BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 865
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 865 (Eggman)
        As Amended  August 21, 2013
        Majority vote
         
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        |ASSEMBLY:  |51-17|(May 24, 2013)  |SENATE: |23-11|(September 3,  |
        |           |     |                |        |     |2013)          |
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         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