SB 162 — Revises provisions relating to electronic transactions. (BDR 59-876)

REQUIRESSenate TWO-THIRDSBill MAJORITYNo. VOTE (§ 5) EXEMPT (Reprinted with amendments adopted on April 18, 2019) FIRST REPRINT S.B.

162162–Senator SENATEKieckhefer BCHAPTER.......... ILLN O .

162–SENATOR K IECKHEFER FEBRUARY 14, 2019 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to electronic transactions.

(BDR 59-876) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

LegExistingLegislative lawCounsel’s givesDigest: legal recognition to electronic records, signatures and contracts that comply with certain requirements and allows an electronic record or signature to satisfy a requirement for a written record or signature in certain circumstances.

Existing law gives legal recognition to electronic records, signatures and contracts that comply with certain requirements and allows an electronic record or signature to satisfy a requirement for a written record or signature in certain circumstances.

Section 4 of this bill provides that a person who uses a public blockchain to secure information that the person owns or has a right to use does not thereby -relinquish *SB162_R1*any –right 2of –ownership or use of such information, except as otherwise provided by an agreement of the person.

Section 4 further provides that theerwise provisions of section 4 are not to be deemed to affect the status of, or any legal right or obligation relating to, a document submitted to a governmental agency ororl official or a document that is a public record.

Under existing law, governmental agencies of this State and its political subdivisions are generally free to determine whether, and the extent to which, they 5 of this bill requires such an agency to consider the use of equipment and software that will enable the agency to send, accept, process, use and rely upon electronican records and electronic signaturesrecord. whenever the agency acquires, replaces or updates an information processing system or any part of such a system.

(NRS 719.350) Section 5of alsothis prohibitsbill anyrequires such an agency from refusing to accept,consider process,the use orof relyequipment uponand asoftware copythat iswill inenable electronicthe form, but permits an agency to rejectsend, aaccept, certifiedprocess, copyuse in electronic form if the agency would be required to acquire and payrely forupon anyelectronic equipmentan orinformation softwareprocessing tosystem accept, process, use or relyany uponpart theof copysuch ina thesystem. form provided.

Section 5 alsoalsopdates authorizesprohibits anany such agency from refusing to chargeaccept, andprocess, collectuse or rely upon a certified copy of a record from another governmental agency solely because the samecopy feeis forin providingelectronic form, but permits an agency to reject a certified copy in electronic form asif isthe providedagency bywould lawbe required to acquire and pay for providingany aequipment certifiedor software to accept, process, use or rely upon the copy in paperthe form.form provided.

Finally,Section if5 also authorizes an agency receivingto acharge certifiedand copycollect inthe sectionsame 5fee authorizesfor theproviding agencya tocertified chargecopy andin collectelectronic aform feeas tois recoverprovided thatby cost.y,law THEfor PEOPLEproviding OFa THE- STATE80th OFSession NEVADA,(2019) REPRESENTED– IN2 SENATE– ANDcertified ASSEMBLY,copy DOin ENACTpaper ASform. FOLLOWS:

Finally, if an agency receiving a certified copy in electronic form incurs a fee or other cost for accepting or processing such a copy, section 5 authorizes the agency to charge and collect a fee to recover that cost.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

2.more unaffiliated computers or machines verify the recordedtwo or transactions or other data;

Is processed using a decentralized method by which two or more unaffiliated computers or machines verify the recorded transactions or other data;

- *SB162_R1* – 3 – Sec.

(a) Filed with or otherwise submitted to a governmental agency or official, including, without limitation, any document - 80th Session (2019) – 3 – that is submitted for recording in the office of a county recorder;

Whenever a governmental agency of this State or a political subdivision of this State acquires, replaces or updates an information processing system or any part of such a system, including, without limitation, any software used by the system, the governmental agency shall consider the use of equipment and software that enables the governmental agency to send, accept, process,signatures, useincluding, andwithout relylimitation, uponcertified electroniccopies recordsof andthe electronic records of the governmental agency in electronic form or certified copies of the records of an originating agency that are provided in ele2.ronIfelectronic aform. person provides a receiving agency with a certified copy of a record of an originating agency, the receiving agency:

2.

If a person provides a receiving agency with a certified copy of a record of an originating agency, the receiving agency:

If a receiving agency incurs a fee or other cost for accepting or processing a certified copy in electronic form, the receiving agency may charge and collect a fee to accept or process such a copy, in an amount not to exceed the actual cost to the receiving agency of accepting or processing the copy.copy.st to the 5.

5.

- *SB162_R1* – 4 – (a) “Originating agency” means a governmental agency which attests that a certified copy described in subsection 2 is a true copy of a record of the governmental agency.

- 80th Session (2019) – 4 – Sec.

(c) Redundantly maintained or processed by one or more computers or machines to guarantee the consistency or nonrepudiationnon[3.] of(d) theValidated recordedby transactionsthe oruse otherof cryptography.her data;

and [3.]2. (d) Validated by the use of cryptography.

2.

719.350Sec. 1.NRS Except as otherwise provided in subsection 6 of NRS 719.290 and NRS 719.345, and section 5 of this act, each extent to which, it will send and accept electronic records andthe electronic signatures to and from other persons and otherwise create, generate, communicate, store, process, use and rely upon electronic records and electronic signatures.

8.

NRS 719.350 is hereby amended to read as follows:

719.350 1.