SECTION .0300 - PUBLIC KEY TECHNOLOGY

 

18 NCAC 10 .0301             PUBLIC KEY TECHNOLOGY

LICENSING, FEES, RENEWAL

(a)  To be considered for licensure under this subsection, a

Certification Authority shall utilize certificate-based public key

cryptography.

(b)  Any applicant seeking licensure must demonstrate

compliance with the North Carolina Electronic Commerce Act, G.S. 66, Article

11A, and the rules in this Chapter.

(c)  To request licensure, a Certification Authority shall

provide the Electronic Commerce Section with a copy of its current

Certification Practice Statement and most recent reports of compliance audit(s)

as required by 18 NCAC 10 .0303 (k).

(d)  A Certification Authority shall adhere to its

Certification Practice Statement.  If a Certification Authority modifies its

Certification Practice Statement, it shall provide an updated copy of the

Certification Practice Statement to the Electronic Commerce Section as soon as

is practicable, and no later than the date the updated Certification Practice

Statement is put into operation.  As a condition of continued licensure, the

Electronic Commerce Section may require the Certification Authority to undergo

an audit to document compliance with its updated Certification Practice

Statement and the rules in this Chapter.

(e)  An initial licensing fee of two thousand dollars

($2,000 US) shall accompany an initial application. 

(f)  A renewal fee of two thousand dollars ($2,000 US) shall

accompany an application for renewal by a licensed Certification Authority.

(g)  A license issued by the Electronic Commerce Section

pursuant to this Section shall expire one year after its effective date, unless

timely renewed.

(h)  Financial Responsibility.

(1)           As precondition of licensure a

Certification Authority shall obtain a bond issued by a surety company

authorized to do business in North Carolina.  A copy of the bond shall be filed

with the Electronic Commerce Section prior to licensure.  The amount of the

bond shall not be less than twenty-five thousand dollars ($25,000 US).  The

bond shall be in favor of the State of North Carolina.  The bond shall be

payable for any penalties assessed by the Electronic Commerce Section pursuant

to the Rules in this Chapter and for any losses the State encounters

resulting from a Certification Authority's conduct of activities subject to the

Electronic Commerce Act or arising out of a violation of the Electronic

Commerce Act or any Rule promulgated thereunder;

(2)           As precondition of licensure a

Certification Authority shall obtain indemnity insurance coverage (e.g.

"errors and omissions" or "cyber coverage" or similar

coverage) to protect subscribers, relying parties and the State for any losses

resulting from the Certification Authority's conduct of activities subject to

the Electronic Commerce Act or arising out of a violation of the Electronic

Commerce Act or any Rule promulgated thereunder.  Indemnity coverage shall be

obtained and maintained in the amount of not less than one hundred thousand

dollars ($100,000 US) per occurrence and not less than one million dollars

($1,000,000 US) for all occurrences;

(3)           The failure of a Certification

Authority to continuously maintain this surety bond and indemnity insurance

coverage may be the basis for revocation or suspension of its license.

 

History Note:        Authority G.S. 66-58.3; 66-58.10(a)(2);

Temporary Adoption Eff. February 23, 1999;

Codifier determined on November 23, 1999, agency findings

did not meet criteria for temporary rule;

Temporary Adoption Eff. December 3, 1999;

Eff. March 26, 2001.