BILL ANALYSIS �
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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 Le�n
SUBJECT : Advanced mobile communications devices
SOURCE : San Francisco District Attorney, George Gasc�n
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.
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.
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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
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
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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
Smartphone theft on the rise . 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.
Industry response to stem theft . 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 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.
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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 : (Per Senate Energy, Utilities and Communications
Committee analysis of 4/1/14--unable to reverify at time of
writing)
San Francisco District Attorney, George Gasc�n (source)
Alameda County District Attorney, Nancy O'Malley
Associated Students of the University of California
California District Attorneys Association
California Pawnbroker's Association
California Police Chiefs Association
California Transit Association
Cites of Los Angeles, Oakland, San Diego, San Francisco, and
Santa Ana
Consumer Federation of California
Consumer Union
Hayward Police Department
Neighborhood Crime Prevention Councils of Oakland
San Francisco Bay Area Rapid Transit District
San Francisco Municipal Transportation Agency
Temescal Merchants Association
The Utility Reform Network
OPPOSITION : (Per Senate Energy, Utilities and Communications
Committee analysis of 4/1/14--unable to reverify at time of
writing)
TechNet
JG:e 4/9/14 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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