BILL ANALYSIS Ó
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THIRD READING
Bill No: SB 962
Author: Leno (D), et al.
Amended: 4/9/14
Vote: 21
SENATE ENERGY, UTIL. & COMMUNIC. COMM. : 6-2, 4/1/14
AYES: Padilla, Corbett, DeSaulnier, Hill, Pavley, Wolk
NOES: Fuller, Knight
NO VOTE RECORDED: Block, Cannella, De León
SENATE FLOOR : 19-17, 4/24/14 (FAIL)
AYES: Block, Corbett, De León, DeSaulnier, Evans, Gaines,
Hancock, Hill, Jackson, Leno, Lieu, Liu, Mitchell, Monning,
Padilla, Pavley, Roth, Steinberg, Wolk
NOES: Anderson, Beall, Berryhill, Cannella, Correa, Fuller,
Galgiani, Hernandez, Huff, Knight, Lara, Morrell, Nielsen,
Torres, Vidak, Walters, Wyland
NO VOTE RECORDED: Calderon, Hueso, Wright, Yee
SUBJECT : Advanced mobile communications devices
SOURCE : San Francisco District Attorney, George Gascón
DIGEST : This bill requires that any advanced mobile
communications device, as defined, that is sold in California on
or after January 1, 2015, include a technological solution that
can render inoperable the essential features of the device, as
defined, when the device is not in the possession of the
rightful owner.
CONTINUED
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ANALYSIS :
Existing law:
1.Provides that theft - the stealing, taking, or driving away
with the personal property of another - is a misdemeanor when
the value of the property does not exceed $950 and is
punishable by fines and up to one year in the county jail.
2.Requires all providers of wireless and Internet-based
communications services to enable customers to call 911 for
emergency services, and establishes dates for enabling text to
911 and Next Generation 911. (Government Code Sections 53100
- 53120).
This bill:
1.Makes any person or retail entity subject to a civil penalty
of up to $2,500 for each mobile communications device sold
after January 1, 2015, unless that device includes a
technological solution commonly called a "kill switch" and the
kill switch is enabled when sold.
2.Requires a kill switch that can render the essential features
of the device inoperable when the device is not in the
possession of the rightful owner, with essential features
defined as using the device for voice communications and
Internet connection including access to any mobile software
applications (apps).
3.Requires that the kill switch prevent reactivation of the
device on a wireless network except by the rightful owner and
that the kill switch be reversible so that if a rightful owner
obtains possession of the device after essential features are
rendered inoperable that owner can restore those essential
features.
4.Requires that the kill switch be able to withstand a "hard
reset" so that restoration of the device to the state it was
in when it left the factory will not eliminate the enabled
kill switch.
5.Provides that a rightful owner may affirmatively elect to
disable a kill switch after sale, and that the physical acts
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necessary to disable the kill switch may only be performed by
the customer or a person specifically selected by the customer
to disable the kill switch and not by any retail seller of the
device.
6.Applies the kill switch requirement to any device "sold at
retail" from a location within the state or shipped to any
person at an address within the state, but provides an
exception if a device is both manufactured prior to January 1,
2015, or originally sold outside of California, and resold in
California "on the secondary market" or consigned and held as
collateral on a loan.
7.States that "Sold in California" does not include a device
that is resold in the state on the secondhand market or that
is consigned and held as collateral on a loan.
Background
As smartphones continue to transform all aspects of modern life,
they also have caused a crime epidemic. More than 90% of all
Americans own a mobile device, and nearly 60% a smartphone. The
high resale value of smartphones and other hand-held mobile
devices like tablets, and their relatively small size, make them
prime targets for thieves. Many published reports document a
dramatic increase of smartphone theft. According to reports
summarized by the San Francisco District Attorney's Office:
Most robberies now involve the theft of a smartphone;
In 2012, more than 50% of all robberies in San Francisco and
75% in Oakland involved the theft of a mobile device; and
An estimated 1.6 million Americans were victimized for their
smartphones in 2012.
The Federal Communications Commission, law enforcement, and
industry collaborated on efforts to address the problem in 2012.
These included providing consumers more security options on
devices and automatic prompts to establish passwords and
launching a public education campaign urging consumers to use
security apps that enable them to remotely locate, lock and wipe
devices. A national database was established to help prevent
lost or stolen phones from being reactivated. Wireless carriers
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use the database to check whether a device presented to them has
been reported lost or stolen and, if so, will not allow service
to be established. Its effectiveness depends on consumers
reporting a lost or stolen phone. Industry reports that efforts
are underway to link more foreign carriers and countries to the
database. Without that international cooperation, stolen phones
resold in foreign countries continue to have value.
Industry continues to introduce new and more sophisticated
security solutions for consumers. These include options such as
Apple's "Find My iPhone" with "Activation Lock" feature that
allows a person who has lost or stolen an iPhone to remotely log
into a hosted platform and send a signal to lock the device and
make it unusable without the original owner's security passcode
established when the device was purchased. Other solutions
include Samsung's "Reactivation Lock" and Android's "Lo Jack."
Some solutions are built into the device or downloaded as an
app, some with a fee.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 4/9/14)
San Francisco, District Attorney George Gascón (source)
Alameda County, District Attorney Nancy O'Malley
Associated Students of the University of California
Association of Orange County Deputy Sheriffs
BART (Bay Area Rapid Transit)
BART Police
California District Attorneys Association
California Fraternal Order of Police
California Police Chiefs Association
California Transit Association
Cities of Berkeley, Emeryville, Los Angeles, Oakland, San Diego,
and Santa Ana
Consumer Action
Consumer Federation of California
Consumers Union
Hayward, Police Chief Diane Urban
Long Beach Police Officers Association
Los Angeles County Professional Peace Officers Association
Los Angeles, Mayor Eric Garcetti
Los Angeles, Police Chief Charlie Beck
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Metropolitan Police Department
Neighborhood Crime Prevention Councils of Oakland
Oakland, City Council President Pro-Tempore Rebecca Kaplan
Oakland, City Councilman Dan Kalb
Oakland, Mayor Jean Quan
Oakland, Police Chief Sean Whent
Sacramento County Deputy Sheriffs Association
San Francisco, Mayor Ed Lee
San Francisco Municipal Transportation Agency
San Francisco, Police Chief Greg Suhr
Santa Ana Police Officers Association
Secure Our Smartphones Coalition
Temescal Merchants Association
The Utility Reform Network
OPPOSITION : (Verified 4/9/14)
Microsoft
Silicon Valley Chamber of Commerce
TechNet
JG:e 4/24/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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