SB 361 Michigan Senate · 2025-2026 Regular Session

Consumer protection: identity theft; references to identity theft protection act in deferred presentment service transactions act; revise. Amends sec. 22 of 2005 PA 244 (MCL 487.2142). TIE BAR WITH: SB 0360'25

SB 361 amends Michigan's Deferred Presentment Service Transactions Act (2005 PA 244) to establish a statewide, real-time database for licensees providing deferred presentment services (like payday loans). The database requires licensees to verify customer transaction history, track compliance with federal regulations, and monitor violations - directly affecting businesses offering these services. Key provisions mandate the database provider (either state-operated or contracted) to prevent fraud, comply with the Identity Theft Protection Act, securely handle customer data, and automatically close transactions after specific timeframes. The bill also includes safeguards for consumers injured by third-party provider violations and requires detailed reporting on transaction closures.

Bill status passed 3 of 5 stages cleared

Introduction

Jun 2025

Committee Review

Aug 2025

Senate Passage

Aug 2025

House Passage

Governor

Introduced Jun 5, 2025 Last action Aug 26, 2025

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What changed between versions

Senate Introduced Bill → As Passed by the Senate · 6 edits · Aug 26, 2025

MODERATE

The bill was amended to modernize the Deferred Presentment Service Transactions Act by adding detailed requirements for a statewide database to prevent fraud. Key changes include granting the commissioner director authority to contract with third-party providers, establishing strict data privacy and retention rules, and creating new civil liability for third-party providers who violate the law.

Scope change

The bill's scope expanded to include specific operational mandates for database providers, including requirements for handling technical failures, data archiving timelines, and civil remedies for injured parties.

REQUIREMENT

Added authority for the commissioner director to contract with a single third-party provider to operate the database, replacing the previous requirement for the director to develop and maintain it internally.

Updated database functionality requirements to include tracking customer notifications of violations and determining eligibility for installment repayment plans.

Revised the automatic closure of transactions to include specific reasons for keeping a transaction open, such as insufficient funds or stop payment orders.

ENFORCEMENT

Created a new civil cause of action allowing individuals injured by a third-party provider's violation to sue for actual damages and attorney fees.

Established criminal penalties for unauthorized access to customer Social Security numbers or driver license numbers within the database.

TECHNICAL

Added specific rules for data retention, requiring customer transaction data to be archived within 365 days and fully deleted three years after closure.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Aug 26, 2025

Committee

referred to Committee on Government Operations

lower

Aug 26, 2025

Introduced

received on 08/26/2025

lower

Aug 26, 2025

Upper · Passed

PASSED ROLL CALL # 213 YEAS 19 NAYS 15 EXCUSED 3 NOT VOTING 0

upper

Jun 26, 2025

Upper · Passed

REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITHOUT AMENDMENT(S)

upper

Jun 12, 2025

Committee

REFERRED TO COMMITTEE OF THE WHOLE

upper

Jun 12, 2025

Upper · Passed

REPORTED FAVORABLY WITHOUT AMENDMENT 6/11/2025

upper

Jun 11, 2025

Introduced

INTRODUCED BY SENATOR JOHN DAMOOSE

upper

Jun 5, 2025

Committee

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION

upper

Jun 5, 2025

Introduced

INTRODUCED BY SENATOR EDWARD MCBROOM

upper

1 primary · 9 co-sponsors