According to the bill, all smartphones manufactured after July 1, 2015 to be sold in California come equipped with the means to "render the essential features of the smartphone inoperable when not in the possession of the authorised user".
If this happens, all smartphones sold in California would prompt the user to enable the wiping feature upon initial setup, media reports said.
If the smartphone is stolen, "kill-switch" will prevent the phone from being re-activated on any network without the owner's approval.
The legislation also says that smartphone makers will reactivate the phone once back with the owner.
It also envisages a civil penalty of $500-$2,500 be levied per smartphone if someone is found to be selling stolen phones.