LANSING – Those trying to use stolen logos and false information to trick people into providing credit and other personal information would face stiffer penalties under legislation reported Tuesday by the Senate Judiciary Committee. The committee also began discussions of a new trust code.

The bills (SB 149 and SB 150 ) would prohibit so-called phishing websites and emails that attempt to look like a legitimate financial services site but are intended to collect personal information for purposes of identity theft or access to personal accounts.

Phishing, as well as current prohibited forms of identity theft, would see penalties increase to maximums of 10 years in prison and $500,000 in fines from the current five years/$25,000. The bill would also allow civil actions by the attorney general or the Internet service provider if the phishing site operator did not have the intent to commit identity fraud.

“It’s a situation where the law probably never catches up with the technology,” said bill sponsor Sen. Bruce Patterson (R-Canton). “We’re going to have to remain vigilant and keep ahead of the latest technology in how to hurt people in the information age.”

He noted the bills would not touch Internet bullying or malicious website hacking, some other issues that had been brought to his attention and could be addressed in future legislation.

Though the bills were reported unanimously, there will be some further discussions in the Senate as Sen. Gretchen Whitmer (D-East Lansing) raised some concerns about the definition of false pretenses, which she said could be too broad.

TRUST CODE: The committee also began discussions Tuesday on a package of bills that would recodify the state’s trust code.

The legislation (SB 383 , SB 384 , SB 385 , SB 386 , SB 387 ) is based broadly on the uniform trust code that has been adopted, in some form, by 20 other states and the District of Columbia. But it also includes changes to the uniform code to maintain some existing Michigan law.

“This has been a thoroughly and carefully considered piece of legislation,” said Mark Harder with the Probate and Estate Section of the State Bar of Michigan.

The current law, he said, is spread across a number of statutes and court decisions.

“It provides certainty through the legislation; it provides uniformity through the legislation; it modernizes the legislation,” said Kent County Probate Court Chief Judge David Murkoski. “It provides transparency for all people who participate.”

“This legislation is going to fill our gaps, which will help our trustees administer the trusts,” said Debbie Mitin, director of trust services for the Michigan Bankers Association. “Some of these trusts were not well drafted.”

Among the changes from current Michigan law, the package would allow the settler of a charitable trust to enforce the terms of that trust. Current Michigan case law allows only the attorney general and beneficiaries of the trust to enforce its terms. But the right of enforcement would not pass to the settler’s heirs.

Michigan law also sets trusts as irrevocable unless otherwise specified in the trust documents. Under the proposal, trusts would be revocable by default.

Among the changes to the UTC to accommodate Michigan law, the proposal would require that the existence of a trust be disclosed to any beneficiaries. The model code would allow the trustee to keep the trust confidential.

The package also maintains Michigan law with regard to creditor access to trusts. Harder said there had been concerns raised, in Michigan and elsewhere, that the language of the UTC would give creditors of beneficiaries more access to trust assets.

The proposal would still not allow residents to create trusts for which they are the beneficiaries to avoid creditors.

Those supporting the package noted that it has taken about five years to put the agreement together and asked that committee members make as few changes as possible to avoid unraveling the agreement currently behind it.

Committee chair Sen. Wayne Kuipers (R-Holland) said the panel would begin work toward reporting the bills next week. And he asked that any proposed amendments be provided to all of the interest groups as well as to other committee members in light of the extent of the agreement.

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