{"id":355,"date":"2022-03-20T09:33:53","date_gmt":"2022-03-20T09:33:53","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/statutes-california-laws\/?page_id=355"},"modified":"2022-05-20T23:45:45","modified_gmt":"2022-05-20T23:45:45","slug":"sb-962","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/california-statutes\/california-statutes\/sb-962\/","title":{"rendered":"SB 962"},"content":{"rendered":"<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p>Currrent as of February 4, 2022<\/p>\n<\/div><\/section>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-l0z30mef-ab021a22ceeb2c903d0f57631b3b1f8f\">\n#top .av_textblock_section.av-l0z30mef-ab021a22ceeb2c903d0f57631b3b1f8f .avia_textblock{\nfont-size:19px;\n}\n<\/style>\n<section  class='av_textblock_section av-l0z30mef-ab021a22ceeb2c903d0f57631b3b1f8f '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h1 id=\"bill_num_title_chap\"><b>Senate Bill No. 962<\/b><\/h1>\n<h2 id=\"chap_num_title_chap\">CHAPTER 275<\/h2>\n<hr \/>\n<p style=\"text-align: center\">An act to add Section 22761 to the Business and Professions Code, relating to mobile communications devices.<\/p>\n<p style=\"text-align: center\">[\u00a0Approved by\u00a0Governor\u00a0\u00a0August\u00a025,\u00a02014.\u00a0Filed with\u00a0Secretary of State\u00a0\u00a0August\u00a025,\u00a02014.\u00a0]<\/p>\n<p style=\"text-align: center\">LEGISLATIVE COUNSEL&#8217;S DIGEST<\/p>\n<p>SB 962, Leno. Smartphones.<\/p>\n<p>Existing law regulates various business activities and practices, including the sale of telephones.<\/p>\n<p>This bill would require that any smartphone, as defined, that is manufactured on or after July 1, 2015, and sold in California after that date, include a technological solution at the time of sale, which may consist of software, hardware, or both software and hardware, that, once initiated and successfully communicated to the smartphone, can render inoperable the essential features, as defined, of the smartphone to an unauthorized user when the smartphone is not in the possession of an authorized user. The bill would require that the technological solution, when enabled, be able to withstand a hard reset, as defined, and prevent reactivation of the smartphone on a wireless network except by an authorized user. The bill would make these requirements inapplicable when the smartphone is resold in California on the secondhand market or is consigned and held as collateral on a loan. The bill would additionally except from these requirements a smartphone model that was first introduced prior to January 1, 2015, that cannot reasonably be reengineered to support the manufacturer\u2019s or operating system provider\u2019s technological solution, including if the hardware or software cannot support a retroactive update. The bill would authorize an authorized user to affirmatively elect to disable or opt-out of the technological solution at any time. The bill would make the knowing retail sale in violation of the bill\u2019s requirements subject to a civil penalty of not less than $500, nor more than $2,500, for each violation. The bill would limit an enforcement action to collect the civil penalty to being brought by the Attorney General, a district attorney, or city attorney, and would prohibit any private right of action to collect the civil penalty.<\/p>\n<p>The bill would prohibit any city, county, or city and county from imposing requirements on manufacturers, operating system providers, wireless carriers, or retailers relating to technological solutions for smartphones.<\/p>\n<p>Vote:\u00a0majority\u00a0\u00a0\u00a0Appropriation:\u00a0no\u00a0\u00a0\u00a0Fiscal Committee:\u00a0no\u00a0\u00a0\u00a0Local Program:\u00a0no<\/p>\n<hr \/>\n<p>THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:<\/p>\n<p><strong>SECTION 1.<\/strong><\/p>\n<p>The Legislature finds and declares all of the following:<\/p>\n<p>(a)\u00a0According to the Federal Communications Commission, smartphone thefts now account for 30 to 40 percent of robberies in many major cities across the country. Many of these robberies often turn violent with some resulting in the loss of life.<\/p>\n<p>(b)\u00a0Consumer Reports projects that 1.6 million Americans were victimized for their smartphones in 2012.<\/p>\n<p>(c)\u00a0According to the New York Times, 113 smartphones are lost or stolen every minute in the United States.<\/p>\n<p>(d)\u00a0According to the Office of the District Attorney for the City and County of San Francisco, in 2012, more than 50 percent of all robberies in San Francisco involved the theft of a mobile communications device.<\/p>\n<p>(e)\u00a0Thefts of smartphones in Los Angeles increased 12 percent in 2012, according to the Los Angeles Police Department.<\/p>\n<p>(f)\u00a0According to press reports, the international trafficking of stolen smartphones by organized criminal organizations has grown exponentially in recent years because of how profitable the trade has become.<\/p>\n<p>(g)\u00a0In order to be effective, antitheft technological solutions need to be ubiquitous, as thieves cannot distinguish between those smartphones 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, come preequipped, and the default setting of the solution shall be to prompt the consumer to enable the solution during the initial device setup. Consumers should have the option to affirmatively elect to disable this protection, but it must be clear to the consumer that the function the consumer is electing to disable is intended to prevent the unauthorized use of the device.<\/p>\n<p><strong>SEC. 2.<\/strong><\/p>\n<p>Section 22761 is added to the Business and Professions Code, to read:<\/p>\n<p><strong>22761.<\/strong><\/p>\n<p>(a)\u00a0For purposes of this section, the following terms have the following meanings:<\/p>\n<p>(1)\u00a0(A)\u00a0\u201cSmartphone\u201d means a cellular radio telephone or other mobile voice communications handset device that includes all of the following features:<\/p>\n<p>(i)\u00a0Utilizes a mobile operating system.<\/p>\n<p>(ii)\u00a0Possesses the capability to utilize mobile software applications, access and browse the Internet, utilize text messaging, utilize digital voice service, and send and receive email.<\/p>\n<p>(iii)\u00a0Has wireless network connectivity.<\/p>\n<p>(iv)\u00a0Is capable of operating on a long-term evolution network or successor wireless data network communication standards.<\/p>\n<p>(B)\u00a0A \u201csmartphone\u201d does not include a radio cellular telephone commonly referred to as a \u201cfeature\u201d or \u201cmessaging\u201d telephone, a laptop, a tablet device, or a device that only has electronic reading capability.<\/p>\n<p>(2)\u00a0\u201cEssential features\u201d of a smartphone are the ability to use the smartphone for voice communications, text messaging, and the ability to browse the Internet, including the ability to access and use mobile software applications. \u201cEssential features\u201d do not include any functionality needed for the operation of the technological solution, nor does it include the ability of the smartphone to access emergency services by a voice call or text to the numerals \u201c911,\u201d the ability of a smartphone to receive wireless emergency alerts and warnings, or the ability to call an emergency number predesignated by the owner.<\/p>\n<p>(3)\u00a0\u201cHard reset\u201d means the restoration of a smartphone to the state it was in when it left the factory through processes commonly termed a factory reset or master reset.<\/p>\n<p>(4)\u00a0\u201cSold in California,\u201d or any variation thereof, means that the smartphone is sold at retail from a location within the state, or the smartphone is sold and shipped to an end-use consumer at an address within the state. \u201cSold in California\u201d does not include a smartphone that is resold in the state on the secondhand market or that is consigned and held as collateral on a loan.<\/p>\n<p>(b)\u00a0(1)\u00a0Except as provided in paragraph (3), any smartphone that is manufactured on or after July 1, 2015, and sold in California after that date, shall include a technological solution at the time of sale, to be provided by the manufacturer or operating system provider, that, once initiated and successfully communicated to the smartphone, can render the essential features of the smartphone inoperable to an unauthorized user when the smartphone is not in the possession of an authorized user. The smartphone shall, during the initial device setup process, prompt an authorized user to enable the technological solution. The technological solution shall be reversible, so that if an authorized user obtains possession of the smartphone after the essential features of the smartphone have been rendered inoperable, the operation of those essential features can be restored by an authorized user. A technological solution may consist of software, hardware, or a combination of both software and hardware, and when enabled, shall be able to withstand a hard reset or operating system downgrade and shall prevent reactivation of the smartphone on a wireless network except by an authorized user.<\/p>\n<p>(2)\u00a0An authorized user of a smartphone may affirmatively elect to disable or opt-out of enabling the technological solution at any time. However, the physical acts necessary to disable or opt-out of enabling the technological solution may only be performed by the authorized user or a person specifically selected by the authorized user to disable or opt-out of enabling the technological solution.<\/p>\n<p>(3)\u00a0Any smartphone model that was first introduced prior to January 1, 2015, that cannot reasonably be reengineered to support the manufacturer\u2019s or operating system provider\u2019s technological solution, including if the hardware or software cannot support a retroactive update, is not subject to the requirements of this section.<\/p>\n<p>(c)\u00a0The knowing retail sale of a smartphone in California in violation of subdivision (b) may be subject to a civil penalty of not less than five hundred dollars ($500), nor more than two thousand five hundred dollars ($2,500), per smartphone sold in California in violation of this section. A suit to enforce this subdivision may only be brought by the Attorney General, a district attorney, or a city attorney. A failure of the technological solution due to hacking or other third-party circumvention may be considered a violation for purposes of this subdivision, only if, at the time of sale, the seller had received notification from the manufacturer or operating system provider that the vulnerability cannot be remedied by a software patch or other solution. There is no private right of action to enforce this subdivision.<\/p>\n<p>(d)\u00a0The retail sale in California of a smartphone shall not result in any civil liability to the seller and its employees and agents from that retail sale alone if the liability results from or is caused by failure of a technological solution required pursuant to this section, including any hacking or other third-party circumvention of the technological solution, unless at the time of sale the seller had received notification from the manufacturer or operating system provider that the vulnerability cannot be remedied by a software patch or other solution. Nothing in this subdivision precludes a suit for civil damages on any other basis outside of the retail sale transaction, including, but not limited to, a claim of false advertising.<\/p>\n<p>(e)\u00a0Any request by a government agency to interrupt communications service utilizing a technological solution required by this section is subject to Section 7908 of the Public Utilities Code.<\/p>\n<p>(f)\u00a0Nothing in this section prohibits a network operator, device manufacturer, or operating system provider from offering a technological solution or other service in addition to the technological solution required to be provided by the device manufacturer or operating system provider pursuant subdivision (b).<\/p>\n<p>(g)\u00a0Nothing in this section requires a technological solution that is incompatible with, or renders it impossible to comply with, obligations under state and federal law and regulation related to any of the following:<\/p>\n<p>(1)\u00a0The provision of emergency services through the 911 system, including text to 911, bounce-back messages, and location accuracy requirements.<\/p>\n<p>(2)\u00a0Participation in the wireless emergency alert system.<\/p>\n<p>(3)\u00a0Participation in state and local emergency alert and public safety warning systems.<\/p>\n<p>(h)\u00a0The Legislature finds and declares that the enactment of a uniform policy to deter thefts of smartphones and to protect the privacy of smartphone users if their smartphones are involuntarily acquired by others is a matter of statewide concern and no city, county, or city and county shall impose requirements on manufacturers, operating system providers, wireless carriers, or retailers relating to technological solutions for smartphones.<\/p>\n<hr \/>\n<p>SB 962<\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":2019,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-355","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - 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