99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1300

 

Introduced 2/18/2015, by Sen. Toi W. Hutchinson

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Smart Phone Kill Switch Act. Requires that any smart phone manufactured on or after July 1, 2016 that is sold or purchased in Illinois must be equipped with preloaded anti-theft functionality or be capable of downloading that functionality. Requires the functionality to be available to purchasers at no cost. Provides that the Illinois Commerce Commission shall adopt rules regarding smart phone anti-theft functionality. Requires wireless communications device dealers to maintain a written record of every purchase or acquisition of a used wireless communications device for resale. Sets forth information that must be included in the written record. Provides that a law enforcement agency that has probable cause to believe a device has been stolen or is evidence of a crime may place an investigative hold on or confiscate the device. Requires the installation of video security cameras at a dealer's physical location. Provides that a violation of the Act is a Class B misdemeanor. Provides exemptions from the application of the Act, including wireless telephone providers who acquire devices for trade-in or for repair and refurbishment programs.


LRB099 10231 AMC 30457 b

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1300LRB099 10231 AMC 30457 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Smart
5Phone Kill Switch Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Internet marketplace" or "online platform" means a
8digitally accessible platform that facilitates commercial
9transactions between buyers and community-rated sellers where
10the operator or the platform does not take possession of, or
11title to, the goods bought or sold.
12    "Law enforcement agency" means a duly authorized local,
13county, State, or federal law enforcement agency.
14    "Repair and refurbishment program" means a program,
15offered by a wireless telephone service provider,
16manufacturer, or retailer who is not primarily engaged in
17purchasing personal property of any type from a person who is
18not a wholesaler, through which used or previously owned
19wireless communications devices are restored to good working
20order.
21    "Smart phone" means a cellular phone or other mobile device
22that: (1) is built on a smart phone mobile operating system;
23(2) possesses advanced computing capability; (3) enables

 

 

SB1300- 2 -LRB099 10231 AMC 30457 b

1network connectivity; and (4) is capable of operating on a
2long-term evolution network and successor wireless data
3network communication standards. Capabilities a smart phone
4may possess include, but are not limited to, built-in
5applications, Internet access, digital voice service, text
6messaging, e-mail, and Web browsing. "Smart phone" does not
7include a phone commonly referred to as a feature or messaging
8phone, a laptop computer, a tablet device, or a device that has
9only electronic reading capability.
10    "Trade-in program" means a program offered by a wireless
11telephone service provider, manufacturer, or retailer who is
12not primarily engaged in purchasing personal property of any
13type from a person who is not a wholesaler, pursuant to which
14used wireless communications devices are accepted from
15customers in exchange for either a noncash credit usable only
16for the purchase of goods or services from the wireless
17telephone service provider, manufacturer, or retailer or a
18rebate from a manufacturer on the purchase of one of the
19manufacturer's wireless communications devices.
20    "Wireless communications device" means a cellular phone or
21a portable electronic device that is capable of receiving and
22transmitting data, including, but not limited to, text messages
23and e-mail, without an access line for service.
24    "Wireless communications device dealer" or "dealer" means
25an individual, partnership, limited partnership, limited
26liability company, corporation, or other entity engaged in the

 

 

SB1300- 3 -LRB099 10231 AMC 30457 b

1business of buying or selling used wireless communications
2devices.
3    "Wireless communications device manufacturer" or
4"manufacturer" means an individual, partnership, limited
5partnership, limited liability company, corporation, or other
6entity engaged in the business of manufacturing wireless
7communications devices.
8    "Wireless telephone service provider" means a provider of
9wireless telephone services and its authorized dealers,
10distributors, and agents.
 
11    Section 10. Anti-theft functionality required. Any smart
12phone manufactured on or after July 1, 2016 that is sold or
13purchased in Illinois must be equipped with preloaded
14anti-theft functionality or be capable of downloading that
15functionality. The functionality must be available to
16purchasers at no cost. The Illinois Commerce Commission shall
17adopt rules regarding smart phone anti-theft functionality.
 
18    Section 15. Wireless communications devices; acquisition
19for resale; purchase or acquisition record required.
20    (a) Every wireless communications device dealer, including
21an agent, employee, or representative of the dealer, but not an
22internet marketplace, shall keep a written record at the time
23of each purchase or acquisition of a used wireless
24communications device for resale. The record must include the

 

 

SB1300- 4 -LRB099 10231 AMC 30457 b

1following and may be kept in electronic form:
2        (1) an accurate account or description of the wireless
3    communications device purchased or acquired;
4        (2) the date, time, and place or the online platform on
5    which the wireless communications device was purchased or
6    acquired;
7        (3) the name and address of the person selling or
8    delivering the wireless communications device;
9        (4) the number of the check or electronic transfer used
10    to purchase the wireless communications device;
11        (5) the number from an identification document issued
12    by any state, federal, or foreign government if the
13    document includes the person's photograph, full name,
14    birth date, and signature; and
15        (6) a statement signed by the seller, under penalty of
16    perjury, attesting that the wireless communications device
17    is not stolen and is free of any liens or encumbrances and
18    the seller has the right to sell it.
19    (b) Records required to be maintained under this Section
20shall be retained by the wireless communications device dealer
21for a period of 3 years.
22    (c) The record, as well as the wireless communications
23device purchased or received, shall at all reasonable times be
24available for inspection by any law enforcement agency.
25    (d) No record is required for wireless communications
26devices purchased from merchants, manufacturers, or wholesale

 

 

SB1300- 5 -LRB099 10231 AMC 30457 b

1dealers having an established place of business, but a bill of
2sale or other evidence of open or legitimate purchase of the
3wireless communications device shall be obtained and kept by
4the wireless communications device dealer, which must be shown
5upon demand to any law enforcement agency.
6    (e) Except as otherwise provided in this Section, a
7wireless communications device dealer or the dealer's agent,
8employee, or representative may not disclose personal
9information received pursuant to subsection (a) concerning a
10customer without the customer's consent unless the disclosure
11is made in response to a request from a law enforcement agency.
12A wireless communications device dealer must implement
13reasonable safeguards to protect the security of the personal
14information and prevent unauthorized access to or disclosure of
15the information. For purposes of this Section, "personal
16information" is any individually identifiable information
17gathered in connection with a record under subsection (a).
 
18    Section 20. Records; prohibitions. A wireless
19communications device dealer, including an agent, employee, or
20representative of the dealer, shall not:
21        (1) make any false entry in the records of transactions
22    involving a used wireless communications device;
23        (2) falsify, obliterate, destroy, or remove from the
24    place of business the records, books, or accounts relating
25    to used wireless communications device transactions;

 

 

SB1300- 6 -LRB099 10231 AMC 30457 b

1        (3) refuse to allow the appropriate law enforcement
2    agency to inspect records or any used wireless
3    communications device in the dealer's possession during
4    the ordinary hours of business or other times acceptable to
5    both parties;
6        (4) fail to maintain a record of each used wireless
7    communications device transaction for 3 years; or
8        (5) purchase a used wireless communications device
9    from a person under the age of 18 years.
 
10    Section 25. Payment for used wireless communications
11devices. A wireless communications device dealer shall pay for
12purchases of all used wireless communications devices by check
13mailed to a specific address or by electronic transfer.
 
14    Section 30. Investigative holds; confiscation of property.
15    (a) Whenever a law enforcement official from any agency has
16probable cause to believe that a wireless communications device
17in the possession of a wireless communications device dealer is
18stolen or is evidence of a crime and notifies the dealer not to
19sell the item, the dealer shall not process or sell the item or
20remove or allow its removal from the premises. This
21investigative hold must be confirmed in writing by the
22originating agency within 72 hours and remain in effect for 30
23days from the date of initial notification until the
24investigative hold is canceled or renewed or until a law

 

 

SB1300- 7 -LRB099 10231 AMC 30457 b

1enforcement notification to confiscate or directive to release
2is issued, whichever comes first.
3    (b) If a wireless communications device is identified as
4stolen or as evidence in a criminal case, a law enforcement
5official may:
6        (1) physically confiscate and remove the wireless
7    communications device from the wireless communications
8    device dealer pursuant to a written notification;
9        (2) place the wireless communications device on hold or
10    extend the hold under subsection (a) and leave the device
11    at the premises; or
12        (3) direct its release to a registered owner or owner's
13    agent.
14    (c) When an item is confiscated, the law enforcement agency
15doing so shall provide identification upon request of the
16wireless communications device dealer, and shall provide the
17name and telephone number of the confiscating agency and
18investigator and the case number related to the confiscation.
19    (d) When an investigative hold or notification to
20confiscate is no longer necessary, the law enforcement official
21or designee shall notify the wireless communications device
22dealer.
23    (e) A wireless communications device dealer may sell or
24otherwise dispose of the wireless communications device if: (1)
25a notification to confiscate is not issued during the
26investigative hold; or (2) a law enforcement official does not

 

 

SB1300- 8 -LRB099 10231 AMC 30457 b

1physically remove the wireless communications device from the
2premises within 15 calendar days from issuance of a
3notification to confiscate.
4    (f) If a wireless communications device dealer is required
5to hold the wireless communications device at the direction of
6law enforcement for purposes of investigation or prosecution,
7or if the device is seized by law enforcement, the wireless
8communications device dealer and any other victim is entitled
9to seek restitution, including any out-of-pocket expenses for
10storage and lost profit, in any criminal case that may arise
11from the investigation against the individual who sold the
12wireless communications device to the wireless communications
13device dealer.
 
14    Section 35. Video security cameras required.
15    (a) Each wireless communications device dealer shall
16install and maintain at each physical location video
17surveillance cameras, still digital cameras, or similar
18devices positioned to record or photograph a frontal view
19showing a readily identifiable image of the face of each seller
20of a wireless communications device who enters the physical
21location.
22    (b) The video camera or still digital camera must be kept
23in operating condition and must be shown upon request to a
24properly identified law enforcement officer for inspection.
25The camera must record and display the accurate date and time.

 

 

SB1300- 9 -LRB099 10231 AMC 30457 b

1The video camera or still digital camera must be turned on at
2all times when the physical location is open for business and
3at any other time when wireless communications devices are
4purchased or sold.
5    (c) Recordings and images required by subsection (a) shall
6be retained by the wireless communications device dealer for a
7minimum period of 30 days and shall at all reasonable times be
8open to the inspection of any properly identified law
9enforcement officer.
 
10    Section 40. Criminal penalty. A wireless communications
11device dealer, or the agent, employee, or representative of the
12wireless communications device dealer, who intentionally
13violates a provision of this Act is guilty of a Class B
14misdemeanor.
 
15    Section 45. Application of Act.
16    (a) This Act does not apply with respect to a wireless
17communications device returned to the store where it was
18originally purchased pursuant to the return policies of the
19wireless communications device dealer, wireless telephone
20service provider, manufacturer, or retailer.
21    (b) This Act does not apply with respect to wireless
22communications devices acquired by a:
23        (1) wireless telephone provider as part of a trade-in
24    or a repair and refurbishment program; or

 

 

SB1300- 10 -LRB099 10231 AMC 30457 b

1        (2) manufacturer as part of a trade-in program.
2    (c) This Act does not apply to wireless communications
3device dealers regulated under the Pawnbroker Regulation Act.