A08984 Summary:

SAME ASNo same as
COSPNSRMosley, Otis, Dinowitz, Magnarelli, McDonough, DiPietro, Scarborough, Galef, Sepulveda, Simotas, Hooper
MLTSPNSRBuchwald, Cook, Crouch, Giglio, Glick, Gottfried, Hikind, Markey, Schimel, Steck, Weisenberg
Add S399-zzzz, Gen Bus L
Relates to a smart phone device "kill switch"; requires the ability to remotely delete data on a smart phone device in the event such device is lost or stolen; provides that such technology is required by July 1, 2015.
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A08984 Actions:

03/06/2014referred to consumer affairs and protection
05/13/2014amend (t) and recommit to consumer affairs and protection
05/13/2014print number 8984a
05/30/2014advanced to third reading cal.840
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A08984 Text:

                STATE OF NEW YORK
                   IN ASSEMBLY
                                      March 6, 2014
        Introduced by M. of A. TITONE, MOSLEY, OTIS, DINOWITZ, MAGNARELLI, McDO-
          sored by -- M. of A. BUCHWALD, COOK, CROUCH, GIGLIO, GLICK, GOTTFRIED,
          HIKIND,  MARKEY,  SCHIMEL, STECK, WEISENBERG -- read once and referred
          to the Committee on  Consumer  Affairs  and  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:
     1    Section 1. Legislative intent. The legislature finds that:
     2    (a)  According  to the Federal Communications Commission (FCC), one in
     3  three robberies in the United States involves  the  theft  of  a  mobile
     4  device,  making it the number one property crime in the country. Many of
     5  these robberies often turn violent with some resulting in  the  loss  of
     6  life.
     7    (b)  The  FCC estimates that between thirty to forty percent of United
     8  States street theft involves a mobile device. In fact, more  than  forty

     9  percent  of all robberies in New York city involve smartphones and other
    10  cell phones.
    11    (c) Consumer reports projects that 1.6  million  Americans  had  their
    12  smartphones stolen in 2012.
    13    (d)  According to the New York Times, one hundred thirteen smartphones
    14  are lost or stolen every minute in the United States.
    15    (e) Major cities are home to the highest concentrations of cell  phone
    16  theft,  and officials in New York and California have been pushing for a
    17  cellphone kill switch in those states since April 2012. According to New
    18  York state attorney general, Eric Schneiderman, the United States Senate
    19  proposal would force the mobile industry to "stop dragging its feet  and
    20  join us in protecting consumers."
    21    (f)  In  April  of 2012, U.S. senator Charles Schumer, D-New York, and
    22  New York city police commissioner Ray Kelly  announced  that  the  major

    23  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.

        A. 8984--A                          2
     1  agreed  to  set  up a national database to track reported stolen phones.
     2  Senator Schumer also introduced a bill called the  mobile  device  theft
     3  deterrence act, which proposes a five-year prison sentence for tampering
     4  with the ID numbers of a stolen cell phone.
     5    (g)  According  to  press  reports,  the  international trafficking of
     6  stolen smartphones by organized criminal organizations has  grown  expo-
     7  nentially  in  recent  years  because  of  how  profitable the trade has
     8  become.

     9    (h) Replacement of lost and stolen mobile  devices  was  an  estimated
    10  thirty-billion-dollar business in 2012 according to studies conducted by
    11  mobile  communications security experts. Additionally, industry publica-
    12  tions indicate that the four  largest  providers  of  commercial  mobile
    13  radio  services  made  an  estimated seven billion eight hundred million
    14  dollars from theft and loss insurance products in 2013.
    15    (i) Technological solutions that render stolen  mobile  communications
    16  devices  useless  already exist, but the industry has been slow to adopt
    17  them.
    18    (j) In order to be effective, these technological solutions need to be
    19  ubiquitous, as thieves cannot distinguish between those  mobile  devices
    20  that  have the solutions enabled and those that do not. As a result, the
    21  technological solution should be able to withstand a hard reset or oper-

    22  ating system downgrade, and be enabled by default, with consumers  being
    23  given the option to affirmatively elect to disable this protection.
    24    (k)  Manufacturers  of  mobile  devices  and  commercial  mobile radio
    25  service providers should make efforts to protect  their  customers  from
    26  being targeted as a result of purchasing their products and services.
    27    (l) It is the intent of the legislature to require all smartphones and
    28  other mobile devices offered for sale in New York to come with a techno-
    29  logical solution enabled in order to deter theft and protect consumers.
    30    §  2. The general business law is amended by adding a new section 399-
    31  zzzz to read as follows:
    32    § 399-zzzz.  Smart phone device "kill  switch".  1.  Definitions.  For
    33  purposes  of  this section, the following terms shall have the following
    34  meanings:

    35    (a) "Account holder" with respect to a mobile device or devices, means
    36  the person who holds the account through which  commercial  mobile  data
    37  service  is  provided  on the device or devices and includes anyone else
    38  authorized by such person to take actions with respect to such device or
    39  devices.
    40    (b) "Commercial mobile data service" has the same meaning as found  in
    41  section 6001 of 47 U.S.C. 1401, as amended from time to time.
    42    (c)  "Commercial  mobile  service"  has  the  same meaning as given in
    43  section 332 of 47 U.S.C.  301 et seq., as amended from time to time.
    44    (d) "Mobile device"  means  a  personal  electronic  device  on  which
    45  commercial mobile service or commercial mobile data service is provided.

    46    2. Any provider of commercial mobile data service or commercial mobile
    47  service  shall,  by  itself or in conjunction with the manufacturer of a
    48  mobile device, ensure that any mobile device utilizing  its  service  is
    49  equipped with technology designed to:
    50    (a)  remotely  delete  the account holder's data that is on the mobile
    51  device in the event the mobile device is lost or stolen;
    52    (b) render the mobile device inoperable to  an  unauthorized,  non-ac-
    53  count  holder  by means of locking the mobile device such that it cannot
    54  be used without a password or personal identification number, except  in
    55  accordance  with  any applicable Federal Communications Commission rules

        A. 8984--A                          3

     1  for 911 emergency communications and, if  available,  emergency  numbers
     2  programmed by the authorized user;
     3    (c)  prevent  reactivation  without  the  account holder's permission,
     4  including unauthorized factory reset attempts, to the extent  technolog-
     5  ically feasible; and
     6    (d) reverse the inoperability if the mobile device is recovered by the
     7  account  holder and restore user data on the mobile device to the extent
     8  feasible.
     9    3. The technology required under subdivision two of this section shall
    10  be offered in mobile devices sold  in  New  York  state  beginning  July
    11  first,  two  thousand  fifteen,  and  shall  be made available on mobile
    12  devices at no cost to consumers, provided, however, that mobile  devices

    13  may  be  made  available  without  such  technology  if such devices are
    14  authorized pursuant to federal law or regulation.
    15    § 3. This act shall take effect immediately.
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