BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 865|
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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and Navigation Code that has been repealed.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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