HB2886 - 551R

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

Section. 1. Section 5-321, Arizona Revised Statutes, is amended to read:

START_STATUTE5-321. Numbering; registration fees; exemption from taxation; penalty; procedures

A. Except as provided in section 5-322, the owner of each motorized watercraft requiring numbering by this state shall file an application for a registration number with the department, or its agent, on forms approved by the department. Except as provided by rule adopted by the commission, the application shall be signed by the owner of the motorized watercraft and shall be accompanied by a registration fee. After the effective date of this amendment to this section may 7, 2013, the commission shall establish by rule a registration fee for each motorized watercraft requiring numbering by this state.

B. Pursuant to article IX, section 16, Constitution of Arizona, watercraft are exempt from ad valorem property tax and from license taxes in lieu of property tax.

C. The length of the motorized watercraft shall be measured from the most forward part of the bow excluding the bowsprit or jibboom, over the centerline to the rearmost part of the transom excluding sheer, outboard motor, rudder, handles or other attachments.

D. The commission may assess an additional registration fee, to be collected at the same time and in the same manner as the registration fee imposed by subsection A of this section. The amount of the additional fee shall be determined by the commission and may be imposed in different amounts with respect to resident and nonresident owners. An additional registration fee under this subsection is to be used solely for the purpose of the lower Colorado river multispecies conservation program under section 48-3713.03.

E. On receipt of the application in approved form with the applicable fees, the department or its agent shall enter the application on the records of its office and issue to the applicant two current annual decals and a certificate of number stating the number issued to the watercraft and the name and address of the owner. The owner shall display the assigned number and the current annual decals in such the manner as may be prescribed by rules of the commission. The number and decals shall be maintained in legible condition. The certificate of number or commission approved commission-approved proof of valid certificate of number, except as provided in section 5-371, shall be available at all times for inspection by a peace officer whenever if the watercraft is in operation. No a number issued by another state or the United States coast guard, unless granted exemption or exception pursuant to this chapter, shall may not be displayed on the watercraft.

F. No a person may not operate a motorized watercraft on the waterways of this state unless the watercraft displays the assigned number and current annual decals or the person is in possession of a valid thirty-day temporary registration as prescribed by this article.

G. No a motorized watercraft shall may not be purchased, sold or otherwise transferred without assignment by the owner of the current numbering certificate or other documentation as may be prescribed by rules of the commission. Within fifteen days after such transfer, the person to whom such transfer is made shall make application to the department to have the motorized watercraft registered in the person's name by the department, for which the department shall charge a transfer fee as prescribed in rule by the commission. The department shall not issue or transfer a numbering certificate for a motorized watercraft to a person who is subject to the use tax under title 42, chapter 5, article 4 unless the applicable tax has been paid as shown by a receipt from the collecting officer. Persons doing business as marine dealers and licensed as such by this state are not required to register in their name any watercraft in their possession that may be offered for resale.

H. In the event of the loss or destruction of the certificate of number or annual decal, the department shall issue a duplicate to the owner on payment of a fee as prescribed in rule by the commission.

I. The department may issue any certificate of number directly or may authorize any person to act as an agent for the issuance of the certificate of number in conformity with this chapter and with any rules of the commission. An agent that contracts with the commission to renew certificates of number by telecommunication may impose additional fees for the services as provided in the contract.

J. The owner shall furnish to the department notice of the transfer of all or any part of the owner's interest other than the creation of a security interest in a motorized watercraft numbered in this state pursuant to this chapter or of the destruction or abandonment of such watercraft within fifteen days. Such transfer, destruction or abandonment shall terminate the certificate of number of such watercraft, except that in the case of a transfer of a part interest that does not affect the owner's right to operate such watercraft, the transfer shall not terminate the certificate of number.

K. Any holder of a certificate of number shall notify the department within fifteen days if the holder's address no longer conforms to the address appearing on the certificate and, as a part of such notification, shall furnish the department with the holder's new address. The commission may provide in its rules for the surrender of the certificate bearing the former address and its replacement with a certificate bearing the new address or the alteration of an outstanding certificate to show the new address of the holder.

L. On renewal of any motorized watercraft registration that has not been renewed by the current expiration date, the department shall assess a penalty unless the watercraft ownership has been transferred and the watercraft was not registered subsequent to the expiration date. The commission shall establish the penalty by rule. If more than twelve months have lapsed elapsed since the expiration date of the last registration or renewal, the penalty and back fees are waived.

m. the commission may develop a basic training course on the safety and legal regulations of watercraft use in this state. the course may be a video or a written course and may be viewed in person or taken online. a video may not be longer than thirty minutes and a written test may not be longer than two pages. the commission may require, as part of an application for a new motorized watercraft registration or renewal of a motorized watercraft REGISTRATION, the APPLICANT to attest that the applicant has taken the training course on the safety and legal regulations of watercraft use in this state. the commission may develop additional written information to provide to the applicant for informational purposes. END_STATUTE

Sec. 2. Section 5-350, Arizona Revised Statutes, is amended to read:

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

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 the person's 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. operates the personal watercraft 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.

5. heads into the wake of a towed person on water skis or a surfboard, inflatable tube or similar device 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.

6. operates the personal watercraft within a zone of proximity to a towed person on water skis or a surfboard, inflatable tube or similar device closer than sixty feet, MANEUVERS quickly, turns sharply or swerves, unless the MANEUVER is necessary to avoid a collision.

7. operates the personal watercraft within a zone of proximity to a towed person on water skis or a surfboard, inflatable tube or similar device 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.

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

START_STATUTE5-371. Boat liveries; requirements; insurance coverage; definition

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, 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 or the owner's agent or employee shall permit may not allow any watercraft to be operated from his the owner's premises unless it shall have has 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 liability insurance coverage for persons who hire a motorized watercraft with more than fifty horsepower and all personal watercraft. this liability coverage shall be in effect at any time the motorized watercraft or personal watercraft is operated on public waters or waterways in this state.

e. the amount of liability coverage for motorized watercraft with more than fifty horsepower and on all personal watercraft shall be as follows:

1. At least $25,000 total for bodily injury to or death of one person in any one accident.

2. At least $50,000 total for bodily injury to or death of two or more persons in any one accident.

3. At least $15,000 per incident for damage to property.

4. At least $65,000 combined coverage for bodily injury, death and property damage per incident or accident.

f. if the commission develops a basic training course on the safety and legal regulations of watercraft use in this state pursuant to section 5-321, subsection m, the owner of a boat livery or the owner's agent or employee may not allow any watercraft to be operated from the owner's premises unless the person or persons hiring the watercraft have taken the basic training course developed by the commission. if the use of a video is not practical in this setting, a written test may be offered.

G. this section does not prevent an injured party from recovery beyond the insurance limits pursuant to subsection e of this section and does not prevent an injured party from relief and recovery through any other legal means.

H. for the purposes of this section, "personal watercraft" has the same meaning prescribed in section 5-350. END_STATUTE