HB2398 - 572R

Be it enacted by the Legislature of the State of Arizona:

Section 1.1. Section 5-301, Arizona Revised Statutes, is amended to read:

START_STATUTE5-301. Definitions

In this chapter, unless the context otherwise requires:

1. "Boat livery" means a business that rents, leases or charters a motorized watercraft, a personal watercraft or any other watercraft to the general public for noncommercial, recreational use.

1. 2. "Commercial motorized watercraft" means a motorized watercraft that carries passengers or property for a valuable consideration that is paid to the owner, charterer, operator or agent or to any other person interested in the watercraft.

2. 3. "Commission" means the Arizona game and fish commission.

3. 4. "Department" means the Arizona game and fish department.

4. 5. "Documented watercraft" means any watercraft currently registered as a watercraft of the United States pursuant to 46 Code of Federal Regulations part 67.

5. 6. "Domicile" means a person's true, fixed and permanent home and principal residence, proof of which may be demonstrated as prescribed by rules adopted by the commission.

6. 7. "Launch" means any motorized watercraft that carries a coach and that is used to follow and monitor rowing shells during practice, training or competitive rowing events.

7. 8. "Motorboat" means any watercraft that is not more than sixty-five feet in length and that is propelled by machinery whether or not such machinery is the principal source of propulsion.

8. 9. "Motorized watercraft" means any watercraft that is propelled by machinery whether or not the machinery is the principal source of propulsion.

9. 10. "Nonresident" means a citizen of the United States or an alien person who is not domiciled in this state and who is not a resident as defined in this section.

10. 11. "Operate" means to operate or be in actual physical control of a watercraft while on public waters.

11. 12. "Operator" means a person who operates or is in actual physical control of a watercraft.

12. 13. "Person" includes any individual, firm, corporation, partnership or association, and any agent, assignee, trustee, executor, receiver or representative thereof.

14. "Personal watercraft" means a watercraft that is all of the following:

(a) Less than sixteen feet long.

(b) Propelled by machinery powering a water-jet pump.

(c) Designed to be operated by a person who sits, stands or kneels on the watercraft rather than sitting or standing inside the watercraft.

13. 15. "Public waters" means any body of water that is publicly owned or that the public is allowed to use without permission of the owner and on which a motorized watercraft can be navigated, including that part of waters that is common to interstate boundaries and that is within the boundaries of this state.

14. 16. "Resident" means a person who is either:

(a) A member of the armed forces of the United States on active duty and stationed in this state for a period of thirty days immediately before the date of application for a watercraft decal.

(b) A member of the armed forces of the United States on active duty and stationed in another state or another country and who lists this state as that member's home of record at the time of an application for a watercraft decal.

(c) Domiciled in this state for at least six consecutive months immediately before the date of the application for a watercraft decal and who does not claim residency for any purpose in any other state or country.

15. 17. "Revocation" means invalidating the certificate of number, numbers and annual validation decals issued by the department to a watercraft and prohibiting the operation of the watercraft on the waters of this state during a period of noncompliance with this chapter.

16. 18. "Rowing shell" means a manually propelled watercraft that is recognized by a national racing association for use in practice, training or competitive rowing.

17. 19. "Sailboard" means any board of less than fifteen feet in length that is designed to be propelled by wind action on a sail for navigation on the water by a person operating the board.

18. 20. "Special anchorage area" means an area set aside and under the control of a federal, state or local governmental agency, or by a duly authorized marina operator or concessionaire for the mooring, anchoring or docking of watercraft.

19. 21. "State of principal operation" means the state where a watercraft is primarily used, navigated or employed.

20. 22. "Underway" means a watercraft that is not at anchor, is not made fast to the shore or is not aground.

21. 23. "Undocumented watercraft" means any watercraft that does not have and is not required to have a valid marine document as a watercraft of the United States.

22. 24. "Wakeless speed" means a speed that does not cause the watercraft to create a wake, but in no case in excess of five miles per hour.

23. 25. "Watercraft" means any boat designed to be propelled by machinery, oars, paddles or wind action on a sail for navigation on the water, or as may be defined by rule of the commission.

24. 26. "Waterway" means any body of water, public or private, on which a watercraft can be navigated.END_STATUTE

Sec. 2.2. Title 5, chapter 3, article 5, Arizona Revised Statutes, is amended by adding sections 5-342 and 5-342.01, to read:

START_STATUTE5-342. Watercraft; insurance responsibility requirements; required limits; violation; classification; applicability; definition

A. Notwithstanding any other law, an owner of a watercraft who provides a watercraft for rent or charter in this state shall maintain a commercial boat liability policy or a personal lines boat policy with a specified commercial or charter boat liability coverage endorsement.

B. An owner's commercial boat liability policy or personal lines boat policy with a specified commercial or charter boat liability coverage endorsement shall provide primary boat liability insurance coverage as follows:

1. $25,000 because of bodily injury to or death of one person in any one accident.

2. Subject to the limit for one person, $50,oo0 because of bodily injury to or death of two or more persons in any one accident.

3. $20,000 because of injury to or destruction of property of others in any one accident.

C. The owner of a watercraft who provides a watercraft for rent or charter in this state shall maintain at all times the amounts prescribed in subsection B of this section for injuries to persons and for loss or damage to property by reason of the rental or operation of the watercraft that is provided by the owner of the watercraft for rent or charter.

D. The commission may require an owner of a watercraft who is subject to the insurance responsibility requirements of this section to certify the existence of insurance responsibility in the form and at the time the commission deems necessary. The commission may forward the certification to the named insurer to determine if the certification is correct. Civil liability does not accrue to the insurer or any of its employees for reports made to the commission if the reports are made in good faith based on the most recent INFORMATION available to the insurer.

E. An owner of a watercraft who rents or charters a watercraft in this state without meeting the insurance responsibility requirements of this section is guilty of:

1. A class 3 misdemeanor.

2. A class 1 misdemeanor if the watercraft is involved in an accident in this state.

F. This section does not apply to the owner of a watercraft who provides a watercraft for rent or charter in this state fewer than four times in a calendar year.

g. For the purposes of this section, "Watercraft for rent":

1. Means the transfer of possession and use of a watercraft to a person other than the watercraft's owner for a defined period of time in exchange for a fee and the owner of the watercraft is not present on the watercraft during the defined period of time.

2. Does not include a Watercraft that is available for rent through a peer-to-peer watercraft sharing program pursuant to article 8.1 of this chapter. END_STATUTE

START_STATUTE5-342.01. Commercial boat liability insurance; no mandatory offer; definition

A. Notwithstanding any other law, an insurer that is authorized to transact insurance in this state is not required to offer, issue, renew or provide a commercial boat liability policy.

B. this section does not prohibit an insurer from voluntarily offering or providing a commercial boat liability policy pursuant to the insurer's underwriting standards and risk selection.

C. For the purposes of this section, "commercial boat liability policy" means liability insurance coverage that is described in section 20-255 and that is issued in connection with a watercraft that is used primarily for commercial, for-hire, rental, charter or business purposes. END_STATUTE

Sec. 3.3. Section 5-350, Arizona Revised Statutes, is amended to read:

START_STATUTE5-350. Personal watercraft; requirements for operation; applicability

A. A person shall not operate a personal watercraft unless each person aboard is wearing a wearable personal flotation device that is approved by the United States coast guard.

B. A person who operates a personal watercraft that is equipped by the manufacturer with a lanyard type engine cutoff switch shall attach the lanyard to his body, clothing or personal flotation device as appropriate for the specific watercraft.

C. A person shall not operate or knowingly allow another person to operate a personal watercraft under his the person's ownership or control in a reckless or negligent manner endangering the life or property of another person. Prima facie evidence of reckless operation exists if the person commits two or more of the following acts simultaneously:

1. Operates the personal watercraft within a zone of proximity to another watercraft closer than sixty feet unless both are leaving a flat wake or are traveling at a speed of five nautical miles per hour or less.

2. Operates the personal watercraft within the vicinity of a motorboat in a manner that obstructs the visibility of either operator.

3. Heads into the wake of a motorboat that is within a zone of proximity closer than sixty feet and causes one-half or more of the length of the personal watercraft to leave the water.

4. Within a zone of proximity to another watercraft closer than sixty feet, maneuvers quickly, turns sharply or swerves, unless the maneuver is necessary to avoid a collision.

D. If equipped by the manufacturer, a person shall not operate a personal watercraft without a functioning spring-loaded throttle mechanism that immediately returns the engine to an idle speed on release of the operator's hand from the control or without any other engine cutoff feature that is installed by the manufacturer.

E. A personal watercraft shall not be loaded and operated with passengers or cargo beyond its safe carrying capacity or the manufacturer's recommended limits.

F. A person who owns, leases or hires a personal watercraft or who has charge or control over a personal watercraft shall not authorize or knowingly permit allow the personal watercraft to be operated in violation of this section.

G. This section does not apply to a performer who engages in a professional exhibition or to a person who participates in an officially sanctioned regatta, race, marine parade, tournament or exhibition.

H. For purposes of this section, "personal watercraft" means a watercraft that is less than sixteen feet long, propelled by machinery powering a water jet pump and designed to be operated by a person who sits, stands or kneels on rather than sitting or standing inside the watercraft.END_STATUTE

Sec. 4.4. Section 5-371, Arizona Revised Statutes, is amended to read:

START_STATUTE5-371. Boat liveries; requirements; insurance requirements; required limits; violation; classification

A. The owner of a boat livery shall keep or cause to be kept a record of the name and address of the person or persons hiring any watercraft which that is designed or permitted allowed by him the owner to be operated as a watercraft, the identification number thereof of the watercraft, the departure date and time and the expected and actual time of return. Such record shall be preserved for at least three months.

B. Neither the owner of a boat livery nor his the owner's agent or employee shall permit allow any watercraft to be operated from his the owner's premises unless it shall have been provided, either by the owner or renter, with the equipment required by this chapter.

C. The certificate of number for a watercraft less than twenty-six feet in length that is leased or rented to a person for noncommercial use of less than twenty-four hours may be retained on shore by the owner or his the owner's representative at the place from which the watercraft departs or returns to the possession of the owner or his the owner's representative. A watercraft which that does not have the certificate of number on board shall be identified while in use as may be prescribed by the regulations of the commission.

d. the owner of a boat livery shall maintain a commercial boat liability policy for persons who hire a watercraft for use on a waterway in this state. this liability coverage shall be in effect at any time that the watercraft is operated on a waterway in this state.

E. A Boat Livery owner's commercial boat liability policy shall provide primary boat liability insurance coverage as follows:

1. $25,000 because of bodily injury to or the death of one person in any one accident.

2. Subject to the limit for one person, $50,000 because of bodily injury to or the death of two or more persons in any one accident.

3. $20,000 because of injury to or destruction of property of others in any one accident.

F. The owner of a boat Livery shall maintain at all times the amounts prescribed in subsection E of this section.

G. The commission may require the owner of a boat livery that is subject to the insurance responsibility requirements of this section to certify the existence of insurance responsibility in the form and at the time the commission deems necessary. The commission may forward the certification to the named insurer to determine whether the certification is correct. Civil liability does not accrue to the insurer or any of its employees for reports made to the commission if the reports are made in good faith and are based on the most recent information available to the insurer.

H. The owner of a boat livery that causes a watercraft to be operated on a waterway in this state without meeting the insurance responsibility requirements of this section is guilty of:

1. A class 3 misdemeanor.

2. A class 1 misdemeanor if the watercraft is involved in an accident in this state. END_STATUTE

Sec. 5.5. Title 5, chapter 3, Arizona Revised Statutes, is amended by adding article 8.1, to read:

ARTICLE 8.1. PEER-TO-PEER WATERCRAFT SHARING

START_STATUTE5-385. Definitions

In this article, unless the context otherwise requires:

1. "peer-to-peer watercraft sharing" means the authorized use of a shared watercraft through a peer-to-peer watercraft sharing program by an individual other than the shared watercraft owner.

2. "Peer-to-peer watercraft sharing program":

(a) Means a business platform that connects watercraft owners with watercraft operators to enable the sharing of watercraft for financial consideration.

(b) Does not include:

(i) A boat livery.

(ii) Commercial motorized watercraft.

3. "Shared watercraft":

(a) Means a watercraft that is available for sharing through a peer-to-peer watercraft sharing program.

(b) does not include:

(i) Commercial motorized watercraft.

(ii) A watercraft that is owned by a boat livery and that is made available for rent or use in this state.

4. "Shared watercraft operator" means an individual who has been authorized to operate a shared watercraft by the shared watercraft owner pursuant to a shared watercraft transaction.

5. "Shared watercraft owner" means the registered owner of a watercraft that is made available for sharing to a shared watercraft operator through a peer-to-peer watercraft sharing program.

6. "Shared watercraft transaction" means the authorized use of a shared watercraft by an individual other than the shared watercraft owner through a peer-to-peer watercraft sharing program.

7. "Watercraft sharing period" means the period of time that begins with the watercraft sharing start time and ends at the watercraft sharing termination time.

8. "Watercraft sharing start time" means the time when a shared watercraft becomes subject to the control of the shared watercraft operator at or after the time that the reservation of the shared watercraft is scheduled to begin as documented in the records of a peer-to-peer watercraft sharing program.

9. "Watercraft sharing termination time" means the earliest of the following:

(a) The expiration of the agreed period of time established for the use of a shared watercraft in the shared watercraft transaction and the shared watercraft is delivered to the location that is specified in the shared watercraft transaction.

(b) When the shared watercraft is returned to a location as alternatively agreed to by the shared watercraft owner and the shared watercraft operator as established through a peer-to-peer watercraft sharing program.

(c) when The shared watercraft owner or a designee of the shared watercraft owner takes possession and control of the shared watercraft.

END_STATUTE

START_STATUTE5-386. Insurance requirements; information sharing; recordkeeping; liability; indemnification

A. A peer-to-peer watercraft sharing program shall maintain a primary commercial boat liability insurance policy that provides coverage for bodily injury or property damage that occurs during the watercraft sharing period in an amount that is stated in the shared watercraft transaction and that is not less than:

1. $25,000 because of bodily injury to or death of one person in any one accident.

2. Subject to the limit for one person, $50,000 because of bodily injury to or death of two or more persons in any one accident.

3. $20,000 because of injury to or destruction of property of others in any one accident.

B. A peer-to-peer watercraft sharing program shall ensure that the commercial liability insurance policy that provides insurance coverage and that is required by this section meets both of the following requirements:

1. Recognizes that the watercraft that is insured under the policy is made available and used through the peer-to-peer watercraft sharing program.

2. Does not exclude the use of a shared watercraft by a shared watercraft operator.

C. A peer-to-peer watercraft sharing program shall provide proof of insurance to the shared watercraft operator before the watercraft sharing start time. If an accident occurs during the watercraft sharing period, the shared watercraft operator and the peer-to-peer watercraft sharing program shall provide proof of insurance at the time of the accident to the parties involved in the accident.

D. A peer-to-peer watercraft sharing program shall collect and verify records relating to the use of a shared watercraft, including times used, fees paid by the shared watercraft operator and monies received by the shared watercraft owner. the peer-to-peer watercraft sharing program shall retain these records for at least six years after the termination of a shared watercraft transaction.

E. in an insurance claim investigation, the peer-to-peer watercraft sharing program and any insurer that provides the insurance coverage required by this section shall fully cooperate with all other parties involved in the claim. In an insurance claim investigation, both of the following apply:

1. The peer-to-peer watercraft sharing program shall provide to any interested party the records required by subsection d of this section.

2. Any insurer that provides the insurance coverage required by this section shall provide a clear description of the coverage afforded, any exclusions from the coverage and the limits of the coverage provided under the insurance policy.

f. Notwithstanding any other law, this section does not prohibit a peer-to-peer watercraft sharing program from recovering the peer-to-peer watercraft sharing program's insurance costs that are incurred in satisfying the peer-to-peer watercraft sharing program's obligations pursuant to this section from a shared watercraft owner or shared watercraft operator.

G. This section does not limit either of the following:

1. The liability of a peer-to-peer watercraft sharing program for any act or omission of the peer-to-peer watercraft sharing program that results in injury to any person as a result of the use of a shared watercraft through a shared watercraft transaction.

2. The ability of the peer-to-peer watercraft sharing program, by contract, to seek indemnification from the shared watercraft owner or the shared watercraft operator for economic loss that is sustained by the peer-to-peer watercraft sharing program and that results from a breach of the terms and conditions of the shared watercraft TRANSACTION.

H. An insurance policy required by this section may be obtained from an insurer authorized to transact insurance in this state pursuant to title 20, chapter 2, article 1, a domestic surplus lines insurer authorized to issue insurance coverage in this state or a surplus lines insurer pursuant to title 20, chapter 2, article 5.END_STATUTE