HOUSE BILL No. 5774


     March 6, 2002, Introduced by Rep. Bradstreet and referred to the Committee on Energy and Technology.


        A bill to regulate internet service providers; to provide

   certain protections from disclosure of personally identifying

   information by internet service providers; and to provide reme-

   dies and prescribe penalties.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
             Sec. 1.  This act shall be known and may be cited as the

 2
        "internet privacy protection act".

 3
             Sec. 2.  As used in this act:

 4
             (a) "Affiliate" means any company that controls an internet

 5
        service provider, is controlled by an internet service provider,

 6
        or is controlled by another company that also controls an inter-

 7
        net service provider company.

 8
             (b) "Affirmative consent" means a statement by a subscriber

 9
        authorizing an internet service provider to gather personally

10
        identifying information about the subscriber and distribute it to


   06804'02                                                 DAM                                   2

 1
        an affiliate of the internet service provider or to a third party

 2
        or parties for marketing or other purposes.

 3
             (c) "Direct internet access services" includes providing

 4
        dial-up modem connections via telephone, ISDN, DSL, or coaxial

 5
        cable, or any other means of providing direct TCP/IP services

 6
        that include, at a minimum, access to a domain name server and an

 7
        electronic mail server.

 8
             (d) "Internet service provider" means any business or organ-

 9
        ization qualified to do business in this state that provides

10
        direct internet access services to residents of this state.

11
             (e) "Personally identifying information" includes a

12
        subscriber's electronic mail address, social security number,

13
        date of birth, income, occupation, credit card or debit card

14
        information, current and prior addresses, telephone number, or

15
        mother's maiden name.  The term includes any information gathered

16
        by means of tracking a subscriber's internet usage, IP connection

17
        history, preferences, equipment, software, or user profile, but

18
        does not include aggregate data that cannot be used to identify a

19
        subscriber or information disclosed by the internet service pro-

20
        vider to an affiliate or to a third party in connection with the

21
        processing, billing, collection, or maintenance of a subscriber's

22
        account.

23
             (f) "Subscriber" means an individual to whom an internet

24
        service provider provides direct internet access services.

25
             Sec. 3.  (1) An internet service provider that provides

26
        direct internet access services to residents of this state shall

27
        not disclose any personally identifying information about a



   06804'02                                   3

 1
        subscriber in this state to an affiliate or to a third party or

 2
        parties for marketing or other purposes without the knowledge and

 3
        affirmative consent of the subscriber.

 4
             (2) A subscriber's affirmative consent shall be in writing

 5
        and obtained by the internet service provider on a form that is

 6
        separate and distinct from the internet service provider's gener-

 7
        ally applicable service agreement or contract.  A subscriber's

 8
        affirmative consent may be provided to the internet service pro-

 9
        vider by electronic mail or other electronic means.  The affirma-

10
        tive consent shall identify each affiliate and third party to

11
        whom the internet service provider will disclose the subscriber's

12
        personally identifying information and each affiliate and third

13
        party who will have access to that information.

14
             (3) An internet service provider shall obtain a separate

15
        affirmative consent from a subscriber prior to each disclosure of

16
        personally identifying information about the subscriber to an

17
        affiliate or third party for marketing or other purposes.

18
             (4) An internet service provider shall not disclose person-

19
        ally identifying information about a subscriber to an affiliate

20
        or third party who is not named on the affirmative consent of the

21
        subscriber.

22
             (5) An internet service provider shall confirm its receipt

23
        of a subscriber's affirmative consent prior to disclosing to an

24
        affiliate or third party any personally identifying information

25
        about the subscriber.

26
             Sec. 4.  (1) Except as provided in subsection (2), an

27
        internet service provider who violates section 3 is guilty of a



   06804'02                                   4

 1
        misdemeanor punishable by imprisonment for not more than 90 days

 2
        or a fine of not more than $100.00, or both.

 3
             (2) An internet service provider who violates section 3 is

 4
        guilty of a felony punishable by imprisonment for not more than 2

 5
        years or a fine of not more than $5,000.00, or both, if the

 6
        internet service provider intended to cause the subscriber physi-

 7
        cal or financial harm by violating section 3.

 8
             Sec. 5.  A subscriber injured as a result of a violation of

 9
        section 3 may file a civil action against the internet service

10
        provider who violated section 3 and recover damages for his or

11
        her injuries.


































   06804'02          Final page.                            DAM