[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2107 Reported in Senate (RS)]





                                                       Calendar No. 581

105th CONGRESS

  2d Session

                                S. 2107

                          [Report No. 105-335]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                           September 17, 1998

                       Reported with an amendment
                                                       Calendar No. 581
105th CONGRESS
  2d Session
                                S. 2107

                          [Report No. 105-335]

    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, Mr. Reed, Mr. Cochran, 
Mr. Lott, and Mr. Burns) introduced the following bill; which was read 
     twice and referred to the Committee on Commerce, Science, and 
                             Transportation

                           September 17, 1998

               Reported by Mr. McCain, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Government Paperwork 
Elimination Act''.</DELETED>

<DELETED>SEC. 2 STUDIES ON USE OF DIGITAL SIGNATURES TO ENHANCE 
              ELECTRONIC COMMERCE.</DELETED>

<DELETED>    The Assistant Secretary shall conduct an ongoing study of 
the enhancement of electronic commerce due to the use of digital 
signatures pursuant to this Act, and shall report findings to the 
Commerce Committee of the House and to the Commerce, Science, and 
Transportation Committee of the Senate not later than--</DELETED>
        <DELETED>    (1) 12 months; and</DELETED>
        <DELETED>    (2) 60 months; after the date of enactment of this 
        Act.</DELETED>

<DELETED>SEC. 3. ELECTRONIC AVAILABILITY OF FORMS.</DELETED>

<DELETED>    The Director, in accordance with technical standards 
provided by the Assistant Secretary under section 6, shall not later 
than 12 months after the date of enactment of this Act establish a 
method for each Federal agency to make its forms available 
electronically. Such forms shall be--</DELETED>
        <DELETED>    (1) available for electronic submission (through 
        use of a digital signature when necessary);</DELETED>
        <DELETED>    (2) substantially identical in content and 
        requirements to any corresponding paper versions;</DELETED>
        <DELETED>    (3) available on an Internet web site controlled 
        by the Federal Government that contains an electronic link to 
        the website described in section 6(f) of this Act;</DELETED>
        <DELETED>    (4) available for downloading and 
        printing;</DELETED>
        <DELETED>    (5) available for electronic storage by employers 
        that are required by law to collect, store, or file paper 
        versions of forms completed by employees; and</DELETED>
        <DELETED>    (6) acknowledged upon receipt by an agency through 
        prompt issuance of an electronic receipt.</DELETED>

<DELETED>SEC. 4. PAYMENTS.</DELETED>

<DELETED>    Under the method established under section 2--</DELETED>
        <DELETED>    (1) any payment associated with a form submitted 
        electronically shall be no greater than the payment associated 
        with any corresponding printed version of such form;</DELETED>
        <DELETED>    (2) not less than 2 means of electronic payment 
        shall be provided, but such payment may not be required to 
        precede submission of a form; and</DELETED>
        <DELETED>    (3) a prompt receipt for electronic payment shall 
        be issued electronically to each person who submits a payment 
        electronically.</DELETED>

<DELETED>SEC. 5. USE OF DIGITAL SIGNATURES BY FEDERAL 
              OFFICIALS.</DELETED>

<DELETED>    (a) Agency Employees To Receive Digital Signatures.--The 
head of each agency shall issue guidelines for determining how and 
which employees in each respective agency shall be provided 
digitalsignatures for use within the scope of their 
employment.</DELETED>
<DELETED>    (b) Availability of Electronic Noitce.--An agency may 
provide a person entitled to receive written notice of a particular 
matter with the opportunity to receive electronic notice 
instead.</DELETED>

<DELETED>SEC. 6. CERTIFICATES FOR DIGITAL SIGNATURES.</DELETED>

<DELETED>    (a) Guidelines for Acceptance of Certificates.--The 
Director shall issue guidelines governing the manner in which agencies 
may accept certificates.</DELETED>
<DELETED>    (b) Accreditation.--Under the guidelines issued under 
subsection (a), an agency shall accept certificates issued by--
</DELETED>
        <DELETED>    (1) the agency; or</DELETED>
        <DELETED>    (2) a trusted third party that is licensed or 
        accredited by--</DELETED>
                <DELETED>    (A) a State or local government; 
                or</DELETED>
                <DELETED>    (B) an appropriate accreditation 
                body.</DELETED>
<DELETED>    (c) Trusted Third Party Liability.--Under the guidelines 
issued under subsection (a), an agency may accept a certificate only 
from a trusted third party that, in accordance with commercially 
reasonable standards, accepts liability for and is insured against 
negligent issuance or handling of certificates.</DELETED>
<DELETED>    (d) Foreign Trusted Third Party.--The Secretary of State 
shall determine from which foreign countries agencies may accept 
certificates.</DELETED>
<DELETED>    (e) Agency Establishment of Trusted Third Party.--No 
agency may establish a trusted third party except to--</DELETED>
        <DELETED>    (1) provide digital signatures to its 
        employees;</DELETED>
        <DELETED>    (2) issue certificates relating to messages sent 
        by such employees; or</DELETED>
        <DELETED>    (3) act as a reliable authority on behalf on 
        another trusted third party.</DELETED>
<DELETED>    (f) Directory of Qualified Trusted Third Parties.--The 
Assistant Secretary shall compile and post on a website controlled by 
the Federal Government a list of trusted third parties (along with an 
electronic link, if any, to a web site controlled by each trusted third 
party) that are qualified under this section to issue 
certificates.</DELETED>

<DELETED>SEC. 7. STANDARDS FOR DIGITAL SIGNATURES; EFFECT OF DIGITAL 
              SIGNATURES.</DELETED>

<DELETED>    (a) Technical Standards for Digital Signatures.--The 
Assistant Secretary shall provide to the Director technical standards 
for the digital signatures accepted for purposes of the method 
established under section 2 or provided under section 4.</DELETED>
<DELETED>    (b) Compatibility with Private Sector.--The standards 
referred to in subsection (a) shall be compatible with standards and 
technology for digital signatures used in commerce and industry and by 
State governments.</DELETED>
<DELETED>    (c) Standards Shall Be Technology Neutral.--The Secretary, 
in setting standards for digital signature technologies to be used by 
the Federal Government, shall take all steps necessary to ensure that 
such standards do not inappropriately favor one industry.</DELETED>
<DELETED>    (d) Reliability of Digital Signatures.--Under the 
standards referred to in subsection (a), a digital signature shall be 
as reliable as is appropriate for the purpose for which an electronic 
message containing a digital signature is generated, in light of all 
the circumstances, including any relevant agreement.</DELETED>
<DELETED>    (e) Legal Significance of Digital Signatures.--For 
purposes of digital signed forms accepted under section 2, a digital 
signature shall have the same force and effect as a written 
signature.</DELETED>

<DELETED>SEC. 8. EMPLOYER ELECTRONIC STORAGE OF FORMS.</DELETED>

<DELETED>    If an employer is required by law to collect, store, or 
file paper forms that are completed by employees, such employer may 
store such formselectronically if such forms are submitted 
electronically.</DELETED>

<DELETED>SEC. 9. IMPLEMENTATION BY AGENCIES.</DELETED>

<DELETED>    (a) Implementation.--Not later than 36 months after the 
date of enactment of this Act, each agency shall implement the method 
established under section 2 of this Act and the guidelines issued under 
section 4 of this Act.</DELETED>
<DELETED>    (b) Report to Congress.--Not later than 12 months after 
the date of enactment of this Act, the Assistant Secretary shall submit 
a report to the Commerce Committee of the House and to the Commerce, 
Science, and Transportation Committee of the Senate that details the 
technical standards described in section 6.</DELETED>

<DELETED>SEC. 10. SENSE OF THE CONGRESS.</DELETED>

<DELETED>    Because there is no meaningful difference between 
contracts executed in the digital world and contracts executed in the 
analog world, it is the sense of the Congress that such contracts 
should be treated similarly under federal law. It is further the sense 
of the Congress that such contracts should be treated similarly under 
state law.</DELETED>

<DELETED>SEC. 11. DEFINITIONS.</DELETED>

<DELETED>    For purposes of this Act:</DELETED>
        <DELETED>    (1) Assistant secretary.--The term `Assistant 
        Secretary' means the Assistant Secretary for Communications and 
        Information (the head of the National Telecommunications and 
        Information Administration) of the Department of 
        Commerce.</DELETED>
        <DELETED>    (2) Agency.--The term `agency' has the meaning 
        given the term `executive agency' in section 105 of title 5, 
        United States Code.</DELETED>
        <DELETED>    (3) Certificate.--(A) The term `certificate' means 
        a statement meeting the requirements of subparagraph (B) that 
        permits a person holding such statement to determine that a 
        digital signed message--</DELETED>
                <DELETED>    (i) was signed by the person whose digital 
                signature appears to be attached to the message; 
                and</DELETED>
                <DELETED>    (ii) has not been altered since the 
                digital signature was attached.</DELETED>
        <DELETED>    (B) For purposes of subparagraph (A), the 
        statement must--</DELETED>
                <DELETED>    (i) identify the trusted third party or 
                agency issuing such statement;</DELETED>
                <DELETED>    (ii) identify the person whose digital 
                signature the trusted third party or agency is 
                authenticating with such statement;</DELETED>
                <DELETED>    (iii) specify the operational period of 
                such statement; and</DELETED>
                <DELETED>    (iv) be digitally signed by the trusted 
                third party or agency issuing such statement.</DELETED>
        <DELETED>    (4) Digital signature.--The term `digital 
        signature' means a method of signing an electronic message 
        that--</DELETED>
                <DELETED>    (A) identifies a particular person as the 
                source of such electronic message; and</DELETED>
                <DELETED>    (B) indicates such person's approval of 
                the information contained in such electronic 
                message.</DELETED>
        <DELETED>    (5) Director.--The term `Director' means the 
        Director of the Office of Management and Budget.</DELETED>
        <DELETED>    (6) Form.--The term `form' means a document 
        produced by an agency--</DELETED>
                <DELETED>    (A) that is used by the agency to 
                facilitate interaction between the agency and 
                persons;</DELETED>
                <DELETED>    (B) that is completed by a person by 
                inserting information as required by the 
                agency;</DELETED>
                <DELETED>    (C) that is submitted to an agency more 
                than 1,000 times per year; and</DELETED>
                <DELETED>    (D) that is not required to be completed 
                in the presence of a Federal official or at a 
                particular location.</DELETED>
        <DELETED>    (7) Reliable authority.--The term `reliable 
        authority' means an entity licensed to serve as a notary that 
        vouches to a trusted third party for the identity of a person 
        who seeks a certificate to be issued on such person's 
        behalf.</DELETED>
        <DELETED>    (8) Trusted third party.--The term `trusted third 
        party' means an entity (other than an agency) that issues a 
        certificate.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Government Paperwork Elimination 
Act''.

SEC. 2. STUDIES ON USE OF ELECTRONIC SIGNATURES TO ENHANCE ELECTRONIC 
              COMMERCE.

    The Secretary shall conduct an ongoing study of the enhancement of 
electronic commerce and the impact on individual privacy due to the use 
of electronic signatures pursuant to this Act, and shall report 
findings to the Commerce Committee of the House and to the Commerce, 
Science, and Transportation Committee of the Senate not later than 18 
months after the date of enactment of this Act.

SEC. 3. ELECTRONIC AVAILABILITY OF FORMS.

    (a) New Forms, Questionnaires, and Surveys.--The head of an agency 
or operating unit shall provide for the availability to the affected 
public in electronic form for downloading or printing through the 
Internet or other suitable medium of any agency form, questionnaire, or 
survey created after the date of enactment of this Act that is to be 
submitted to the agency by more than 1,000 non-government persons or 
entities per year, except where the head of the agency or operating 
unit determines by a finding that providing for such availability would 
be impracticable or otherwise unreasonable.
    (b) All Forms, Questionnaires, and Surveys.--As soon as 
practicable, but not later than 18 months after the date of enactment 
of this Act, each Federal agency shall make all of its forms, 
questionnaires, and surveys that are expected to be submitted to such 
agency by more than 1,000 non-government persons or entities per year 
available to the affected public for downloading or printing through 
the Internet or other suitable electronic medium. This requirement 
shall not apply where the head of an agency or operating unit 
determines that providing such availability for particular form, 
questionnaire or survey documents would be impracticable or otherwise 
unreasonable.
    (c) Applicability of Section.--The requirements of this section 
shall not apply to surveys that are both distributed and collected one-
time only or that are provided directly to respondents by the agency.
    (d) Availability.--Forms subject to this section shall be available 
for electronic submission (with an electronic signature when necessary) 
under the provisions of section 8, and shall be available for 
electronic storage by employers as described in section 7.
    (e) Paper Forms To Be Available.--Each agency and operating unit 
shall continue to make forms, questionnaires, and surveys available in 
paper form.

SEC. 4. PAYMENTS.

    In conjunction with the process required by section 8--
            (1) where they deem such action appropriate and 
        practicable, and subject to standards or guidance of the 
        Department of the Treasury concerning Federal payments or 
        collections, agencies shall seek to develop or otherwise 
        provide means whereby persons submitting documents 
        electronically are accorded the option of making any payments 
        associated therewith by electronic means.
            (2) payments associated with forms, applications, or 
        similar documents submitted electronically, other than amounts 
        relating to additional costs associated with the electronic 
        submission such as charges imposed by merchants in connection 
        with credit card transactions, shall be no greater than the 
        payments associated with the corresponding printed version of 
        such documents.

SEC. 5. USE OF ELECTRONIC SIGNATURES BY FEDERAL AGENCIES.

    (a) Agency Employees To Receive Electronic Signatures.--The head of 
each agency shall issue guidelines for determining how and which 
employees in each respective agency shall be permitted to use 
electronic signatures within the scope of their employment.
    (b) Availability of Electronic Notice.--An agency may provide a 
person entitled to receive written notice of a particular matter with 
the opportunity to receive electronic notice instead.
    (c) Procedures for Acceptance of Electronic Signatures.--The 
Director, in consultation with the Secretary, shall coordinate agency 
actions to comply with the provisions of this Act and shall develop 
guidelines concerning agency use and acceptance of electronic 
signatures, and such use and acceptance shall be supported by the 
issuance of such guidelines as may be necessary or appropriate by the 
Secretary.
            (1) The procedures shall be compatible with standards and 
        technology for electronic signatures as may be generally used 
        in commerce and industry and by State governments, based upon 
        consultation with appropriate private sector and State 
        government standard setting bodies.
            (2) Such procedures shall not inappropriately favor one 
        industry or technology.
            (3) Under the procedures referred to in subsection (a), an 
        electronic signature shall be as reliable as is appropriate for 
        the purpose, and efforts shall be made to keep the information 
        submitted intact.
            (4) Successful submission of an electronic form shall be 
        electronically acknowledged.
            (5) In accordance with all other sections of the Act, to 
        the extent feasible and appropriate, and described in a written 
        finding, an agency, when it receives electronically 50,000 
        submittals of a particular form, shall take all steps necessary 
        to ensure that multiple formats of electronic signatures are 
        made available for submitting such forms.

SEC. 6. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC RECORDS.

    Electronic records submitted or maintained in accordance with 
agency procedures and guidelines established pursuant to the Act, or 
electronic signatures or other forms of electronic authentication used 
in accordance with such procedures and guidelines, shall not be denied 
legal effect, validity or enforceability because they are in electronic 
form.

SEC. 7. EMPLOYER ELECTRONIC STORAGE OF FORMS.

    If an employer is required by any Federal law or regulation to 
collect or store, or to file with a Federal agency forms containing 
information pertaining to employees, such employer may, after 18 months 
after enactment of this Act, store such forms electronically unless the 
relevant agency determines by regulation that storage of a particular 
form in an electronic format is inconsistent with the efficient secure 
or proper administration of an agency program. Such forms shall also be 
accepted in electronic form by agencies as provided by section 8.

SEC. 8. IMPLEMENTATION BY AGENCIES.

    (a) Implementation.--Consistent with the Privacy Protection Act of 
1980 (42 U.S.C. 2000aa) and after consultation with the Attorney 
General, and subject to applicable laws and regulations pertaining to 
the Department of the Treasury concerning Federal payments and 
collections and the National Archives and Records Administration 
concerning the proper maintenance and preservation of agency records, 
Federal agencies shall, not later than 18 months after the enactment of 
this Act, establish and implement policies and procedures under which 
they will use and authorize the use of electronic technologies in the 
transmittal of forms, applications, and similar documents or records, 
and where appropriate, for the creation and transmission of such 
documents or records and their storage for their required retention 
period.
    (b) Establishment of a Timeline for Implementation.--Within 18 
months after the date of enactment of this Act, Federal agencies shall 
establish timelines for the implementation of the requirements of 
subsection (a).
    (c) General Accounting Office Report.--The Comptroller General 
shall report to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on Commerce 
21 months after the date of enactment of this Act on the proposed 
implementation policies and timelines described in subsections (a) and 
(b).
    (d) Implementation Deadline.--Except where an agency makes a 
written finding that electronic filing of a form is either technically 
infeasible, economically unreasonable, or may compromise national 
security, all Federal forms must be made available for electronic 
submission within 60 months after the date of enactment of this Act.

SEC. 9. SENSE OF THE CONGRESS.

    Because there is no meaningful difference between contracts 
executed in the electronic world and contracts executed in the analog 
world, it is the sense of the Congress that such contracts should be 
treated similarly under Federal law. It is further the sense of the 
congress that such contracts should be treated similarly under State 
law.

SEC. 10. APPLICATION WITH OTHER LAWS.

    Nothing in this this Act shall apply to the Department of the 
Treasury or the Internal Revenue Service, to the extent that--
            (1) it involves the administration of the internal revenue 
        laws; and
            (2) it conflicts with any provision of the Internal Revenue 
        Service Restructuring and Reform Act of 1998 or the Internal 
        Revenue Code of 1986.

SEC. 11. DEFINITIONS.

    For purposes of this Act:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (2) Agency.--The term ``agency'' means executive agency, as 
        that term is defined in section 105 of title 5, United States 
        Code.
            (3) Electronic signature.--The term ``electronic 
        signature'' means a method of signing an electronic message 
        that--
                    (A) identifies a particular person as the source of 
                such electronic message; and
                    (B) indicates such person's approval of the 
                information contained in such electronic message.
            (4) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (5) Form, questionnaire, or survey.--The terms ``form'', 
        ``questionnaire'', and ``survey'' include documents produced by 
        an agency to facilitate interaction between an agency and non-
        government persons.