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HB2121 - 572R - I Ver
PREFILED��� JAN 05 2026
REFERENCE TITLE:
electronic equipment; modifications
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 2121
Introduced by
Representative
Kupper
AN
ACT
amending title 44, chapter 9, arizona
revised statutes, by adding article 27; amending section 44-1531.01, Arizona
Revised Statutes; relating to electronic equipment.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 44, chapter 9, Arizona Revised
Statutes, is amended by adding article 27, to read:
ARTICLE 27. ELECTRONIC
EQUIPMENT MODIFICATIONS
START_STATUTE
44-1383.
Electronic equipment; original equipment manufacturers; owners;
modifications; violations; civil penalty; attorney general; exceptions;
definitions
A.
An
original EQUIPMENT manufacturer may not disable electronic EQUIPMENT sold or
used in this state, in whole or in part, solely because an owner has made a
modification to the electronic EQUIPMENT that includes remote updates, firmware
changes or other technical measures.
B. This section does not:
1. Require an original equipment
manufacturer to divulge a trade secret.
2. Prohibit an original EQUIPMENT
manufacturer from disabling anti-theft security measures without the
owner's authorization.
3. Affect the original equipment
manufacturer through an online connection.
4. Extend beyond the specific
physical hardware or software of the electronic equipment.
5. Extend to an owner that is selling
the electronic equipment.
6. Apply if the modification violates
federal law.
C. An owner may bring a civil action
in superior court:
1. To recover actual damages in the
amount of not more than $1,000 per violation and reasonable attorney fees and
costs.� If the violation is knowing or wilful, the court may award up to three
times the actual damages amount.�
2. To seek an injunction.
D. The attorney general may bring an
action in superior court to enforce this section only if an aggrieved owner
does not seek to file a private right of action.
E. The attorney general or a county
attorney may intervene in any civil action brought pursuant to subsection C of
this section.� A person who violates this section may be subject to a civil
penalty of not more than:
1. $200 for a first violation.
2. $400 for a second violation.
3. $600 for a third or subsequent
violation.
F. civil Penalties collected PURSUANT
to subsection e of this section shall be deposited, pursuant to sections 35-146
and 35-147, in the consumer protection-consumer fraud revolving fund
established by section 44-1531.01.
G. An action brought for a violation
pursuant to this section must commence within three years after the violation
is discovered or reasonably should have been discovered.
H. This section does not apply to any
of the following:
1. Motor vehicles or motor vehicle
parts.
2. Medical devices as defined in 21
united states code section 1602(7).
3. Products that are not available
for retail sale to consumers.
I. For the purposes of this section:
1. "Electronic equipment":
(
a
) Means a
product that is all of the following:
(
i
) Functions,
in whole or in part, on the basis of digital electronics that are embedded
within or attached to that product.
(
ii
) Is
tangible personal property.
(
iii
) Is sold,
used or supplied in this state one year or more after the product was first
sold, used or supplied in this state.
(
b
) Includes
any of the following:
(
i
) a Computing
device.
(
ii
) a Video
game console.
(
iii
) a
Smartphone.
(
iv
) a Tablet
or other similar product.
2. "modification":
(
a
) Means
altering, customizing or enhancing the hardware, software, firmware or
functionality of electronic EQUIPMENT by an owner.
(
b
) Includes
installing custom software, replacing components or bypassing manufacturer
restrictions.
3. "Original EQUIPMENT
manufacturer" means a person that engages in the business of selling,
leasing or supplying electronic EQUIPMENT that is manufactured by or on behalf
of that person.
4. "owner" means a person
that purchases or leases electronic EQUIPMENT from an original EQUIPMENT
manufacturer.
5. "Trade secret" has the
same meaning prescribed in section 44-401.
END_STATUTE
Sec. 2. Section 44-1531.01, Arizona Revised
Statutes, is amended to read:
START_STATUTE
44-1531.01.
Consumer protection-consumer fraud revolving fund; use of fund
A. The consumer protection-consumer fraud revolving
fund is established to be administered by the attorney general under the
conditions and for the purposes provided by this section. Monies in
the fund are subject to legislative appropriation. Monies in the
fund are exempt from the provisions of section 35-190, relating to
lapsing of appropriations.
B. The fund consists
of the following:
1. Any investigative
or court costs, attorney fees or civil penalties recovered for the state by the
attorney general as a result of enforcement of either state or federal statutes
pertaining to consumer protection or consumer fraud, whether by final judgment,
settlement or otherwise, except that the costs, penalties or fees recovered by
a county attorney shall be retained in the county and used for investigative
operations for consumer protection in the county.
2. Monies deposited pursuant to section 41-5603.
3. Civil penalties deposited pursuant
to section 44-1383.
C. The attorney general shall use the monies in the
fund for operating expenses, including any cost or expense associated with the
tobacco master settlement agreement arbitration, consumer fraud education and
investigative and enforcement operations of the consumer protection division.
D. Notwithstanding subsection C of this section, the
attorney general may use up to $335,000 annually from the fund to continue the
operation of the federally recognized internet crimes against children task
force program. This program shall coordinate a national network of
task forces that
assist
assists
federal,
state, local and tribal law enforcement agencies in investigations, forensic
examinations and prosecutions related to the technology-facilitated
sexual exploitation of children and internet crimes against children.
E. On or before January 15, April 15, July 15 and
October 15, the attorney general shall file with the governor, with copies to
the director of the department of administration, the president of the senate,
the speaker of the house of representatives, the secretary of state and the
staff director of the joint legislative budget committee, a full and complete
account of the receipts and disbursements from the fund in the previous
calendar quarter.
F. On or before January 15, April 15, July 15 and
October 15, each county attorney who retains monies pursuant to subsection B of
this section shall provide the county board of supervisors with a full and
complete account of the receipts and disbursements of the monies in the
previous calendar quarter.
END_STATUTE
Sec. 3.
Short title
This act may be cited as the
"True Ownership Act".