BILL ANALYSIS Ó AB 865 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 865 (Eggman) As Amended August 21, 2013 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |51-17|(May 24, 2013) |SENATE: |23-11|(September 3, | | | | | | |2013) | ----------------------------------------------------------------- Original Committee Reference: W., P. & W. SUMMARY : Allows the Division of Boating and Waterways (DBW) within the Department of Parks and Recreation (DPR), to set licensing fees for brokers and salespersons of ships and yachts through regulation, and makes other changes to update the Harbors and Navigation Code. The Senate amendments : 1)Require that the fees be sufficient to reimburse the DBW for the reasonable costs of implementation, including costs for exams, licensing, renewals, and other services provided by the DBW relating to yacht and ship brokers. 2)Make technical changes to reflect the reorganization of the former Department of Boating and Waterways into a division of DPR. EXISTING LAW : 1)Establishes DBW within DPR 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)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. Grants authority to DBW to establish rules and regulations necessary to carry out provisions of law regarding the licensing of for-hire vessel operators. FISCAL EFFECT : According to the Senate Appropriations Committee, minor and absorbable costs to the Harbors and Watercraft Revolving Fund (special fund) to adopt regulations to establish fees, and AB 865 Page 2 on-going increased revenues, likely between $85,000 and $350,000 to the Harbors and Watercraft Revolving Fund from increased fees. COMMENTS : This bill gives the DBW authority to establish licensing fees for yacht and boat brokers and salespersons. The author has noted that the current fees, which are set in statute and have not been updated since 1990, are insufficient to self-fund the program. The Senate amendments further clarify that the fees shall be set at an amount sufficient to cover the DBW's reasonable costs of the program. The Senate amendments also update the language of this bill to reflect the reorganization of DBW into a Division of DPR. Boating groups representing persons who pay the licensing fees have expressed support for this bill, which they assert will allow the DBW to set licensing fees at levels appropriate to protect consumers and ensure the ongoing professionalism of the yacht brokering and sales industry. Analysis Prepared by : Diane Colborn / W., P. & W. / (916) 319-2096FN: 0001868