Bill Text: MI HB5923 | 2013-2014 | 97th Legislature | Introduced

---

Bill Title: Trade; data security; data brokers; require opt-out to protect personal identifying information. Amends sec. 11 of 2004 PA 452 (MCL 445.71) & adds sec. 11a.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-11-12 - Printed Bill Filed 11/07/2014 [HB5923 Detail]

Download: Michigan-2013-HB5923-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5923

 

November 6, 2014, Introduced by Rep. McCann and referred to the Committee on Energy and Technology.

 

     A bill to amend 2004 PA 452, entitled

 

"Identity theft protection act,"

 

by amending section 11 (MCL 445.71), as amended by 2010 PA 315, and

 

by adding section 11a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 11. (1) A person shall not do any of the following in the

 

conduct of trade or commerce:

 

     (a) Deny credit or public utility service to or reduce the

 

credit limit of a consumer solely because the consumer was a victim

 

of identity theft, if the person had prior knowledge that the

 

consumer was a victim of identity theft. A consumer is presumed to

 

be a victim of identity theft for the purposes of this subdivision

 

if he or she provides both of the following to the person:

 

     (i) A copy of a police report evidencing the claim of the

 

victim of identity theft.

 

     (ii) Either a properly completed copy of a standardized

 

affidavit of identity theft developed and made available by the

 

federal trade commission under 15 USC 1681g or an affidavit of fact

 

that is acceptable to the person for that purpose.

 

     (b) Solicit to extend credit to a consumer who does not have

 

an existing line of credit, or has not had or applied for a line of

 

credit within the preceding year, through the use of an unsolicited

 

check that includes personal identifying information other than the

 

recipient's name, address, and a partial, encoded, or truncated

 

personal identifying number. In addition to any other penalty or

 

remedy under this act or the Michigan consumer protection act, 1976

 

PA 331, MCL 445.901 to 445.922, a credit card issuer, financial

 

institution, or other lender that violates this subdivision, and

 

not the consumer, is liable for the amount of the instrument if the

 

instrument is used by an unauthorized user and for any fees

 

assessed to the consumer if the instrument is dishonored.

 

     (c) Solicit to extend credit to a consumer who does not have a

 

current credit card, or has not had or applied for a credit card

 

within the preceding year, through the use of an unsolicited credit

 

card sent to the consumer. In addition to any other penalty or

 

remedy under this act or the Michigan consumer protection act, 1976

 

PA 331, MCL 445.901 to 445.922, a credit card issuer, financial

 

institution, or other lender that violates this subdivision, and

 

not the consumer, is liable for any charges if the credit card is

 

used by an unauthorized user and for any interest or finance

 

charges assessed to the consumer.

 

     (d) Extend credit to a consumer without exercising reasonable

 

procedures to verify the identity of that consumer. Compliance with

 

regulations issued for depository institutions, and to be issued

 

for other financial institutions, by the United States department

 

of treasury under section 326 of the USA patriot act of 2001, 31

 

USC 5318, is considered compliance with this subdivision. This

 

subdivision does not apply to a purchase of a credit obligation in

 

an acquisition, merger, purchase of assets, or assumption of

 

liabilities or any change to or review of an existing credit

 

account.

 

     (e) Subject to subsection (4), if the person is a person that

 

owns or licenses data that are included in a database, do any of

 

the following:

 

     (i) Fail to permit a consumer to review his or her personal

 

identifying information in the database.

 

     (ii) Fail to display an opt-out notice on the person's webpage

 

as required under section 11a.

 

     (iii) Accept payment from a consumer who demands to review or

 

remove his or her personal identifying information.

 

     (2) A person who knowingly or intentionally violates

 

subsection (1) is guilty of a misdemeanor punishable as follows:

 

     (a) Except as otherwise provided in subdivisions (b) and (c),

 

by imprisonment for not more than 93 days or a fine of not more

 

than $1,000.00, or both.

 

     (b) For a second violation, by imprisonment for not more than

 

93 days or a fine of not more than $2,000.00, or both.

 

     (c) For a third or subsequent violation, by imprisonment for

 

not more than 93 days or a fine of not more than $3,000.00, or

 

both.

 

     (3) Subsection (2) does not prohibit a person from being

 

liable for any civil remedy for a violation of this act, the

 

Michigan consumer protection act, 1976 PA 331, MCL 445.901 to

 

445.922, or any other state or federal law.

 

     (4) Subsection (1)(e) does not apply to a person that is a

 

financial institution described in section 12(9) or a person

 

described in section 12(10).

 

     Sec. 11a. A person that owns or licenses data that are

 

included in a database shall conspicuously post an opt-out notice

 

on the person's webpage. The opt-out notice must provide specific

 

and easily understood instructions for the consumer to make a

 

demand on the person's webpage that his or her personal identifying

 

information not be shared with or sold to a third party.