GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 290

Short Title:  Electronic Commerce Commission.	(Public)

─────────────────────────────────────── 
Sponsors: Representatives Shubert; Clary and Reynolds.

─────────────────────────────────────── 
Referred to:  Rules, Calendar and Operations of the House.

─────────────────────────────────────── 

February 20, 1997

A BILL TO BE ENTITLED
AN ACT TO ESTABLISH THE LEGISLATIVE STUDY COMMISSION ON ELECTRONIC COMMERCE.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 120 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 25.
"The Legislative Study Commission on Electronic Commerce.
"§ 120-213. Creation and purpose of the Legislative Study Commission on Electronic Commerce.
The Legislative Study Commission on Electronic Commerce is established.  The commission shall determine the best means of developing electronic commerce in the State.
"§ 120-214.  Commission duties; reports.
(a)	The Legislative Study Commission on Electronic Commerce shall examine the development of electronic commerce in the State and evaluate the feasibility and desirability of authorizing the use of digital signatures and establishing strict sanctions and penalties regarding computer-related crimes as a means to facilitate the development of electronic commerce.  In its study, the commission shall:
(1)	Review digital legislation, policies, and procedures of other states.
(2)	Evaluate the current technological infrastructure of State government and information systems use and needs in State government and determine potential demands for additional information staff, equipment, software, data communications, and consulting services in State government during the next 10 years.
(3)	Determine whether digital signature legislation will facilitate the development of electronic commerce in the State and, if so, assist the General Assembly in determining whether or not it is in the public interest to:
a.	Regulate the practices of certification authorities by requiring certification authorities licensed to do business in the State to be licensed, certified, or registered, and by regulating their practices.
b.	Regulate the use of digital signatures in the public and private sectors.
c.	Prescribe the powers and duties of certain State and local agencies and officials.
d.	Establish penalties, remedies, and presumptions to provide for collection on certain guarantees.
e.	Provide reliance limits and liability.
f.	Maintain a publicly accessible database containing a certification authority disclosure record for each licensed, certified, or registered certification authority.
(4)	Study means to minimize the incidence of forged digital signatures and fraud in electronic commerce.
(5)	Conduct any other studies or evaluations the commission considers necessary to effectuate its purpose.
(b)	The commission may consult with the Information Resource Management Commission on statewide technology strategies and initiatives and review all legislative proposals and other recommendations of the Information Resource Management Commission.
(c)	The commission shall report by March 1 of each year to the Appropriations Committees of the Senate and House of Representatives concerning the commission's activities and findings and any recommendations for statutory changes.
"§  120-215.  Commission membership; terms; organization; vacancies.
The commission shall consist of 11 members as follows:
(1)	Three members of the House of Representatives at the time of their appointment, appointed by the Speaker of the House of Representatives.
(2)	Three members of the Senate at the time of their appointment, appointed by the President Pro Tempore of the Senate.
(3)	Two members appointed by the Governor who are officials or employees of State government agencies and who have knowledge and experience regarding the filing and recording of corporate, real estate, or court documents.
(4)	Three members of the public, one of whom shall be appointed by the Speaker of the House of Representatives, one of whom shall be appointed by the President Pro Tempore of the Senate, and one of whom shall be appointed by the Governor.
The members appointed to the commission from the public shall be chosen from among individuals who have the ability and commitment to promote and fulfill the purposes of the commission, including individuals who have expertise in the field of computer technology or commercial transactions.
(b)	Members of the commission shall serve a term of two years beginning on January 15 of each odd-numbered year, with no prohibition against being reappointed, except initial appointments shall be for terms as follows:
(1)	The public members shall serve terms of three years.
(2)	The members who are members of the General Assembly shall serve terms of two years.
(3)	The members who are appointed by the Governor, other than the public member, shall serve terms of one year.
Initial terms shall commence on July 1, 1997.
(c)	Members who are elected officials may complete a term of service on the commission even if they do not seek reelection or are not reelected, but resignation or removal from service constitutes resignation or removal from service on the commission.
(d)	The Speaker of the House of Representatives and the President Pro Tempore of the Senate shall each select a legislative member from their appointments to serve as cochair of the commission.
(e)	The commission shall meet at least once a quarter and may meet at other times upon the joint call of the cochairs. A majority of the members of the commission shall constitute a quorum for the transaction of business. The affirmative vote of a majority of the members present at meetings of the commission shall be necessary for action to be taken by the commission.
(f)	All members shall serve at the will of their appointing officer.  A member continues to serve until the member's successor is appointed.  A vacancy shall be filled within 30 days by the officer who made the original appointment.
"§ 120-216.  Assistance; per diem; subsistence; and travel allowances.
(a)	The commission may contract for consulting services as provided by G.S. 120-32.02. Upon approval of the Legislative Services Commission, the Legislative Services Officer shall assign professional and clerical staff to assist in the work of the commission. The professional staff shall include the appropriate staff from the Fiscal Research, Research, and Legislative Drafting Divisions of the Legislative Services Office of the General Assembly. Clerical staff shall be furnished to the commission through the offices of the House of Representatives and Senate Supervisors of Clerks. The expenses of employment of the clerical staff shall be borne by the commission. The commission may meet in the Legislative Building or the Legislative Office Building upon the approval of the Legislative Services Commission.
(b)	Members of the commission shall receive per diem, subsistence, and travel allowances as follows:
(1)	Commission members who are members of the General Assembly, at the rate established in G.S. 120-3.1.
(2)	Commission members who are officials or employees of the State or of local government agencies, at the rate established in G.S. 138-6.
(3)	All other commission members, at the rate established in G.S. 138-5.
"§ 120-217.  Commission authority.
The commission may obtain information and data from all State officers, agents, agencies, and departments, while in discharge of its duties, under G.S. 120-19, as if it were a committee of the General Assembly.  The provisions of G.S. 120-19.1 through G.S. 120-19.4 shall apply to the proceedings of the commission as if it were a joint committee of the General Assembly.  Any cost of providing information to the commission not covered by G.S. 120-19.3 may be reimbursed by the commission from funds appropriated to it for its continuing study.
"§ 120-218.  Commission subcommittees; noncommission membership.
The commission cochairs may establish subcommittees for the purpose of making special studies pursuant to its duties, and may appoint noncommission members to serve on each subcommittee as resource persons. Resource persons shall be voting members of the subcommittee and shall receive subsistence and travel expenses in accordance with G.S. 138-5 and G.S. 138-6."
Section 2.  This act is effective when it becomes law.