As Amended by House Committee
         
Session of 2000
         
HOUSE BILL No. 2879
         
By Joint Committee on Information Technology
         
2-7
         

11             AN  ACT concerning electric electronic signatures; enacting the Kansas
12             electronic signatures act; repealing K.S.A. 1999 Supp. 60-2616.
13      
14       Be it enacted by the Legislature of the State of Kansas:
15             Section  1. This act shall be known and may be cited as the Kansas
16       electronic signatures act.
17             Sec.  2. The provisions of this act shall be construed to enable the
18       development of electronic government and electronic commerce for the
19       benefit of the state of Kansas and its citizens, businesses and industries
20       and to:
21             (a) Facilitate electronic communications by means of reliable elec-
22       tronic records;
23             (b) facilitate electronic transactions of documents with state and local
24       government agencies and promote the efficient delivery of government
25       services by means of reliable electronic records;
26             (c) minimize the incidence of forged electronic records and fraud in
27       electronic commerce;
28             (d) establish uniformity of rules and regulations regarding the au-
29       thentication and integrity of electronic records; and
30             (e) promote public confidence in the privacy, integrity and reliability
31       of electronic records and electronic commerce.
32             Sec.  3. As used in this act:
33             (a) ``Digital signature'' means a type of electronic signature consisting
34       of a transformation of an electronic message using an asymmetric crypto
35       system such that a person having the initial message and the signer's
36       public key can accurately determine whether:
37             (1) The transformation was created using the private key that corre-
38       sponds to the signer's public key; and
39             (2) the initial message has not been altered since the transformation
40       was made.
41             (b) ``Electronic record'' means a record created, generated, sent,
42       communicated, received or stored by electronic means.
43             (c) ``Electronic signature'' means an electronic sound, symbol or pro-


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  1       cess attached to or logically associated with an electronic record and ex-
  2       ecuted or adopted by a person with the intent to sign the electronic
  3       record.
  4             (d) ``Message'' means a digital representation of information.
  5             (e) ``Person'' means a human being or any organization capable of
  6       signing documents and being legally bound by those documents. A person
  7       may be an individual, body politic or legal entity any individual, cor-
  8       poration, partnership, firm, company or other association of per-
  9       sons, and such term shall include the state of Kansas and any of its
10       political subdivisions.
11             (f) ``Registered certification authority'' means a person providing cer-
12       tification of a digital signature who is, or is certified by, a member of the
13       group of certification authorities approved by and registered with the
14       secretary.
15             (g) ``Secretary'' means the Kansas secretary of state.
16             (h) ``Transaction'' means an action or set of actions occurring between
17       two or more persons relating to the conduct of business, commercial or
18       governmental affairs.
19             Sec.  4. (a) A record or signature may not be denied legal effect or
20       enforceability solely because it is in electronic form.
21             (b) A contract may not be denied legal effect or enforceability solely
22       because an electronic record was used in its formation.
23             (c) If a law requires a record to be in writing, an electronic record
24       satisfies the law.
25             (d) If a law requires a signature, an electronic signature satisfies the
26       law.
27             Sec.  5. Any transaction subject to this act is also subject to other
28       applicable substantive law.
29             Sec.  6. 5. (a) This act does not require any state agency to use or
30       permit the use of electronic or digital signatures.
31             (b) Any state agency may adopt rules and regulations governing the
32       agency's use of electronic or digital signatures as long as the rules and
33       regulations meet or exceed those adopted by the secretary.
34             Sec.  7. 6. (a) Any person, before entering upon the duties of a reg-
35       istered certification authority, shall:
36             (1) Register with the secretary on forms approved and provided by
37       the secretary;
38             (2) pay to the secretary an annual filing fee of $1,000;
39             (3) file with the secretary a good and sufficient surety bond, certifi-
40       cate of insurance or other evidence of financial security in the amount of
41       $100,000; and
42             (4) be approved by the secretary as meeting the requirements of any
43       rules and regulations adopted by the secretary, as the secretary deter-


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  1       mines appropriate, to ensure the person's financial responsibility and con-
  2       dition, character, qualifications and fitness to be a registered certification
  3       authority.
  4             (b) A registered certification authority shall create, maintain and pre-
  5       serve all records that are necessary to demonstrate compliance with rules
  6       and regulations adopted by the secretary.
  7             (c) If any person who is approved and registered with the secretary
  8       as a registered certification authority fails to maintain any of the qualifi-
  9       cations listed in subsection (a) and (b) or otherwise required by rules and
10       regulations of the secretary, the person's registration shall be deemed
11       lapsed.
12             (d) Any person who violates or fails to comply with this act and the
13       rules and regulations of the secretary, upon notice and hearing, shall be
14       subject to a civil penalty not to exceed $10,000 per failure or violation.
15             Sec.  8. 7. The secretary may adopt rules and regulations to imple-
16       ment the provisions of this act.
17             Sec.  9. 8. The secretary shall have the authority to establish reci-
18       procity with other states and nations for purposes of this act. 
19       Sec.  10. 9. K.S.A. 60-2616 is hereby repealed.
20        Sec.  11. 10. This act shall take effect and be in force from and after
21       its publication in the statute book.