The Overview

If you own a boat registered in Arizona, more of the fees you pay will now go toward law enforcement and boating safety on the water. Arizona's watercraft fund distribution law, HB 2257, became law when Gov. Katie Hobbs (D) signed it June 22, shifting how watercraft registration and infrastructure fee revenue is divided among state funds and adding a new annual reporting requirement. The National Marine Manufacturers Association described the law as "a policy win for the recreational boating community," saying it increases dedicated funding for boating safety. ​

What the Law Does

The law amends Arizona Revised Statutes Section 5-323, which governs how watercraft fee revenue is distributed each month. It reduces the share deposited in the Watercraft Licensing Fund and increases the share directed to the Law Enforcement and Boating Safety Fund.

The National Marine Manufacturers Association said the law raises the share of watercraft-fee revenue going to the Law Enforcement and Boating Safety Fund from 35 percent to 45 percent, a 10-percentage-point increase. The law also adds a new requirement: the department must submit an annual report to the President of the Senate, the Speaker of the House, and the Secretary of State on expenditures from the Watercraft Licensing Fund.

Legislative Status

Rep. Leo Biasiucci (R-AZ-30) sponsored the bill and chaired the House Transportation & Infrastructure Committee that rewrote it into its enacted watercraft-funding form through a strike-everything amendment. The bill was originally titled "HOV lane; blood transport vehicles" before the committee replaced its contents entirely.

The House passed the bill 31 to 22 on Feb. 26. The Senate initially failed to pass the bill on June 11, then approved it 16 to 13 on June 12, a three-vote margin. The narrow Senate vote, coming a day after an outright failure, shows the measure faced real resistance before it cleared the chamber.

The National Marine Manufacturers Association called the law "a policy win for the recreational boating community," saying it increases dedicated funding for boating safety.

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