senate Bill S6850B

2013-2014 Legislative Session

Relates to smart phone device antitheft protection

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Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 16, 2014 print number 6850c
amend (t) and recommit to consumer protection
Jun 12, 2014 print number 6850b
amend and recommit to consumer protection
May 13, 2014 print number 6850a
amend (t) and recommit to consumer protection
Mar 19, 2014 referred to consumer protection

Bill Amendments

Original
A
B
C (Active)
Original
A
B
C (Active)

S6850 - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Add §399-zzzz, Gen Bus L

S6850 - Bill Texts

view summary

Relates to a smart phone antitheft protection; establishes requirements for the acquisition and resale of wireless communications devices.

view sponsor memo
BILL NUMBER:S6850

TITLE OF BILL: An act to amend the general business law, in relation
to the installation of a technological solution on an advanced mobile
communication device

PURPOSE OF THE BILL: This bill would require that any advanced mobile
communications device, as defined, that is sold in New York, 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.

SUMMARY OF PROVISIONS:

Section 1: The bill requires all smartphones and other advanced mobile
communications devices offered for sale in New York to come with a
technological solution enabled, in order to deter theft and protect
consumers. The bill includes a clause to prohibit any term or
condition in a service contract between a customer and a commercial
mobile radio service provider that requires or encourages the customer
to disable the technological solution that renders the customer's
smartphone or other advanced communications device useless if stolen.

Section 2: Establishes that section 399-zzzz be added to the general
business law, which states any advanced mobile communications device
that is sold on or after January 1, 2015 will include a technological
solution that can render the essential features of the device
inoperable when the device is not in the possession of the rightful
owner. The section also permits rightful owners of advanced mobile
communications devices to choose to disable the technological solution
after sale. Any violators of this section will be subject to a civil
penalty of not less than $500 and no more than $2500.

Section 3: Establishes the effective date.

JUSTIFICATION: According to the Federal Communications Commission,
one in three robberies in the United States involves the theft of a
mobile communications device, making it the number one property crime
in the country. Many of these robberies often turn violent with some
resulting in the loss of life. The FCC estimates that between thirty
to forty percent of United States street-theft involves a mobile
device. In fact, more than forty percent of all robberies in New York
City involve smartphones and other cell phones. Replacement of lost or
stolen mobile communications devices was an estimated thirty-billion
dollar business in 2012, and the four largest providers of mobile
radio services made an estimated seven billion eight hundred million
dollars from theft and loss insurance products in 2013. With robberies
of smartphones reaching an all-time high, New York should utilize the
readily available solution to the problem. The "kill switches" will
combat surging smartphone theft across the state by reducing the
incentive and ability criminals have to make money off the stolen
devices.

In order to deter criminals from stealing phones from consumers, there
needs to be a way to render stolen phones worthless. Currently the
only way this is possible is to make the phones unusable, and


therefore unable to be profited from on the secondhand market.
Utilizing kill switch technology ensures this is possible while
maintaining the safety and integrity of the victim/consumer. In
addition, there should be no inclination on the part of the consumer
to turn off the kill switch and to ensure this; it has been written
into the bill that no provider may attempt to entice the consumer in
any way to turn it off.

PRIOR LEGISLATIVE HISTORY: Assembly Bill A8984/2014 (Titone)

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: This act shall take effect immediately.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6850

                            I N  S E N A T E

                             March 19, 2014
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, in relation to  the  installa-
  tion  of  a technological solution on an advanced mobile communication
  device

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative intent. The legislature finds that:
  (a)  According  to the federal communications commission (FCC), one in
three robberies in the United States involves  the  theft  of  a  mobile
communications  device,  making  it the number one property crime in the
country. Many of these robberies often turn violent with some  resulting
in the loss of life.
  (b)  The  FCC estimates that between thirty to forty percent of United
States street theft involves a mobile device. In fact, more  than  forty
percent  of all robberies in New York city involve smartphones and other
cell phones.
  (c) Consumer reports projects that one point six million Americans had
their smartphones stolen in 2012.
  (d) According to the New York Times, one hundred thirteen  smartphones
are lost or stolen every minute in the United States.
  (e)  Major cities are home to the highest concentrations of cell phone
theft, and officials in New York and California have been pushing for  a
cellphone kill switch in those states since April 2012. According to New
York  state attorney general Eric Schneiderman, the United States senate
proposal would force the mobile industry to "stop dragging its feet  and
join us in protecting consumers."
  (f)  In  April  of 2012, U.S. senator Charles Schumer, D-New York, and
New York city police commissioner Ray Kelly  announced  that  the  major
U.S.  cell phone carriers and the federal communications commission have
agreed  to  set  up a national database to track reported stolen phones.
Senator Schumer also introduced a bill called the  mobile  device  theft
deterrence act, which proposes a five-year prison sentence for tampering
with the ID numbers of a stolen cell phone.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14099-01-4

S. 6850                             2

  (g)  According  to  press  reports,  the  international trafficking of
stolen smartphones by organized criminal organizations has  grown  expo-
nentially  in  recent  years  because  of  how  profitable the trade has
become.
  (h)  Replacement  of lost and stolen mobile communications devices was
an estimated thirty-billion-dollar business in 2012 according to studies
conducted  by  mobile  communications  security  experts.  Additionally,
industry  publications  indicate  that  the  four  largest  providers of
commercial mobile radio services made an estimated seven  billion  eight
hundred million dollars from theft and loss insurance products in 2013.
  (i)  Technological  solutions that render stolen mobile communications
devices useless already exist, but the industry has been slow  to  adopt
them.
  (j) In order to be effective, these technological solutions need to be
ubiquitous,  as thieves cannot distinguish between those mobile communi-
cations devices that have the solutions enabled and those that  do  not.
As  a  result,  the technological solution should be able to withstand a
hard reset or operating system downgrade, and  be  enabled  by  default,
with  consumers being given the option to affirmatively elect to disable
this protection.
  (k)  Manufacturers  of  advanced  mobile  communications  devices  and
commercial  mobile  radio  service  providers  have  a responsibility to
ensure their customers are not targeted as a result of purchasing  their
products and services.
  (l) It is the intent of the legislature to require all smartphones and
other  advanced  mobile  communications  devices offered for sale in New
York to come with a technological solution enabled, in  order  to  deter
theft and protect consumers.
  (m)  It  is the further intent of the legislature to prohibit any term
or condition in a service contract between a customer and  a  commercial
mobile  radio  service provider that requires or encourages the customer
to disable the technological solution that renders the customer's smart-
phone or other advanced communications device useless if stolen.
  S 2. The general business law is amended by adding a new section  399-
zzzz to read as follows:
  S  399-ZZZZ.  ADVANCED MOBILE COMMUNICATIONS DEVICES. 1.  DEFINITIONS.
FOR PURPOSES OF THIS SECTION, THE FOLLOWING  TERMS  HAVE  THE  FOLLOWING
MEANINGS:
  (A) "ADVANCED MOBILE COMMUNICATIONS DEVICE" MEANS AN ELECTRONIC DEVICE
THAT  IS  REGULARLY  HAND  HELD  WHEN  OPERATED THAT ENABLES THE USER TO
ENGAGE IN VOICE COMMUNICATIONS USING  MOBILE  TELEPHONY  SERVICE,  VOICE
OVER  INTERNET  PROTOCOL,  OR  INTERNET PROTOCOL ENABLED SERVICE, AND TO
CONNECT TO THE INTERNET, AND INCLUDES WHAT ARE COMMONLY KNOWN AS  SMART-
PHONES AND TABLETS.
  (B)   "COMMERCIAL  MOBILE  RADIO  SERVICE"  MEANS  "COMMERCIAL  MOBILE
SERVICE," AS DEFINED IN SUBSECTION (D) OF SECTION 332 OF TITLE 47 OF THE
UNITED STATES CODE AND AS FURTHER  SPECIFIED  BY  THE  FEDERAL  COMMUNI-
CATIONS  COMMISSION  IN PARTS 20, 22, 24, AND 25 OF TITLE 47 OF THE CODE
OF FEDERAL REGULATIONS, AND INCLUDES "MOBILE TELEPHONY SERVICE."
  (C) "ESSENTIAL FEATURES" OF AN ADVANCED MOBILE  COMMUNICATIONS  DEVICE
INCLUDE  THE  ABILITY TO USE THE DEVICE FOR VOICE COMMUNICATIONS AND THE
ABILITY TO CONNECT TO THE INTERNET, INCLUDING THE ABILITY TO ACCESS  AND
USE MOBILE SOFTWARE APPLICATIONS COMMONLY KNOWN AS "APPS."
  (D)  "HARD RESET" MEANS THE RESTORATION OF AN ADVANCED MOBILE COMMUNI-
CATIONS DEVICE TO THE STATE IT WAS IN WHEN  IT  LEFT  THE  FACTORY,  AND

S. 6850                             3

REFERS  TO  ANY ACT OF RETURNING A DEVICE TO THAT STATE, INCLUDING PROC-
ESSES COMMONLY TERMED A FACTORY RESET OR MASTER RESET.
  (E)  "INTERNET PROTOCOL ENABLED SERVICE" OR "IP ENABLED SERVICE" MEANS
ANY SERVICE, CAPABILITY, FUNCTIONALITY, OR  APPLICATION  USING  EXISTING
INTERNET  PROTOCOL,  OR ANY SUCCESSOR INTERNET PROTOCOL, THAT ENABLES AN
END USER TO SEND OR RECEIVE A COMMUNICATION IN EXISTING INTERNET  PROTO-
COL  FORMAT,  OR ANY SUCCESSOR INTERNET PROTOCOL FORMAT THROUGH A BROAD-
BAND CONNECTION, REGARDLESS OF WHETHER THE COMMUNICATION IS VOICE, DATA,
OR VIDEO.
  (F) "MOBILE TELEPHONY SERVICE" MEANS COMMERCIALLY AVAILABLE  INTERCON-
NECTED  MOBILE PHONE SERVICES THAT PROVIDE ACCESS TO THE PUBLIC SWITCHED
TELEPHONE NETWORK (PSTN)  VIA  MOBILE  COMMUNICATION  DEVICES  EMPLOYING
RADIO  WAVE  TECHNOLOGY TO TRANSMIT CALLS, INCLUDING CELLULAR RADIOTELE-
PHONE, BROADBAND PERSONAL COMMUNICATIONS  SERVICES  (PCS),  AND  DIGITAL
SPECIALIZED  MOBILE  RADIO  (SMR).  "MOBILE TELEPHONY SERVICES" DOES NOT
INCLUDE MOBILE SATELLITE TELEPHONE SERVICES OR MOBILE DATA SERVICES USED
EXCLUSIVELY FOR THE  DELIVERY  OF  NON-VOICE  INFORMATION  TO  A  MOBILE
DEVICE.
  (G)  "SOLD  IN NEW YORK" MEANS THAT THE ADVANCED MOBILE COMMUNICATIONS
DEVICE IS SOLD AT RETAIL, AND NOT FOR RESALE, FROM A LOCATION WITHIN THE
STATE, OR THE ADVANCED MOBILE COMMUNICATIONS DEVICE IS SOLD AND  SHIPPED
TO AN END-USE CONSUMER AT AN ADDRESS WITHIN THE STATE.
  (H)  "VOICE  OVER  INTERNET  PROTOCOL"  OR "VOIP" MEANS VOICE COMMUNI-
CATIONS SERVICE THAT DOES ALL OF THE FOLLOWING:
  (I)  USES  INTERNET  PROTOCOL  OR  A  SUCCESSOR  PROTOCOL  TO   ENABLE
REAL-TIME,  TWO-WAY  VOICE COMMUNICATION THAT ORIGINATES FROM, OR TERMI-
NATES AT, THE USER'S LOCATION IN INTERNET PROTOCOL OR A SUCCESSOR PROTO-
COL.
  (II) REQUIRES A BROADBAND CONNECTION FROM THE USER'S LOCATION.
  (III) PERMITS A USER GENERALLY TO RECEIVE A CALL  THAT  ORIGINATES  ON
THE  PUBLIC  SWITCHED  TELEPHONE  NETWORK AND TO TERMINATE A CALL TO THE
PUBLIC SWITCHED TELEPHONE NETWORK.
  (IV) A SERVICE THAT USES ORDINARY CUSTOMER PREMISES EQUIPMENT WITH  NO
ENHANCED  FUNCTIONALLY  THAT  ORIGINATES  AND  TERMINATES  ON THE PUBLIC
SWITCHED TELEPHONE NETWORK, UNDERGOES NO NET  PROTOCOL  CONVERSION,  AND
PROVIDES  NO  ENHANCED  FUNCTIONALITY TO END USERS DUE TO THE PROVIDER'S
USE OF INTERNET PROTOCOL TECHNOLOGY IS NOT A VOIP SERVICE.
  2. TECHNOLOGICAL SOLUTION.  (A)  ANY  ADVANCED  MOBILE  COMMUNICATIONS
DEVICE  THAT IS SOLD IN NEW YORK ON OR AFTER JANUARY FIRST, TWO THOUSAND
FIFTEEN, SHALL INCLUDE A TECHNOLOGICAL  SOLUTION  THAT  CAN  RENDER  THE
ESSENTIAL  FEATURES  OF  THE DEVICE INOPERABLE WHEN THE DEVICE IS NOT IN
THE POSSESSION OF THE  RIGHTFUL  OWNER.  A  TECHNOLOGICAL  SOLUTION  MAY
CONSIST  OF  SOFTWARE,  HARDWARE,  OR A COMBINATION OF BOTH SOFTWARE AND
HARDWARE, BUT SHALL BE ABLE TO  WITHSTAND  A  HARD  RESET.  NO  ADVANCED
MOBILE COMMUNICATIONS DEVICE MAY BE SOLD IN NEW YORK WITHOUT THE TECHNO-
LOGICAL SOLUTION ENABLED.
  (B) THE RIGHTFUL OWNER OF AN ADVANCED MOBILE COMMUNICATIONS DEVICE MAY
AFFIRMATIVELY  ELECT  TO  DISABLE THE TECHNOLOGICAL SOLUTION AFTER SALE.
HOWEVER, THE  PHYSICAL  ACTS  NECESSARY  TO  DISABLE  THE  TECHNOLOGICAL
SOLUTION  MAY  ONLY  BE  PERFORMED  BY  THE END-USE CONSUMER OR A PERSON
SPECIFICALLY SELECTED BY THE END-USE CONSUMER TO DISABLE THE  TECHNOLOG-
ICAL SOLUTION AND SHALL NOT BE PHYSICALLY PERFORMED BY ANY RETAIL SELLER
OF THE ADVANCED MOBILE COMMUNICATIONS DEVICE.
  (C)  A PROVIDER OF COMMERCIAL MOBILE RADIO SERVICE SHALL NOT INCLUDE A
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

S. 6850                             4

RIGHTFUL  OWNER  TO  DISABLE THE TECHNOLOGICAL SOLUTION THAT RENDERS THE
CONSUMER'S SMARTPHONE OR OTHER ADVANCED COMMUNICATIONS DEVICE USELESS IF
STOLEN.
  3. PENALTIES. (A) A PERSON OR RETAIL ENTITY SELLING AN ADVANCED COMMU-
NICATIONS  DEVICE  IN  NEW YORK IN VIOLATION OF SUBDIVISION TWO SHALL BE
SUBJECT TO A CIVIL PENALTY OF NOT LESS THAN FIVE  HUNDRED  DOLLARS,  NOR
MORE  THAN  TWO  THOUSAND  FIVE  HUNDRED DOLLARS, PER DEVICE SOLD IN NEW
YORK.
  (B) A PROVIDER OF COMMERCIAL MOBILE RADIO SERVICE THAT INCLUDES A TERM
OR CONDITION IN A SERVICE CONTRACT WITH  AN  END-USE  CONSUMER  WITH  AN
ADDRESS  WITHIN  THE  STATE IN VIOLATION OF PARAGRAPH (C) OF SUBDIVISION
TWO OF THIS SECTION, SHALL BE SUBJECT TO A CIVIL  PENALTY  OF  NOT  LESS
THAN  FIVE  HUNDRED  DOLLARS,  NOR  MORE  THAN TWO THOUSAND FIVE HUNDRED
DOLLARS, PER SERVICE CONTRACT WITH AN END-USE CONSUMER WITH  AN  ADDRESS
WITHIN NEW YORK.
  S 3. This act shall take effect immediately.

S6850A - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Add §399-zzzz, Gen Bus L

S6850A - Bill Texts

view summary

Relates to a smart phone antitheft protection; establishes requirements for the acquisition and resale of wireless communications devices.

view sponsor memo
BILL NUMBER:S6850A

TITLE OF BILL: An act to amend the general business law, in relation
to smart phone device "kill switch"

PURPOSE OR GENERAL IDEA OF BILL:

This bill would require that any advanced mobile communications
device, as defined, that is sold in New York, 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.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: The bill requires all smartphones and other advanced mobile
communications devices offered for sale in New York to come with a
technological solution enabled, in order to deter theft and protect
consumers. The bill includes a clause to prohibit any term or
condition in a service contract between a customer and a commercial
mobile radio service provider that requires or encourages the customer
to disable the technological solution that renders the customer's
smartphone or other advanced communications device useless if stolen.

Section 2: Establishes that section 399-zzzz be added to the general
business law, which states any advanced mobile communications device
that is sold on or after January 1, 2015 will include a technological
solution that can render the essential features of the device
inoperable when the device is not in the possession of the rightful
owner. The section also permits rightful owners of advanced mobile
communications devices to choose to disable the technological solution
after sale. Any violators of this section will be subject to a civil
penalty of not less than $500 and no more than $2500.

Section 3: Establishes the effective date.

JUSTIFICATION:

According to the Federal Communications Commission, one in three
robberies in the United States involves the theft of a mobile
communications device, making it the number one property crime in the
country. Many of these robberies often turn violent with some
resulting in the loss of life. The FCC estimates that between thirty
to forty percent of United States street-theft involves a mobile
device. In fact, more than forty percent of all robberies in New York
City involve smartphones and other cell phones. Replacement of lost or
stolen mobile communications devices was an estimated thirty-billion
dollar business in 2012, and the four largest providers of mobile
radio services made an estimated seven billion eight hundred million
dollars from theft and loss insurance products in 2013. With robberies
of smartphones reaching an all-time high, New York should utilize the
readily available solution to the problem. The "kill switches" will
combat surging smartphone theft across the state by reducing the
incentive and ability criminals have to make money off the stolen
devices.


In order to deter criminals from stealing phones from consumers, there
needs to be a way to render stolen phones worthless. Currently the
only way this is possible is to make the phones unusable, and
therefore unable to be profited from on the secondhand market.
Utilizing kill switch technology ensures this is possible while
maintaining the safety and integrity of the victim/consumer. In
addition, there should be no inclination on the part of the consumer
to turn off the kill switch and to ensure this; it has been written
into the bill that no provider may attempt to entice the consumer in
any way to turn it off.

PRIOR LEGISLATIVE HISTORY:

New Bill

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6850--A

                            I N  S E N A T E

                             March 19, 2014
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

AN ACT to amend the general business law, in  relation  to  smart  phone
  device "kill switch"

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative intent. The legislature finds that:
  (a) According to the Federal Communications Commission (FCC),  one  in
three  robberies  in  the  United  States involves the theft of a mobile
device, making it the number one property crime in the country. Many  of
these  robberies  often  turn violent with some resulting in the loss of
life.
  (b) The FCC estimates that between thirty to forty percent  of  United
States  street  theft involves a mobile device. In fact, more than forty
percent of all robberies in New York city involve smartphones and  other
cell phones.
  (c)  Consumer  reports  projects  that 1.6 million Americans had their
smartphones stolen in 2012.
  (d) According to the New York Times, one hundred thirteen  smartphones
are lost or stolen every minute in the United States.
  (e)  Major cities are home to the highest concentrations of cell phone
theft, and officials in New York and California have been pushing for  a
cellphone kill switch in those states since April 2012. According to New
York state attorney general, Eric Schneiderman, the United States Senate
proposal  would force the mobile industry to "stop dragging its feet and
join us in protecting consumers."
  (f) In April of 2012, U.S. senator Charles Schumer,  D-New  York,  and
New  York  city  police  commissioner Ray Kelly announced that the major
U.S.  cell phone carriers and the Federal Communications Commission have
agreed to set up a national database to track  reported  stolen  phones.
Senator  Schumer  also  introduced a bill called the mobile device theft

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14099-03-4

S. 6850--A                          2

deterrence act, which proposes a five-year prison sentence for tampering
with the ID numbers of a stolen cell phone.
  (g)  According  to  press  reports,  the  international trafficking of
stolen smartphones by organized criminal organizations has  grown  expo-
nentially  in  recent  years  because  of  how  profitable the trade has
become.
  (h) Replacement of lost and stolen mobile  devices  was  an  estimated
thirty-billion-dollar business in 2012 according to studies conducted by
mobile  communications security experts. Additionally, industry publica-
tions indicate that the four  largest  providers  of  commercial  mobile
radio  services  made  an  estimated seven billion eight hundred million
dollars from theft and loss insurance products in 2013.
  (i) Technological solutions that render stolen  mobile  communications
devices  useless  already exist, but the industry has been slow to adopt
them.
  (j) In order to be effective, these technological solutions need to be
ubiquitous, as thieves cannot distinguish between those  mobile  devices
that  have the solutions enabled and those that do not. As a result, the
technological solution should be able to withstand a hard reset or oper-
ating system downgrade, and be enabled by default, with consumers  being
given the option to affirmatively elect to disable this protection.
  (k)  Manufacturers  of  mobile  devices  and  commercial  mobile radio
service providers should make efforts to protect  their  customers  from
being targeted as a result of purchasing their products and services.
  (l) It is the intent of the legislature to require all smartphones and
other mobile devices offered for sale in New York to come with a techno-
logical solution enabled in order to deter theft and protect consumers.
  S  2. The general business law is amended by adding a new section 399-
zzzz to read as follows:
  S 399-ZZZZ.  SMART PHONE DEVICE "KILL  SWITCH".  1.  DEFINITIONS.  FOR
PURPOSES  OF  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
MEANINGS:
  (A) "ACCOUNT HOLDER" WITH RESPECT TO A MOBILE DEVICE OR DEVICES, MEANS
THE PERSON WHO HOLDS THE ACCOUNT THROUGH WHICH  COMMERCIAL  MOBILE  DATA
SERVICE  IS  PROVIDED  ON THE DEVICE OR DEVICES AND INCLUDES ANYONE ELSE
AUTHORIZED BY SUCH PERSON TO TAKE ACTIONS WITH RESPECT TO SUCH DEVICE OR
DEVICES.
  (B) "COMMERCIAL MOBILE DATA SERVICE" HAS THE SAME MEANING AS FOUND  IN
SECTION 6001 OF 47 U.S.C. 1401, AS AMENDED FROM TIME TO TIME.
  (C)  "COMMERCIAL  MOBILE  SERVICE"  HAS  THE  SAME MEANING AS GIVEN IN
SECTION 332 OF 47 U.S.C.  301 ET SEQ., AS AMENDED FROM TIME TO TIME.
  (D) "MOBILE DEVICE"  MEANS  A  PERSONAL  ELECTRONIC  DEVICE  ON  WHICH
COMMERCIAL MOBILE SERVICE OR COMMERCIAL MOBILE DATA SERVICE IS PROVIDED.
  2. ANY PROVIDER OF COMMERCIAL MOBILE DATA SERVICE OR COMMERCIAL MOBILE
SERVICE  SHALL,  BY  ITSELF OR IN CONJUNCTION WITH THE MANUFACTURER OF A
MOBILE DEVICE, ENSURE THAT ANY MOBILE DEVICE UTILIZING  ITS  SERVICE  IS
EQUIPPED WITH TECHNOLOGY DESIGNED TO:
  (A)  REMOTELY  DELETE  THE ACCOUNT HOLDER'S DATA THAT IS ON THE MOBILE
DEVICE IN THE EVENT THE MOBILE DEVICE IS LOST OR STOLEN;
  (B) RENDER THE MOBILE DEVICE INOPERABLE TO  AN  UNAUTHORIZED,  NON-AC-
COUNT  HOLDER  BY MEANS OF LOCKING THE MOBILE DEVICE SUCH THAT IT CANNOT
BE USED WITHOUT A PASSWORD OR PERSONAL IDENTIFICATION NUMBER, EXCEPT  IN
ACCORDANCE  WITH  ANY APPLICABLE FEDERAL COMMUNICATIONS COMMISSION RULES
FOR 911 EMERGENCY COMMUNICATIONS AND, IF  AVAILABLE,  EMERGENCY  NUMBERS
PROGRAMMED BY THE AUTHORIZED USER;

S. 6850--A                          3

  (C)  PREVENT  REACTIVATION  WITHOUT  THE  ACCOUNT HOLDER'S PERMISSION,
INCLUDING UNAUTHORIZED FACTORY RESET ATTEMPTS, TO THE EXTENT  TECHNOLOG-
ICALLY FEASIBLE; AND
  (D) REVERSE THE INOPERABILITY IF THE MOBILE DEVICE IS RECOVERED BY THE
ACCOUNT  HOLDER AND RESTORE USER DATA ON THE MOBILE DEVICE TO THE EXTENT
FEASIBLE.
  3. THE TECHNOLOGY REQUIRED UNDER SUBDIVISION TWO OF THIS SECTION SHALL
BE OFFERED IN MOBILE DEVICES SOLD  IN  NEW  YORK  STATE  BEGINNING  JULY
FIRST,  TWO  THOUSAND  FIFTEEN,  AND  SHALL  BE MADE AVAILABLE ON MOBILE
DEVICES AT NO COST TO CONSUMERS, PROVIDED, HOWEVER, THAT MOBILE  DEVICES
MAY  BE  MADE  AVAILABLE  WITHOUT  SUCH  TECHNOLOGY  IF SUCH DEVICES ARE
AUTHORIZED PURSUANT TO FEDERAL LAW OR REGULATION.
  S 3. This act shall take effect immediately.

S6850B - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Add §399-zzzz, Gen Bus L

S6850B - Bill Texts

view summary

Relates to a smart phone antitheft protection; establishes requirements for the acquisition and resale of wireless communications devices.

view sponsor memo
BILL NUMBER:S6850B

TITLE OF BILL: An act to amend the general business law, in relation
to smart phone device "kill switch"

PURPOSE OF THE BILL: This bill would require that any advanced mobile
communications device, as defined, that is sold in New York, 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.

SUMMARY OF PROVISIONS:

Section 1: Sets forth the legislative intent of the bill describing
the public safety reasons for requiring smart phones and other
advanced mobile communications devices offered for sale in New York to
come with a technological solution enabled, in order to deter theft
and protect consumers.

Section 2: Establishes that section 399-zzzz be added to the general
business law, which states any advanced mobile communications device
that is sold on or after January 1, 2015 will include a technological
solution that can render the essential features of the device
inoperable when the device is not in the possession of the rightful
owner. The bill makes wireless telecommunications service providers
and wireless telecommunications equipment manufacturers jointly liable
for ensuring smart phones sold meet the bills requirements and prevent
these companies from assessing an additional fee, surcharge, tariff or
other charge for the "kill switch" functionality in smart phones.

Section 3: Establishes the effective date.

JUSTIFICATION: According to the Federal Communications Commission,
one in three robberies in the United States involves the theft of a
mobile communications device, making it the number one property crime
in the country, Many of these robberies often turn violent with some
resulting in the loss of life. The FCC estimates that between thirty
to forty percent of United States street-theft involves a mobile
device. In fact, more than forty percent of all robberies in New York
City involve smartphones and other cell phones. Replacement of lost or
stolen mobile communications devices was an estimated thirty-billion
dollar business in 2012, and the four largest providers of mobile
radio services made an estimated seven billion eight hundred million
dollars from theft and loss insurance products in 2013. With robberies
of smartphones reaching an all-time high, New York should utilize the
readily available solution to the problem. The "kill switches" will
combat surging smartphone theft across the state by reducing the
incentive and ability criminals have to make money off the stolen
devices.

In order to deter criminals from stealing phones from consumers, there
needs to be a way to render stolen phones worthless. Currently the
only way this is possible is to make the phones unusable, and
therefore unable to be profited from on the secondhand market.
Utilizing kill switch technology ensures this is possible while
maintaining the safety and integrity of the victim/consumer. In


addition, there should be no inclination on the part of the consumer
to turn off the kill switch and to ensure this; it has been written
into the bill that no provider may attempt to entice the consumer in
any way to turn it off.

PRIOR LEGISLATIVE HISTORY: Assembly Bill A8984-A/2014 (Titone)

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: This act shall take effect January 1, 2015 and shall
apply to smart phone sales made on or after that date.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6850--B

                            I N  S E N A T E

                             March 19, 2014
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee -- committee discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the general business law, in relation to smart phone
  device "kill switch"

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative intent. The legislature finds that:
  (a)  According  to the Federal Communications Commission (FCC), one in
three robberies in the United States involves  the  theft  of  a  mobile
device,  making it the number one property crime in the country. Many of
these robberies often turn violent with some resulting in  the  loss  of
life.
  (b)  The  FCC estimates that between thirty to forty percent of United
States street theft involves a mobile device. In fact, more  than  forty
percent  of all robberies in New York city involve smartphones and other
cell phones.
  (c) Consumer reports projects that 1.6  million  Americans  had  their
smartphones stolen in 2012.
  (d)  According to the New York Times, one hundred thirteen smartphones
are lost or stolen every minute in the United States.
  (e) Major cities are home to the highest concentrations of cell  phone
theft,  and officials in New York and California have been pushing for a
cellphone kill switch in those states since April 2012. According to New
York state attorney general, Eric Schneiderman, the United States Senate
proposal would force the mobile industry to "stop dragging its feet  and
join us in protecting consumers."
  (f)  In  April  of 2012, U.S. senator Charles Schumer, D-New York, and
New York city police commissioner Ray Kelly  announced  that  the  major
U.S.  cell phone carriers and the Federal Communications Commission have
agreed  to  set  up a national database to track reported stolen phones.
Senator Schumer also introduced a bill called the  mobile  device  theft

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14099-04-4

S. 6850--B                          2

deterrence act, which proposes a five-year prison sentence for tampering
with the ID numbers of a stolen cell phone.
  (g)  According  to  press  reports,  the  international trafficking of
stolen smartphones by organized criminal organizations has  grown  expo-
nentially  in  recent  years  because  of  how  profitable the trade has
become.
  (h) Replacement of lost and stolen mobile  devices  was  an  estimated
thirty-billion-dollar business in 2012 according to studies conducted by
mobile  communications security experts. Additionally, industry publica-
tions indicate that the four  largest  providers  of  commercial  mobile
radio  services  made  an  estimated seven billion eight hundred million
dollars from theft and loss insurance products in 2013.
  (i) Technological solutions that render stolen  mobile  communications
devices  useless  already exist, but the industry has been slow to adopt
them.
  (j) In order to be effective, these technological solutions need to be
ubiquitous, as thieves cannot distinguish between those  mobile  devices
that  have the solutions enabled and those that do not. As a result, the
technological solution should be able to withstand a hard reset or oper-
ating system downgrade, and be enabled by default, with consumers  being
given the option to affirmatively elect to disable this protection.
  (k)  Manufacturers  of  mobile  devices  and  commercial  mobile radio
service providers should make efforts to protect  their  customers  from
being targeted as a result of purchasing their products and services.
  (l) It is the intent of the legislature to require all smartphones and
other mobile devices offered for sale in New York to come with a techno-
logical solution enabled in order to deter theft and protect consumers.
  S  2. The general business law is amended by adding a new section 399-
zzzz to read as follows:
  S 399-ZZZZ. SMART PHONE DEVICE "KILL SWITCH". 1. DEFINITIONS.  FOR THE
PURPOSES OF THIS SECTION, THE FOLLOWING TERMS HAVE  THE  MEANINGS  GIVEN
THEM:
  (A) "COMMISSIONER" MEANS THE COMMISSIONER OF COMMERCE.
  (B)  "SMART PHONE" MEANS A CELLULAR PHONE OR OTHER MOBILE DEVICE BUILT
ON A MOBILE OPERATING SYSTEM AND POSSESSING ADVANCED COMPUTING CAPABILI-
TY.  FEATURES A SMART PHONE MAY POSSESS INCLUDE, BUT ARE NOT LIMITED TO,
BUILT-IN APPLICATIONS, INTERNET  ACCESS,  DIGITAL  VOICE  SERVICE,  TEXT
MESSAGING, E-MAIL, AND WEB BROWSING.
  (C)  "SUBSCRIBER  IDENTIFICATION MODULE" OR "SIM CARD" MEANS A CARD OR
OTHER SIMILAR MEDIA THAT IS INSERTED INTO A  SMART  PHONE  AND  USED  TO
STORE DATA TO AUTHENTICATE AND IDENTIFY SUBSCRIBERS ON THE NETWORK.
  (D)  "WIRELESS  TELECOMMUNICATIONS  EQUIPMENT  MANUFACTURER" MEANS ANY
ENTITY THAT MANUFACTURES WIRELESS TELECOMMUNICATIONS DEVICES,  INCLUDING
SMART PHONES.
  (E)  "WIRELESS  TELECOMMUNICATIONS  SERVICE  PROVIDER" IS DEFINED AS A
PROVIDER OF MOBILE WIRELESS TELECOMMUNICATIONS SERVICE.
  2. "KILL SWITCH" REQUIRED. (A) ANY SMART PHONE SOLD OR PURCHASED  MUST
BE  EQUIPPED  WITH TECHNOLOGY DESIGNED TO RENDER THE DEVICE'S CORE FUNC-
TIONALITY INOPERABLE IN THE EVENT OF THEFT OR LOSS.
  (B) IN ORDER TO COMPLY WITH PARAGRAPH (A)   OF THIS  SUBDIVISION,  ANY
"KILL SWITCH" FUNCTIONALITY MUST BE DESIGNED TO:
  (1) WIPE THE DEVICE OF ALL USER DATA;
  (2)  RENDER THE DEVICE'S CORE FUNCTIONALITY INOPERABLE ON ANY WIRELESS
TELECOMMUNICATIONS SERVICE PROVIDER'S NETWORK GLOBALLY;
  (3) PREVENT THE DEVICE FROM BEING REACTIVATED WITHOUT  A  PASSCODE  OR
OTHER  SIMILAR AUTHORIZATION, EVEN IF THE DEVICE IS REPROGRAMMED, TURNED

S. 6850--B                          3

OFF AND SUBSEQUENTLY TURNED BACK ON, HAS ITS NETWORK CONNECTIVITY  DISA-
BLED AND SUBSEQUENTLY REENABLED, OR HAS ITS SIM CARD REMOVED; AND
  (4) BE REVERSIBLE IN THE EVENT OF THE DEVICE'S RECOVERY BY ITS OWNER.
  (C)  WIRELESS  TELECOMMUNICATIONS SERVICE PROVIDERS AND WIRELESS TELE-
COMMUNICATIONS EQUIPMENT MANUFACTURERS ARE JOINTLY LIABLE  FOR  ENSURING
SMART PHONES SOLD MEET THE REQUIREMENTS OF THIS SUBDIVISION.
  3.  ADDITIONAL  FEES  PROHIBITED.  WIRELESS TELECOMMUNICATIONS SERVICE
PROVIDERS AND WIRELESS TELECOMMUNICATIONS  EQUIPMENT  MANUFACTURERS  ARE
PROHIBITED FROM ASSESSING AN ADDITIONAL FEE, SURCHARGE, TARIFF, OR OTHER
CHARGE TO CONSUMERS FOR "KILL SWITCH" FUNCTIONALITY IN SMART PHONES.
  4. NONCOMPLIANCE; INSURANCE. (A) A WIRELESS TELECOMMUNICATIONS SERVICE
PROVIDER  PROVIDING  SERVICE  TO  A  SMART  PHONE  SOLD OR PROVIDED TO A
CONSUMER IN VIOLATION OF THIS SECTION MUST  INSURE  THE  DEVICE  AGAINST
THEFT AT NO COST TO THE CONSUMER.
  (B)  THEFT  INSURANCE UNDER PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE
IN THE FORM, AMOUNT, AND DURATION AS DETERMINED BY THE COMMISSIONER.
  (C) A  WIRELESS  TELECOMMUNICATIONS  SERVICE  PROVIDER  MUST  ANNUALLY
SUBMIT ITS THEFT INSURANCE PLAN FOR APPROVAL BY THE COMMISSIONER.
  S  3.  This  act  shall take effect January 1, 2015 and shall apply to
smart phone sales made on or after that date.

S6850C (ACTIVE) - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Add §399-zzzz, Gen Bus L

S6850C (ACTIVE) - Bill Texts

view summary

Relates to a smart phone antitheft protection; establishes requirements for the acquisition and resale of wireless communications devices.

view sponsor memo
BILL NUMBER:S6850C

TITLE OF BILL: An act to amend the general business law, in relation to
smart phone antitheft protection

PURPOSE OF THE BILL: This bill would require that any advanced mobile
communications device, as defined, that is sold in New York, 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.

SUMMARY OF PROVISIONS:

Section 1: Sets forth the legislative intent of the bill describing the
public safety reasons for requiring smart phones and other advanced
mobile communications devices offered for sale in New York to come with
a technological solution enabled, in order to deter theft and protect
consumers.

Section 2: Establishes that section 399-zzzz be added to the general
business law, which states any new advanced mobile communications device
manufactured on or after July 1, 2015 that is sold or purchased in New
York state must be equipped with preloaded antitheft functionality or be
capable f downloading that functionality and must be available to
purchasers at no cost.

Section 3: Establishes the effective date.

JUSTIFICATION:

According to the Federal Communications Commission, one in three
robberies in the United States involves the theft of a mobile communi-
cations device, making it the number one property crime in the country,
Many of these robberies often turn violent with some resulting in the
loss of life. The FCC estimates that between thirty to forty percent of
United States street-theft involves a mobile device. In fact, more than
forty percent of all robberies in New York City involve smartphones and
other cell phones. Replacement of lost or stolen mobile communications
devices was an estimated thirty-billion dollar business in 2012, and the
four largest providers of mobile radio services made an estimated seven
billion eight hundred million dollars from theft and loss insurance
products in 2013. With robberies of smartphones reaching an all-time
high, New York should utilize the readily available solution to the
problem. The antitheft technology will combat surging smartphone theft
across the state by reducing the incentive and ability criminals have to
make money off the stolen devices.

In order to deter criminals from stealing phones from consumers, there
needs to be a way to render stolen phones worthless. Currently the only
way this is possible is to make the phones unusable, and therefore
unable to be profited from on the secondhand market. Utilizing anti-

theft technology ensures this is possible while maintaining the safety
and integrity of the victim/consumer.

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: This act shall take effect January 1, 2015 and shall
apply to smart phone sales made on or after that date.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6850--C

                            I N  S E N A T E

                             March 19, 2014
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee -- committee discharged,  bill  amended,
  ordered  reprinted  as  amended  and  recommitted to said committee --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to  amend  the general business law, in relation to smart phone
  antitheft protection

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative intent. The legislature finds that:
  (a)  According  to the Federal Communications Commission (FCC), one in
three robberies in the United States involves  the  theft  of  a  mobile
device,  making it the number one property crime in the country. Many of
these robberies often turn violent with some resulting in  the  loss  of
life.
  (b)  The  FCC estimates that between thirty to forty percent of United
States street theft involves a mobile device. In fact, more  than  forty
percent  of all robberies in New York city involve smartphones and other
cell phones.
  (c) Consumer reports projects that 1.6  million  Americans  had  their
smartphones stolen in 2012.
  (d)  According to the New York Times, one hundred thirteen smartphones
are lost or stolen every minute in the United States.
  (e) Major cities are home to the highest concentrations of cell  phone
theft,  and officials in New York and California have been pushing for a
cellphone kill switch in those states since April 2012. According to New
York state attorney general, Eric Schneiderman, the United States Senate
proposal would force the mobile industry to "stop dragging its feet  and
join us in protecting consumers."
  (f)  In  April  of 2012, U.S. senator Charles Schumer, D-New York, and
New York city police commissioner Ray Kelly  announced  that  the  major
U.S.  cell phone carriers and the Federal Communications Commission have

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14099-06-4

S. 6850--C                          2

agreed  to  set  up a national database to track reported stolen phones.
Senator Schumer also introduced a bill called the  mobile  device  theft
deterrence act, which proposes a five-year prison sentence for tampering
with the ID numbers of a stolen cell phone.
  (g)  According  to  press  reports,  the  international trafficking of
stolen smartphones by organized criminal organizations has  grown  expo-
nentially  in  recent  years  because  of  how  profitable the trade has
become.
  (h) Replacement of lost and stolen mobile  devices  was  an  estimated
thirty-billion-dollar business in 2012 according to studies conducted by
mobile  communications security experts. Additionally, industry publica-
tions indicate that the four  largest  providers  of  commercial  mobile
radio  services  made  an  estimated seven billion eight hundred million
dollars from theft and loss insurance products in 2013.
  (i) Technological solutions that render stolen  mobile  communications
devices  useless  already exist, but the industry has been slow to adopt
them.
  (j) In order to be effective, these technological solutions need to be
ubiquitous, as thieves cannot distinguish between those  mobile  devices
that  have the solutions enabled and those that do not. As a result, the
technological solution should be able to withstand a hard reset or oper-
ating system downgrade, and be enabled by default, with consumers  being
given the option to affirmatively elect to disable this protection.
  (k)  Manufacturers  of  mobile  devices  and  commercial  mobile radio
service providers should make efforts to protect  their  customers  from
being targeted as a result of purchasing their products and services.
  (l) It is the intent of the legislature to require all smartphones and
other mobile devices offered for sale in New York to come with a techno-
logical solution enabled in order to deter theft and protect consumers.
  S  2. The general business law is amended by adding a new section 399-
zzzz to read as follows:
  S 399-ZZZZ. SMART PHONE ANTITHEFT PROTECTION. 1.  FOR THE PURPOSES  OF
THIS  SECTION,  "SMART  PHONE"  MEANS  A  CELLULAR PHONE OR OTHER MOBILE
DEVICE THAT: (A) IS BUILT ON A SMART PHONE MOBILE OPERATING SYSTEM;  (B)
POSSESSES ADVANCED COMPUTING CAPABILITY; (C) ENABLES NETWORK CONNECTIVI-
TY; AND (D) IS CAPABLE OF OPERATING ON A LONG-TERM EVOLUTION NETWORK AND
SUCCESSOR  WIRELESS DATA NETWORK COMMUNICATION STANDARDS. CAPABILITIES A
SMART PHONE MAY POSSESS INCLUDE, BUT ARE NOT LIMITED TO, BUILT-IN APPLI-
CATIONS, INTERNET ACCESS, DIGITAL VOICE SERVICE, TEXT MESSAGING, E-MAIL,
AND WEB BROWSING. "SMART  PHONE"  DOES  NOT  INCLUDE  A  PHONE  COMMONLY
REFERRED TO AS A FEATURE OR MESSAGING PHONE, A LAPTOP COMPUTER, A TABLET
DEVICE, OR A DEVICE THAT HAS ONLY ELECTRONIC READING CAPABILITY.
  2.  ANY NEW SMART PHONE MANUFACTURED ON OR AFTER JULY FIRST, TWO THOU-
SAND FIFTEEN, SOLD OR PURCHASED IN THIS  STATE  MUST  BE  EQUIPPED  WITH
PRELOADED  ANTITHEFT  FUNCTIONALITY  OR  BE  CAPABLE OF DOWNLOADING THAT
FUNCTIONALITY. THE FUNCTIONALITY MUST BE AVAILABLE TO PURCHASERS  AT  NO
COST.
  3.  WIRELESS  TELECOMMUNICATIONS  EQUIPMENT  MANUFACTURERS,  OPERATING
SYSTEMS PROVIDERS, AND  WIRELESS  TELECOMMUNICATIONS  SERVICE  PROVIDERS
SHALL EITHER INDIVIDUALLY OR JOINTLY, BY JANUARY FIFTEENTH, TWO THOUSAND
FIFTEEN,  SUBMIT  A REPORT TO THE CHAIRS AND RANKING MINORITY MEMBERS OF
THE LEGISLATIVE COMMITTEES WITH PRIMARY JURISDICTION  OVER  TELECOMMUNI-
CATION  ISSUES.  THE  REPORT SHALL DESCRIBE THE PRINCIPAL FUNCTIONS OF A
TOOL THAT MANUFACTURERS AND OPERATING SYSTEM PROVIDERS WILL  UTILIZE  ON
NEW  MODELS  OF  SMART PHONES IN ORDER TO COMPLY WITH SUBDIVISION ONE OF
THIS SECTION, AND MUST DESCRIBE THE TECHNOLOGY OR FUNCTIONS INCLUDED  TO

S. 6850--C                          3

ENSURE  THE  BASELINE  ANTITHEFT  TOOL IS EASILY OPERABLE BY INDIVIDUALS
WITH DISABILITIES.
  4.  FOR  THE  PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
  (A) "CMRS PROVIDER" MEANS A PROVIDER OF COMMERCIAL RADIO  SERVICE,  AS
DEFINED  IN  UNITED STATES CODE, TITLE 47, SECTION 332, AND INCLUDES ITS
AUTHORIZED DEALERS.
  (B) "INTERNET MARKETPLACE" OR  "ONLINE  PLATFORM"  MEANS  A  DIGITALLY
ACCESSIBLE  PLATFORM  THAT  FACILITATES  COMMERCIAL TRANSACTIONS BETWEEN
BUYERS AND COMMUNITY-RATED SELLERS WHERE THE OPERATOR  OR  THE  PLATFORM
DOES NOT TAKE POSSESSION OF, OR TITLE TO, THE GOODS BOUGHT OR SOLD.
  (C)  "LAW  ENFORCEMENT  AGENCY"  OR  "AGENCY"  MEANS A DULY AUTHORIZED
MUNICIPAL, COUNTY, CAMPUS, TRANSIT, PARK, STATE, OR FEDERAL LAW ENFORCE-
MENT AGENCY.
  (D) "REPAIR AND REFURBISHMENT PROGRAM" MEANS A PROGRAM, OFFERED  BY  A
CMRS PROVIDER, MANUFACTURER, OR RETAILER WHO IS NOT PRIMARILY ENGAGED IN
PURCHASING  PERSONAL  PROPERTY  OF  ANY  TYPE FROM A PERSON WHO IS NOT A
WHOLESALER, THROUGH WHICH USED OR  PREVIOUSLY  OWNED  WIRELESS  COMMUNI-
CATIONS DEVICES ARE RESTORED TO GOOD WORKING ORDER.
  (E)  "TRADE-IN  PROGRAM"  MEANS  A PROGRAM OFFERED BY A CMRS PROVIDER,
MANUFACTURER, OR RETAILER WHO IS NOT  PRIMARILY  ENGAGED  IN  PURCHASING
PERSONAL  PROPERTY  OF  ANY  TYPE FROM A PERSON WHO IS NOT A WHOLESALER,
PURSUANT TO WHICH USED WIRELESS COMMUNICATIONS DEVICES ARE ACCEPTED FROM
CUSTOMERS IN EXCHANGE FOR EITHER: (1) A NONCASH CREDIT USABLE  ONLY  FOR
THE  PURCHASE OF GOODS OR SERVICES FROM THE CMRS PROVIDER, MANUFACTURER,
OR RETAILER; OR (2) A REBATE FROM A MANUFACTURER ON THE PURCHASE OF  ONE
OF THE MANUFACTURER'S WIRELESS COMMUNICATIONS DEVICES.
  (F) "WIRELESS COMMUNICATIONS DEVICE DEALER" OR "DEALER" MEANS AN INDI-
VIDUAL,  PARTNERSHIP,  LIMITED  PARTNERSHIP,  LIMITED LIABILITY COMPANY,
CORPORATION, OR OTHER ENTITY ENGAGED IN THE BUSINESS OF BUYING OR  SELL-
ING USED WIRELESS COMMUNICATIONS DEVICES.
  (G)  "WIRELESS  COMMUNICATIONS  DEVICE MANUFACTURER" OR "MANUFACTURER"
MEANS AN INDIVIDUAL, PARTNERSHIP, LIMITED PARTNERSHIP, LIMITED LIABILITY
COMPANY, CORPORATION, OR OTHER ENTITY ENGAGED IN THE BUSINESS  OF  MANU-
FACTURING WIRELESS COMMUNICATIONS DEVICES.
  5.  (A)  EVERY  WIRELESS  COMMUNICATIONS  DEVICE  DEALER, INCLUDING AN
AGENT, EMPLOYEE, OR REPRESENTATIVE OF THE DEALER, BUT  NOT  AN  INTERNET
MARKETPLACE, SHALL KEEP A WRITTEN RECORD AT THE TIME OF EACH PURCHASE OR
ACQUISITION  OF  A  USED  WIRELESS COMMUNICATIONS DEVICE FOR RESALE. THE
RECORD SHALL INCLUDE THE FOLLOWING AND MAY BE KEPT IN ELECTRONIC FORM:
  (1) AN ACCURATE ACCOUNT OR DESCRIPTION OF THE WIRELESS  COMMUNICATIONS
DEVICE PURCHASED OR ACQUIRED;
  (2)  THE  DATE,  TIME,  AND  PLACE OR THE ONLINE PLATFORM THE WIRELESS
COMMUNICATIONS DEVICE WAS PURCHASED OR ACQUIRED;
  (3) THE NAME AND ADDRESS OF THE PERSON SELLING OR DELIVERING THE WIRE-
LESS COMMUNICATIONS DEVICE;
  (4) THE NUMBER OF THE CHECK OR ELECTRONIC TRANSFER  USED  TO  PURCHASE
THE WIRELESS COMMUNICATIONS DEVICE;
  (5)  THE NUMBER OF THE SELLER'S DRIVER'S LICENSE, NEW YORK STATE IDEN-
TIFICATION CARD NUMBER, OR OTHER IDENTIFICATION NUMBER FROM AN IDENTIFI-
CATION DOCUMENT ISSUED BY ANY STATE, FEDERAL, OR FOREIGN  GOVERNMENT  IF
THE  DOCUMENT  INCLUDES  THE PERSON'S PHOTOGRAPH, FULL NAME, BIRTH DATE,
AND SIGNATURE; AND
  (6) A STATEMENT SIGNED  BY  THE  SELLER,  UNDER  PENALTY  OF  PERJURY,
ATTESTING  THAT  THE WIRELESS COMMUNICATIONS DEVICE IS NOT STOLEN AND IS

S. 6850--C                          4

FREE OF ANY LIENS OR ENCUMBRANCES AND THE SELLER HAS THE RIGHT  TO  SELL
IT.
  (B)  RECORDS REQUIRED TO BE MAINTAINED UNDER THIS SUBDIVISION SHALL BE
RETAINED BY THE WIRELESS COMMUNICATIONS DEVICE DEALER FOR  A  PERIOD  OF
THREE YEARS.
  (C)  THE  RECORD,  AS  WELL  AS  THE  WIRELESS  COMMUNICATIONS  DEVICE
PURCHASED OR RECEIVED, SHALL AT ALL REASONABLE TIMES  BE  AVAILABLE  FOR
INSPECTION BY ANY LAW ENFORCEMENT AGENCY.
  (D)   NO  RECORD  IS  REQUIRED  FOR  WIRELESS  COMMUNICATIONS  DEVICES
PURCHASED FROM MERCHANTS, MANUFACTURERS, OR WHOLESALE DEALERS HAVING  AN
ESTABLISHED  PLACE  OF BUSINESS, BUT A BILL OF SALE OR OTHER EVIDENCE OF
OPEN OR LEGITIMATE PURCHASE OF THE WIRELESS COMMUNICATIONS DEVICE  SHALL
BE OBTAINED AND KEPT BY THE WIRELESS COMMUNICATIONS DEVICE DEALER, WHICH
SHALL BE SHOWN UPON DEMAND TO ANY LAW ENFORCEMENT AGENCY.
  (E)  EXCEPT  AS  OTHERWISE  PROVIDED  IN  THIS SUBDIVISION, A WIRELESS
COMMUNICATIONS DEVICE DEALER OR THE DEALER'S AGENT, EMPLOYEE, OR  REPRE-
SENTATIVE  MAY  NOT  DISCLOSE  PERSONAL INFORMATION RECEIVED PURSUANT TO
PARAGRAPH (A) OF THIS SUBDIVISION  CONCERNING  A  CUSTOMER  WITHOUT  THE
CUSTOMER'S  CONSENT  UNLESS  THE  DISCLOSURE  IS  MADE  IN RESPONSE TO A
REQUEST FROM A LAW ENFORCEMENT AGENCY. A WIRELESS COMMUNICATIONS  DEVICE
DEALER  SHALL IMPLEMENT REASONABLE SAFEGUARDS TO PROTECT THE SECURITY OF
THE PERSONAL INFORMATION AND PREVENT UNAUTHORIZED ACCESS TO  OR  DISCLO-
SURE  OF  THE  INFORMATION.  FOR  PURPOSES  OF THIS PARAGRAPH, "PERSONAL
INFORMATION" IS ANY INDIVIDUALLY IDENTIFIABLE  INFORMATION  GATHERED  IN
CONNECTION WITH A RECORD UNDER PARAGRAPH (A) OF THIS SUBDIVISION.
  6.  A  WIRELESS  COMMUNICATIONS  DEVICE  DEALER,  INCLUDING  AN AGENT,
EMPLOYEE, OR REPRESENTATIVE OF THE DEALER, SHALL NOT:
  (A) MAKE ANY FALSE ENTRY IN THE RECORDS OF  TRANSACTIONS  INVOLVING  A
USED WIRELESS COMMUNICATIONS DEVICE;
  (B) FALSIFY, OBLITERATE, DESTROY, OR REMOVE FROM THE PLACE OF BUSINESS
THE RECORDS, BOOKS, OR ACCOUNTS RELATING TO USED WIRELESS COMMUNICATIONS
DEVICE TRANSACTIONS;
  (C)  REFUSE TO ALLOW THE APPROPRIATE LAW ENFORCEMENT AGENCY TO INSPECT
RECORDS OR ANY USED  WIRELESS  COMMUNICATIONS  DEVICE  IN  THE  DEALER'S
POSSESSION DURING THE ORDINARY HOURS OF BUSINESS OR OTHER TIMES ACCEPTA-
BLE TO BOTH PARTIES;
  (D)  FAIL  TO  MAINTAIN  A RECORD OF EACH USED WIRELESS COMMUNICATIONS
DEVICE TRANSACTION FOR THREE YEARS; OR
  (E) PURCHASE A USED WIRELESS COMMUNICATIONS DEVICE FROM A PERSON UNDER
EIGHTEEN YEARS OF AGE.
  7. A WIRELESS COMMUNICATIONS DEVICE DEALER SHALL PAY FOR PURCHASES  OF
ALL  USED  WIRELESS COMMUNICATIONS DEVICES BY CHECK MAILED TO A SPECIFIC
ADDRESS OR BY ELECTRONIC TRANSFER.
  8. (A) WHENEVER A LAW ENFORCEMENT OFFICIAL FROM ANY AGENCY HAS  PROBA-
BLE  CAUSE  TO  BELIEVE  THAT  A  WIRELESS  COMMUNICATIONS DEVICE IN THE
POSSESSION OF A WIRELESS COMMUNICATIONS DEVICE DEALER IS  STOLEN  OR  IS
EVIDENCE  OF  A  CRIME AND NOTIFIES THE DEALER NOT TO SELL THE ITEM, THE
DEALER SHALL NOT: (1) PROCESS OR SELL THE ITEM; OR (2) REMOVE  OR  ALLOW
ITS REMOVAL FROM THE PREMISES. THIS INVESTIGATIVE HOLD MUST BE CONFIRMED
IN  WRITING  BY THE ORIGINATING AGENCY WITHIN SEVENTY-TWO HOURS AND WILL
REMAIN IN EFFECT FOR THIRTY DAYS FROM THE DATE OF INITIAL  NOTIFICATION,
UNTIL  THE  INVESTIGATIVE  HOLD  IS  CANCELED OR RENEWED, OR UNTIL A LAW
ENFORCEMENT NOTIFICATION  TO  CONFISCATE  OR  DIRECTIVE  TO  RELEASE  IS
ISSUED, WHICHEVER COMES FIRST.
  (B)  IF A WIRELESS COMMUNICATIONS DEVICE IS IDENTIFIED AS STOLEN OR AS
EVIDENCE IN A CRIMINAL CASE, A LAW ENFORCEMENT OFFICIAL MAY:

S. 6850--C                          5

  (1) PHYSICALLY  CONFISCATE  AND  REMOVE  THE  WIRELESS  COMMUNICATIONS
DEVICE  FROM  THE  WIRELESS  COMMUNICATIONS DEVICE DEALER, PURSUANT TO A
WRITTEN NOTIFICATION;
  (2)  PLACE  THE  WIRELESS  COMMUNICATIONS DEVICE ON HOLD OR EXTEND THE
HOLD UNDER PARAGRAPH (A) OF THIS SUBDIVISION, AND LEAVE  THE  DEVICE  AT
THE PREMISES; OR
  (3) DIRECT ITS RELEASE TO A REGISTERED OWNER OR OWNER'S AGENT.
  (C)  WHEN  AN ITEM IS CONFISCATED, THE LAW ENFORCEMENT AGENCY DOING SO
SHALL PROVIDE IDENTIFICATION UPON REQUEST OF THE WIRELESS COMMUNICATIONS
DEVICE DEALER, AND SHALL PROVIDE THE NAME AND TELEPHONE  NUMBER  OF  THE
CONFISCATING AGENCY AND INVESTIGATOR, AND THE CASE NUMBER RELATED TO THE
CONFISCATION.
  (D) A WIRELESS COMMUNICATIONS DEVICE DEALER MAY REQUEST SEIZED PROPER-
TY BE RETURNED.
  (E)  WHEN  AN  INVESTIGATIVE  HOLD OR NOTIFICATION TO CONFISCATE IS NO
LONGER NECESSARY, THE LAW ENFORCEMENT OFFICIAL OR DESIGNEE SHALL  NOTIFY
THE WIRELESS COMMUNICATIONS DEVICE DEALER.
  (F)  A  WIRELESS  COMMUNICATIONS  DEVICE  DEALER MAY SELL OR OTHERWISE
DISPOSE OF THE WIRELESS COMMUNICATIONS DEVICE IF:
  (1) A NOTIFICATION TO CONFISCATE IS NOT  ISSUED  DURING  THE  INVESTI-
GATIVE HOLD; OR
  (2) A LAW ENFORCEMENT OFFICIAL DOES NOT PHYSICALLY REMOVE THE WIRELESS
COMMUNICATIONS  DEVICE  FROM  THE  PREMISES WITHIN FIFTEEN CALENDAR DAYS
FROM ISSUANCE OF A NOTIFICATION TO CONFISCATE.
  (G) IF A WIRELESS COMMUNICATIONS DEVICE DEALER IS REQUIRED TO  HOLD  A
WIRELESS  COMMUNICATIONS  DEVICE AT THE DIRECTION OF LAW ENFORCEMENT FOR
PURPOSES OF INVESTIGATION OR PROSECUTION, OR IF THE DEVICE IS SEIZED  BY
LAW ENFORCEMENT, THE WIRELESS COMMUNICATIONS DEVICE DEALER AND ANY OTHER
VICTIM  IS  ENTITLED  TO  SEEK  RESTITUTION, INCLUDING ANY OUT-OF-POCKET
EXPENSES FOR STORAGE AND LOST PROFIT, IN  ANY  CRIMINAL  CASE  THAT  MAY
ARISE  FROM  THE INVESTIGATION AGAINST THE INDIVIDUAL WHO SOLD THE WIRE-
LESS COMMUNICATIONS DEVICE TO THE WIRELESS COMMUNICATIONS DEVICE DEALER.
  9. (A) EACH WIRELESS COMMUNICATIONS DEVICE DEALER  SHALL  INSTALL  AND
MAINTAIN  AT  EACH  PHYSICAL  LOCATION VIDEO SURVEILLANCE CAMERAS, STILL
DIGITAL CAMERAS, OR SIMILAR DEVICES POSITIONED TO RECORD OR PHOTOGRAPH A
FRONTAL VIEW SHOWING A READILY IDENTIFIABLE IMAGE OF THE  FACE  OF  EACH
SELLER  OF  A  WIRELESS  COMMUNICATIONS  DEVICE  WHO ENTERS THE PHYSICAL
LOCATION.
  (B) THE VIDEO CAMERA OR STILL DIGITAL CAMERA SHALL BE KEPT IN  OPERAT-
ING  CONDITION  AND  MUST BE SHOWN UPON REQUEST TO A PROPERLY IDENTIFIED
LAW ENFORCEMENT OFFICER FOR INSPECTION.   THE  CAMERA  MUST  RECORD  AND
DISPLAY  THE  ACCURATE  DATE AND TIME. THE VIDEO CAMERA OR STILL DIGITAL
CAMERA MUST BE TURNED ON AT ALL TIMES WHEN THE PHYSICAL LOCATION IS OPEN
FOR BUSINESS AND AT ANY OTHER TIME WHEN WIRELESS COMMUNICATIONS  DEVICES
ARE PURCHASED OR SOLD.
  (C)  RECORDINGS  AND IMAGES REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVI-
SION SHALL BE RETAINED BY THE WIRELESS COMMUNICATIONS DEVICE DEALER  FOR
A MINIMUM PERIOD OF 30 DAYS AND SHALL AT ALL REASONABLE TIMES BE OPEN TO
THE INSPECTION OF ANY PROPERLY IDENTIFIED LAW ENFORCEMENT OFFICER.
  10.  A  WIRELESS COMMUNICATIONS DEVICE DEALER, OR THE AGENT, EMPLOYEE,
OR REPRESENTATIVE OF THE  WIRELESS  COMMUNICATIONS  DEVICE  DEALER,  WHO
INTENTIONALLY VIOLATES A PROVISION OF THIS SECTION IS GUILTY OF A MISDE-
MEANOR.
  11. (A) THIS SECTION SHALL NOT APPLY WITH RESPECT TO A WIRELESS COMMU-
NICATIONS DEVICE RETURNED TO THE STORE WHERE IT WAS ORIGINALLY PURCHASED

S. 6850--C                          6

PURSUANT  TO  THE  RETURN POLICIES OF THE WIRELESS COMMUNICATIONS DEVICE
DEALER, CMRS PROVIDER, MANUFACTURER, OR RETAILER.
  (B)  THIS  SECTION  SHALL  NOT APPLY WITH RESPECT TO WIRELESS COMMUNI-
CATIONS DEVICES ACQUIRED BY A: (1) CMRS PROVIDER AS PART OF  A  TRADE-IN
OR  A  REPAIR  AND  REFURBISHMENT PROGRAM; (2) MANUFACTURER AS PART OF A
TRADE-IN PROGRAM; OR (3) RETAILER WHOSE TRADE-IN PROGRAM: (I) REPORTS TO
OTHER NATIONAL OR REGIONAL TRANSACTION REPORTING DATABASE  AVAILABLE  TO
LAW ENFORCEMENT; OR (II) REPORTS AS REQUIRED BY LOCAL ORDINANCE.
  S  3.  This  act  shall take effect January 1, 2015 and shall apply to
smart phone sales made on or after that date.

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