SB-0357, As Passed Senate, June 24, 2003                                    

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SUBSTITUTE FOR                                    

                                                                                

                           SENATE BILL NO. 357                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to require certain restrictions on the transmission                        

                                                                                

    of unsolicited commercial e-mail; to allow recipients of e-mail             

                                                                                

    to be excluded from receiving future e-mail; to prescribe the               

                                                                                

    powers and duties of certain state agencies; and to provide                 

                                                                                

    penalties and remedies.                                                     

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

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

                                                                                

2   "electronic mail solicitation act".                                         

                                                                                

3       Sec. 2.  As used in this act:                                               

                                                                                

4       (a) "Commercial" means for the purpose of promoting the sale,               

                                                                                

5   lease, or exchange of goods, services, or real property.                    

                                                                                

6       (b) "Computer network" means 2 or more computers that are                   

                                                                                

7   interconnected to exchange electronic messages, files, data, or             

                                                                                

8   other information.                                                          

                                                                                

9       (c) "Department" means the department of consumer and                       

                                                                                


                                                                                

1   industry services.                                                          

                                                                                

2       (d) "E-mail" means an electronic message, file, data, or                    

                                                                                

3   other information that is transmitted between 2 or more                     

                                                                                

4   computers, computer networks, or electronic terminals or within a           

                                                                                

5   computer network.                                                           

                                                                                

6       (e) "E-mail address" means a destination, commonly expressed                

                                                                                

7   as a string of characters, to which e-mail may be sent or                   

                                                                                

8   delivered.                                                                  

                                                                                

9       (f) "E-mail service provider" means a person that is an                     

                                                                                

10  intermediary in the transmission of e-mail from the sender to the           

                                                                                

11  recipient or provides to end users of e-mail service the ability            

                                                                                

12  to send and receive e-mail.                                                 

                                                                                

13      (g) "Internet domain name" means a globally unique,                         

                                                                                

14  hierarchical reference to an internet host or service, assigned             

                                                                                

15  through centralized internet authorities, comprising a series of            

                                                                                

16  character strings separated by periods, with the right-most                 

                                                                                

17  string specifying the top of the hierarchy.                                 

                                                                                

18      (h) "List" or "registry" means the protective list created                  

                                                                                

19  under section 4.                                                            

                                                                                

20      (i) "Person" means an individual, corporation, partnership,                 

                                                                                

21  association, governmental entity, or any other legal entity.                

                                                                                

22      (j) "Preexisting business relationship" means that there was                

                                                                                

23  a business transaction between the initiator and the recipient of           

                                                                                

24  a commercial e-mail message during the 10-year period preceding             

                                                                                

25  the receipt of that message.  A preexisting business relationship           

                                                                                

26  includes a transaction involving the free provision of                      

                                                                                

27  information, goods, or services requested by the recipient.                 


                                                                                

1       (k) "Program" means the electronic mail solicitation program                

                                                                                

2   created under section 3.                                                    

                                                                                

3                                                                                (l) "Property" means any of the following:                                          

                                                                                

4                                                                                (i) Real property.                                                                  

                                                                                

5       (ii) Computers, computer networks, and computer services.                    

                                                                                

6       (iii) Financial instruments, computer data, computer                         

                                                                                

7   programs, computer software, and all other personal property                

                                                                                

8   regardless of whether it is tangible or intangible.                         

                                                                                

9       (m) "Receiving address" means the string of characters used                 

                                                                                

10  to specify a recipient with each receiving address creating a               

                                                                                

11  unique and separate recipient.                                              

                                                                                

12      (n) "Recipient" means a person who receives an e-mail                       

                                                                                

13  advertisement.                                                              

                                                                                

14      (o) "Unsolicited" means without the recipient's express                     

                                                                                

15  permission.  Except as otherwise provided under this act, an                

                                                                                

16  e-mail is not unsolicited if the sender has a preexisting                   

                                                                                

17  business or personal relationship with the recipient.  An e-mail            

                                                                                

18  is not unsolicited if it was received as a result of the                    

                                                                                

19  recipient opting into a system in order to receive informational            

                                                                                

20  material.                                                                   

                                                                                

21      Sec. 3.  (1) The electronic mail solicitation program is                    

                                                                                

22  created within the department of consumer and industry services.            

                                                                                

23      (2) The program shall be managed and administered by the                    

                                                                                

24  department or a program manager selected by the department.                 

                                                                                

25      (3) The program shall be funded completely from the fees,                   

                                                                                

26  fines, civil penalties, and forfeitures collected by the attorney           

                                                                                

27  general as allowed under this act.  If the amount of funds                  


                                                                                

1   collected under this act for a fiscal year exceeds the cost of              

                                                                                

2   administering the program, the excess amount shall be deposited             

                                                                                

3   into the general fund.                                                      

                                                                                

4       (4) The program shall be fully operational no later than                    

                                                                                

5   January 1, 2004 or 90 days from the effective date of this act,             

                                                                                

6   whichever is later.                                                         

                                                                                

7       Sec. 4.  (1) The program shall maintain a list of e-mail                    

                                                                                

8   addresses of persons who do not want to receive unsolicited                 

                                                                                

9   commercial e-mail.                                                          

                                                                                

10      (2) A person may be included on the list created under                      

                                                                                

11  subsection (1) by registering 1 or more e-mail addresses with the           

                                                                                

12  program.  A registration under this section shall be for a period           

                                                                                

13  of at least 3 years.                                                        

                                                                                

14      (3) The department, in consultation with the program manager,               

                                                                                

15  may create specific categories of e-mail for which recipients who           

                                                                                

16  are minors can receive protection under this act.  A parent,                

                                                                                

17  legal guardian, or other person with authority or control over              

                                                                                

18  e-mail addresses to which minor children may have access may list           

                                                                                

19  an e-mail address under 1 or more of the categories to give                 

                                                                                

20  notice that they do not give consent to receive e-mail within               

                                                                                

21  that category.  The categories under this subsection shall be               

                                                                                

22  limited to products or services that a minor child is prohibited            

                                                                                

23  by law from purchasing.  E-mail senders shall honor these                   

                                                                                

24  categories even if they have evidence of a preexisting business             

                                                                                

25  relationship.                                                               

                                                                                

26      (4) The program shall update the list not less than every 30                

                                                                                

27  days.                                                                       


                                                                                

1       (5) A person may renew a registration for another 3 years in                

                                                                                

2   the same manner as provided under subsection (2).                           

                                                                                

3       (6) The program shall not release to another person                         

                                                                                

4   information concerning persons or provide access to addresses               

                                                                                

5   contained on the list except as provided by this act.                       

                                                                                

6       (7) The list created under this section is not subject to the               

                                                                                

7   freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.              

                                                                                

8       Sec. 5.  (1) Except as otherwise provided under this act, a                 

                                                                                

9   listing in the registry created under section 4 puts all senders            

                                                                                

10  of e-mail on notice that unsolicited commercial e-mail shall not            

                                                                                

11  be sent to an address on the list unless the sender has a                   

                                                                                

12  preexisting business relationship with the recipient.  The notice           

                                                                                

13  alerts senders of e-mail that they shall comply with all                    

                                                                                

14  provisions of law and are subject to the state's jurisdiction               

                                                                                

15  when sending to addresses on the list.                                      

                                                                                

16      (2) Senders of unsolicited commercial e-mail in this state                  

                                                                                

17  shall include a valid method to opt out of future messages.  A              

                                                                                

18  subscription to the registry and subsequent honoring of opt-out             

                                                                                

19  requests that are filed for the particular sender with the                  

                                                                                

20  program manager of the registry is considered an acceptable                 

                                                                                

21  opt-out method.                                                             

                                                                                

22      Sec. 6.  (1) A person shall not send unsolicited commercial                 

                                                                                

23  e-mail to an e-mail address in this state unless the person has             

                                                                                

24  registered with the program and paid an annual fee to be                    

                                                                                

25  determined by the department.                                               

                                                                                

26      (2) A person sending unsolicited commercial e-mail is                       

                                                                                

27  required to remove e-mail addresses that appear on the registry             


                                                                                

1   from their mailing lists if they do not have a preexisting                  

                                                                                

2   business relationship, the type of mail they plan to send is                

                                                                                

3   within 1 of the specific categories the recipient has said they             

                                                                                

4   do not consent to receive under section 4, or the e-mail holder             

                                                                                

5   has opted out of the specific sender's mailing list.                        

                                                                                

6       (3) A sender of unsolicited commercial e-mail shall update                  

                                                                                

7   their list every 30 days with the latest available copy of the              

                                                                                

8   registry.                                                                   

                                                                                

9       (4) If a person sends an unsolicited commercial e-mail                      

                                                                                

10  without first verifying the recipient's e-mail address against              

                                                                                

11  the registry as required by the program, the sending of the                 

                                                                                

12  e-mail shall be considered done without the recipient's consent             

                                                                                

13  and is a violation of this act.                                             

                                                                                

14      (5) A sender of e-mail registered under this section shall                  

                                                                                

15  establish procedures to ensure that no unsolicited commercial               

                                                                                

16  e-mail is sent to a person on a list created under section 4                

                                                                                

17  except as provided by this act.                                             

                                                                                

18      (6) The burden of proof that the sender had the recipient's                 

                                                                                

19  consent to send unsolicited commercial e-mail is on the sender.             

                                                                                

20      (7) A person shall not sell or use the list created under                   

                                                                                

21  section 4 for any purpose other than meeting the requirements of            

                                                                                

22  this act.                                                                   

                                                                                

23      Sec. 7.  A person who intentionally sends or causes to be                   

                                                                                

24  sent an unsolicited commercial e-mail through an e-mail service             

                                                                                

25  provider that the sender knew or should have known is located in            

                                                                                

26  this state or to an e-mail address that the sender knew or should           

                                                                                

27  have known is held by a resident of this state shall do all of              


                                                                                

1   the following:                                                              

                                                                                

2       (a) Include in the e-mail subject line "ADV:"  as the first 4               

                                                                                

3   characters.                                                                 

                                                                                

4       (b) Conspicuously state in the e-mail all of the following:                 

                                                                                

5                                                                                (i) The sender's legal name.                                                        

                                                                                

6       (ii) The sender's correct street address.                                    

                                                                                

7       (iii) The sender's valid internet domain name.                               

                                                                                

8       (iv) The sender's valid return e-mail address.                               

                                                                                

9       (c) Establish a toll-free telephone number, a valid                         

                                                                                

10  sender-operated return e-mail address, or another easy-to-use               

                                                                                

11  electronic method that the recipient of the commercial e-mail               

                                                                                

12  message may call or access by e-mail or other electronic means to           

                                                                                

13  opt out and notify the sender not to transmit any further                   

                                                                                

14  unsolicited commercial e-mail messages.  The notification process           

                                                                                

15  may include the ability for the recipient to direct the sender to           

                                                                                

16  transmit or not transmit particular commercial e-mail messages              

                                                                                

17  based upon products, services, divisions, organizations,                    

                                                                                

18  companies, or other selections of the recipient's choice.  An               

                                                                                

19  unsolicited commercial e-mail message shall conspicuously                   

                                                                                

20  include, in print as large as the print used for the majority of            

                                                                                

21  the e-mail message, a statement informing the recipient of a                

                                                                                

22  toll-free telephone number that the recipient may call, or a                

                                                                                

23  valid return address to which the recipient may write or access             

                                                                                

24  by e-mail, notifying the sender not to transmit to the recipient            

                                                                                

25  any further unsolicited commercial e-mail messages.                         

                                                                                

26      (d) Conspicuously provide in the text of the unsolicited                    

                                                                                

27  commercial e-mail, in print as large as the print used for the              


                                                                                

1   majority of the e-mail, a notice that informs the recipient that            

                                                                                

2   the recipient may conveniently and at no cost be excluded from              

                                                                                

3   future unsolicited commercial e-mail from the sender as provided            

                                                                                

4   under this act.                                                             

                                                                                

5       Sec. 8.  (1) A person who sends or causes to be sent an                     

                                                                                

6   unsolicited commercial e-mail through an e-mail service provider            

                                                                                

7   located in this state or to an e-mail address held by a resident            

                                                                                

8   of this state shall not do any of the following:                            

                                                                                

9       (a) Use a third party's internet domain name or third party                 

                                                                                

10  e-mail address in identifying the point of origin or in stating             

                                                                                

11  the transmission path of the unsolicited commercial e-mail                  

                                                                                

12  without the third party's consent.                                          

                                                                                

13      (b) Misrepresent any information in identifying the point of                

                                                                                

14  origin or the transmission path of the unsolicited commercial               

                                                                                

15  e-mail.                                                                     

                                                                                

16      (c) Fail to include in the unsolicited commercial e-mail the                

                                                                                

17  information necessary to identify the point of origin of the                

                                                                                

18  unsolicited commercial e-mail.                                              

                                                                                

19      (d) Provide directly or indirectly to another person the                    

                                                                                

20  software described under section 9.                                         

                                                                                

21      (2) If the recipient of an unsolicited commercial e-mail                    

                                                                                

22  notifies the sender that the recipient does not want to receive             

                                                                                

23  future unsolicited commercial e-mail from the sender, the sender            

                                                                                

24  shall not send that recipient unsolicited commercial e-mail                 

                                                                                

25  either directly or indirectly through a third party.                        

                                                                                

26      (3) A sender of unsolicited commercial e-mail shall establish               

                                                                                

27  and maintain the necessary policies and records to ensure that              


                                                                                

1   the recipient who has notified the sender under subsection (2)              

                                                                                

2   does not receive any e-mail from the date of the notice.  The               

                                                                                

3   sender shall update its records under this subsection not less              

                                                                                

4   than every 14 business days.                                                

                                                                                

5       Sec. 9.  A person shall not knowingly sell, give, or                        

                                                                                

6   otherwise distribute or possess with the intent to sell, give, or           

                                                                                

7   distribute software that does any of the following:                         

                                                                                

8       (a) Is primarily designed or produced for the purpose of                    

                                                                                

9   facilitating or enabling the falsification of commercial e-mail             

                                                                                

10  transmission information or other routing information.                      

                                                                                

11      (b) Has only limited commercially significant purpose or use                

                                                                                

12  other than to facilitate or enable the falsification of                     

                                                                                

13  unsolicited commercial e-mail transmission information or other             

                                                                                

14  routing information.                                                        

                                                                                

15      (c) Is marketed by that person or another acting in concert                 

                                                                                

16  with that person with that person's knowledge for use in                    

                                                                                

17  facilitating or enabling the falsification of unsolicited                   

                                                                                

18  commercial e-mail transmission information or other routing                 

                                                                                

19  information.                                                                

                                                                                

20      Sec. 10.  (1) An e-mail service provider may design its                     

                                                                                

21  software so that a sender of unsolicited commercial e-mail is               

                                                                                

22  given notice of the requirements of this act each time the sender           

                                                                                

23  requests delivery of e-mail.  The existence of such software                

                                                                                

24  shall constitute actual notice to the sender of the requirements            

                                                                                

25  of this act.                                                                

                                                                                

26      (2) An e-mail service provider that designs and implements a                

                                                                                

27  dispute resolution process for a sender who believes the sender's           


                                                                                

1   e-mail message has been improperly blocked, and makes contact               

                                                                                

2   information accessible on its website, is not liable under this             

                                                                                

3   act for blocking the receipt or transmission of the e-mail.                 

                                                                                

4       Sec. 11.  (1) A person who violates this act is guilty of a                 

                                                                                

5   misdemeanor punishable by imprisonment for not more than 1 year             

                                                                                

6   or a fine of not more than $10,000.00, or both.  Each e-mail sent           

                                                                                

7   in violation of this act is a separate violation under this                 

                                                                                

8   section.                                                                    

                                                                                

9       (2) An e-mail service provider does not violate this act                    

                                                                                

10  solely by being an intermediary between the sender and recipient            

                                                                                

11  in the transmission of an e-mail that violates this act.                    

                                                                                

12      (3) It is a defense to an action brought under this section                 

                                                                                

13  or section 12 that the unsolicited commercial e-mail was                    

                                                                                

14  transmitted accidentally.  The burden of proving that the e-mail            

                                                                                

15  was transmitted accidentally is on the sender.                              

                                                                                

16      (4) All money and other income, including all proceeds earned               

                                                                                

17  but not yet received by a defendant from a third party as a                 

                                                                                

18  result of the defendant's violations of this act, and all                   

                                                                                

19  computer equipment, all computer software, and all personal                 

                                                                                

20  property used in connection with any violation of this act known            

                                                                                

21  by the owner to have been used in violation of this act are                 

                                                                                

22  subject to lawful seizure by a law enforcement officer and                  

                                                                                

23  forfeiture by this state.                                                   

                                                                                

24      Sec. 12.  (1) A civil action may be brought by a person who                 

                                                                                

25  received an unsolicited commercial e-mail in violation of this              

                                                                                

26  act.                                                                        

                                                                                

27      (2) A civil action may be brought by an e-mail service                      


    Senate Bill No. 357 as amended June 19, 2003                                

1   provider through whose facilities the unsolicited commercial                

                                                                                

2   e-mail was transmitted in violation of this act.                            

                                                                                

3       (3) A civil action may be brought by the attorney general                   

                                                                                

4   against a person who has violated this act.                                 

                                                                                

5       (4) In each action brought under this section, a recipient,                 

                                                                                

6   an e-mail service provider, or attorney general may recover 1 of            

                                                                                

7   the following:                                                              

                                                                                

8       (a) Actual damages.                                                         

                                                                                

9       (b) In lieu of actual damages, recover the lesser of the                    

                                                                                

10  following:                                                                  

                                                                                

11                                                                               (i) $500.00 per unsolicited commercial e-mail received by a                         

                                                                                

12  recipient or transmitted through the e-mail service provider.               

                                                                                

13      (ii) $250,000.00 for each day that the violation occurs.                     

                                                                                

14      (5) A prevailing <<recipient or>> e-mail service provider shall be awarded  

15  actual costs and reasonable attorney fees.