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 Page 2 $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