1.1                          A bill for an act 
  1.2             relating to commerce; regulating the duties of the 
  1.3             secretary as a licensed certification authority; 
  1.4             modifying the effective period of emerging suspensions 
  1.5             of certificates; specifying the consequences of 
  1.6             accepting certain digital signatures; regulating fees; 
  1.7             appropriating money; amending Minnesota Statutes 1998, 
  1.8             sections 325K.03, by adding a subdivision; 325K.04; 
  1.9             325K.05, subdivision 1; 325K.09, by adding a 
  1.10            subdivision; 325K.10, subdivision 5; 325K.14, by 
  1.11            adding a subdivision; and 325K.15, by adding a 
  1.12            subdivision; repealing Minnesota Rules, part 
  1.13            8275.0045, subpart 2.  
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 1998, section 325K.03, is 
  1.16  amended by adding a subdivision to read: 
  1.17     Subd. 4.  [CERTIFICATION PRACTICE STATEMENT.] The secretary 
  1.18  in the role of licensed certification authority is authorized to 
  1.19  adopt and amend a certification practice statement without using 
  1.20  the provisions of chapter 14. 
  1.21     Sec. 2.  Minnesota Statutes 1998, section 325K.04, is 
  1.22  amended to read: 
  1.23     325K.04 [FEES.] 
  1.24     (a) The secretary may adopt rules establishing reasonable 
  1.25  fees for all services rendered under this chapter, in amounts 
  1.26  sufficient to compensate for the costs of all services provided 
  1.27  by the secretary under this chapter.  All fees recovered by the 
  1.28  secretary must be deposited in the state general fund.  
  1.29     (b) The digital signature account is created in the special 
  2.1   revenue fund.  All fees recovered by the secretary must be 
  2.2   deposited in the digital signature account.  Money in the 
  2.3   digital signature account is continuously appropriated to the 
  2.4   secretary to pay the costs of all services provided by the 
  2.5   secretary. 
  2.6      (c) At the end of each biennium, any money remaining in the 
  2.7   digital signature account must be transferred to the general 
  2.8   fund. 
  2.9      Sec. 3.  Minnesota Statutes 1998, section 325K.05, 
  2.10  subdivision 1, is amended to read: 
  2.11     Subdivision 1.  [LICENSE CONDITIONS.] To obtain or retain a 
  2.12  license, a certification authority must: 
  2.13     (1) be the subscriber of a certificate published in a 
  2.14  recognized repository; 
  2.15     (2) employ as operative personnel only persons who have not 
  2.16  been convicted within the past 15 years of a felony or a crime 
  2.17  involving fraud, false statement, or deception; 
  2.18     (3) employ as operative personnel only persons who have 
  2.19  demonstrated knowledge and proficiency in following the 
  2.20  requirements of this chapter; 
  2.21     (4) file with the secretary a suitable guaranty, unless the 
  2.22  certification authority is a department, office, or official of 
  2.23  a federal, state, city, or county governmental entity that is 
  2.24  self-insured; 
  2.25     (5) use a trustworthy system, including a secure means for 
  2.26  limiting access to its private key; 
  2.27     (6) present proof to the secretary of having working 
  2.28  capital reasonably sufficient, according to rules adopted by the 
  2.29  secretary, to enable the applicant to conduct business as a 
  2.30  certification authority; 
  2.31     (7) register its business organization with the secretary, 
  2.32  unless the applicant is a governmental entity or is otherwise 
  2.33  prohibited from registering; and 
  2.34     (8) require a potential subscriber to appear in person 
  2.35  before the certification authority, or an agent of the 
  2.36  certification authority, to prove their identity before a 
  3.1   certificate is issued to the subscriber; and 
  3.2      (9) comply with all further licensing requirements 
  3.3   established by rule by the secretary. 
  3.4   The secretary may, by rule, establish standards by which the 
  3.5   in-person registration required in clause (8) may be waived. 
  3.6      Sec. 4.  Minnesota Statutes 1998, section 325K.09, is 
  3.7   amended by adding a subdivision to read: 
  3.8      Subd. 3.  [ACCEPTANCE.] A recipient who accepts a digital 
  3.9   signature where the certificate was issued by a licensed 
  3.10  certification authority becomes a party to and accepts all of 
  3.11  the terms and conditions of the licensed certification 
  3.12  authority's certification practice statement. 
  3.13     Sec. 5.  Minnesota Statutes 1998, section 325K.10, 
  3.14  subdivision 5, is amended to read: 
  3.15     Subd. 5.  [ORDER OF SUSPENSION OR REVOCATION.] The 
  3.16  secretary may order the licensed certification authority to 
  3.17  suspend or revoke a certificate that the certification authority 
  3.18  issued if, after giving any required notice and opportunity for 
  3.19  the certification authority and subscriber to be heard in 
  3.20  accordance with the Administrative Procedure Act, chapter 14, 
  3.21  the secretary determines that: 
  3.22     (1) the certificate was issued without substantial 
  3.23  compliance with this section; and 
  3.24     (2) the noncompliance poses a significant risk to persons 
  3.25  reasonably relying on the certificate. 
  3.26     Upon determining that an emergency requires an immediate 
  3.27  remedy, and in accordance with the Administrative Procedure Act, 
  3.28  chapter 14, the secretary may issue an order suspending a 
  3.29  certificate for a period not to exceed 48 96 hours. 
  3.30     Sec. 6.  Minnesota Statutes 1998, section 325K.14, is 
  3.31  amended by adding a subdivision to read: 
  3.32     Subd. 9.  [ADMINISTRATIVE PROCEDURES.] For purposes of this 
  3.33  section, the provisions of chapter 14 do not apply when the 
  3.34  secretary acts as a licensed certification authority for 
  3.35  governmental entities. 
  3.36     Sec. 7.  Minnesota Statutes 1998, section 325K.15, is 
  4.1   amended by adding a subdivision to read: 
  4.2      Subd. 8.  [ADMINISTRATIVE PROCEDURES.] For purposes of this 
  4.3   section, the provisions of chapter 14 do not apply when the 
  4.4   secretary acts as a licensed certification authority for 
  4.5   governmental entities. 
  4.6      Sec. 8.  [RULES REPEALER.] 
  4.7      Minnesota Rules, part 8275.0045, subpart 2, is repealed. 
  4.8      Sec. 9.  [EFFECTIVE DATE.] 
  4.9      Sections 1 to 8 are effective the day following enactment.