BILL ANALYSIS Ó
AB 865
Page 1
ASSEMBLY THIRD READING
AB 865 (Eggman)
As Amended April 24, 2013
Majority vote
WATER, PARKS & WILDLIFE 10-4
APPROPRIATIONS 12-5
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|Ayes:|Rendon, Blumenfield, |Ayes:|Gatto, Bocanegra, |
| |Bocanegra, Fong, Frazier, | |Bradford, |
| |Gatto, Gomez, Gray, | |Ian Calderon, Campos, |
| |Yamada, Bloom | |Eggman, Gomez, Hall, |
| | | |Rendon, Pan, Quirk, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bigelow, Allen, Beth |Nays:|Harkey, Bigelow, |
| |Gaines, Patterson | |Donnelly, Linder, Wagner |
| | | | |
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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 existing law 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 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. Provides that
the current statutory fees shall apply until such time as DBW
adopts the new fees by regulations.
5)Requires DBW to adopt rules and regulations to carry out
provisions of existing law regarding for-hire vessel
operators, including adopting a fee schedule for examinations,
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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. Establishes the Boating
and Waterways Commission, which provides advice to DBW on
matters within DBW's jurisdiction and approves certain
transfers, loans, and grants proposed by DBW.
2)Requires DBW to publish an annual directory of licensed
brokers and salespersons of ships and yachts. Permits DBW to
issue a periodical bulletin concerning 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, and requires 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)Establishes by statute 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 provisions of law regarding the
licensing of for-hire vessel operators.
6)Transfers DBW to the Department of Parks and Recreation (DPR)
as the Division of Boating and Waterways, pursuant to the
Governor's Reorganization Plan No. 2, effective July 3, 2012,
and operative July 1, 2013.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, potential increased annual fee revenue (Harbors and
Watercraft Revolving Fund) estimated to be in the range of
$85,000- $350,000, depending on the rulemaking outcome. Minor
and absorbable costs for rulemaking to establish new fee
schedule
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COMMENTS : This bill authorizes DBW to establish license fees
for brokers and salespersons of yachts and ships by regulation.
The regulatory fee schedule would replace the statutory license
fees currently in effect. This bill provides that the existing
statutory license fees would remain in effect until the
regulations establishing the new fee schedule are adopted. This
bill also removes an obsolete provision requiring DBW to include
certain accounting information in a biennial report that is no
longer required by law. The provision of the Harbors and
Navigation Code that previously required DBW to make a biennial
report to the Boating and Waterways Commission, the Legislature
and the Governor covering DBW's operations was repealed in the
2011-12 Session.
The author of this bill notes that the current license 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.
As noted above, the Governor's Reorganization Plan No. 2, which
goes into effect on July 1, 2013, eliminates the DBW and
transfers the functions of the DBW to a new Division of Boating
and Waterways within DPR. The Division of Boating and Waterways
will be the successor agency to DBW and assume additional
specified powers, functions, and jurisdiction from 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 in the California Recreational
Trails Act for boating trails.
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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),
Chapter 136, Statutes of 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.
Other related legislation includes AB 1317 (Frazier) of this
session, which 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 various
functions of state government.
Supporters of this bill include organizations involved in many
aspects of boating in California. The California Yacht Brokers
Association, which represents the brokers who would be subject
to the licensing fees at issue in this bill, approves allowing
DBW to set licensing fees by regulation at levels appropriate to
protect consumers and to ensure the ongoing professionalism of
the yacht brokering and sales industry.
Analysis Prepared by : Diane Colborn/ W., P. & W. / (916)
319-2096
FN: 0000592
AB 865
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