Bill Text: MI HB5228 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Financial institutions; savings banks; disclosure of nonpublic financial information to unaffiliated third parties; regulate. Amends 1996 PA 354 (MCL 487.3101 - 487.3804) by adding secs. 515, 516 & 517.

Spectrum: Slight Partisan Bill (Democrat 4-2)

Status: (Introduced - Dead) 2016-01-26 - Bill Electronically Reproduced 01/21/2016 [HB5228 Detail]

Download: Michigan-2015-HB5228-Introduced.html

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HOUSE BILL No. 5228

January 21, 2016, Introduced by Reps. Lucido, Moss, Irwin, Runestad, Singh and Derek Miller and referred to the Committee on Financial Services.

 

     A bill to amend 1996 PA 354, entitled

 

"Savings bank act,"

 

(MCL 487.3101 to 487.3804) by adding sections 515, 516, and 517.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 515. (1) A savings bank shall use reasonable care to

 

secure an individual's nonpublic personal financial information

 

from unauthorized access.

 

     (2) Unless the disclosure is required by law, a savings bank

 

shall not disclose an individual's nonpublic personal financial

 

information to a person without the prior and specific informed

 

consent, in writing, of the individual, and the individual may

 

withdraw his or her consent at any time.

 

     (3) If an individual has consented to the disclosure of

 

nonpublic personal financial information to a person under

 

subsection (2), the savings bank shall disclose nonpublic personal

financial information only if the person agrees to protect and use

 

the disclosed information only in the manner authorized by the

 

savings bank under section 516. This subsection does not apply to a

 

disclosure made to the department of insurance and financial

 

services, the director of that department, another governmental

 

agency or entity, or a court.

 

     (4) If an individual authorizes the release of nonpublic

 

personal financial information under subsection (2) to a specific

 

person, a savings bank shall disclose the information to that

 

person only if the person agrees not to release the information to

 

another person without another prior and specific informed consent

 

from the individual, in writing, authorizing the additional

 

release.

 

     (5) This section does not preclude the release of information

 

pertaining to an individual to that individual by telephone if the

 

identity of the individual is verified.

 

     (6) A savings bank shall not refuse to extend or continue

 

credit to, refuse to open or continue an account for, terminate or

 

refuse to create a membership or depositor relationship with,

 

refuse to provide any benefits to which members or depositors are

 

entitled, or otherwise unfairly retaliate or discriminate against

 

an individual because that individual refuses or fails to consent

 

to disclosure of his or her nonpublic personal financial

 

information under subsection (2).

 

     (7) As used in this section and section 516:

 

     (a) "Nonpublic personal financial information" means

 

personally identifiable financial information and any list,

 

description, or other grouping of consumers and publicly available

 

information pertaining to them that is derived using any personally

 

identifiable financial information that is not publicly available.

 

Nonpublic personal financial information does not include any of

 

the following:

 

     (i) Financial information otherwise protected by state or

 

federal law.

 

     (ii) Publicly available information.

 

     (iii) Any list, description, or other grouping of consumers

 

and publicly available information pertaining to them that is

 

derived without using any personally identifiable financial

 

information that is not publicly available.

 

     (b) "Personally identifiable financial information" means any

 

of the following:

 

     (i) Information a consumer provides to a savings bank to

 

obtain a financial product or service from the savings bank.

 

     (ii) Information about a consumer resulting from any

 

transaction involving a financial product or service between a

 

savings bank and a consumer.

 

     (iii) Information a savings bank otherwise obtains about a

 

consumer in connection with providing a financial product or

 

service to that consumer.

 

     (c) "Publicly available information" means any information

 

that a savings bank has a reasonable basis to believe is lawfully

 

made available to the general public from federal, state, or local

 

government records by wide distribution by the media or by

 

disclosures to the general public that are required to be made by

 

federal, state, or local law. A savings bank has a reasonable basis

 

to believe that information is lawfully made available to the

 

general public if both of the following apply:

 

     (i) The savings bank has taken steps to determine that the

 

information is of the type that is available to the general public.

 

     (ii) If an individual can direct that the information not be

 

made available to the general public, that the savings bank's

 

consumer has not directed that the information not be made

 

available to the general public.

 

     Sec. 516. A savings bank shall establish and make public a

 

policy regarding the protection of privacy and the confidentiality

 

of nonpublic personal financial information. The policy shall do at

 

least all of the following:

 

     (a) Provide for the savings bank's implementation of the

 

requirements of this act and other applicable laws respecting

 

collection, security, use, release of, and access to nonpublic

 

personal financial information.

 

     (b) Identify the routine uses of nonpublic personal financial

 

information by the savings bank; prescribe the means by which

 

individuals will be notified regarding those uses; and provide for

 

notification regarding the actual release of nonpublic personal

 

financial information that may be identified with, or that may

 

concern, an individual, upon specific request by that individual.

 

As used in this subdivision, "routine use" means the ordinary use

 

or release of nonpublic personal financial information compatible

 

with the purpose for which the information was collected.

 

     (c) Assure that no person has access to nonpublic personal

 

financial information except on the basis of a need to know.

 

     (d) Establish the contractual or other conditions under which

 

the savings bank may release nonpublic personal financial

 

information.

 

     (e) Provide that enrollment applications and claim forms

 

developed by the savings bank shall contain an individual's consent

 

to the release of data and information that is limited to the data

 

and information necessary for the proper review and payment of

 

claims, and shall reasonably notify individuals of their rights

 

under the savings bank's policy and applicable law.

 

     Sec. 517. Sections 515 and 516 do not limit access to records

 

or enlarge or diminish the investigative and examination powers of

 

governmental agencies as provided for by law.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.