HB2121 • 2026

electronic equipment; modifications

HB2121 - electronic equipment; modifications

Education

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Nick Kupper
Last action: 2026-02-09
Official status: House committee of the whole
Effective date: Not listed

Plain English Breakdown

The official text defines electronic equipment broadly but lists specific examples; it is unclear if all digital electronics fall under this without meeting the three-part test in Section I.

The True Ownership Act: Rules for Changing Electronic Devices

This law stops manufacturers from disabling electronic devices just because an owner changed how they work, while listing specific situations where the rule does not apply.

What This Bill Does

Prohibits original equipment manufacturers from disabling electronic equipment sold or used in Arizona solely because an owner made a modification like remote updates or firmware changes.
Allows owners to sue in superior court for up to $1,000 per violation plus legal fees if their device is disabled unfairly; courts may award triple damages if the violation was knowing or willful.
Lets the Attorney General file lawsuits against companies that break this rule only if no individual owner files a lawsuit first.
Requires any civil penalties collected from violations to go into the Consumer Protection-Consumer Fraud Revolving Fund used for consumer protection work.
Sets specific limits on what counts as electronic equipment and who can bring legal action.

Who It Names or Affects

Original manufacturers of smartphones, tablets, computers, video game consoles, and other digital electronics sold or used in Arizona.
Owners or lessees of these devices who want to modify their hardware or software.
The Attorney General's office responsible for enforcing consumer protection laws.

Terms To Know

Original Equipment Manufacturer: A company that sells, leases, or supplies electronic equipment manufactured by or on behalf of that person.
Modification: Altering, customizing, or enhancing the hardware, software, firmware, or functionality of a device by an owner, including installing custom software or bypassing restrictions.
Consumer Protection-Consumer Fraud Revolving Fund: A state account administered by the Attorney General that holds money from fines and penalties to pay for consumer fraud education and investigative operations.

Limits and Unknowns

The law does not apply to motor vehicles, vehicle parts, specific medical devices, or products not available for retail sale to consumers.
Manufacturers do not have to share secret business information (trade secrets) even if an owner wants them for a repair.
Companies can still disable anti-theft security measures without the owner's permission.
The law does not apply if the modification violates federal law or affects the manufacturer through an online connection.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HOUSE - Science & Technology (Adopted)

Adopted

Plain English: Adopted 1

The official amendment file could not be read automatically during the last sync, so only the official amendment metadata is shown right now.

HOUSE - Science & Technology (Proposed)

Proposed

Plain English: This amendment creates a new law that stops electronics manufacturers from disabling devices just because an owner modified them, while allowing owners to sue for damages if this happens.

Manufacturers are banned from turning off or limiting electronic equipment sold in Arizona simply because the owner made changes like installing custom software or updating firmware.
Owners can file a lawsuit in court to get up to $1,000 per violation plus legal fees if a manufacturer breaks this rule, with higher penalties for intentional violations.
The Attorney General and county attorneys are allowed to step into these lawsuits and collect civil fines of up to $600 depending on how many times the law was broken.
Money collected from these fines must be put into a special state fund used for consumer protection work.

This rule does not apply if the modification breaks federal laws or requires the manufacturer to reveal trade secrets.
The law specifically excludes cars, medical devices, and products that are only sold to businesses rather than regular consumers.
Manufacturers can still disable anti-theft security features without permission from the owner.

Bill History

2026-02-09 House
House committee of the whole
2026-02-03 House
House minority caucus
2026-02-03 House
House majority caucus
2026-01-13 House
House second read
2026-01-12 House
House Rules: C&P
2026-01-12 House
House Science & Technology: DPA
2026-01-12 House
House first read

Official Summary Text

HB2121 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House:
ST DPA 7-1-1-0

HB2121
:
electronic equipment; modifications

Sponsor:
Representative Kupper, LD 25

Caucus
& COW

Overview

Prohibits
an original electronic equipment manufacture from disabling electronic
equipment due to modification made by an owner.

History

Consumer electronic devices and products contain software
that after the product is bought by a consumer, the consumer acquires ownership
of the physical hardware and receives a limited license to use the software. Some
products may contain a
digital rights management
technology that prevent
consumers from altering the installed software or control the types of
accessories that may be used with them (
Congressional
Research Service Report
).

The Consumer Protection-Consumer Fraud revolving fund (Fund)
is administered by the Attorney General. The monies in the Fund are subject to
legislative appropriation and are exempt from lapsing. The Fund consists of any
investigative or court costs, attorney fees or civil penalties recovered for
the state by the Attorney General as a result of law enforcement actions by
either state or federal statutes. The monies in the Fund are to be used for operating
expenses, including any costs associated with the tobacco master settlement agreement
arbitration, consumer fraud education and investigative and enforcement operations
of the consumer protection division (
A.R.S. � 44-1531.01
).

Provisions

Prohibits an
original equipment manufacturer from disabling electronic equipment sold or
used only based on an owner making a modification including remote updates,
firmware changes or other technical measures. (Sec.1)

Asserts additional
exemptions to this act such as;

requiring
the original manufacturer to divulge a trade secret;

prohibiting
an original equipment manufacturer from disabling anti-theft measures;

using an
online connection to affect the original manufacturer;

include
anything outside of the specific hardware or software of the electronic
equipment;

extend to an
owner who is selling the electronic equipment; and

if a
modification violates federal law. (Sec.1)

Authorizes
an owner to bring civil action in superior court to recover actual damages of
not more than $1,000 per violation, reasonable attorney fees and costs or seek
an injunction. (Sec.1)

Allows the
Attorney General to bring the action to superior court if the aggrieved owner
does not seek to file a private right of action. (Sec.1)

States the
Attorney General or a county attorney may intervene in a civil action and
outlines civil penalties for violations. (Sec.1)

Directs any
civil penalties collected to be deposited in the Fund. (Sec. 1, 2)

Asserts that
any action for a violation must be commenced within three years after the
violation is discovered. (Sec.1)

Omits motor
vehicles or vehicle parts, products that are not for retail sale to consumers
and specific medical devices from civil actions. (Sec.1)�

Defines key
terms. (Sec.1)

10.

Makes
technical changes. (Sec. 2)

11.

Cites this
legislation as the
True Ownership Act
. (Sec. 3)

Amendments

Committee on
Science & Technology

Includes an exemption for
equipment that is primarily intended for
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business to business, agricultural or off-road use, including equipment that is
sold through retail channels.

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FOOTER ---------

Initials TM���������������������� HB
2121

1/28/2026� Page 0 Caucus
& COW

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FOOTER ---------

Current Bill Text

Read the full stored bill text

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".