Bill Text: MN SF1740 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Smart phone antitheft (kill switch) protection and cellphones resale
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Passed) 2014-05-15 - Secretary of State Chapter 241 05/14/14 [SF1740 Detail]
Download: Minnesota-2013-SF1740-Engrossed.html
1.2relating to telecommunications; consumer protection; requiring antitheft
1.3functionality for smart phones to deter theft; establishing requirements for
1.4acquisition and resale of wireless communications devices;proposing coding for
1.5new law in Minnesota Statutes, chapters 325E; 325F.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. [325F.698] SMART PHONE ANTITHEFT PROTECTION.
1.10 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
1.11have the meanings given them.
1.12(b) "Smart phone" means a cellular phone or other mobile device that: (1) is built on
1.13a smart phone mobile operating system; (2) possesses advanced computing capability; (3)
1.14enables network connectivity; and (4) is capable of operating on a long-term evolution
1.15network and successor wireless data network communication standards. Capabilities a
1.16smart phone may possess include, but are not limited to, built-in applications, Internet
1.17access, digital voice service, text messaging, e-mail, and Web browsing. Smart phone
1.18does not include a phone commonly referred to as a feature or messaging phone, a laptop
1.19computer, a tablet device, or a device that has only electronic reading capability.
1.20 Subd. 2. Antitheft functionality required. Any new smart phone manufactured on
1.21or after July 1, 2015, sold or purchased in Minnesota must be equipped with preloaded
1.22antitheft functionality or be capable of downloading that functionality. The functionality
1.23must be available to purchasers at no cost.
1.24EFFECTIVE DATE.This section is effective July 1, 2015.
2.1 Sec. 2. REPORT ON SMART PHONE ANTITHEFT FUNCTIONALITY.
2.2Wireless telecommunications equipment manufacturers, operating systems
2.3providers, and wireless telecommunications service providers must either individually
2.4or jointly, by January 15, 2015, submit a report to the chairs and ranking minority
2.5members of the legislative committees with primary jurisdiction over telecommunication
2.6issues. The report must describe the principle functions of a baseline antitheft tool that
2.7manufacturers and operating system providers will utilize on new models of smart phones
2.8in order to comply with section 1, and must describe the technology or functions included
2.9to ensure the baseline antitheft tool is easily operable by individuals with disabilities.
2.12 Section 1. [325E.319] WIRELESS COMMUNICATIONS DEVICES;
2.13ACQUISITION FOR RESALE.
2.14 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
2.15have the meanings given them.
2.16(b) "CMRS provider" means a provider of commercial radio service, as defined in
2.17United States Code, title 47, section 332, and includes its authorized dealers.
2.18(c) "Internet marketplace" or "online platform" means a digitally accessible platform
2.19that facilitates commercial transactions between buyers and community-rated sellers where
2.20the operator or the platform does not take possession of, or title to, the goods bought or sold.
2.21(d) "Law enforcement agency" or "agency" means a duly authorized municipal,
2.22county, campus, transit, park, state, or federal law enforcement agency.
2.23(e) "Repair and refurbishment program" means a program, offered by a CMRS
2.24provider, manufacturer, or retailer who is not primarily engaged in purchasing personal
2.25property of any type from a person who is not a wholesaler, through which used or
2.26previously owned wireless communications devices are restored to good working order.
2.27(f) "Trade-in program" means a program offered by a CMRS provider, manufacturer,
2.28or retailer who is not primarily engaged in purchasing personal property of any type
2.29from a person who is not a wholesaler, pursuant to which used wireless communications
2.30devices are accepted from customers in exchange for either (1) a noncash credit usable
2.31only for the purchase of goods or services from the CMRS provider, manufacturer, or
2.32retailer, or (2) a rebate from a manufacturer on the purchase of one of the manufacturer's
2.33wireless communications devices.
3.1(g) "Wireless communications device dealer" or "dealer" means an individual,
3.2partnership, limited partnership, limited liability company, corporation, or other entity
3.3engaged in the business of buying or selling used wireless communications devices.
3.4(h) "Wireless communications device" has the meaning given in section 169.011,
3.5subdivision 94.
3.6(i) "Wireless communications device manufacturer" or "manufacturer" means an
3.7individual, partnership, limited partnership, limited liability company, corporation, or
3.8other entity engaged in the business of manufacturing wireless communications devices.
3.9 Subd. 2. Purchase or acquisition record required. (a) Every wireless
3.10communications device dealer, including an agent, employee, or representative of the
3.11dealer, but not an internet marketplace, shall keep a written record at the time of each
3.12purchase or acquisition of a used wireless communications device for resale. The record
3.13must include the following and may be kept in electronic form:
3.14(1) an accurate account or description of the wireless communications device
3.15purchased or acquired;
3.16(2) the date, time, and place or the online platform the wireless communications
3.17device was purchased or acquired;
3.18(3) the name and address of the person selling or delivering the wireless
3.19communications device;
3.20(4) the number of the check or electronic transfer used to purchase the wireless
3.21communications device;
3.22(5) the number of the seller's driver's license, Minnesota identification card number,
3.23or other identification number from an identification document issued by any state,
3.24federal, or foreign government if the document includes the person's photograph, full
3.25name, birth date, and signature; and
3.26(6) a statement signed by the seller, under penalty of perjury as provided in section
3.27609.48, attesting that the wireless communications device is not stolen and is free of any
3.28liens or encumbrances and the seller has the right to sell it.
3.29(b) Records required to be maintained under this subdivision shall be retained by the
3.30wireless communications device dealer for a period of three years.
3.31(c) The record, as well as the wireless communications device purchased or received,
3.32shall at all reasonable times be available for inspection by any law enforcement agency.
3.33(d) No record is required for wireless communications devices purchased from
3.34merchants, manufacturers, or wholesale dealers having an established place of business,
3.35but a bill of sale or other evidence of open or legitimate purchase of the wireless
4.1communications device shall be obtained and kept by the wireless communications device
4.2dealer, which must be shown upon demand to any law enforcement agency.
4.3(e) Except as otherwise provided in this section, a wireless communications device
4.4dealer or the dealer's agent, employee, or representative may not disclose personal
4.5information received pursuant to paragraph (a) concerning a customer without the
4.6customer's consent unless the disclosure is made in response to a request from a law
4.7enforcement agency. A wireless communications device dealer must implement
4.8reasonable safeguards to protect the security of the personal information and prevent
4.9unauthorized access to or disclosure of the information. For purposes of this paragraph,
4.10"personal information" is any individually identifiable information gathered in connection
4.11with a record under paragraph (a).
4.12 Subd. 3. Records; prohibitions. A wireless communications device dealer,
4.13including an agent, employee, or representative of the dealer, shall not:
4.14(1) make any false entry in the records of transactions involving a used wireless
4.15communications device;
4.16(2) falsify, obliterate, destroy, or remove from the place of business the records,
4.17books, or accounts relating to used wireless communications device transactions;
4.18(3) refuse to allow the appropriate law enforcement agency to inspect records or
4.19any used wireless communications device in the dealer's possession during the ordinary
4.20hours of business or other times acceptable to both parties;
4.21(4) fail to maintain a record of each used wireless communications device transaction
4.22for three years; or
4.23(5) purchase a used wireless communications device from a person under the age of
4.2418 years.
4.25 Subd. 4. Payment for used wireless communications devices. A wireless
4.26communications device dealer shall pay for purchases of all used wireless communications
4.27devices by check mailed to a specific address or by electronic transfer.
4.28 Subd. 5. Investigative holds; confiscation of property. (a) Whenever a law
4.29enforcement official from any agency has probable cause to believe that a wireless
4.30communications device in the possession of a wireless communications device dealer is
4.31stolen or is evidence of a crime and notifies the dealer not to sell the item, the dealer shall
4.32not (1) process or sell the item, or (2) remove or allow its removal from the premises.
4.33This investigative hold must be confirmed in writing by the originating agency within 72
4.34hours and will remain in effect for 30 days from the date of initial notification, until
4.35the investigative hold is canceled or renewed, or until a law enforcement notification to
4.36confiscate or directive to release is issued, whichever comes first.
5.1(b) If a wireless communications device is identified as stolen or as evidence in a
5.2criminal case, a law enforcement official may:
5.3(1) physically confiscate and remove the wireless communications device from the
5.4wireless communications device dealer, pursuant to a written notification;
5.5(2) place the wireless communications device on hold or extend the hold under
5.6paragraph (a), and leave the device at the premises; or
5.7(3) direct its release to a registered owner or owner's agent.
5.8(c) When an item is confiscated, the law enforcement agency doing so shall provide
5.9identification upon request of the wireless communications device dealer, and shall
5.10provide the name and telephone number of the confiscating agency and investigator, and
5.11the case number related to the confiscation.
5.12(d) A wireless communications device dealer may request seized property be
5.13returned in accordance with section 626.04.
5.14(e) When an investigative hold or notification to confiscate is no longer necessary,
5.15the law enforcement official or designee shall notify the wireless communications device
5.16dealer.
5.17(f) A wireless communications device dealer may sell or otherwise dispose of the
5.18wireless communications device if:
5.19(1) a notification to confiscate is not issued during the investigative hold; or
5.20(2) a law enforcement official does not physically remove the wireless
5.21communications device from the premises within 15 calendar days from issuance of a
5.22notification to confiscate.
5.23(g) If a wireless communications device dealer is required to hold the wireless
5.24communications device at the direction of law enforcement for purposes of investigation
5.25or prosecution, or if the device is seized by law enforcement, the wireless communications
5.26device dealer and any other victim is entitled to seek restitution, including any
5.27out-of-pocket expenses for storage and lost profit, in any criminal case that may arise from
5.28the investigation against the individual who sold the wireless communications device to
5.29the wireless communications device dealer.
5.30 Subd. 6. Video security cameras required. (a) Each wireless communications
5.31device dealer shall install and maintain at each physical location video surveillance
5.32cameras, still digital cameras, or similar devices positioned to record or photograph a
5.33frontal view showing a readily identifiable image of the face of each seller of a wireless
5.34communications device who enters the physical location.
5.35(b) The video camera or still digital camera must be kept in operating condition and
5.36must be shown upon request to a properly identified law enforcement officer for inspection.
6.1The camera must record and display the accurate date and time. The video camera or still
6.2digital camera must be turned on at all times when the physical location is open for business
6.3and at any other time when wireless communications devices are purchased or sold.
6.4(c) Recordings and images required by paragraph (a) shall be retained by the wireless
6.5communications device dealer for a minimum period of 30 days and shall at all reasonable
6.6times be open to the inspection of any properly identified law enforcement officer.
6.7 Subd. 7. Criminal penalty. A wireless communications device dealer, or the
6.8agent, employee, or representative of the wireless communications device dealer, who
6.9intentionally violates a provision of this section is guilty of a misdemeanor.
6.10 Subd. 8. Application. (a) This section does not apply with respect to a wireless
6.11communications device returned to the store where it was originally purchased pursuant
6.12to the return policies of the wireless communications device dealer, CMRS provider,
6.13manufacturer, or retailer.
6.14(b) This section does not apply with respect to wireless communications devices
6.15acquired by a: (1) CMRS provider as part of a trade-in or a repair and refurbishment
6.16program; (2) manufacturer as part of a trade-in program; or (3) retailer whose trade-in
6.17program: (i) reports records to the Minnesota Automated Property System in an
6.18interchange file specification format maintained by the system; (ii) reports to other national
6.19or regional transaction reporting database available to law enforcement; or (iii) reports
6.20as required by local ordinance.
6.21(c) This section does not apply to wireless communications device dealers regulated
6.22under chapter 325J.
6.23EFFECTIVE DATE.This section is effective July 1, 2014.
1.3functionality for smart phones to deter theft; establishing requirements for
1.4acquisition and resale of wireless communications devices;proposing coding for
1.5new law in Minnesota Statutes, chapters 325E; 325F.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. [325F.698] SMART PHONE ANTITHEFT PROTECTION.
1.10 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
1.11have the meanings given them.
1.12(b) "Smart phone" means a cellular phone or other mobile device that: (1) is built on
1.13a smart phone mobile operating system; (2) possesses advanced computing capability; (3)
1.14enables network connectivity; and (4) is capable of operating on a long-term evolution
1.15network and successor wireless data network communication standards. Capabilities a
1.16smart phone may possess include, but are not limited to, built-in applications, Internet
1.17access, digital voice service, text messaging, e-mail, and Web browsing. Smart phone
1.18does not include a phone commonly referred to as a feature or messaging phone, a laptop
1.19computer, a tablet device, or a device that has only electronic reading capability.
1.20 Subd. 2. Antitheft functionality required. Any new smart phone manufactured on
1.21or after July 1, 2015, sold or purchased in Minnesota must be equipped with preloaded
1.22antitheft functionality or be capable of downloading that functionality. The functionality
1.23must be available to purchasers at no cost.
1.24EFFECTIVE DATE.This section is effective July 1, 2015.
2.1 Sec. 2. REPORT ON SMART PHONE ANTITHEFT FUNCTIONALITY.
2.2Wireless telecommunications equipment manufacturers, operating systems
2.3providers, and wireless telecommunications service providers must either individually
2.4or jointly, by January 15, 2015, submit a report to the chairs and ranking minority
2.5members of the legislative committees with primary jurisdiction over telecommunication
2.6issues. The report must describe the principle functions of a baseline antitheft tool that
2.7manufacturers and operating system providers will utilize on new models of smart phones
2.8in order to comply with section 1, and must describe the technology or functions included
2.9to ensure the baseline antitheft tool is easily operable by individuals with disabilities.
2.12 Section 1. [325E.319] WIRELESS COMMUNICATIONS DEVICES;
2.13ACQUISITION FOR RESALE.
2.14 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
2.15have the meanings given them.
2.16(b) "CMRS provider" means a provider of commercial radio service, as defined in
2.17United States Code, title 47, section 332, and includes its authorized dealers.
2.18(c) "Internet marketplace" or "online platform" means a digitally accessible platform
2.19that facilitates commercial transactions between buyers and community-rated sellers where
2.20the operator or the platform does not take possession of, or title to, the goods bought or sold.
2.21(d) "Law enforcement agency" or "agency" means a duly authorized municipal,
2.22county, campus, transit, park, state, or federal law enforcement agency.
2.23(e) "Repair and refurbishment program" means a program, offered by a CMRS
2.24provider, manufacturer, or retailer who is not primarily engaged in purchasing personal
2.25property of any type from a person who is not a wholesaler, through which used or
2.26previously owned wireless communications devices are restored to good working order.
2.27(f) "Trade-in program" means a program offered by a CMRS provider, manufacturer,
2.28or retailer who is not primarily engaged in purchasing personal property of any type
2.29from a person who is not a wholesaler, pursuant to which used wireless communications
2.30devices are accepted from customers in exchange for either (1) a noncash credit usable
2.31only for the purchase of goods or services from the CMRS provider, manufacturer, or
2.32retailer, or (2) a rebate from a manufacturer on the purchase of one of the manufacturer's
2.33wireless communications devices.
3.1(g) "Wireless communications device dealer" or "dealer" means an individual,
3.2partnership, limited partnership, limited liability company, corporation, or other entity
3.3engaged in the business of buying or selling used wireless communications devices.
3.4(h) "Wireless communications device" has the meaning given in section 169.011,
3.5subdivision 94.
3.6(i) "Wireless communications device manufacturer" or "manufacturer" means an
3.7individual, partnership, limited partnership, limited liability company, corporation, or
3.8other entity engaged in the business of manufacturing wireless communications devices.
3.9 Subd. 2. Purchase or acquisition record required. (a) Every wireless
3.10communications device dealer, including an agent, employee, or representative of the
3.11dealer, but not an internet marketplace, shall keep a written record at the time of each
3.12purchase or acquisition of a used wireless communications device for resale. The record
3.13must include the following and may be kept in electronic form:
3.14(1) an accurate account or description of the wireless communications device
3.15purchased or acquired;
3.16(2) the date, time, and place or the online platform the wireless communications
3.17device was purchased or acquired;
3.18(3) the name and address of the person selling or delivering the wireless
3.19communications device;
3.20(4) the number of the check or electronic transfer used to purchase the wireless
3.21communications device;
3.22(5) the number of the seller's driver's license, Minnesota identification card number,
3.23or other identification number from an identification document issued by any state,
3.24federal, or foreign government if the document includes the person's photograph, full
3.25name, birth date, and signature; and
3.26(6) a statement signed by the seller, under penalty of perjury as provided in section
3.27609.48, attesting that the wireless communications device is not stolen and is free of any
3.28liens or encumbrances and the seller has the right to sell it.
3.29(b) Records required to be maintained under this subdivision shall be retained by the
3.30wireless communications device dealer for a period of three years.
3.31(c) The record, as well as the wireless communications device purchased or received,
3.32shall at all reasonable times be available for inspection by any law enforcement agency.
3.33(d) No record is required for wireless communications devices purchased from
3.34merchants, manufacturers, or wholesale dealers having an established place of business,
3.35but a bill of sale or other evidence of open or legitimate purchase of the wireless
4.1communications device shall be obtained and kept by the wireless communications device
4.2dealer, which must be shown upon demand to any law enforcement agency.
4.3(e) Except as otherwise provided in this section, a wireless communications device
4.4dealer or the dealer's agent, employee, or representative may not disclose personal
4.5information received pursuant to paragraph (a) concerning a customer without the
4.6customer's consent unless the disclosure is made in response to a request from a law
4.7enforcement agency. A wireless communications device dealer must implement
4.8reasonable safeguards to protect the security of the personal information and prevent
4.9unauthorized access to or disclosure of the information. For purposes of this paragraph,
4.10"personal information" is any individually identifiable information gathered in connection
4.11with a record under paragraph (a).
4.12 Subd. 3. Records; prohibitions. A wireless communications device dealer,
4.13including an agent, employee, or representative of the dealer, shall not:
4.14(1) make any false entry in the records of transactions involving a used wireless
4.15communications device;
4.16(2) falsify, obliterate, destroy, or remove from the place of business the records,
4.17books, or accounts relating to used wireless communications device transactions;
4.18(3) refuse to allow the appropriate law enforcement agency to inspect records or
4.19any used wireless communications device in the dealer's possession during the ordinary
4.20hours of business or other times acceptable to both parties;
4.21(4) fail to maintain a record of each used wireless communications device transaction
4.22for three years; or
4.23(5) purchase a used wireless communications device from a person under the age of
4.2418 years.
4.25 Subd. 4. Payment for used wireless communications devices. A wireless
4.26communications device dealer shall pay for purchases of all used wireless communications
4.27devices by check mailed to a specific address or by electronic transfer.
4.28 Subd. 5. Investigative holds; confiscation of property. (a) Whenever a law
4.29enforcement official from any agency has probable cause to believe that a wireless
4.30communications device in the possession of a wireless communications device dealer is
4.31stolen or is evidence of a crime and notifies the dealer not to sell the item, the dealer shall
4.32not (1) process or sell the item, or (2) remove or allow its removal from the premises.
4.33This investigative hold must be confirmed in writing by the originating agency within 72
4.34hours and will remain in effect for 30 days from the date of initial notification, until
4.35the investigative hold is canceled or renewed, or until a law enforcement notification to
4.36confiscate or directive to release is issued, whichever comes first.
5.1(b) If a wireless communications device is identified as stolen or as evidence in a
5.2criminal case, a law enforcement official may:
5.3(1) physically confiscate and remove the wireless communications device from the
5.4wireless communications device dealer, pursuant to a written notification;
5.5(2) place the wireless communications device on hold or extend the hold under
5.6paragraph (a), and leave the device at the premises; or
5.7(3) direct its release to a registered owner or owner's agent.
5.8(c) When an item is confiscated, the law enforcement agency doing so shall provide
5.9identification upon request of the wireless communications device dealer, and shall
5.10provide the name and telephone number of the confiscating agency and investigator, and
5.11the case number related to the confiscation.
5.12(d) A wireless communications device dealer may request seized property be
5.13returned in accordance with section 626.04.
5.14(e) When an investigative hold or notification to confiscate is no longer necessary,
5.15the law enforcement official or designee shall notify the wireless communications device
5.16dealer.
5.17(f) A wireless communications device dealer may sell or otherwise dispose of the
5.18wireless communications device if:
5.19(1) a notification to confiscate is not issued during the investigative hold; or
5.20(2) a law enforcement official does not physically remove the wireless
5.21communications device from the premises within 15 calendar days from issuance of a
5.22notification to confiscate.
5.23(g) If a wireless communications device dealer is required to hold the wireless
5.24communications device at the direction of law enforcement for purposes of investigation
5.25or prosecution, or if the device is seized by law enforcement, the wireless communications
5.26device dealer and any other victim is entitled to seek restitution, including any
5.27out-of-pocket expenses for storage and lost profit, in any criminal case that may arise from
5.28the investigation against the individual who sold the wireless communications device to
5.29the wireless communications device dealer.
5.30 Subd. 6. Video security cameras required. (a) Each wireless communications
5.31device dealer shall install and maintain at each physical location video surveillance
5.32cameras, still digital cameras, or similar devices positioned to record or photograph a
5.33frontal view showing a readily identifiable image of the face of each seller of a wireless
5.34communications device who enters the physical location.
5.35(b) The video camera or still digital camera must be kept in operating condition and
5.36must be shown upon request to a properly identified law enforcement officer for inspection.
6.1The camera must record and display the accurate date and time. The video camera or still
6.2digital camera must be turned on at all times when the physical location is open for business
6.3and at any other time when wireless communications devices are purchased or sold.
6.4(c) Recordings and images required by paragraph (a) shall be retained by the wireless
6.5communications device dealer for a minimum period of 30 days and shall at all reasonable
6.6times be open to the inspection of any properly identified law enforcement officer.
6.7 Subd. 7. Criminal penalty. A wireless communications device dealer, or the
6.8agent, employee, or representative of the wireless communications device dealer, who
6.9intentionally violates a provision of this section is guilty of a misdemeanor.
6.10 Subd. 8. Application. (a) This section does not apply with respect to a wireless
6.11communications device returned to the store where it was originally purchased pursuant
6.12to the return policies of the wireless communications device dealer, CMRS provider,
6.13manufacturer, or retailer.
6.14(b) This section does not apply with respect to wireless communications devices
6.15acquired by a: (1) CMRS provider as part of a trade-in or a repair and refurbishment
6.16program; (2) manufacturer as part of a trade-in program; or (3) retailer whose trade-in
6.17program: (i) reports records to the Minnesota Automated Property System in an
6.18interchange file specification format maintained by the system; (ii) reports to other national
6.19or regional transaction reporting database available to law enforcement; or (iii) reports
6.20as required by local ordinance.
6.21(c) This section does not apply to wireless communications device dealers regulated
6.22under chapter 325J.
6.23EFFECTIVE DATE.This section is effective July 1, 2014.
