North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 10 - ELECTRONIC COMMERCE SECTION › Section .0300 - PUBLIC KEY TECHNOLOGY › Section 10 .0301 - PUBLIC KEY TECHNOLOGY LICENSING, FEES, RENEWAL

Current through Register Vol. 39, No. 2, July 15, 2024
(a) To be
				considered for licensure under this subsection, a Certification Authority shall
				utilize certificate-based public key cryptography.
(b) Any applicant seeking licensure must
				demonstrate compliance with the North Carolina Electronic Commerce Act, G.S.
				66, Article 11A, and the rules in this Chapter.
(c) To request licensure, a Certification
				Authority shall provide the Electronic Commerce Section with a copy of its
				current Certification Practice Statement and most recent reports of compliance
				audit(s) as required by
				18 NCAC
				10 .0303 (k).
(d) A Certification Authority shall adhere to
				its Certification Practice Statement. If a Certification Authority modifies its
				Certification Practice Statement, it shall provide an updated copy of the
				Certification Practice Statement to the Electronic Commerce Section as soon as
				is practicable, and no later than the date the updated Certification Practice
				Statement is put into operation. As a condition of continued licensure, the
				Electronic Commerce Section may require the Certification Authority to undergo
				an audit to document compliance with its updated Certification Practice
				Statement and the rules in this Chapter.
(e) An initial licensing fee of two thousand
				dollars ($2,000 US) shall accompany an initial application.
(f) A renewal fee of two thousand dollars
				($2,000 US) shall accompany an application for renewal by a licensed
				Certification Authority.
(g) A
				license issued by the Electronic Commerce Section pursuant to this Section
				shall expire one year after its effective date, unless timely
				renewed.
(h) Financial
				Responsibility.
(1) As precondition of
				licensure a Certification Authority shall obtain a bond issued by a surety
				company authorized to do business in North Carolina. A copy of the bond shall
				be filed with the Electronic Commerce Section prior to licensure. The amount of
				the bond shall not be less than twenty-five thousand dollars ($25,000 US). The
				bond shall be in favor of the State of North Carolina. The bond shall be
				payable for any penalties assessed by the Electronic Commerce Section pursuant
				to the Rules in this Chapterand for any losses the State encounters resulting
				from a Certification Authority's conduct of activities subject to the
				Electronic Commerce Act or arising out of a violation of the Electronic
				Commerce Act or any Rule promulgated thereunder;
(2) As precondition of licensure a
				Certification Authority shall obtain indemnity insurance coverage (e.g. "errors
				and omissions" or "cyber coverage" orsimilar coverage) to protect subscribers,
				relying parties and the State for any losses resulting from the Certification
				Authority's conduct of activities subject to the Electronic Commerce Act or
				arising out of a violation of the Electronic Commerce Act or any Rule
				promulgated thereunder. Indemnity coverage shall be obtained and maintained in
				the amount of not less than one hundred thousand dollars ($100,000 US) per
				occurrence and not less than one million dollars ($1,000,000 US) for all
				occurrences;
(3) The failure of a
				Certification Authority to continuously maintain this surety bond and indemnity
				insurance coverage may be the basis for revocation or suspension of its
				license.