 as possible after one of the following occurs:
22 19 a. Receipt of a request for revocation by the subscriber
22 20 named in the certificate, if the certification authority or
22 21 repository confirms that the person requesting the revocation
22 22 is the subscriber or is an agent of the subscriber with
22 23 authority to request the revocation.
22 24 b. Receipt of a certified copy of an individual
22 25 subscriber's death certificate, or upon confirmation by other
22 26 reliable evidence that the subscriber is dead.
22 27 c. Presentation of documents effecting a dissolution of a
22 28 corporate subscriber or other legal entity, or upon
22 29 confirmation by other evidence that the subscriber or other
22 30 legal entity has been dissolved or has ceased to exist.
22 31 d. Confirmation by the certification authority that one of
22 32 the following applies:
22 33 (1) A material fact represented in the certificate is
22 34 false.
22 35 (2) A material prerequisite to issuance of the certificate
23 1 was not satisfied.
23 2 (3) The certification authority's private key or
23 3 trustworthy system was compromised in a manner materially
23 4 affecting the certificate's reliability.
23 5 (4) The subscriber's private key or trustworthy system was
23 6 compromised.
23 7 Upon effecting a revocation, the certification authority
23 8 shall promptly notify the subscriber listed in the revoked
23 9 certificate of the revocation.
23 10 Sec. 131. NEW SECTION. 554C.437 NOTICE OF SUSPENSION OR
23 11 REVOCATION.
23 12 Upon suspending or revoking a certificate, a person
23 13 maintaining a repository where the certificate is published
23 14 shall do all of the following:
23 15 1. Promptly publish notice of the suspension or revocation
23 16 if the certificate was published.
23 17 2. Disclose the fact of suspension or revocation on
23 18 inquiry by a relying party.
23 19 PART 5
23 20 DUTIES OF SUBSCRIBERS
23 21 Sec. 132. NEW SECTION. 554C.441 GENERATING THE KEY PAIR.
23 22 If the subscriber generates the key pair whose public key
23 23 is to be listed in a certificate issued by a certification
23 24 authority and accepted by the subscriber, the subscriber must
23 25 generate that key pair and maintain and store the private key
23 26 using a trustworthy system.
23 27 Sec. 133. NEW SECTION. 554C.442 OBTAINING A CERTIFICATE.
23 28 All material representations made by the subscriber to a
23 29 certification authority for purposes of obtaining a
23 30 certificate must be accurate and complete.
23 31 Sec. 134. NEW SECTION. 554C.443 ACCEPTANCE OF A
23 32 CERTIFICATE.
23 33 1. A person accepts a certificate that names a person as a
23 34 subscriber by publishing it to one or more persons, depositing
23 35 the certificate in a repository, or demonstrating approval of
24 1 the certificate, while knowing or having notice of its
24 2 contents.
24 3 2. By accepting a certificate, the subscriber listed in
24 4 the certificate represents to all who reasonably rely on the
24 5 information contained in the certificate that all of the
24 6 following apply:
24 7 a. The subscriber rightfully holds the private key
24 8 corresponding to the public key listed in the certificate.
24 9 b. All representations made by the subscriber to the
24 10 certification authority and material to the information listed
24 11 in the certificate are true.
24 12 c. All information in the certificate that is within the
24 13 knowledge of the subscriber is true.
24 14 Sec. 135. NEW SECTION. 554C.444 CONTROL OF THE PRIVATE
24 15 KEY.
24 16 1. Except as otherwise provided by another applicable rule
24 17 of law, by accepting a certificate issued by a certification
24 18 authority the subscriber identified in the certificate assumes
24 19 a duty to persons who reasonably rely on the certificate to
24 20 exercise reasonable care to retain control of the private key
24 21 corresponding to the public key listed in the certificate and
24 22 to prevent its disclosure to a person not authorized to create
24 23 the subscriber's digital signature. The requirements of this
24 24 subsection shall continue during the operational period of the
24 25 certificate.
24 26 2. The provisions of this section do not apply to consumer
24 27 transactions.
24 28 Sec. 136. NEW SECTION. 554C.445 INITIATING SUSPENSION OR
24 29 REVOCATION.
24 30 Except as otherwise provided by another applicable rule of
24 31 law, if the private key corresponding to the public key listed
24 32 in a certificate is compromised during the operational period
24 33 of the certificate, a subscriber who has accepted the
24 34 certificate shall do one of the following:
24 35 1. Request the issuing certification authority, and all
25 1 independent repositories in which the subscriber has
25 2 authorized the certificate to be published, to suspend or
25 3 revoke the certificate.
25 4 2. Provide reasonable notice to all relying parties that
25 5 the public key listed in the certificate was compromised
25 6 during the operational period of the certificate.
25 7 PART 6
25 8 GOVERNMENT AGENCY USE OF ELECTRONIC RECORDS AND SIGNATURES
25 9 Sec. 137. NEW SECTION. 554C.451 GOVERNMENT AGENCY USE OF
25 10 ELECTRONIC RECORDS.
25 11 1. Each government agency shall determine if, and the
25 12 extent to which, it will send and receive electronic records
25 13 and electronic signatures to and from other persons.
25 14 2. In any case where a government agency decides to send
25 15 or receive electronic records, or to accept document filings
25 16 by electronic records, the government agency may, by rule,
25 17 giving due consideration to security, specify any of the
25 18 following:
25 19 a. The manner and format in which electronic records must
25 20 be sent, received, and stored, including interoperability
25 21 requirements.
25 22 b. If electronic records must be signed, the type of
25 23 electronic signature required including, if applicable, a
25 24 requirement that the sender use a digital signature or other
25 25 secure electronic signature, the manner and format in which
25 26 the electronic signature must be affixed to the electronic
25 27 record, and the identity of or criteria that must be met by a
25 28 certification authority used by the person filing the
25 29 document.
25 30 c. Control processes and procedures which are appropriate
25 31 to ensure adequate integrity, security, confidentiality, and
25 32 auditability of electronic records.
25 33 d. Any other required attributes for electronic records
25 34 that are currently specified for corresponding paper
25 35 documents, or reasonably necessary under the circumstances.
26 1 3. All rules adopted by a government agency shall be
26 2 consistent with the rules adopted by the commissioner.
26 3 Sec. 138. NEW SECTION. 554C.452 COMMISSIONER TO ADOPT
26 4 STATE STANDARDS.
26 5 1. The commissioner, in consultation with the office of
26 6 the attorney general and the division of information
26 7 technology services of the department of general services,
26 8 shall adopt rules setting forth standards, procedures, and
26 9 policies for the use of electronic records and electronic
26 10 signatures by government agencies. Where appropriate, the
26 11 rules shall specify different levels of standards from which
26 12 implementing government agencies can select the standard most
26 13 appropriate for a particular application.
26 14 2. The commissioner shall specify appropriate procedural
26 15 and technical security requirements to be implemented and
26 16 followed by government agencies for all of the following:
26 17 a. The generation, use, and storage of key pairs.
26 18 b. The issuance, acceptance, use, suspension, and
26 19 revocation of certificates.
26 20 c. The use of digital signatures.
26 21 3. Each government agency shall have the authority to
26 22 issue, or contract for the issuance of, certificates to all of
26 23 the following:
26 24 a. Its employees and agents.
26 25 b. Persons conducting business or other transactions with
26 26 the government agency. The government agency may take other
26 27 actions consistent with this authority, including the
26 28 establishment of repositories and the suspension or revocation
26 29 of issued certificates, provided that actions by the
26 30 government agency are conducted in accordance with all rules,
26 31 procedures, and policies specified by the commissioner. The
26 32 commissioner may adopt rules, procedures, and policies under
26 33 which government agencies may issue or contract for the
26 34 issuance of certificates, or restrict or prohibit their
26 35 issuance.
27 1 4. The commissioner may specify appropriate standards and
27 2 requirements that must be satisfied by a certification
27 3 authority before any of the following occur:
27 4 a. The services of a certification authority are used by a
27 5 government agency for the issuance, publication, suspension,
27 6 or revocation of certificates to the government agency,
27 7 including its employees or agents, for official use only.
27 8 b. The certificates that the certification authority
27 9 issues are accepted for purposes of verifying digitally signed
27 10 electronic records sent to any government agency by any
27 11 person.
27 12 Sec. 139. NEW SECTION. 554C.453 INTEROPERABILITY.
27 13 To the extent reasonable under the circumstances, rules
27 14 adopted by the commissioner or a government agency relating to
27 15 the use of electronic records or electronic signatures shall
27 16 be drafted in a manner designed to encourage and promote
27 17 consistency and interoperability with similar requirements
27 18 adopted by government agencies of other states and the federal
27 19 government.
27 20 DIVISION II
27 21 MISCELLANEOUS PROVISIONS
27 22 Sec. 201. Section 22.7, Code Supplement 1997, is amended
27 23 by adding the following new subsection:
27 24 NEW SUBSECTION. 38. a. Records containing information
27 25 that would disclose, or might lead to the disclosure of,
27 26 private keys as provided in section 554C.
27 27 b. Records which if disclosed might jeopardize the
27 28 security of an issued certificate or a certificate to be
27 29 issued pursuant to chapter 554C.
27 30 Sec. 202. COMMISSIONER REQUIRED TO ADOPT RULES. The
27 31 commissioner of insurance shall adopt rules as required by
27 32 this Act not later than July 1, 1999.
27 33 Sec. 203. CONSIDERATION OF MODEL LEGISLATION. It is the
27 34 intent of the general assembly that if the national conference
27 35 of commissioners on uniform state laws proposes a uniform
28 1 electronic commerce act, the general assembly shall consider
28 2 the proposed uniform act during the session in which the
28 3 proposed uniform law is submitted to the states for
28 4 consideration or during its next regular session if the
28 5 proposed uniform act is submitted to the states during a
28 6 period in which the general assembly is not in session.
28 7 HF 2474
28 8 da/pk/25
Text: HF02473 Text: HF02475 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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