BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 865
          Author:   Eggman (D)
          Amended:  8/21/13 in Senate
          Vote:     21

           
           SENATE NATURAL RESOURCES AND WATER COMMITTEE  :  7-2, 6/25/13
          AYES:  Pavley, Evans, Hueso, Jackson, Lara, Monning, Wolk
          NOES:  Cannella, Fuller

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 8/19/13
          AYES:  De León, Hill, Lara, Padilla, Steinberg
          NOES:  Walters, Gaines

           ASSEMBLY FLOOR  :  51-17, 5/24/13 - See last page for vote


           SUBJECT  :    Yacht and Ship Brokers Act:  licensing

           SOURCE  :     Author


           DIGEST  :    This bill allows the Division of Boating and Waterway  
          (DBW) under the Yacht and Shipbrokers Act (Act) to set licensing  
          fees for brokers and salespersons of ships and yachts through  
          regulation.

           ANALYSIS  :    

          Existing law:

          1. Establishes DBW in the Natural Resources Agency and charges  
             DBW with duties related to beach erosion, harbors, and  
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             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             and Navigation Code that has been repealed.  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 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.

          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 a part  
             of a biennial report.

          3. Requires DBW to set by regulation a new fee schedule for  
             brokers and salespersons of ships and yachts.  The fees must  

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             be sufficient to reimburse the DBW for the reasonable costs  
             of implementing this provision.  Provides that the current  
             statutory fees shall apply until such time as DBW adopts the  
             new fees by regulations.

          4. Requires DBW to adopt rules and regulations to carry out  
             provisions of existing law regarding for-hire vessel  
             operators, including adopting a schedule to establish  
             reasonable fees that cover the DBW's costs for examinations,  
             licensing, renewals, and other services.

           Background
           
          The DBW 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 DBW licenses and regulates yacht brokers and salespersons in  
          California under the Act.  Under the Act, a license is required  
          to sell or rent boats located in California 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  
          DBW annually publishes a list of licensed brokers and  
          salespeople.  The DBW is required to investigate written  
          complaints against brokers and salespersons and has the  
          authority to deny, suspend or revoke their licenses.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No


          According to the Senate Appropriations Committee:


           Minor and absorbable costs to the Harbors and Watercraft  
            Revolving Fund (special) to adopt regulations to establish  

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            fees.

           On-going increased revenues, likely between $85,000 and  
            $350,000 to the Harbors and Watercraft Revolving Fund from  
            increased fees.

           SUPPORT  :   (Verified  8/21/13)

          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


           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."

           ASSEMBLY FLOOR  :  51-17, 5/24/13
          AYES:  Achadjian, Alejo, Ammiano, Atkins, Bloom, Blumenfield,  
            Bocanegra, Bonilla, Bradford, Brown, Buchanan, Ian Calderon,  
            Campos, Chau, Chesbro, Cooley, Daly, Dickinson, Eggman, Fong,  
            Fox, Frazier, Garcia, Gatto, Gomez, Gordon, Gray, Hall, Roger  
            Hernández, Jones-Sawyer, Levine, Lowenthal, Maienschein,  
            Medina, Mitchell, Mullin, Muratsuchi, Nazarian, Pan, Perea,  
            Quirk, Quirk-Silva, Rendon, Salas, Stone, Ting, Weber,  
            Wieckowski, Williams, Yamada, John A. Pérez
          NOES:  Allen, Bigelow, Chávez, Conway, Donnelly, Beth Gaines,  
            Hagman, Harkey, Jones, Linder, Logue, Mansoor, Melendez,  
            Morrell, Nestande, Patterson, Wagner
          NO VOTE RECORDED:  Bonta, Dahle, Gorell, Grove, Holden, Olsen,  
            V. Manuel Pérez, Skinner, Waldron, Wilk, Vacancy, Vacancy


          RM:d  8/21/13   Senate Floor Analyses 


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                           SUPPORT/OPPOSITION:  SEE ABOVE

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