HF 2642

as introduced - 90th Legislature (2017 - 2018) Posted on 05/04/2017 10:13am

A bill for an act
relating to telecommunications; requiring telecommunications and Internet service
providers to reimburse consumers for distributing consumer information obtained
from the Internet; requiring the Public Utilities Commission to establish the level
of reimbursement for distributing consumer information obtained from the Internet;
proposing coding for new law in Minnesota Statutes, chapter 237.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [237.417] CONSUMER INFORMATION; REIMBURSEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given them.
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new text begin (b) "Consumer" means an individual who, in the course of accessing the Internet,
knowingly or unknowingly provides consumer information to a covered entity or Internet
service provider with or without an exchange of consideration.
new text end

new text begin (c) "Consumer information" means information obtained from a consumer that has a
value to an Internet service provider, a telecommunications provider, or a covered entity,
and that identifies:
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new text begin (1) a consumer, the consumer's spouse, or the consumer's children by physical or
electronic address, name, date of birth, Social Security number, or telephone number;
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new text begin (2) a consumer's occupation, credit history, financial account information, medical
history, political party affiliation, or disability or other status protected under chapter 363A;
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new text begin (3) a consumer as having requested or obtained specific materials or services from an
Internet service provider;
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new text begin (4) a consumer's Internet sites or browsing cache, cookies, or history, including the
content on an Internet site viewed by a consumer;
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new text begin (5) any of the contents of a consumer's data storage devices or the Internet protocol
address associated with an electronic device that belongs to the consumer; or
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new text begin (6) a consumer, the consumer's spouse, or the consumer's children by aggregating any
information in clauses (1) to (5) to create a profile of that person. Consumer information
includes information that may be disseminated in personally identifiable, aggregated, or
disaggregated forms.
new text end

new text begin (d) "Covered entity" means an entity, including a search engine service, social media,
or other Web-based application, that uses the Internet to collect consumer information from
a consumer.
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new text begin (e) "Internet service provider" means a person who provides access to the Internet.
new text end

new text begin (f) "Telecommunications service provider" has the meaning given in section 237.01,
subdivision 6b.
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new text begin Subd. 2. new text end

new text begin Service provider; reimbursement for value of consumer information.
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new text begin Beginning January 1, 2019, a telecommunications service provider, Internet service provider,
or covered entity must reimburse a consumer if it (1) sells, shares, or otherwise distributes
for value consumer information from a consumer, or (2) uses consumer information for
direct advertising or other similar purposes. The consumer must be reimbursed at the value
of consumer information reimbursement rate established under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Value of consumer information reimbursement rate. new text end

new text begin By July 1, 2018, the
commission must establish a value of consumer information reimbursement rate. In setting
the rate, the commission must consider the value resulting from the consumer information
being gathered, processed, packaged, and then sold or distributed by the telecommunications
service provider, Internet service provider, or covered entity. In setting the value, the
commission may consult with experts, consumers, and other interested parties, and may
gather information from telecommunications service providers, Internet service providers,
and other covered entities related to the value of the consumer information gathered from
Minnesota consumers, including information regarding the cost of gathering the information,
processing the information, and selling, sharing, otherwise distributing the information for
value or consideration to third parties, and the gross and net profits from advertising based
on the consumer information. The value may vary based on the amount and type of consumer
information obtained by a telecommunications service provider, Internet service provider,
or covered entity. A telecommunications service provider, Internet service provider, or
covered entity that conducts business in Minnesota or with any Minnesota resident must
provide information requested by the commission to assist in establishing the rate required
under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end