II

105TH CONGRESS

2D SESSION S. 2107

To enhance electronic commerce by promoting the reliability and integrity

of commercial transactions through establishing authentication standards

for electronic communication, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 21, 1998

Mr. ABRAHAM (for himself, Mr. WYDEN, Mr. MCCAIN, and Mr. REED) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science and Transportation

A BILL

To enhance electronic commerce by promoting the reliability

and integrity of commercial transactions through establishing authentication standards for electronic communication, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Government Paper5 work Elimination Act’’.
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1 SEC. 2 STUDIES ON USE OF DIGITAL SIGNATURES TO EN2 HANCE ELECTRONIC COMMERCE.

3 The Assistant Secretary shall conduct an ongoing

4 study of the enhancement of electronic commerce due to

5 the use of digital signatures pursuant to this Act, and

6 shall report findings to the Commerce Committee of the

7 House and to the Commerce, Science, and Transportation

8 Committee of the Senate not later than—

9 (1) 12 months; and

10 (2) 60 months; after the date of enactment of

11 this Act.

12 SEC. 3. ELECTRONIC AVAILABILITY OF FORMS.

13 The Director, in accordance with technical standards

14 provided by the Assistant Secretary under section 6, shall

15 not later than 12 months after the date of enactment of

16 this Act establish a method for each Federal agency to

17 make its forms available electronically. Such forms shall

18 be—

19 (1) available for electronic submission (through

20 use of a digital signature when necessary);

21 (2) substantially identical in content and re22 quirements to any corresponding paper versions;

23 (3) available on an Internet web site controlled

24 by the Federal Government that contains an elec25 tronic link to the website described in section 6(f) of

26 this Act;
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1 (4) available for downloading and printing;

2 (5) available for electronic storage by employers

3 that are required by law to collect, store, or file

4 paper versions of forms completed by employees; and

5 (6) acknowledged upon receipt by an agency

6 through prompt issuance of an electronic receipt.

7 SEC. 4. PAYMENTS.

8 Under the method established under section 2—

9 (1) any payment associated with a form submit10 ted electronically shall be no greater than the pay11 ment associated with any corresponding printed ver12 sion of such form;

13 (2) not less than 2 means of electronic payment

14 shall be provided, but such payment may not be re15 quired to precede submission of a form; and

16 (3) a prompt receipt for electronic payment

17 shall be issued electronically to each person who sub18 mits a payment electronically.

19 SEC. 5. USE OF DIGITAL SIGNATURES BY FEDERAL OFFI20 CIALS.

21 (A) AGENCY EMPLOYEES TO RECEIVE DIGITAL SIG22 NATURES.—The head of each agency shall issue guidelines

23 for determining how and which employees in each respec24 tive agency shall be provided digital signatures for use

25 within the scope of their employment.
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1 (b) AVAILABILITY OF ELECTRONIC NOTICE.—An agen2 cy may provide a person entitled to receive written notice

3 of a particular matter with the opportunity to receive elec4 tronic notice instead.

5 SEC. 6. CERTIFICATES FOR DIGITAL SIGNATURES.

6 (a) GUIDELINES FOR ACCEPTANCE OF CERTIFI7 CATES.—The Director shall issue guidelines governing the

8 manner in which agencies may accept certificates.

9 (b) ACCREDITATION.—Under the guidelines issued

10 under subsection (a), an agency shall accept certificates

11 issued by—

12 (1) the agency; or

13 (2) a trusted third party that is licensed or ac14 credited by—

15 (A) a State or local government; or

16 (B) an appropriate accreditation body.

17 (c) TRUSTED THIRD PARTY LIABILITY.—Under the

18 guidelines issued under subsection (a), an agency may ac19 cept a certificate only from a trusted third party that, in

20 accordance with commercially reasonable standards, ac21 cepts liability for and is insured against negligent issuance

22 or handling of certificates.

23 (d) FOREIGN TRUSTED THIRD PARTY.—The Sec24 retary of State shall determine from which foreign coun25 tries agencies may accept certificates.
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1 (e) AGENCY ESTABLISHMENT OF TRUSTED THIRD

2 PARTY.—No agency may establish a trusted third party

3 except to—

4 (1) provide digital signatures to its employees;

5 (2) issue certificates relating to messages sent

6 by such employees; or

7 (3) act as a reliable authority on behalf on an8 other trusted third party.

9 (f) DIRECTORY OF QUALIFIED TRUSTED THIRD

10 PARTIES.—The Assistant Secretary shall compile and post

11 on a website controlled by the Federal Government a list

12 of trusted third parties (along with an electronic link, if

13 any, to a web site controlled by each trusted third party)

14 that are qualified under this section to issue certificates.

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

16 DIGITAL SIGNATURES.

17 (a) TECHNICAL STANDARDS FOR DIGITAL SIGNA18 TURES.—The Assistant Secretary shall provide to the Di19 rector technical standards for the digital signatures ac20 cepted for purposes of the method established under sec21 tion 2 or provided under section 4.

22 (b) COMPATIBILITY WITH PRIVATE SECTOR.—The

23 standards referred to in subsection (a) shall be compatible

24 with standards and technology for digital signatures used

25 in commerce and industry and by State governments.
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1 (c) STANDARDS SHALL BE TECHNOLOGY NEU2 TRAL.—The Secretary, in setting standards for digital sig3 nature technologies to be used by the Federal Govern4 ment, shall take all steps necessary to ensure that such

5 standards do not inappropriately favor one industry.

6 (d) RELIABILITY OF DIGITAL SIGNATURES.—Under

7 the standards referred to in subsection (a), a digital signa8 ture shall be as reliable as is appropriate for the purpose

9 for which an electronic message containing a digital signa10 ture is generated, in light of all the circumstances, includ11 ing any relevant agreement.

12 (e) LEGAL SIGNIFICANCE OF DIGITAL SIGNA13 TURES.—For purposes of digital signed forms accepted

14 under section 2, a digital signature shall have the same

15 force and effect as a written signature.

16 SEC. 8. EMPLOYER ELECTRONIC STORAGE OF FORMS.

17 If an employer is required by law to collect, store,

18 or file paper forms that are completed by employees, such

19 employer may store such forms electronically if such forms

20 are submitted electronically.

21 SEC. 9. IMPLEMENTATION BY AGENCIES.

22 (a) IMPLEMENTATION.—Not later than 36 months

23 after the date of enactment of this Act, each agency shall

24 implement the method established under section 2 of this

25 Act and the guidelines issued under section 4 of this Act.
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1 (b) REPORT TO CONGRESS.—Not later than 12

2 months after the date of enactment of this Act, the Assist3 ant Secretary shall submit a report to the Commerce Com4 mittee of the House and to the Commerce, Science, and

5 Transportation Committee of the Senate that details the

6 technical standards described in section 6.

7 SEC. 10. SENSE OF THE CONGRESS.

8 Because there is no meaningful difference between

9 contracts executed in the digital world and contracts exe10 cuted in the analog world, it is the sense of the Congress

11 that such contracts should be treated similarly under fed12 eral law. It is further the sense of the Congress that such

13 contracts should be treated similarly under state law.

14 SEC. 11. DEFINITIONS.

15 For purposes of this Act:

16 (1) ASSISTANT SECRETARY.—The term ‘‘Assist17 ant Secretary’’ means the Assistant Secretary for

18 Communications and Information (the head of the

19 National Telecommunications and Information Ad20 ministration) of the Department of Commerce.

21 (2) AGENCY.—The term ‘‘agency’’ has the

22 meaning given the term ‘‘executive agency’’ in sec23 tion 105 of title 5, United States Code.

24 (3) CERTIFICATE.—(A) The term ‘‘certificate’’

25 means a statement meeting the requirements of sub-
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1 paragraph (B) that permits a person holding such

2 statement to determine that a digital signed mes3 sage—

4 (i) was signed by the person whose digital

5 signature appears to be attached to the mes6 sage; and

7 (ii) has not been altered since the digital

8 signature was attached.

9 (B) For purposes of subparagraph (A), the

10 statement must—

11 (i) identify the trusted third party or agen12 cy issuing such statement;

13 (ii) identify the person whose digital signa14 ture the trusted third party or agency is au15 thenticating with such statement;

16 (iii) specify the operational period of such

17 statement; and

18 (iv) be digitally signed by the trusted third

19 party or agency issuing such statement.

20 (4) DIGITAL SIGNATURE.—The term ‘‘digital

21 signature’’ means a method of signing an electronic

22 message that—

23 (A) identifies a particular person as the

24 source of such electronic message; and
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1 (B) indicates such person’s approval of the

2 information contained in such electronic mes3 sage.

4 (5) DIRECTOR.—The term ‘‘Director’’ means

5 the Director of the Office of Management and

6 Budget.

7 (6) FORM.—The term ‘‘form’’ means a docu8 ment produced by an agency—

9 (A) that is used by the agency to facilitate

10 interaction between the agency and persons;

11 (B) that is completed by a person by in12 serting information as required by the agency;

13 (C) that is submitted to an agency more

14 than 1,000 times per year; and

15 (D) that is not required to be completed in

16 the presence of a Federal official or at a par17 ticular location.

18 (7) RELIABLE AUTHORITY.—The term ‘‘reliable

19 authority’’ means an entity licensed to serve as a no20 tary that vouches to a trusted third party for the

21 identity of a person who seeks a certificate to be

22 issued on such person’s behalf.
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1 (8) TRUSTED THIRD PARTY.—The term ‘‘trust2 ed third party’’ means an entity (other than an

3 agency) that issues a certificate.

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