Sec. 1. Short title. This act shall be known and may be cited as the "Michigan Digital Truth and Accountability Act".

Sec. 2. Legislative findings and intent. The legislature finds that:

• The digital landscape has created unprecedented opportunities for the rapid and widespread distribution of false, malicious, and verifiably incorrect information targeting individuals, small businesses, and organizations across this state.
• Current federal frameworks, including section 230 of the federal communications decency act, have created an environment in which bad-faith actors face minimal accountability for deliberately false statements of fact published online.
• Michigan small businesses, particularly those in underserved regions of the state, are disproportionately harmed by coordinated defamation campaigns, fraudulent reviews, and malicious misrepresentation, and have limited legal recourse because of the cost and complexity of civil litigation.
• This state has a compelling interest in protecting its residents, entrepreneurs, and economic ecosystem from verifiable falsehoods published with malicious intent.
• The free exchange of genuine opinion, legitimate criticism, and truthful information remains a cornerstone of democratic society and is fully protected under this act.

Sec. 3. Definitions. As used in this act:

• "Bad-faith actor" means any individual, entity, company, or corporation that publishes, or coordinates the publication of, verifiable defamation or malicious misinformation targeting residents or businesses of this state.
• "Digital truth officer" means the state official designated to administer the Michigan Digital Accountability Office established under this act.
• "Malicious misinformation" means false factual claims published with the deliberate intent to harm an individual, business, or organization, including coordinated fraudulent review campaigns.
• "Office" or "Michigan Digital Accountability Office" means the office established within the department of attorney general under section 4.
• "Platform" means any website, application, or digital service that hosts user-generated content accessible to residents of this state.
• "Verifiable defamation" means a published statement of fact, as distinct from opinion, that is demonstrably false, was published with knowledge of its falsity or with reckless disregard for the truth, and caused, or foreseeably could cause, material harm to the subject.

Sec. 4. Michigan Digital Accountability Office; establishment; duties. The Michigan Digital Accountability Office is established within the department of attorney general. The office shall do all of the following:

• Receive and investigate formal complaints from residents of this state and registered Michigan businesses alleging verifiable defamation or malicious misinformation published online.
• Maintain a public registry of confirmed bad-faith actors operating within, or targeting, this state, and update the registry not less than quarterly.
• Develop and publish a standardized evidence framework for documenting provably false digital statements, and make the framework accessible to residents and small businesses of this state at no cost.
• Coordinate with the department of attorney general to pursue civil action against confirmed bad-faith actors on behalf of injured Michigan parties who lack independent means to do so.
• Issue formal findings of verified defamation upon completion of an investigation. A formal finding is admissible as evidence in a subsequent civil proceeding.
• Accept a complaint under this act at no cost to the complainant.

Sec. 5. Consequences for confirmed bad-faith actors. Upon a formal finding by the office of verified defamation or malicious misinformation, all of the following apply:

• Mandatory public disclosure. The confirmed finding shall be published in the office registry and made available to all state licensing authorities.
• Business license review. A Michigan-licensed business found to have engaged in a coordinated defamation campaign is subject to expedited review of applicable state licenses and permits.
• Corporate officer accountability. Officers and executives of a corporation found to have directed or condoned a malicious misinformation campaign shall be individually named in the office registry and are subject to personal civil liability in state court.
• Platform notification. The office shall formally notify the relevant digital platforms of a confirmed finding and request removal of the verified defamatory content under applicable platform policies.
• Enhanced civil standing. A resident or business of this state holding a formal finding of the office has enhanced standing in the civil courts of this state, with a rebuttable presumption of damages.

Sec. 6. Protection of legitimate speech. This act does not restrict, penalize, or chill the free expression of opinion, truthful reporting, or any constitutionally protected speech, and these protections are absolute. This act shall not be construed to restrict, penalize, or chill any of the following:

• Genuine opinions, even negative opinions, about products, services, public figures, or matters of public concern.
• Truthful statements of fact, regardless of how unflattering to the subject.
• Legitimate journalism, whistleblowing, or reporting in the public interest.
• Political speech, satire, parody, or commentary on matters of public importance.
• Academic research, criticism, or commentary.

The office shall adopt procedural safeguards to prevent this act from being used against legitimate speech, including a mandatory review by the department of attorney general before a formal finding is issued.

Sec. 7. Small business protection; rapid response unit. The office shall establish a small business defamation rapid response unit that shall do all of the following:

• Accept complaints from Michigan businesses with fewer than 50 employees on an expedited 30-day review timeline.
• Provide free legal guidance and documentation support to eligible small business complainants.
• Maintain a dedicated telephone hotline and online portal for small business complaint submission, accessible statewide, including in the Upper Peninsula.
• Produce an annual report to the legislature on the scope and economic impact of digital defamation on the small business community of this state.

Sec. 8. Funding and civil remedies. There shall be a dedicated funding mechanism for the operation of the office. The enhanced civil remedies provided under this act for victims of verified online defamation are in addition to, and do not limit, any other remedy available under the Michigan defamation act or other law. The legislature shall consider amending the Michigan defamation act to reflect the realities of the digital publishing environment.

Sec. 9. Implementation. Not later than 90 days after the effective date of this act, the attorney general shall publish implementing regulations, establish the organizational structure of the office, designate a digital truth officer, and open the complaint portal for public use. Initial staffing shall be drawn from existing resources within the department of attorney general pending legislative appropriation. The compliance timelines prescribed by this section are mandatory.

Sec. 10. Effective date. This act takes effect 90 days after the date it is enacted into law.