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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
HOV
lane; blood transport vehicles
(NOW: watercraft fund; distribution of monies)
Provisions
Alters the allocation of watercraft registration and infrastructure fee revenues.
Background
Each month, monies received from the registration and infrastructure fees received for the numbering of watercraft must be deposited in the Watercraft Licensing Fund for distribution by the Arizona Game and Fish Department as follows: 1) 65 percent must be deposited into the Watercraft Licensing Fund to be used for administering and enforcing boating and water sports regulation; and 2) of the remaining 35 percent, 15 percent must be deposited into the State Lake Improvement Fund and 85 percent must be deposited into the Law Enforcement and Boating Safety Fund (A.R.S. § 5-323).
Only a county board of supervisors that has a law enforcement and boating safety program that was in existence before July 1, 1990, is eligible to receive Law Enforcement and Boating Safety Fund monies. The State Treasurer administers the Law Enforcement and Boating Safety Fund and uses an allocation formula determined annually by the Arizona Game and Fish Commission (Commission). The Commission, when determining the allocation formula, may consider: 1) the adequacy of existing county boating safety programs, including accident investigations; 2) the number of recreational days of use on water within the county; 3) the surface acreage of water within the county's jurisdiction; 4) the county water safety record; 5) the ability of the county to constructively use additional monies; 6) the ratio of boating use to water surface within the county's jurisdiction; 7) the ability of participating counties to provide continued funding for the program; 8) annual input and feedback from the county board of supervisors receiving funds; and 9) boat accident data for the waterways within the county's jurisdiction (A.R.S. § 5-383).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Alters the allocation of watercraft registration and infrastructure fees as follows:
a) 55 percent, rather than 65 percent, must be deposited into the Watercraft Licensing Fund;
b) 45 percent, rather than 35 percent, must be allocated as follows:
i. 10 percent, rather than 15 percent, to the State Lake Improvement Fund; and
ii. 90 percent, rather than 85 percent, to the Law Enforcement and Boating Safety Fund.
2. Removes the statutorily prescribed Arizona Game and Fish Commission allocation formula for the Law Enforcement and Boating Safety Fund monies and removes the requirement for the State Treasurer to use the allocation formula when distributing monies.
3. Requires the revenues allocated to the Law Enforcement and Boating Safety Fund to be allocated as follows:
a) 1.03 percent to Apache County;
b) 10.45 percent to Coconino County;
c) 7.35 percent to Gila County;
d) 12.5 percent to La Paz County;
e) 9.65 percent to Maricopa County;
f) 49.22 percent to Mohave County;
g) 0.5 percent to Navajo County; and
h) 9.3 percent to Yuma County.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
House Action
TI 2/11/26 DPA/SE 4-3-0-0
3rd Read 2/26/26 31-22-7
Prepared by Senate Research
March 13, 2026
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