HR 2991 IH

105th CONGRESS

1st Session

H. R. 2991

To enhance electronic commerce by requiring agencies to use digital signatures, which are compatible with standards for such technology used in commerce and industry, to enable persons to submit Federal forms electronically, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

November 9, 1997

Ms. ESHOO (for herself and Mr. TAUZIN) introduced the following bill; which was referred to the Committee on Government Reform and Oversight, and in addition to the Committee on Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To enhance electronic commerce by requiring agencies to use digital signatures, which are compatible with standards for such technology used in commerce and industry, to enable persons to submit Federal forms electronically, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Electronic Commerce Enhancement Act of 1997'.

SEC. 2. STUDIES ON USE OF DIGITAL SIGNATURES TO ENHANCE ELECTRONIC COMMERCE.

The Assistant Secretary shall conduct an ongoing study of the enhancement of electronic commerce due to the use of digital signatures pursuant to this Act, and shall report findings to the Commerce Committee of the House and to the Commerce, Science, and Transportation Committee of the Senate not later than--

(1) 12 months; and

(2) 60 months;

after the date of enactment of this Act.

SEC. 3. ELECTRONIC AVAILABILITY OF FORMS.

The Director, in accordance with technical standards provided by the Assistant Secretary under section 6, shall not later than 12 months after the date of enactment of this Act establish a method for each Federal agency to make its forms available electronically. Such forms shall be--

(1) available for electronic submission (through use of a digital signature when necessary);

(2) substantially identical in content and requirements to any corresponding paper versions;

(3) available on an Internet web site controlled by the Federal Government that contains an electronic link to the website described in section 6(f) of this Act;

(4) available for downloading and printing;

(5) available for electronic storage by employers that are required by law to collect, store, or file paper versions of forms completed by employees; and

(6) acknowledged upon receipt by an agency through prompt issuance of an electronic receipt.

SEC. 4. PAYMENTS.

Under the method established under section 2--

(1) any payment associated with a form submitted electronically shall be no greater than the payment associated with any corresponding printed version of such form;

(2) not less than 2 means of electronic payment shall be provided, but such payment may not be required to precede submission of a form; and

(3) a prompt receipt for electronic payment shall be issued electronically to each person who submits a payment electronically.

SEC. 5. USE OF DIGITAL SIGNATURES BY FEDERAL OFFICIALS.

(a) AGENCY EMPLOYEES TO RECEIVE DIGITAL SIGNATURES- The head of each agency shall issue guidelines for determining how and which employees in each respective agency shall be provided digital signatures for use within the scope of their employment.

(b) AVAILABILITY OF ELECTRONIC NOTICE- An agency may provide a person entitled to receive written notice of a particular matter with the opportunity to receive electronic notice instead.

SEC. 6. CERTIFICATES FOR DIGITAL SIGNATURES.

(a) GUIDELINES FOR ACCEPTANCE OF CERTIFICATES- The Director shall issue guidelines governing the manner in which agencies may accept certificates.

(b) ACCREDITATION- Under the guidelines issued under subsection (a), an agency shall accept certificates issued by--

(1) the agency; or

(2) a trusted third party that is licensed or accredited by--

(A) a State or local government; or

(B) an appropriate accreditation body.

(c) TRUSTED THIRD PARTY LIABILITY- Under the guidelines issued under subsection (a), an agency may accept a certificate only from a trusted third party that, in accordance with commercially reasonable standards, accepts liability for and is insured against negligent issuance or handling of certificates.

(d) FOREIGN TRUSTED THIRD PARTY- The Secretary of State shall determine from which foreign countries agencies may accept certificates.

(e) AGENCY ESTABLISHMENT OF TRUSTED THIRD PARTY- No agency may establish a trusted third party except to--

(1) provide digital signatures to its employees;

(2) issue certificates relating to messages sent by such employees; or

(3) act as a reliable authority on behalf of another trusted third party.

(f) DIRECTORY OF QUALIFIED TRUSTED THIRD PARTIES- The Assistant Secretary shall compile and post on a website controlled by the Federal government a list of trusted third parties (along with an electronic link, if any, to a web site controlled by each trusted third party) that are qualified under this section to issue certificates.

SEC. 7. STANDARDS FOR DIGITAL SIGNATURES; EFFECT OF DIGITAL SIGNATURES.

(a) TECHNICAL STANDARDS FOR DIGITAL SIGNATURES- The Assistant Secretary shall provide to the Director technical standards for the digital signatures accepted for purposes of the method established under section 2 or provided under section 4.

(b) COMPATIBILITY WITH PRIVATE SECTOR- The standards referred to in subsection (a) shall be compatible with standards and technology for digital signatures used in commerce and industry and by State governments.

(c) RELIABILITY OF DIGITAL SIGNATURES- Under the standards referred to in subsection (a), a digital signature shall be as reliable as is appropriate for the purpose for which an electronic message containing a digital signature is generated, in light of all the circumstances, including any relevant agreement.

(d) LEGAL SIGNIFICANCE OF DIGITAL SIGNATURES- For purposes of digitally signed forms accepted under section 2, a digital signature shall have the same force and effect as a written signature.

SEC. 8. EMPLOYER ELECTRONIC STORAGE OF FORMS.

If an employer is required by law to collect, store, or file paper forms that are completed by employees, such employer may store such forms electronically if such forms are submitted electronically.

SEC. 9. IMPLEMENTATION BY AGENCIES.

(a) IMPLEMENTATION- Not later than 36 months after the date of enactment of this Act, each agency shall implement the method established under section 2 of this Act and the guidelines issued under section 4 of this Act.

(b) REPORT TO CONGRESS- Not later than 12 months after the date of enactment of this Act, the Assistant Secretary shall submit a report to the Commerce Committee of the House and to the Commerce, Science, and Transportation Committee of the Senate that details the technical standards described in section 6.

SEC. 10. DEFINITIONS.

For purposes of this Act:

(1) ASSISTANT SECRETARY- The term `Assistant Secretary' means the Assistant Secretary for Communications and Information (the head of the National Telecommunications and Information Administration) of the Department of Commerce.

(1) AGENCY- The term `agency' has the meaning given the term `executive agency' in section 105 of title 5, United States Code.

(2) CERTIFICATE- (A) The term `certificate' means a statement meeting the requirements of subparagraph (B) that permits a person holding such statement to determine that a digitally signed message--

(i) was signed by the person whose digital signature appears to be attached to the message; and

(ii) has not been altered since the digital signature was attached.

(B) For purposes of subparagraph (A), the statement must--

(i) identify the trusted third party or agency issuing such statement;

(ii) identify the person whose digital signature the trusted third party or agency is authenticating with such statement;

(iii) specify the operational period of such statement; and

(iv) be digitally signed by the trusted third party or agency issuing such statement.

(3) DIGITAL SIGNATURE- The term `digital signature' means a method of signing an electronic message that--

(A) identifies a particular person as the source of such electronic message; and

(B) indicates such person's approval of the information contained in such electronic message.

(4) DIRECTOR- The term `Director' means the Director of the Office of Management and Budget.

(5) FORM- The term `form' means a document produced by an agency--

(A) that is used by the agency to facilitate interaction between the agency and persons;

(B) that is completed by a person by inserting information as required by the agency;

(C) that is submitted to an agency more than 1,000 times per year; and

(D) that is not required to be completed in the presence of a Federal official or at a particular location.

(6) RELIABLE AUTHORITY- The term `reliable authority' means an entity licensed to serve as a notary that vouches to a trusted third party for the identity of a person who seeks a certificate to be issued on such person's behalf.

(7) TRUSTED THIRD PARTY- The term `trusted third party' means an entity (other than an agency) that issues a certificate.