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House Engrossed
watercraft; insurance requirements; penalties |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HOUSE BILL 2398 |
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AN ACT
amending title 5, chapter 3, article 5, Arizona Revised Statutes, by adding section 5-342; amending section 5-371, arizona revised statutes; relating to operation of watercraft.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 5, chapter 3, article 5, Arizona Revised Statutes, is amended by adding section 5-342, to read:
5-342. Watercraft; insurance responsibility requirements; required limits; violation; classification
A. Notwithstanding any other law, an owner of a watercraft who provides a watercraft for rent in this state shall maintain a commercial boat liability policy.
B. An owner's commercial boat liability policy 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 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.
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 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.
Sec. 2. Section 5-371, Arizona Revised Statutes, is amended to read:
5-371. 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.