BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 865| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED AB 865 Page 2 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is to be included in a biennial report prepared pursuant to a section of the Harbors and Navigation Code that has been repealed. 4.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 CONTINUED AB 865 Page 3 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 CONTINUED AB 865 Page 4 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 CONTINUED AB 865 Page 5 SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED