BILL ANALYSIS Ó
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| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2013-2014 Regular Session |
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BILL NO: AB 865 HEARING DATE: June 25, 2013
AUTHOR: Eggman URGENCY: No
VERSION: April 24, 2013 CONSULTANT: Katharine Moore
DUAL REFERRAL: No FISCAL: Yes
SUBJECT: Yacht and Ship Brokers Act: licensing.
BACKGROUND AND EXISTING LAW
The Department of Boating and Waterways [department] was
established in 1957 in the California Natural Resources Agency.
Its mission is "to provide safe and convenient public access to
California's waterways and leadership in promoting safe,
enjoyable and environmentally sound recreational boating." Its
regulatory interests include consumer protection.
The department licenses and regulates yacht brokers and
salespersons in California under the Yacht and Ship Brokers Act
(Harbor and Navigation Code (HNC) §§700 - 740). Under the act,
a license is required to sell or rent boats located in
California (HNC §708) where the boat is at least 16 feet long,
but less than 300 gross tons. The initial license for a broker
or a salesperson is valid for a period of one year and then
renewals are good for two years. There are various requirements
for licensure including bonding (for brokers only), passing an
examination, and undergoing a criminal records investigation,
among others. Currently, the examination is offered monthly at
three locations throughout the state. The department annually
publishes a list of licensed brokers and salespeople. The
department is required to investigate written complaints against
brokers and salespersons and has the authority to deny, suspend
or revoke their licenses.
Existing law authorizes the department to charge a fee for the
criminal records investigation not to exceed the amount needed
to reimburse the department for conducting the criminal records
examination. Additionally, the department is authorized to
charge the following license fees (per AB 4320, Frazee, c. 561,
Statutes of 1990):
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$200 (original broker's license) and $75 for renewal
$100 (original salesperson's license) and $50 for
renewal
$25 (salesperson's temporary license (good for 60 days))
$25 (for a broker's branch office) and $25 for renewal
$10 (transfer of a salesperson's license between
employers, each duplicate license, license name
substitution, "certificate of convenience" to the heirs of
a broker (good for 90 days))
$25 (examination)
Existing law also requires the department to submit to the
Governor a report of its activities under this Act including
receipts and expenditures during the preceding two years as part
of the biennial report of the department.
Pursuant to the Brown Administration's Governor's Reorganization
Plan No. 2, effective July 3, 2012 and operative July 1, 2013,
the department will be transferred to the Department of Parks
and Recreation [state parks] as the Division of Boating and
Waterways [division].
PROPOSED LAW
This bill would amend the existing Yacht and Ship Brokers Act.
Specifically, this bill would:
Direct the department to post its annual published
directory of licensed brokers and salespersons online.
Direct the department to make rules and regulations
including establishing reasonable fees for exams,
licensing, renewals, and other services provided by the
department.
Further direct the department to keep its existing
licensing fee schedule until a new one is developed through
regulation.
Deletes the biennial reporting requirement.
ARGUMENTS IN SUPPORT
According to the author, "The fees charged for license issued to
used ship brokers and salespersons are not sufficient to fund
the program itself. Furthermore, the [department] is required
to publish in print an annual directory of licensed brokers and
salespeople, and to report to the governor on this program in a
biennial report which is no longer required." The author
continues that this bill "would allow for an update to fees,
electronic publication of the directory and would eliminate the
report requirement."
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ARGUMENTS IN OPPOSITION
None received
COMMENTS
The department's biennial report was one of many reports
recently deleted through the budget . The provision of this bill
deleting the reporting requirement removes language made
obsolete by SB 71 (Leno, c. 728, Statutes of 2012).
The license fees were last changed in 1990 . $100 in 1990
dollars is the equivalent of about $173 of 2012 dollars,
according to the cumulative change in the Consumer Price Index.
The new division . On July 1, 2013 the division will be the
successor agency to the department and will further assume all
of the powers, functions and jurisdiction of the following
existing agencies:
State Parks' Division of Small Craft Harbors.
State Lands Commission with respect to the acquisition,
construction, development, improvement, maintenance, and
operation of small craft harbors.
State Parks 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) and in Article 2.6 (commencing
with Section 68) of the HNC.
The Department of General Services' Office of
Architecture and Construction with respect to boating
facility planning and design.
The Department of Water Resources with respect to beach
erosion control.
Related legislation
SB 820 (Senate Governmental Organization Committee, 2013) and AB
1317 (Frazier, 2013) would enact various statutory changes
necessary to reflect the changes made by the Reorganization plan
and additional changes necessary for the reorganization (AAAR
and Senate Appropriations Committee.
AB 737 (Buchanan, c. 136, Statutes of 2012) retained the Boating
and Waterways Commission which the Reorganization plan meant to
disband.
SUPPORT
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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 Received
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