LIMIT PURPOSES FOR WHICH MACHINE-READABLE

STATE-ISSUED IDENTIFICATION MAY BE SCANNED

House Bill 4658 as introduced

Sponsor:  Rep. John Chirkun

Committee:  Commerce and Tourism

Complete to 2-26-20

SUMMARY:

House Bill 4658 would amend the Consumer Protection Act to generally prohibit a person engaged in trade or commerce from scanning the machine-readable zone of an individual’s state-issued identification or retaining information from such a scan, except for an authorized purpose. The bill would also prohibit a person engaged in trade or commerce from selling or disseminating to a third party any information obtained from scanning the machine-readable zone of an individual’s state-issued identification, except that a person could disseminate that information for an authorized purpose.

State-issued identification would mean a standard driver license, standard official state personal identification card, enhanced driver license, or enhanced official state personal identification card, as those terms are defined in section 2 of the Enhanced Driver License and Enhanced Official State Personal Identification Card Act.

Authorized purpose would mean any of the following purposes, as applicable:

·         To verify the authenticity of an individual's state-issued identification or to verify the identity of the individual if he or she pays for goods or services with a method other than cash, returns an item, or requests a refund or an exchange.

·         To verify an individual's age when providing age-restricted goods or services to him or her and there is a reasonable doubt that he or she meets that restriction.

·         To prevent fraud or other criminal activity if the individual returns an item, or requests a refund for or an exchange of an item, and the person that sold the item uses a fraud prevention service company or system. However, these purposes would constitute an authorized purpose only if the information collected by scanning the state-issued identification was limited to the individual's name, address, or date of birth or the number of the state-issued identification.

·         To comply with a requirement imposed under state or federal law.

·         To provide to a check services company regulated under the federal Fair Credit Reporting Act that receives information obtained from an individual's state-issued identification to administer or enforce a transaction or to prevent fraud or other criminal activity.

·         To complete a transaction permitted under Subtitle A of Title V of the federal Gramm-Leach-Bliley Act or the Fair Credit Reporting Act.

A violation of the above provisions would constitute an unfair trade practice under the act.

The bill would take effect 90 days after its enactment.

MCL 445.903 and proposed MCL 445.903l

FISCAL IMPACT:

The bill would have no fiscal impact on state or local government.

                                                                                         Legislative Analyst:   Emily S. Smith

                                                                                                 Fiscal Analyst:   Michael Cnossen

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.