St. Paul, Minnesota — Today, the Minnesota House of Representatives passed legislation chief authored by state Representative Joe Atkins (DFL – Inver Grove Heights) requiring all new smartphones and cell-connected tablet computers sold in Minnesota after July 1, 2015 to have an anti-theft “kill switch” function. If signed into law, Minnesota would be the first state in the country with a kill switch law.
Smartphone theft is a growing problem, as the devices have significant value when sold on the black market, especially overseas. The desirability and resale value of smartphones makes them a prime target for thefts and robberies. To illustrate how big this problem has become, campus police testified in committee that up to 62% of thefts/robberies on the U of M campus are cell-phone related.
The kill switch function would allow the owner to remotely disable their device if it’s lost or stolen. Manufacturers and carriers cannot charge additional fees to customers for including or giving access to the technology.
"Smartphone theft is one of the fastest growing crimes in Minnesota and across the country, and these crimes are becoming increasingly violent," Atkins said. "We cannot continue to ignore the availability of existing technology to stop cellphone thieves in their tracks. We’re acting on this growing and violent threat to Minnesotans.”
Another section of the bill takes on the local re-sale market. While the most common destination for stolen phones overall is China, most local thieves lack knowledge of international logistics. Instead, phones stolen locally are sold to buyers, some legitimate, some not.
The bill criminalizes engaging in the business of buying or selling used cell phones without complying with the recordkeeping requirements established by the bill. All purchases from individual cell phone owners must be documented with make and model of device, date, time, place, name and address of the seller, record of the buyer’s check or electronic transfer (the only methods of payment allowed), seller’s driver’s license number or similar ID document, and a statement signed by the seller attesting that the device isn’t stolen. Records must be kept for 3 years, and dealers must safeguard sellers’ personal information. Used cell phone dealers are also barred from buying a phone from anyone under 18.
Other provisions in the bill apply pawn shop requirements to used cell phone sellers. Dealers must comply with investigative holds requested by law enforcement, and maintain video camera surveillance of their stores. The law does not apply to devices being returned to the store where they were purchased, or trade-in programs at a cell carrier’s store. Also, the bill’s requirements don’t apply to dealers who already participate in either the Minnesota Automated Property System or another regional/national transaction reporting database available to law enforcement.
Nearly 1 in 3 U.S. robberies involve phone theft, according to the Federal Communications Commission. Lost and stolen mobile devices — mostly smartphones — cost consumers more than $30 billion last year. Samsung Electronics, the world's largest mobile phone manufacturer, proposed installing a kill switch in its devices last year, but the idea was rejected by the nation's biggest carriers, reportedly because it would cut into the carriers’ lucrative business of insuring lost or stolen cell phones.
Last month, the Cellular Telecommunications Industry Association (CTIA) announced an agreement among all of the nation’s largest providers to provide a “kill switch."
The bill passed the Senate 44-14 on May 2. Because the bill was amended on the House floor, the bill will head back to the Senate for concurrence or a conference committee.