BILL ANALYSIS Ó
AB 865
Page 1
Date of Hearing: May 15, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 865 (Eggman) - As Amended: April 24, 2013
Policy Committee: Water, Parks and
Wildlife Vote: 10-4
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill 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)Revises the provision requiring DBW to issue an annual list of
licensed brokers and salespersons of ships and yachts, and
instead requires DBW to post the list on its Internet Web
site.
2)Repeals the requirement for 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-profit
vessel operators, including adopting a fee schedule for
examinations, licensing, renewals, and other services.
FISCAL EFFECT
1)Potential increased annual fee revenue (Harbors and Watercraft
Revolving Fund) estimated to be in the range of $85,000-
AB 865
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$350,000, depending on the rulemaking outcome.
2)Minor and absorbable costs for rulemaking to establish new fee
schedule
COMMENTS
1)Rationale. Current licensing fees for brokers and
salespersons of ships and yachts are created in statute and
date back to 1990. According to the author, current revenues
are not sufficient to self-fund the program. Numerous
organizations within the boating industry contend this bill is
necessary to allow DBW to set licensing fees at levels
appropriate to protect consumers and ensure on-going
professionalism.
This bill also expands DBW's authority by allowing for the
adoption of rules and regulations regarding for-profit vessel
operators.
2)Background. DBW is currently located in the Natural
Resources Agency with duties and authorities relating to beach
erosion, harbors, recreational boating and boat trails. The
Boating and Waterways Commission advises DBW and approves
various loan and grant programs.
DBW will become a division of the Department of Parks and
Recreation July 1, 2
2013 pursuant to the Governor's Reorganization Plan No. 2 of
2012.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081