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

1. 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)

2. Asserts additional exemptions to this act such as;

a. requiring the original manufacturer to divulge a trade secret;

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

c. using an online connection to affect the original manufacturer;

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

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

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

3. 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)

4. 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)

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

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

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

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

9. 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

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

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5. Initials TM HB 2121

6. 1/28/2026 Page 0 Caucus & COW

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