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Montana Administrative Register Notice 18-119 No. 14   07/26/2007    
    Page No.: 998 -- 1003
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BEFORE THE DEPARTMENT OF TRANSPORTATION

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 18.4.110 through 18.4.115 pertaining to acceptance and use of electronic records and electronic signatures
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NOTICE OF PROPOSED AMENDMENT
 
NO PUBLIC HEARING CONTEMPLATED

 

TO: All Concerned Persons

 

1. On October 1, 2007, the Department of Transportation proposes to amend the above-stated rules.

 

2. The Department of Transportation will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact Department of Transportation no later than 5:00 p.m. on August 3, 2007, to advise us of the nature of the accommodation that you need. Please contact Lisa Durbin, Department of Transportation, 2701 Prospect Ave, Helena, Montana, 59620-1001; telephone (406) 444-0453; fax (406) 444-7297; TDD (406) 444-7696 or 800-335-7592; or e-mail ldurbin@mt.gov.

 

            3. For reasonable necessity, these rules are being amended because, on December 3, 2004, the Department of Transportation adopted the above-stated rules in order to implement the Montana Electronic Transactions with State Agencies and Local Government Units Act. Sections 2-20-101, et seq., MCA. That act was repealed by the Legislature during the 2007 legislative session. (HB 177, chapter No. 130.) HB 177 also amended section 30-18-118(2), MCA, allowing state agencies to adopt rules pursuant to that statute. The Department of Transportation proposes that the following amendments become effective on October 1, 2007, the effective date of chapter 130, Laws of 2007.

 

            4. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

 

18.4.110 DEFINITIONS For the purposes of this subchapter, and unless the context expressly indicates otherwise:

(1) "Acceptable certification authorities" means a certification authority that meets the requirements of 2-20-109 and 2-20-110, MCA.

(2) "Approved list of certification authorities" means the list of certification authorities approved by the secretary of state to issue certificates for digital signature transactions involving public entities in Montana.

(3)(1) "Asymmetric cryptosystem" means a computer algorithm or series of algorithms which utilize two different keys with the following characteristics:

(a) one key signs a given message;

(b) one key verifies a given message; and

(c) the keys have the property that, knowing one key, it is computationally infeasible to discover the other key.

(2) "Certificate" means an electronic record that:

(a) identifies the certification authority issuing it;

(b) identifies its subscriber;

(c) contains a public key that corresponds to a private key under the control of the subscriber;

(d) specifies its operational period; and

(e) is digitally signed by the certification authority issuing it.

(4)(3) "Certification authority" means a person or entity that issues a certificate, or in the case of certain certification processes, certifies amendments to an existing certificate, or appears on the secretary of state's "approved list of certificate authorities".

(5) remains the same but is renumbered (4).

(5) "Digital signature" means a type of electronic signature that encrypts a record by using a cryptosystem in a manner that a person who has the unencrypted record, the encrypted record, and the signer's key can accurately determine:

(a) whether the encryption of the record to an electronic record was created using the private key that corresponds to the signer's public key; and

(b) whether the record has been altered since the record was encrypted into an electronic record.

(6) remains the same.

(7) "Identification" means the document or documents presented to a certification authority to establish the identity of a subscriber.

(8) "Key" means a password or table used to decipher encrypted electronic data.

(9) "Key pair" means a private key and its corresponding public key in a cryptosystem, as part of which the public key verifies the signature made by the private key.

(7) through (9) remain the same but are renumbered (10) through (12).

(13) "Private key" is a key of a key pair used to create a digital signature.

(14) "Public key" is the key of a key pair used to verify a digital signature.

(15) "Record" includes any paper, correspondence, form, book, photograph, microfilm, map, drawing, or other document, including a copy of any of them, that has been made or received by a state agency in connection with the transaction of the official business of that entity and all other documents required by law to be filed with or kept by that agency.

(10) and (11) remain the same but are renumbered (16) and (17).

(18) "State agency" means a department, board, commission, authority, or other governmental entity of the executive branch of state government, including the Montana university system.

(12) remains the same but is renumbered (19).

(20) "Verify a digital signature" means to use the public key listed in a valid certificate, by means of a security procedure, to evaluate a digitally signed electronic record so that the evaluation concluded that:

(a) the digital signature was created using the private key corresponding to the public key listed in the certificate; and

(b) the electronic record has not been altered since its digital signature was created.

AUTH: 2-20-105 30-18-118, MCA

IMP: 2-20-105, 30-18-104, 30-18-107, 30-18-109, 30-18-113, 30-18-114, 30-18-116, 30-18-117, MCA

 

REASON: The department has determined that it is necessary to amend these rules because, as noted above, the legislature has repealed section 2-20-105, MCA, which provided the statutory authority for the rules adopted on December 3, 2004. The Legislature, however, transferred that authority to section 30-18-118, MCA. Additionally, the repeal and amendments of the noted statutes made it necessary to change this definition section to take account of the statutory changes. Also, with the repeal of the former Act certain definitions were also repealed. As a result, for the purposes of continuity, it was necessary to adopt those definitions in the amended rule. The terms are used in the following proposed rules, and by providing definitions the rules are made easier to understand and more useful to the department as well as the public. The definitions found through the amended rules are necessary to achieve the goals of the Legislature in facilitating electronic communication and commerce.

 

18.4.111 SUBMISSION OF TRANSPORTATION CONSTRUCTION BID

(1) through (4) remain the same.

 

AUTH: 2-20-105 30-18-118, MCA

IMP: 2-20-105, 30-18-104, 30-18-107, 30-18-109, 30-18-113, 30-18-114, 30-18-116, 30-18-117, MCA

 

REASON: For ARM 18.4.111 and ARM 18.4.112, the department has determined that it is necessary to amend these rules because, as noted above, the Legislature has repealed section 2-20-105, MCA, which provided the statutory authority for the rules adopted on December 3, 2004. The Legislature, however, transferred that authority to section 30-18-118, MCA.

 

18.4.112 ELECTRONICALLY TRANSMITTED BID (1) through (3) remain the same.

 

AUTH: 2-20-105 30-18-118, MCA

IMP: 2-20-105, 30-18-104, 30-18-107, 30-18-109, 30-18-113, 30-18-114, 30-18-116, 30-18-117, MCA

 

18.4.113 ACCEPTABLE TECHNOLOGY (1) through (1)(b) remain the same.

(c) be under the sole control of the person using it; and

(d) be linked to the data in such a manner that if the data are changed, the digital signature is invalidated; and

(e) conform to Title 2, chapter 20, part 1 of the Montana Code Annotated.

(2) The technology known as public key infrastructure is an acceptable technology for use by persons conducting business with the department, provided that the digital signature is created consistent with the provisions in Title 2, chapter 20, part 1, MCA, and these rules.

(3) remains the same.

 

AUTH: 2-20-105 30-18-118, MCA

IMP: 2-20-105, 30-18-104, 30-18-107, 30-18-109, 30-18-113, 30-18-114, 30-18-116, 30-18-117, MCA

 

REASON: The department is amending 18.4.113 through 18.4.115 to delete references to Title 2, chapter 20, part 1, because that part of MCA was repealed.

 

18.4.114 PRIVATE AND PUBLIC KEYS (1) Section 2-20-103, MCA requires that a A digital signature must be "unique to the person using it". A public key based digital signature may be considered unique to the person using it, if:

(a) through (c) remain the same.

(2) Although not all digitally signed communications will require the signer to obtain a certificate, the signer is capable of being issued a certificate to certify that he or she controls the key pair used to create the signature.

(3) (2) Section 2-20-103, MCA requires that t The digital signature remains "under the sole control of the person using it". Whether a signature is accompanied by a certificate or not, the person who holds the key pair, or the subscriber identified in the certificate, assumes a duty to exercise reasonable care to retain control of the private key and prevent its disclosure to any person not authorized to create the subscriber's digital signature pursuant to the laws of Montana.

 

AUTH: 2-20-105 30-18-118, MCA

IMP: 2-20-105, 30-18-104, 30-18-107, 30-18-109, 30-18-113, 30-18-114, 30-18-116, 30-18-117, MCA

 

REASON: Section (2) is being deleted because it is not applicable to the department's bidding procedure.

 

18.4.115 VERIFICATION (1) Section 2-20-103, MCA requires that a A digital signature must be "capable of verification". A public key based digital signature is capable of verification if:

(a) and (b) remain the same.

 

AUTH: 2-20-105 30-18-118, MCA

IMP: 2-20-105, 30-18-104, 30-18-107, 30-18-109, 30-18-113, 30-18-114, 30-18-116, 30-18-117, MCA

 

REASON: The department has determined that it is necessary to amend these rules because, as noted above, the Legislature has repealed section 2-20-105, MCA, which provided the statutory authority for the rules adopted on December 3, 2004. The Legislature, however, transferred that authority to section 30-18-118, MCA. 

 

5. Concerned persons may submit their data, views, or arguments concerning the proposed action in writing to: Lisa Durbin, Department of Transportation, 2701 Prospect Ave., Helena, Montana, 59620-1001; telephone (406) 444-0453; fax (406) 444-7297; or e-mail ldurbin@mt.gov, and must be received no later than 5:00 p.m., August 27, 2007.

 

6. If persons who are directly affected by the proposed action wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to Lisa Durbin at the above address no later than 5:00 p.m., August 10, 2007.

 

7. If the agency receives requests for a public hearing on the proposed action from either 10% or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register. Ten percent of those has been determined to be 30 persons based on 300 companies who could be expected to bid on construction projects.

 

8. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Such written request may be mailed or delivered to the contact person in 5 above or may be made by completing a request form at any rules hearing held by the department.

 

9. An electronic copy of this Proposal Notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register. The Secretary of State strives to make the electronic copy of this Notice conform to the official version of the Notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the Notice and the electronic version of the Notice, only the official printed text will be considered. In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

 

10. The bill sponsor notice requirements of 2-4-302, MCA, apply and have been fulfilled. The primary sponsor of HB 234 (2001) was notified on June 20, 2007 by U.S. Postal Service. The primary sponsor of HB 177 (2007) was notified on June 20, 2007, by U.S. Postal Service.

 

/s/ Lyle Manley                                                              /s/ James D. Currie

Lyle Manley                                                                   James D. Currie

Rule Reviewer                                                               Deputy Director, Dept. of Transportation

 

 

Certified to the Secretary of State July 16, 2007.

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