SB 962, as introduced, Leno. Advanced mobile communications devices.
Existing law regulates various business activities and practices, including the sale of telephones.
This bill would require that any advanced mobile communications device, as defined, that is sold in California on or after January 1, 2015, include a technological solution, which may consist of software, hardware, or both software and hardware, that can render inoperable the essential features of the device, as defined, when the device is not in the possession of the rightful owner. The bill would require that the technological solution be able to withstand a hard reset, as defined. The bill would prohibit the sale of an advanced mobile communications device in California without the technological solution being enabled, but would authorize the rightful owner to affirmatively elect to disable the technological solution after sale. The bill would prohibit a provider of commercial mobile radio service, as defined, from including any term or condition in a service contract with an end-use consumer with an address within the state that requires or encourages the consumer or rightful owner to disable the technological solution that renders the consumer’s smartphone or other advanced communications device useless if stolen. The bill would make a violation of the bill’s requirements subject to a civil penalty of not less than $500, nor more than $2,500, for each violation.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares all of the
3(a) According to the Federal Communications Commission,
4one in three robberies in the United States involve the theft of a
5mobile communications device, making it the number one property
6crime in the country. Many of these robberies often turn violent
7with some resulting in the loss of life.
8(b) Consumer Reports projects that 1.6 million Americans were
9victimized for their smartphones in 2012.
10(c) According to the New York Times, 113 smartphones are
11lost or stolen every minute in the United States.
12(d) According to the Office of the District Attorney for the City
13and County of San Francisco, in 2012, more than 50 percent of all
14robberies in San Francisco involved the theft of a mobile
16(e) Thefts of smartphones in Los Angeles increased 12 percent
17in 2012, according to the Los Angeles Police Department.
18(f) According to press reports, the international trafficking of
19stolen smartphones by organized criminal organizations has grown
20exponentially in recent years because of how profitable the trade
22(g) Replacement of lost and stolen mobile communications
23devices was an estimated thirty-billion-dollar ($30,000,000,000)
24business in 2012 according to studies conducted by mobile
25communications security experts. Additionally, industry
26publications indicate that the four largest providers of commercial
27mobile radio services made an estimated seven billion eight
28hundred million dollars ($7,800,000,000) from theft and loss
29insurance products in 2013.
30(h) Technological solutions that render stolen mobile
31communications devices useless already exist, but the industry has
32been slow to adopt them.
P3 1(i) In order to be effective, these technological solutions need
2to be ubiquitous, as thieves cannot distinguish between those
3mobile communications devices that have the solutions enabled
4and those that do not. As a result, the technological solution should
5be able to withstand a hard reset or operating system downgrade,
6and be enabled by default, with consumers being given the option
7to affirmatively elect to disable this protection.
8(j) Manufactures of advanced mobile communications devices
9 and commercial mobile radio service providers have a
10responsibility to ensure their customers are not targeted as a result
11of purchasing their products and services.
12(k) It is the intent of the Legislature to require all smartphones
13and other advanced mobile communications devices offered for
14sale in California to come with a technological solution enabled,
15in order to deter theft and protect consumers.
16(l) It is the further intent of the Legislature to prohibit any term
17or condition in a service contract between a customer and a
18commercial mobile radio service provider that requires or
19encourages the customer to disable the technological solution that
20renders the customer’s smartphone or other advanced
21communications device useless if stolen.
Section 22761 is added to the Business and Professions
23Code, to read:
(a) For purposes of this section, the following terms
25have the following meanings:
26(1) “Advanced mobile communications device” means an
27electronic device that is regularly hand held when operated that
28enables the user to engage in voice communications using mobile
29telephony service, Voice over Internet Protocol, or Internet Protocol
30enabled service, as those terms are defined in Sections 224.4 and
31239 of the Public Utilities Code, and to connect to the Internet,
32and includes what are commonly known as smartphones and
34(2) “Commercial mobile radio service” means “commercial
35mobile service,” as defined in subsection (d) of Section 332 of
36Title 47 of the United States Code and as further specified by the
37Federal Communications Commission in Parts 20, 22, 24, and 25
38of Title 47 of the Code of Federal Regulations, and includes
39“mobile satellite telephone service” and “mobile telephony
P4 1service,” as those terms are defined in Section 224.4 of the Public
3(3) “Essential features” of an advanced mobile communications
4device include the ability to use the device for voice
5communications and the ability to connect to the Internet, including
6the ability to access and use mobile software applications
7commonly known as “apps.”
8(4) “Hard reset” means the restoration of an advanced mobile
9communications device to the state it was in when it left the
10factory, and refers to any act of returning a device to that state,
11including processes commonly termed a factory reset or master
13(5) “Sold in California” means that the advanced mobile
14communications device is sold at retail, and not for resale, from a
15location within the state, or the advanced mobile communications
16device is sold and shipped to an end-use consumer at an address
17within the state.
18(b) (1) Any advanced mobile communications device that is
19sold in California on or after January 1, 2015, shall include a
20technological solution that can render the essential features of the
21device inoperable when the device is not in the possession of the
22rightful owner. A technological solution may consist of software,
23hardware, or a combination of both software and hardware, but
24shall be able to withstand a hard reset. No advanced mobile
25communications device may be sold in California without the
26technological solution enabled.
27(2) The rightful owner of an advanced mobile
28device may affirmatively elect to disable the technological solution
29after sale. However, the physical acts necessary to disable the
30technological solution may only be performed by the end-use
31consumer or a person specifically selected by the end-use consumer
32to disable the technological solution and shall not be physically
33performed by any retail seller of the advanced mobile
35(c) A provider of commercial mobile radio service shall not
36include a term or condition in a service contract with an end-use
37consumer with an address within the state that requires or
38encourages the consumer or rightful owner to disable the
39technological solution that renders the consumer’s smartphone or
40other advanced communications device useless if stolen.
P5 1(d) (1) A person or retail entity selling an advanced
2communications device in California in violation of subdivision
3(b) shall be subject to a civil penalty of not less than five hundred
4dollars ($500), nor more than two thousand five hundred dollars
5($2,500), per device sold in California.
6(2) A provider of commercial mobile radio service that includes
7a term or condition in a service contract with an end-use consumer
8with an address within the state in violation of subdivision (c) shall
9be subject to a civil penalty of not less than five hundred dollars
10($500), nor more than two thousand five hundred dollars ($2,500),
11per service contract with an end-use consumer with an address