BILL ANALYSIS Ó
AB 865
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Date of Hearing: April 30, 2013
ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
Anthony Rendon, Chair
AB 865 (Eggman) - As Amended: April 24, 2013
SUBJECT : Yacht and Ship Brokers Act: Licensing.
SUMMARY : Allows the Department of Boating and Waterways (DBW)
to set licensing fees for brokers and salespersons of ships and
yachts through regulation. Specifically, this bill :
1)Amends the provision requiring DBW to issue an annual list of
licensed brokers and salespersons of ships and yachts, and
requires DBW to instead post this directory on its Internet
Web site.
2)Repeals the statutory language requiring DBW to detail its
activities regarding the brokerage and sales of ships and
yachts as part of a biennial report.
3)Repeals the fee schedule set by statute for brokers and
salespersons of ships and yachts.
4)Requires DBW to set by regulation a new fee schedule for
brokers and salespersons of ships and yachts. Reinstates the
previous statutory fees until such time as DBW adopts these
regulations.
5)Requires DBW to make rules and regulations to carry out the
Harbors and Navigation Code provisions regarding for-hire
vessel operators, including adopting a fee schedule for
examinations, licensing, renewals, and other services.
EXISTING LAW
1)Establishes DBW in the Natural Resources Agency and charges
DBW with duties related to beach erosion, harbors, and
recreational boating and boat trails. Also establishes the
Boating and Waterways Commission, which both provides advice
to DBW on matters within DBW's jurisdiction and has the power
of advice and consent over certain transfers, loans, and
grants proposed by DBW.
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2)Requires DBW to publish an annual directory of licensed
brokers and salespersons of ships and yachts. Permits DBW to
also issue a periodical bulletin concerning affairs arising
under the provisions regarding brokerage and sale of yachts
and ships.
3)Requires DBW to publish a full and accurate account of its
activities regarding brokerage and sales of ships and yachts,
including all receipts and expenditures during the preceding
two years. However, this account is to be included in a
biennial report prepared pursuant to a section of the Harbors
and Navigation Code that has been repealed.
4)Within the Harbors and Navigation Code, sets a fee schedule
for the licensing of brokers and salespersons of ships or
yachts. Requires a criminal records investigation fee, as set
by the Department of Justice, for license applicants.
5)Grants authority to DBW to establish rules and regulations
necessary to carry out the Harbors and Navigation Code
sections regarding the licensing of for-hire vessel operators.
6)Under the Governor's Reorganization Plan No. 2, effective July
3, 2012 and operative July 1, 2013, transfers DBW to the
Department of Parks and Recreation (DPR) as the Division of
Boating and Waterways.
FISCAL EFFECT : Unknown
COMMENTS :
Author's Statement : The author states that this bill's
amendments to DBW's reporting requirements would remove an
obsolete provision and would reduce or recover costs to the
Harbors and Watercraft Revolving Fund. With regards to this
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bill's requiring DBW to set fee schedules for licensing of yacht
brokers and salespersons through regulation, the author notes
that the current fees date back to 1990 and are much lower than
contemporary fees for comparable industries. The author also
notes that the current revenues from the licensing program for
yacht and boat brokers and salespersons are not sufficient to
self-fund the program. Finally, the author states that an
amendment to the statute allowing DBW to adopt rules and
regulations regarding for-profit vessel operators is needed
because DBW does not currently have explicit authority to
establish fees for its related services.
Related Legislation : SB 71 (Leno) of the 2011-2012 session
repealed the provision of the Harbors and Navigation Code that
had required DBW to make a biennial report to the Boating and
Waterways Commission, the Legislature, and the Governor covering
DBW's operations.
As noted above, the Governor's Reorganization Plan No. 2, which
goes into operation on July 1, 2013, creates the Division of
Boating and Waterways within DPR. The Division of Boating and
Waterways is the successor agency to DBW and also assumes
specified powers, functions, and jurisdiction of the following
state agencies:
(1) All of the powers, functions, and
jurisdiction previously
vested in the Division of Small Craft
Harbors of
DPR.
(2) All of the powers, functions, and
jurisdiction of the State Lands Commission
with respect to the acquisition,
construction, development, improvement,
maintenance, and operation of small craft
harbors.
(3) All of the powers, functions, and
jurisdiction of DPR with respect to boating
facility planning, design, and construction,
except as specifically provided with respect
to boating trails in the California
Recreational Trails Act (commencing with
Section 5070 of the Public Resources Code)
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and in Article 2.6 (commencing with Section
68) of this chapter.
(4) All of the powers, functions, and
jurisdiction of the Office
of Architecture and Construction in the
Department of General
Services with respect to boating facility
planning and design.
(5) All of the powers, functions, and
jurisdiction of the
Department of Water Resources with respect
to beach erosion
control.
Under the Governor's Reorganization Plan No. 2 as introduced,
the Division of Boating and Waterways would also have absorbed
the regulatory powers, functions, and jurisdiction of the
Boating and Waterways Commission. However, AB 737 (Buchanan),
enacted in 2012, retained the Boating and Waterways Commission
within the new Division of Boating and Waterways. AB 737
repealed Chapter 3 of the Harbors and Navigation Code relating
to the Commission and added a new Chapter 3 prescribing the
membership, functions, and duties of the Commission.
AB 1317 (Frazier) of this session would enact the statutory
changes necessary to reflect the changes in law made by the
Governor's Reorganization Plan No. 2, and would also make
additional changes to properly reflect the assignment and
reorganization of the functions of state government. AB 1317
would also reallocate certain duties of abolished state entities
and officers to established state entities and officers.
Supporters' Arguments : Listed supporters include organizations
involved in many aspects of boating in California. The
California Yacht Brokers Association, which represents
professionals subject to the licensing fees at issue in this
bill, approves of the proposal to allow DBW to set licensing
fees at levels appropriate to protect consumers and to ensure
the ongoing professionalism of the yacht brokering and sales
industry.
REGISTERED SUPPORT / OPPOSITION :
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Support
California Association of Harbor Masters and Port Captains
California Marine Parks and Harbors Association
California Yacht Brokers Association
Marina Recreation Association
National Marine Manufacturers Association
Western Boaters Safety Group
Opposition
None on file.
Analysis Prepared by : Steve Westhoff / W., P. & W. / (916)
319-2096