69th OREGON LEGISLATIVE ASSEMBLY--1997 Regular Session


                            Enrolled

                         House Bill 3046

Sponsored by Representative HILL, Senator HAMBY (at the request
  of Benjamin R. Peek)


                     CHAPTER ................


                             AN ACT


Relating to digital signatures.

Be It Enacted by the People of the State of Oregon:

  SECTION 1.  { + Sections 1 to 7 of this Act shall be known as
the Electronic Signature Act. + }
  SECTION 2.  { + It is the intent of the Legislative Assembly
that sections 1 to 7 of this Act:
  (1) Facilitate economic development and efficient delivery of
government services by means of reliable electronic messages.
  (2) Enhance public confidence in the use of electronic
signatures.
  (3) Minimize the incidence of forged electronic signatures and
fraud in electronic commerce.
  (4) Foster the development of electronic commerce through the
use of electronic signatures to lend authenticity and integrity
to writings in any electronic medium.
  (5) Ensure that proper management oversight and accountability
are maintained for agency-conducted electronic commerce. + }
  SECTION 3.  { + As used in sections 1 to 7 of this Act:
  (1) 'Authentication authority' means a person offering digital
signature authentication services.
  (2) 'Certificate' means a computer-based record that:
  (a) Identifies the certification authority.
  (b) Identifies the subscriber.
  (c) Contains the subscriber's public key.
  (d) Is digitally signed by the certification authority.
  (3) 'Certification authority' means a person who issues a
certificate.
  (4) 'Digital signature' means a type of electronic signature
that transforms a message using an asymmetric cryptosystem such
that a person having the initial message and the signer's public
key can accurately determine:
  (a) Whether the transformation was created using the private
key that corresponds to the signer's public key.
  (b) Whether the initial message has been altered since the
transformation was made. A 'key pair' is a private key and its
corresponding public key in an asymmetric cryptosystem, under
which the public key verifies a digital signature the private key
creates. An 'asymmetric cryptosystem' is an algorithm or series
of algorithms which provide a secure key pair.
  (5) 'Electronic signature' means any letters, characters or
symbols, manifested by electronic or similar means, executed or


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adopted by a party with an intent to authenticate a writing. A
writing is electronically signed if an electronic signature is
logically associated with such writing.
  (6) 'Writing' includes handwriting, printing, typewriting and
all other methods and means of forming letters and characters
upon paper, stone, wood or other materials. 'Writing' also
includes information that is created or stored in any electronic
medium and is retrievable in perceivable form. + }
  SECTION 4.  { + Unless otherwise provided by law, an electronic
signature may be used to sign a writing and shall have the same
force and effect as a written signature. + }
  SECTION 5.  { + (1) The Director of the Department of Consumer
and Business Services shall have the authority to issue
certificates for the purpose of verifying digital signatures.
  (2) The Director of the Department of Consumer and Business
Services may register authentication authorities for the purpose
of ensuring the integrity of digital signatures. Before
registering an authentication authority, the director shall
confirm that the authentication authority has been independently
audited to ensure the integrity of the authority's digital
signatures.
  (3) The Director of the Department of Consumer and Business
Services shall have the authority to take actions as necessary to
achieve the purposes of sections 1 to 7 of this Act, including
the suspension or revocation of certificates or registrations
issued by the director. The director may impose a reasonable fee
to cover the expenses associated with administering this section
and shall adopt rules necessary to implement this section.
Nothing in this section shall be construed to compel any public
or private entity to participate in the director's certification
program, as authorized in this section, in order to verify
digital signatures.  Nothing in this section shall be construed
to compel any public or private entity to participate in the
director's program of registering authentication authorities. + }
  SECTION 6.  { + The Oregon Department of Administrative
Services shall be responsible for adopting and implementing
control processes and procedures to ensure adequate integrity,
security and confidentiality of business transactions conducted
using electronic commerce, and to ensure that those transactions
can be audited as may be necessary for the normal conduct of
business. + }
  SECTION 7. { +  Unless otherwise provided by law, in any
written communication with a public entity in which a signature
is required on a computer-based document, any party to the
communication may affix an electronic signature. The use of an
electronic signature shall have the same force and effect as the
use of a written signature. + }
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Passed by House May 9, 1997

Repassed by House June 12, 1997


      ...........................................................
                                             Chief Clerk of House

      ...........................................................
                                                 Speaker of House

Passed by Senate June 10, 1997


      ...........................................................
                                              President of Senate












































Enrolled House Bill 3046 (HB 3046-B)                       Page 3





Received by Governor:

......M.,............., 1997

Approved:

......M.,............., 1997


      ...........................................................
                                                         Governor

Filed in Office of Secretary of State:

......M.,............., 1997


      ...........................................................
                                               Secretary of State









































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