AB 1681 Assembly Bill - INTRODUCED

AB 1681 Assembly Bill - INTRODUCEDBILL NUMBER: AB 1681 INTRODUCED BILL TEXTINTRODUCED BY Assembly Member Cooper JANUARY 20, 2016 An act to add Section 22762 to the Business and Profession Code,relating to smartphones. LEGISLATIVE COUNSEL'S DIGEST AB 1681, as introduced, Cooper. Smartphones. Existing law requires that a smartphone that is manufactured on orafter July 1, 2015, and sold in California after that date, includea technological solution at the time of sale, which may consist ofsoftware, hardware, or both software and hardware, that, onceinitiated and successfully communicated to the smartphone, can renderinoperable the essential features, as defined, of the smartphone toan unauthorized user when the smartphone is not in the possession ofan authorized user. This bill would require a smartphone that is manufactured on orafter January 1, 2017, and sold in California, to be capable of beingdecrypted and unlocked by its manufacturer or its operating systemprovider. The bill would, except as provided, subject a seller orlessor that knowingly failed to comply with that requirement to acivil penalty of $2,500 for each smartphone sold or leased. The billwould prohibit a seller or lessor who has paid this civil penaltyfrom passing any portion of the penalty on to purchasers ofsmartphones. The bill would authorize only the Attorney General or adistrict attorney to bring a civil suit to enforce these provisions. Vote: majority. Appropriation: no. Fiscal committee: yes.State-mandated local program: no.THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 22762 is added to the Business and ProfessionsCode, immediately following Section 22761, to read: 22762. (a) For the purposes of this section, the following termshave the following meanings: (1) "Smartphone" has the same meaning as in Section 22761. (2) "Sold in California" has the same meaning as in Section 22761. (3) "Leased in California," or any variation thereof, means thatthe smartphone is contracted for a specified period of time to anend-use consumer at an address within the state. (b) A smartphone that is manufactured on or after January 1, 2017,and sold or leased in California, shall be capable of beingdecrypted and unlocked by its manufacturer or its operating systemprovider. (c) Except as provided in subdivision (d), a seller or lessor thatsells or leases in California a smartphone manufactured on or afterJanuary 1, 2017, that is not capable of being decrypted and unlockedby its manufacturer or its operating system provider shall be subjectto a civil penalty of two thousand five hundred dollars ($2,500) foreach smartphone sold or leased if the seller or lessor of thesmartphone knew at the time of the sale or lease that the smartphonewas not capable of being decrypted and unlocked by its manufactureror its operating system provider. A seller or lessor who pays a civilpenalty imposed pursuant to this subdivision shall not pass on anyportion of that penalty to purchasers of smartphones by raising thesales or lease price of smartphones. (d) (1) The sale or lease of a smartphone manufactured on or afterJanuary 1, 2017, that is not capable of being decrypted and unlockedby its manufacturer or its operating system provider shall notresult in liability to the seller or lessor if the inability of themanufacturer and operating system provider to decrypt and unlock thesmartphone is the result of actions taken by a person or entity otherthan the manufacturer, the operating system provider, the seller, orthe lessor and those actions were unauthorized by the manufacturer,the operating system provider, the seller, or the lessor. (2) Paragraph (1) does not apply if at the time of sale or lease,the seller or lessor had been notified that the manufacturer andoperating system provider were unable to decrypt and unlock thesmartphone due to those unauthorized actions. (e) A civil suit to enforce this section may only be brought bythe Attorney General, for the sale or lease of a smartphone inCalifornia, or a district attorney for the sale or lease of asmartphone in the county represented by the district attorney. Aseller or lessor shall not be subject to more than a single penaltyfor each sale or lease of a smartphone. AB 1681 Assembly Bill - INTRODUCEDBILL NUMBER: AB 1681 INTRODUCED BILL TEXTINTRODUCED BY Assembly Member Cooper JANUARY 20, 2016 An act to add Section 22762 to the Business and Profession Code,relating to smartphones. LEGISLATIVE COUNSEL'S DIGEST AB 1681, as introduced, Cooper. Smartphones. Existing law requires that a smartphone that is manufactured on orafter July 1, 2015, and sold in California after that date, includea technological solution at the time of sale, which may consist ofsoftware, hardware, or both software and hardware, that, onceinitiated and successfully communicated to the smartphone, can renderinoperable the essential features, as defined, of the smartphone toan unauthorized user when the smartphone is not in the possession ofan authorized user. This bill would require a smartphone that is manufactured on orafter January 1, 2017, and sold in California, to be capable of beingdecrypted and unlocked by its manufacturer or its operating systemprovider. The bill would, except as provided, subject a seller orlessor that knowingly failed to comply with that requirement to acivil penalty of $2,500 for each smartphone sold or leased. The billwould prohibit a seller or lessor who has paid this civil penaltyfrom passing any portion of the penalty on to purchasers ofsmartphones. The bill would authorize only the Attorney General or adistrict attorney to bring a civil suit to enforce these provisions. Vote: majority. Appropriation: no. Fiscal committee: yes.State-mandated local program: no.THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 22762 is added to the Business and ProfessionsCode, immediately following Section 22761, to read: 22762. (a) For the purposes of this section, the following termshave the following meanings: (1) "Smartphone" has the same meaning as in Section 22761. (2) "Sold in California" has the same meaning as in Section 22761. (3) "Leased in California," or any variation thereof, means thatthe smartphone is contracted for a specified period of time to anend-use consumer at an address within the state. (b) A smartphone that is manufactured on or after January 1, 2017,and sold or leased in California, shall be capable of beingdecrypted and unlocked by its manufacturer or its operating systemprovider. (c) Except as provided in subdivision (d), a seller or lessor thatsells or leases in California a smartphone manufactured on or afterJanuary 1, 2017, that is not capable of being decrypted and unlockedby its manufacturer or its operating system provider shall be subjectto a civil penalty of two thousand five hundred dollars ($2,500) foreach smartphone sold or leased if the seller or lessor of thesmartphone knew at the time of the sale or lease that the smartphonewas not capable of being decrypted and unlocked by its manufactureror its operating system provider. A seller or lessor who pays a civilpenalty imposed pursuant to this subdivision shall not pass on anyportion of that penalty to purchasers of smartphones by raising thesales or lease price of smartphones. (d) (1) The sale or lease of a smartphone manufactured on or afterJanuary 1, 2017, that is not capable of being decrypted and unlockedby its manufacturer or its operating system provider shall notresult in liability to the seller or lessor if the inability of themanufacturer and operating system provider to decrypt and unlock thesmartphone is the result of actions taken by a person or entity otherthan the manufacturer, the operating system provider, the seller, orthe lessor and those actions were unauthorized by the manufacturer,the operating system provider, the seller, or the lessor. (2) Paragraph (1) does not apply if at the time of sale or lease,the seller or lessor had been notified that the manufacturer andoperating system provider were unable to decrypt and unlock thesmartphone due to those unauthorized actions. (e) A civil suit to enforce this section may only be brought bythe Attorney General, for the sale or lease of a smartphone inCalifornia, or a district attorney for the sale or lease of asmartphone in the county represented by the district attorney. Aseller or lessor shall not be subject to more than a single penaltyfor each sale or lease of a smartphone.