Bill Text: NY A07024 | 2017-2018 | General Assembly | Introduced

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Bill Title: Relates to the manufacture and sale of smartphones on and after January 1, 2018 that are capable of being decrypted and unlocked by the manufacturer or its operating system provider.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2018-01-03 - referred to consumer affairs and protection [A07024 Detail]

Download: New_York-2017-A07024-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7024
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                     March 29, 2017
                                       ___________
        Introduced by M. of A. TITONE, MOSLEY, SEAWRIGHT, LUPARDO -- Multi-Spon-
          sored by -- M.  of A. LOPEZ -- read once and referred to the Committee
          on Consumer Affairs and Protection
        AN ACT to amend the general business law, in relation to the manufacture
          and  sale  of  smartphones  that  are  capable  of being decrypted and
          unlocked by the manufacturer
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. The general business law is amended by adding a new section
     2  399-k to read as follows:
     3    § 399-k. Smartphones. 1. For the purposes of this section, the follow-
     4  ing terms shall have the following meanings:
     5    (a)  "Smartphone"  means  a  cellular  radio telephone or other mobile
     6  voice  communications  handset  device  that  includes   the   following
     7  features:
     8    i. Utilizes a mobile operating system.
     9    ii.  Possesses the capability to utilize mobile software applications,
    10  access and browse the Internet, utilize text messaging, utilize  digital
    11  voice service, and send and receive email.
    12    iii. Has wireless network connectivity.
    13    iv.  Is  capable  of  operating  on  a  long-term evolution network or
    14  successor wireless data network communication standards.
    15    (b) "Sold in New York," or  any  variation  thereof,  means  that  the
    16  smartphone  is  sold  at retail from a location within the state, or the
    17  smartphone is sold and shipped to an  end-use  consumer  at  an  address
    18  within  the state. "Sold in New York" does not include a smartphone that
    19  is resold in the state on the secondhand market or that is consigned and
    20  held as collateral on a loan.
    21    (c) "Leased in New York," or any variation  thereof,  means  that  the
    22  smartphone  is  contracted  for a specified period of time to an end-use
    23  consumer at an address within the state.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09153-01-7
        A. 7024                             2
     1    2. Any smartphone that is manufactured on or after January first,  two
     2  thousand  eighteen,  and sold or leased in New York, shall be capable of
     3  being decrypted and unlocked by its manufacturer or its operating system
     4  provider.
     5    3.  The  sale  or lease in New York of a smartphone manufactured on or
     6  after January first, two thousand eighteen that is not capable of  being
     7  decrypted  and  unlocked  by  its  manufacturer  or its operating system
     8  provider shall subject the seller or lessor to a civil  penalty  of  two
     9  thousand  five  hundred dollars for each smartphone sold or leased if it
    10  is demonstrated that the seller or lessor of the smartphone knew at  the
    11  time  of  the sale or lease that the smartphone was not capable of being
    12  decrypted and unlocked by  its  manufacturer  or  its  operating  system
    13  provider.  No  seller  or lessor who pays the civil penalty may pass any
    14  portion of that penalty on to any purchaser of  smartphones  by  raising
    15  the sales or lease price of smartphones.
    16    4.  The  retail sale or lease of a smartphone manufactured on or after
    17  January first, two thousand  eighteen  that  is  not  capable  of  being
    18  decrypted  and  unlocked  by  its  manufacturer  or its operating system
    19  provider shall not result in liability to the seller or  lessor  if  the
    20  inability  of  the manufacturer and operating system provider to decrypt
    21  and unlock the smartphone is the result of actions taken by  any  person
    22  or  entity  other  than the manufacturer, the operating system provider,
    23  the seller, or the lessor so long as such actions were  unauthorized  by
    24  the  manufacturer,  the  operating  system  provider, the seller, or the
    25  lessor unless at the time of sale or lease  the  seller  or  lessor  had
    26  received notification that the manufacturer and operating system provid-
    27  er  were  unable  to  decrypt and unlock smartphones that had been acted
    28  upon in the manner described above.
    29    5. A civil suit to enforce this section may be brought by the  follow-
    30  ing  parties  and none others: (a) the Attorney General, for any sale or
    31  lease of a smartphone in New York, and (b) the district attorney for any
    32  sale or lease of a smartphone in the county represented by the  district
    33  attorney,  provided, however that the seller or lessor may be subject to
    34  not more than a single penalty for each sale or lease of a smartphone.
    35    § 2. This act shall take effect immediately.