AB811: Bill Text

LRB-3203/1

RAC:mfd&kaf:hmh

1997 - 1998 LEGISLATURE

1997 Assembly BILL 811

February 24, 1998 - Introduced by Representatives Jensen, Hutchison, Schneider, F. Lasee, Owens, Hanson, Albers, Goetsch, Porter, Meyer, Sykora, Schafer, Kelso, Otte, Travis, Duff, Plale, Powers, Green, Spillner, Ott, Grothman and Springer, cosponsored by Senators Panzer, Rosenzweig, Farrow and Cowles. Referred to Joint committee on Information Policy.

AB811,1,6 An Act to repeal 16.855 (23); to renumber chapter 137; to amend 20.575 (1) (g), 137.01 (4) (a) and 990.01 (38); and to create 20.144 (1) (hm), chapter 137 (title) and subchapter II of chapter 137 [precedes 137.04] of the statutes; relating to: the authorization, use and verification of digital signatures, licensure and regulation of certification authorities, granting rule-making authority and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill authorizes the use and provides for the regulation of digital signatures in this state. A digital signature is a combination of words, letters, symbols or characters that is used by a person for validating a document that has been transformed into digital, electronic or any other data format in such a manner that the identity of the person who originates the document is incontrovertible and the information contained in the document is identical to that originated by the person. Under the bill, the department of financial institutions (DFI) is required to promulgate rules regarding the use and verification of digital signatures. In addition, the bill provides that any document that is required by law to be submitted in writing may be submitted by transforming the document into digital, electronic or any other data format, but only with the consent of the person who is to receive the document. The bill provides that any document that requires a manual, facsimile or other form of signature or that is given effect with a manual, facsimile or other form of signature may be signed or given effect with a digital signature if the digital signature is verified by DFI or another person authorized by DFI to verify digital signatures and if the person who is to receive the document consents to the use of the digital signature. Finally, the bill creates a committee, whose members are appointed by the governor, entitled the commission on the use of digital signatures. This committee is required to study the use and regulation of digital signatures in this state and is required to report to the legislature on the use and regulation of digital signatures in this state.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB811, s. 1 Section 1. 16.855 (23) of the statutes, as created by 1997 Wisconsin Act 27, is repealed.

AB811, s. 2 Section 2. 20.144 (1) (hm) of the statutes is created to read:

AB811,2,6 20.144 (1) (hm) Certification authorities. All moneys received from fees imposed on certification authorities under s. 137.07 for the licensure and regulation of certification authorities.

AB811, s. 3 Section 3. 20.575 (1) (g) of the statutes, as affected by 1997 Wisconsin Acts 27 and 35, is amended to read:

AB811,2,15 20.575 (1) (g) Program fees. The amounts in the schedule for the purpose of carrying out general program operations. Except as provided under par. (ka), all amounts received by the secretary of state, including fees under chs. ch. 132 and subch. I of ch. 137 and all moneys transferred from the appropriation under s. 20.144 (1) (g), shall be credited to this appropriation. Notwithstanding s. 20.001 (3) (a), any unencumbered balance at the close of a fiscal year exceeding 10% of that fiscal year's expenditures under this appropriation shall lapse to the general fund.

AB811, s. 4 Section 4. Chapter 137 (title) of the statutes is created to read:

AB811,2,17 Chapter 137

AB811,3,1 Authentications

AB811, s. 5 Section 5. Chapter 137 of the statutes, as affected by 1997 Wisconsin Act 27, is renumbered subchapter I of chapter 137 [precedes 137.01].

AB811, s. 6 Section 6. 137.01 (4) (a) of the statutes is amended to read:

AB811,3,6 137.01 (4) (a) Every official act of a notary public shall be attested by the notary public's written signature or digital signature, as defined in s. 137.04 (4).

AB811, s. 7 Section 7. Subchapter II of chapter 137 [precedes 137.04] of the statutes is created to read:

AB811,3,9 Chapter 137

AB811,3,10 Subchapter II

AB811,3,11 Digital signatures

AB811,3,12 137.04 Definitions. In this subchapter:

AB811,3,15 (1) "Authenticate" means to validate a document in such a manner that the identity of the person who originates the document is incontrovertible and the information contained in the document is identical to that originated by the person.

AB811,3,17 (2) "Certification authority" means any person who is authorized by the department to verify a digital signature.

AB811,3,18 (3) "Department" means the department of financial institutions.

AB811,3,22 (4) "Digital signature" means any combination of words, letters, symbols or characters used by a person for the purpose of authenticating a document that has been transformed into digital, electronic or any other data format that is retrievable in any form.

AB811,3,24 (5) "Verify" means to determine that a digital signature meets all of the following requirements:

AB811,3,25 (a) The digital signature was created by a particular person.

AB811,4,2 (b) The document to which the digital signature is affixed has not been altered since the digital signature was created.

AB811,4,3 (c) The digital signature conforms to any rules promulgated by the department.

AB811,4,8 137.05 Submission of written documents. Unless otherwise prohibited by law, any document that is required by law to be submitted in writing may be submitted by transforming the document into digital, electronic or any other data format that is retrievable in any form, but only with the consent of the person who is to receive the document.

AB811,4,12 137.06 Digital signature. (1) Unless otherwise prohibited by law, any document that requires a manual, facsimile or other form of signature or that is given effect with a manual, facsimile or other form of signature may be signed or given effect with a digital signature if all of the following occur:

AB811,4,13 (a) The digital signature is verified by a certification authority.

AB811,4,15 (b) The person who is to receive the document consents to the use of the digital signature.

AB811,4,17 (2) A digital signature that satisfies all of the factors specified in sub. (1) has the same force and effect as a manual, facsimile or other form of signature.

AB811,4,24 137.07 Certification authorities; use and verification of digital signatures. The department may serve as a certification authority and may license and regulate other certification authorities. The department may charge certification authorities a fee to cover any costs incurred by the department in licensing and regulating certification authorities. The department shall promulgate rules concerning the licensure and regulation of certification authorities and the use and verification of digital signatures.

AB811, s. 8 Section 8. 990.01 (38) of the statutes is amended to read:

AB811,5,5 990.01 (38) Signature. If the signature of any person is required by law it shall always be the handwriting of such person or, if the person is unable to write, the person's mark or the person's name written by some other person at the person's request and in the person's presence, or, subject to any applicable requirements under subch. II of ch. 137, the digital signature of the person.

AB811, s. 9 Section 9. Nonstatutory provisions.

AB811,5,7 (1) Commission on the use of digital signatures.

AB811,5,8 (a) In this subsection:

AB811,5,9 1. "Committee" has the meaning specified in section 15.01 (3) of the statutes.

AB811,5,11 2. "Digital signature" has the meaning specified in section 137.04 (4) of the statutes, as created by this act.

AB811,5,13 (b) There is established a committee called the commission on the use of digital signatures consisting of members appointed by the governor.

AB811,5,15 (c) The commission shall study the use and regulation of digital signatures in this state and any other matter affecting the use and regulation of digital signatures.