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