HB 2398 Arizona House · 57th Legislature - Second Regular Session

watercraft; insurance requirements; penalties

HB 2398 requires owners renting watercraft (like boats for short-term use) and boat livery operators (businesses managing boat rentals) in Arizona to maintain commercial liability insurance. The policy must cover at least $25,000 per person for bodily injury or death, $50,000 for multiple people, and $20,000 for property damage in any accident. Owners who fail to meet these requirements face a class 3 misdemeanor, or a class 1 misdemeanor if an accident occurs. This law directly affects rental businesses and operators managing watercraft on Arizona waterways.

Bill status failed 4 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Jan 2026

House Passage

Feb 2026

Senate Passage

Jun 2026

Governor

Introduced Jan 15, 2026 Last action Jun 13, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Introduced Version → House Engrossed Version (02/24/2026) · 3 edits · Feb 24, 2026

MINOR

The bill was formally reclassified from an 'Introduced Version' to a 'House Engrossed Version,' indicating it has passed the initial introduction stage and is ready for further legislative action. The document's formatting was updated to reflect this new status, including changing the bill title and removing the specific list of sponsoring legislators from the header. No substantive policy changes, such as new laws, funding amounts, or eligibility criteria, were identified in the provided text.

TECHNICAL

The bill status label was updated from 'Introduced Version' to 'House Engrossed Version' to reflect its progression in the legislative process.

The specific names of the Representatives and Senator who introduced the bill were removed from the header section.

The reference title line was updated to match the new 'House Engrossed' status.

House Engrossed Version (02/24/2026) → Senate Engrossed Version (06/12/2026) · 6 edits · Feb 24, 2026

MODERATE

This bill significantly updates Arizona's watercraft laws to regulate peer-to-peer sharing platforms (like boat rentals via apps) and clarify insurance requirements for commercial boat liveries. It adds new definitions for 'peer-to-peer watercraft sharing' and exempts these platforms from the strict insurance rules applied to traditional boat liveries, while still mandating that the platforms themselves carry commercial liability insurance. The bill also updates existing sections to explicitly include 'charter' alongside 'rent' for insurance purposes and adds a new article to the statutes.

Scope change

The bill expands the regulatory scope to include peer-to-peer watercraft sharing programs, which were previously not explicitly covered under the existing 'boat livery' definitions. It creates a distinct regulatory category for these platforms separate from traditional boat liveries.

DEFINITION

Added new definitions for 'peer-to-peer watercraft sharing,' 'shared watercraft,' and 'shared watercraft operator' to legally distinguish app-based rentals from traditional boat liveries.

Added a specific definition for 'launch' to clarify that motorized boats used to follow rowing shells during practice or competition are not subject to certain watercraft regulations.

REQUIREMENT

Modified insurance requirements to apply to both 'rental' and 'charter' activities, broadening the scope of who must carry commercial liability insurance.

Added a new article requiring peer-to-peer sharing programs to maintain primary commercial boat liability insurance with specific minimum limits ($25k/$50k/$20k) and to provide proof of insurance to users.

Added a provision allowing peer-to-peer sharing programs to recover their insurance costs from owners or operators, shifting some financial burden away from the platform.

ELIGIBILITY

Created an exemption for boat liveries that provide watercraft for rent fewer than four times in a calendar year, removing the insurance mandate for occasional rentals.

Floor votes · Senate Jun 12, 2026 · House Feb 24, 2026

How they voted

26–3

Passed · 1 other

Total votes 30

Jun 12, 2026

D Democratic13

13 Yea

100% Yea

R Republican17

13 Yea 3 Nay 1

76% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 12, 2026

Upper · Passed

PASSED

upper

Jun 10, 2026

Upper · Passed

DPA

upper

Jun 1, 2026

Upper · Passed

DPA

upper

Mar 23, 2026

Upper · Passed

DPA

upper

Feb 24, 2026

Lower · Passed

PASSED

lower

Feb 23, 2026

Lower · Passed

lower

Jan 28, 2026

Lower · Passed

lower

1 primary · 2 co-sponsors