SECTION 20.3. Signed or Executed Documents

(a) In this section the following terms shall have the meaning set forth herein.

(1) Digital signature--A signature that:

(A) is created as an electronic identifier by cryptographic means involving the use of two mathematically related keys (i.e., a public and private key pair, often referred to as Public Key Infrastructure or PKI);

(B) complies with the requirements of 1 TAC Chapter 203; and

(C) is not a photographic digital facsimile of a hand-made signature.

(2) Electronic signature--A signature that is an image of a hand-made signature such as on a transmitted facsimile, an electronic document created by scanning the original physical document, or an electronic document (such as one created in a PDF) where a separate image of a hand-made signature has been overlaid onto the electronic document in place of a physical hand-made signature.

(3) Hand-made signature (also known as a wet ink or manual signature)--A signature created when a person physically marks a paper document.

(4) PDF or portable document format--A file format that provides an electronic image of text or text and graphics that looks like a printed document and can be viewed, printed, and electronically transmitted.

(5) Signature--Any symbol executed or adopted by a person with present intention to authenticate a writing.

(b) Whenever the comptroller requires a document to be signed or executed pursuant to these rules or a process created pursuant to these rules, the comptroller will accept:

(1) hand-made signatures;

(2) electronic signatures; or

(3) digital signatures.

(c) Hand-made signatures shall comply with the following requirements.

(1) A paper document must bear the valid hand-made signature of the offeror's or contractor's authorized representative.

(2) A hand-made signature is valid if the authorized representative submitting the hand-made signature is an individual who is authorized to sign the document by virtue of his or her legal status or his or her relationship to the entity on whose behalf the signature is executed.

(3) The offeror or contractor agrees that the presence of a hand-made signature on a paper document submitted to the comptroller establishes that the signatory:

(A) is in fact the authorized representative of the entity on whose behalf the signature has been executed and shall provide sufficient evidence to prove the authority to execute the document to the satisfaction of the comptroller if requested; and

(B) intended to sign the paper document and to submit it to the comptroller to fulfill the purpose of the paper document.

(d) Electronic signatures shall comply with the following requirements.

(1) An electronic document must bear the valid electronic signature of the offeror's or contractor's authorized representative if that authorized representative is required to sign the paper document for which the electronic document substitutes.

(2) An electronic signature on an electronic document is valid if it has been created through means such as facsimile transmittal, scanning of the original signed physical document, or electronic manipulation where a separate image of a hand-made signature has been overlaid onto the electronic document in place of a physical hand-made signature and the authorized representative submitting the electronic signature is an individual who is authorized to sign the document by virtue of his or her legal status or his or her relationship to the entity on whose behalf the signature is executed.

(3) The offeror or contractor agrees that its electronic signature is the legal equivalent of the offeror's or contractor's authorized representative's hand-made signature. The presence of an electronic signature on an electronic document submitted to the comptroller establishes that the signatory:

(A) is the authorized representative of the entity on whose behalf the signature has been executed and shall provide sufficient evidence to prove the authority to execute the document to the satisfaction of the comptroller if requested; and

(B) intended to sign the electronic document and to submit it to the comptroller to fulfill the purpose of the electronic document.

(4) The comptroller intends to follow the guidance of the Department of Information Resources as given by 1 TAC Chapter 203 unless otherwise noted in these rules.

(e) Digital signatures shall comply with the following requirements.

(1) When a digital signature device is used to create the offeror's or contractor's authorized representative's digital signature, the code or mechanism must be unique to that authorized representative at the time the signature is created and the authorized representative must be uniquely entitled to use it. Authorized representatives shall:

(A) protect the digital signature device from compromise; and

(B) report to the comptroller any evidence that the device has been compromised, within one calendar day of the discovery.

(2) A digital signature device is compromised if the code or mechanism is available for use by any individual other than the authorized representative.

(3) An electronic document must bear the valid digital signature of the offeror's or contractor's authorized representative if that authorized representative is required to sign the paper document for which the electronic document substitutes.

(4) A digital signature on an electronic document is valid if it has been created with an electronic signature device that the identified authorized representative is uniquely entitled to use for signing that document; the device has not been compromised; and the authorized representative is an individual who is authorized to sign the document by virtue of his or her legal status or his or her relationship to the entity on whose behalf the signature is executed.

(5) The offeror or contractor agrees that its digital signature is the legal equivalent of the offeror's or contractor's authorized representative's hand-made signature. The presence of a digital signature on an electronic document submitted to the comptroller establishes that the authorized representative intended to sign the electronic document and to submit it to the comptroller to fulfill the purpose of the electronic document.

(6) Contractor shall use an approved provider on the list maintained by the Department of Information Resources Digital Signatures and Public Key Infrastructure (PKI) Approved Service Providers found on the DIR website.

(7) The comptroller intends to follow the guidance of the Department of Information Resources as given by 1 TAC Chapter 203 unless otherwise noted in these rules.

Source Note: The provisions of this §20.3 adopted to be effective January 24, 2017, 42 TexReg 228