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You can have legitimate use cases where it's a core functionality of the application to store it, so the user obviously knows it's being collected and agrees by using it.

Storage accessible only to the user is usually not what we mean when we say data collection.

If data is collected and stored on a server, that is what we mean when we say data collection.

So you want to ban all mapping apps and all fitness apps?

Nothing external needs my precise location to navigate with a map. An approximate location is sufficient to deliver to my device a map of an area I'm in, and of the overall route, and all of the details that are useful for navigation.

Fitness apps can be local. We have pocket supercomputers; certainly, we don't need help from the clown to keep track of how far (or how energetically) we biked or walked today, or where that took place.

I would expect such a law to be lobbied to death.