PREFILED JAN 05 2026
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REFERENCE TITLE: electronic equipment; modifications |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HB 2121 |
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Introduced by Representative Kupper
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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
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.
Sec. 2. Section 44-1531.01, Arizona Revised Statutes, is amended to read:
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.
Sec. 3. Short title
This act may be cited as the "True Ownership Act".