Cell Phone Theft Prevention Act of 2016

Summary: Cell Phone Theft Prevention Act of 2016  This bill amends the Communications Act of 1934 to prohibit commercial mobile or data service providers from providing service on smart phones that: (1) have been reported to such provider as stolen by an authorized user, or (2) are listed as stolen on the Central Equipment Identity Register (CEIR). When a smart phone is reported stolen to a service provider, the provider must notify the CEIR with information necessary to identify the phone.  Smart phones must be equipped with: (1) preloaded antitheft functionality at no additional cost to purchasers, or be capable of downloading such functionality at no cost; and (2) a mobile device identification number.  A criminal penalty is established for anyone who violates prohibitions against: (1) removing, obliterating, tampering with, or altering a smart phone's mobile device identification number; (2) using, producing, trafficking in, having control or custody of, or possessing hardware or software, knowing it has been configured to engage in such identification number removal or alteration violations; or (3) selling a smart phone for which the identification number is listed as stolen on the CEIR.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cell Phone Theft Prevention Act of 
2016''.

SEC. 2. SMART PHONE THEFT PREVENTION.

    (a) In General.--Part I of title III of the Communications Act of 
1934 (47 U.S.C. 301 et seq.) is amended by adding at the end the 
following:

``SEC. 343. SMART PHONE THEFT PREVENTION.

    ``(a) Provision of Service on Stolen Smart Phone.--
            ``(1) Prohibition.--A provider of commercial mobile service 
        or commercial mobile data service may not knowingly provide 
        service on a smart phone that--
                    ``(A) has been reported to such provider as stolen 
                by an authorized user of such phone; or
                    ``(B) is listed as stolen on the Central Equipment 
                Identity Register.
            ``(2) Reporting by service providers.--A provider of 
        commercial mobile service or commercial mobile data service to 
        which a smart phone is reported stolen by an authorized user of 
        such phone as described in paragraph (1)(A) shall transmit to 
        the Central Equipment Identity Register a notification that 
        such phone has been reported stolen. Such notification shall 
        include such information as is required for the identification 
        of such phone.
    ``(b) Anti-Theft Functionality; Mobile Device Identification 
Numbers.--A person may not manufacture for retail sale in the United 
States, or import into the United States for retail sale in the United 
States, a smart phone unless such phone is--
            ``(1) equipped with pre-loaded anti-theft functionality at 
        no additional cost to purchasers of such phone, or capable of 
        downloading anti-theft functionality that is available at no 
        additional cost to purchasers of such phone; and
            ``(2) equipped with a mobile device identification number.
    ``(c) Alteration or Removal of Mobile Device Identification Number; 
Prohibition of Sale of Stolen Smart Phones.--
            ``(1) Prohibition.--It shall be unlawful to--
                    ``(A) knowingly remove, obliterate, tamper with, or 
                alter the mobile device identification number of a 
                smart phone;
                    ``(B) knowingly use, produce, traffic in, have 
                control or custody of, or possess hardware or software, 
                knowing it has been configured to engage in the conduct 
                described in subparagraph (A); or
                    ``(C) knowingly sell a smart phone for which the 
                mobile device identification number is listed as stolen 
                on the Central Equipment Identity Register.
            ``(2) Penalty.--Any person who violates paragraph (1) shall 
        be fined under title 18, United States Code, imprisoned not 
        more than 5 years, or both.
    ``(d) Rules of Construction.--
            ``(1) Additional technologies or services.--Nothing in this 
        section prohibits a provider of commercial mobile service or 
        commercial mobile data service, device manufacturer, or 
        operating system provider from offering a technology or service 
        in addition to the anti-theft functionality required by 
        subsection (b)(1).
            ``(2) Emergency communications.--Nothing in this section 
        requires the use of a technology that is incompatible with, or 
        renders it impossible to comply with, Federal or State law with 
        regard to--
                    ``(A) the provision of emergency services through 
                the 9-1-1 system, including text-to-9-1-1, bounce-back 
                messages, and location accuracy requirements;
                    ``(B) participation in the Wireless Emergency 
                Alerts system; or
                    ``(C) participation in other Federal, State, or 
                local emergency alert and public safety warning 
                systems.
            ``(3) No private right of action.--Nothing in this section 
        shall be construed to authorize any private right of action to 
        enforce any requirement of this section or any regulation 
        promulgated under this section.
    ``(e) Definitions.--In this section:
            ``(1) Anti-theft functionality.--The term `anti-theft 
        functionality' means, with respect to a smart phone, a 
        functionality provided by the manufacturer or operating system 
        provider that--
                    ``(A) once downloaded to the phone and initiated--
                            ``(i) has the capability, from a remote 
                        location--
                                    ``(I) to render the essential 
                                features of the phone inoperable to a 
                                person who is not an authorized user; 
                                and
                                    ``(II) to delete from the phone the 
                                personal information of the authorized 
                                users, except for any information 
                                necessary to permit the capability 
                                described in subclause (I) to be 
                                reversed as required by clause (ii); 
                                and
                            ``(ii) permits the capability described in 
                        clause (i)(I) to be reversed if an authorized 
                        user of the phone obtains possession of the 
                        phone after the essential features of the phone 
                        have been rendered inoperable by such 
                        capability; and
                    ``(B) may be designed so as to allow an authorized 
                user to opt out of implementing the capability 
                described in subparagraph (A)(i).
            ``(2) Authorized user.--The term `authorized user' means, 
        with respect to a smart phone--
                    ``(A) the person who holds the commercial mobile 
                service or commercial mobile data service account for 
                the phone;
                    ``(B) if the phone is a phone for which particular 
                amounts of service are purchased in advance, the person 
                who owns the phone; or
                    ``(C) any person who has been authorized by a 
                person described in subparagraph (A) or (B) to use the 
                phone.
            ``(3) Central equipment identity register.--The term 
        `Central Equipment Identity Register' means the list of mobile 
        device identification numbers that are associated with mobile 
        devices that have been reported as lost, stolen, faulty, or 
        otherwise unsuitable for use, and that is a part of the 
        International Mobile Equipment Identity Database maintained by 
        the GSM Association, or any equivalent or successor registry or 
        database.
            ``(4) Commercial mobile data service.--The term `commercial 
        mobile data service' has the meaning given such term in section 
        6001 of the Middle Class Tax Relief and Job Creation Act of 
        2012 (47 U.S.C. 1401).
            ``(5) Commercial mobile service.--The term `commercial 
        mobile service' has the meaning given such term in section 332.
            ``(6) Essential features.--The term `essential features' 
        means, with respect to a smart phone, features that provide the 
        capability for a user to use the phone for voice 
        communications, text messaging, Internet browsing, and 
        accessing and using software applications. Such term does not 
        include the features that provide the capability to operate the 
        anti-theft functionality or to use the phone for emergency 
        communications.
            ``(7) Mobile device identification number.--The term 
        `mobile device identification number' means an international 
        mobile equipment identity number, a mobile equipment 
        identifier, an electronic serial number, or any other number or 
        signal that identifies a specific mobile device and has the 
        same function and purposes as an international mobile equipment 
        identity number or a mobile equipment identifier.
            ``(8) Smart phone.--
                    ``(A) In general.--The term `smart phone' means a 
                hand-held mobile device that--
                            ``(i) possesses advanced computing 
                        capability;
                            ``(ii) is designed to enable the user to 
                        engage in voice communications using commercial 
                        mobile service;
                            ``(iii) is capable of operating on a long-
                        term evolution network or successor wireless 
                        data network communication standards; and
                            ``(iv) may possess capabilities that 
                        include built-in applications, Internet access, 
                        Internet browsing, digital voice service, text 
                        messaging, and e-mail.
                    ``(B) Exclusions.--Such term does not include a 
                phone that offers only a limited capability or set of 
                capabilities (such as placing voice calls and sending 
                text messages), a laptop computer, a tablet device, or 
                a device that has only electronic reading 
                capability.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), 
        section 343 of the Communications Act of 1934, as added by 
        subsection (a) of this section, shall apply beginning on the 
        date that is 2 years after the date of the enactment of this 
        Act.
            (2) Anti-theft functionality; mobile device identification 
        numbers.--Subsection (b) of such section 343 shall apply with 
        respect to a smart phone that is manufactured on or after the 
        date that is 2 years after the date of the enactment of this 
        Act.