The proposed bill would update current statutes in Arizona regarding watercraft insurance requirements by mandating that watercraft owners, boat livery owners, and peer-to-peer watercraft sharing programs maintain specific liability insurance policies with minimum coverage amounts for bodily injury and property damage. It also establishes that failure to comply with these insurance requirements would be classified as a class 3 misdemeanor, escalating to a class 1 misdemeanor if the watercraft is involved in an accident. This marks a significant shift from current statutes, which do not specify these insurance requirements or penalties for non-compliance. Additionally, the bill introduces new definitions and requirements for sharing programs, including the obligation to provide proof of insurance to operators and maintain transaction records for six years. It also mandates that watercraft owners providing rentals maintain a commercial boat liability policy with specified minimum coverage amounts and certify their insurance status to the commission. The updates aim to enhance safety and accountability in watercraft rentals and sharing, ensuring adequate insurance is in place to protect both renters and the public.

Statutes affected:
Introduced Version: 5-342, 5-371
House Engrossed Version: 5-342, 5-371