HOUSE BILL No. 5693


     March 17, 1998, Introduced by Reps. Brewer and Hale and referred to the Committee on Advanced Technology and Computer Development.


        A bill to regulate the storage, processing, and release of

   certain information by persons entrusted with data from the state

   or from a local unit of government.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 1.  As used in this act:

 2         (a) "Government data" means information gathered by the

 3    state or a local unit of government and transferred or entrusted

 4    to a person by electronic, print, digital, or other means for

 5    storage or processing.

 6         (b) "Local unit of government" means a city, village,

 7    county, or township in this state.

 8         (c) "Person" means an individual, partnership, corporation,

 9    association, limited liability company, or other legal entity.






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 1         (d) "Third party" means a person other than the person to

 2    whom the state or a local unit of government has transferred

 3    government data for storage or processing.

 4         Sec. 2.  (1) A person entrusted with government data for

 5    storage or processing shall not disclose the contents of that

 6    data to a third party unless the person obtains written authori-

 7    zation for the disclosure from the state or the local unit of

 8    government from which the data originated.

 9         (2) A person authorized to disclose government data under

10    subsection (1) shall maintain a written record of all of the fol-

11    lowing for a period of 3 years after the disclosure:

12         (a) The identity of the person to whom the disclosure was

13    made.

14         (b) The contents of the disclosed data.

15         (c) The date of the disclosure.

16         (3) A person who maintains a written record under subsection

17    (2) shall provide a copy of that written record to the state or

18    affected local unit of government upon the request of the state

19    or local unit of government.

20         Sec. 3.  A person shall not store or process government data

21    unless that person has posted a surety bond in the amount of

22    $200,000.00 payable to the state or the local unit of government

23    that provides the person with the government data.  The surety

24    bond shall remain in effect during any period that the person

25    stores, processes, or maintains the government data, and shall

26    specify that, upon the person's violation of this act, the bond





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 1    amount is to be paid to the state or local unit of government

 2    affected by the violation.




















































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