BILL ANALYSIS Ó SB 122 Page 1 Date of Hearing: July 1, 2013 ASSEMBLY COMMITTEE ON TRANSPORTATION Bonnie Lowenthal, Chair SB 122 (Lieu) - As Introduced: January 18, 2013 SENATE VOTE : 38-0 SUBJECT : Abandoned vessels: repeal of pilot program sunset date SUMMARY : Eliminates the sunset date on the surrendered vessel pilot program that allows boat owners to voluntarily surrender a vessel to a public agency at no cost, if that vessel is in danger of being abandoned. Specifically, this bill : 1)Deletes the sunset date on the surrendered vessel pilot program that allows boat owners to voluntarily surrender a vessel, thereby extending the program indefinitely. 2)Deletes alternative surrendered vessel program provisions slated to replace the pilot program on January 1, 2014. 3)Deletes the requirement of the Department of Boating and Waterways (DBW) to report on the number of surrendered vessels accepted by a public agency. EXISTING LAW : 1)Establishes a pilot program, scheduled to sunset on January 1, 2014, that: a) Authorizes the sale of surrendered vessels prior to their potential or eventual abandonment. b) Establishes a new class of vessels called "surrendered vessels" and authorizes the sale of them to local law enforcement or harbor departments prior to them being abandoned. c) Requires DBW to track the number of surrendered vessels accepted by a public agency for disposal under the Abandoned Watercraft Abatement Fund (AWAF) grant program over a two-year period from January 1, 2010, to January 1, 2013. Requires DBW to report the information, along with any recommendations to revise or continue the pilot SB 122 Page 2 program, to the Assembly Transportation Committee and the Senate Transportation and Housing Committee by July 1, 2013. d) Increases the fine amount for vessel abandonments from $500 to $1,000. e) Allows the use by local entities of grant funds from the existing AWAF to dispose of the surrendered vessels. 1)Establishes alternate vessel abandonment provisions that are to become effective January 1, 2014. 2)Holds the registered owner of an abandoned vehicle responsible for the costs of abating and disposing of the vehicle, and any other past due fees and penalties. 3)Authorizes the sale of a hulk, derelict, wreck, or parts of a ship, vessel, or other watercraft sunk, beached, or allowed to remain in an unseaworthy or dilapidated condition upon publicly owned submerged lands, salt marsh, or tidelands within corporate limits of a municipal corporation or other public corporation or entity having jurisdiction or control over those lands, without its consent, for a period longer than 30 days without a watchman or other person in charge of the property. 4)Authorizes wrecked property that is an unseaworthy derelict or hulk, or abandoned property removed from a navigable waterway, to be sold or otherwise disposed of by the public agency that removed or caused the removal of the property, subject to certain conditions, including that the property has been appraised by disinterested persons, and has an estimated value of less than $2,000. 5)Requires DBW to establish an Abandoned Vessel Advisory Committee to study ways to prevent the abandonment of boats. FISCAL EFFECT : According to the Senate Appropriations Committee, at least $250,000 annually in costs and cost pressures to the AWAF for grants. COMMENTS : Prior to 1998, abandoned vessels were removed primarily by peace officers if the vessel was left unattended on SB 122 Page 3 a public waterway and if the vessel created a hazard to other vessels, public safety, or other property, or was moored, docked, beached, or made fast in such a way that it obstructed the normal movement of traffic. In 1997, in response to the high cost to local governments of removing vessels and abating any associated hazards, such as oil leaks, the state enacted SB 172 (Rainey), Chapter 930, Statutes of 1997. SB 172 extended the authorization for the removal and storage of vessels to include incidences when the unattended vessel poses a threat to adjacent wetlands, levees, sensitive habitat, any protected wildlife species, or water quality. That bill also expedited the sale and disposal of abandoned boats valued under $300, increased penalties to owners abandoning boats from $50 to $500-$1500, and created AWAF to grant local governments monies needed for removal of abandoned vessels. In 2009, AB 166 (Lieu), Chapter 416, Statutes of 2009, was enacted that established the pilot program authorizing the sale of surrendered vessels prior to their potential or eventual abandonment, and authorizing local agencies to accept title of vessels from willing owners for the purposes of disposal. Purpose of the bill : Currently, DBW grants funds to local agencies for storage and/or disposal of the abandoned vessels posing navigational or environmental hazards. Local agencies are required to provide a 10% match and show the DBW the average annual cost of handling these abandoned vessels. According to DBW, many local agencies use the grant monies to contract with specialists who dredge up the sunken boats and remedy any hazardous substance the boat has released into the water. It is the author's contention that this bill could save thousands of dollars by allowing the surrendering of a dilapidated vessel. A vessel that is surrendered "costs much less to dispose of compared to the cost of raising a sunken vessel, expending the resources to determine if there is a responsible owner, and then disposing of that vessel." Abandoned Vessel Advisory Committee Report : Current law requires the creation of an advisory committee to recommend how to abate vessels abandoned along our state's waterways. The advisory committee's report issued by DBW in January 2005 suggested, among its many other recommendations, that a pilot vessel turn-in program be initiated in three selected counties that would encourage boat owners to voluntarily turn in their SB 122 Page 4 old and dilapidated boat prior to abandonment. AB 166 implemented the recommendation of the advisory committee to retrieve and dispose of boats before they are abandoned, but only on a pilot, temporary basis. DBW report : As required by AB 166, the DBW report regarding the implementation of the pilot program is not yet due (July 1 due date). However, according to DBW, since the inception of the pilot program in 2010, $400,000 from the AWAF has been appropriated for vessel removal. To date, these funds have allowed public agencies to accept 165 surrendered vessels at an average cost to the state of approximately $1,600 per vessel. As a comparison over the same time period, it cost the state over $4,000 per abandoned vessel for removal and disposal. Public agencies are highly unlikely to accept a surrendered vessel unless it receives a grant from DBW to pay for the disposal of that vessel. Further, relative to need for pilot program extension, the program according to DBW has been substantially oversubscribed. Therefore, without the benefit of the DBW report relative to the use of public agencies in removing vessels, this bill would extend the DBW vessel retrieval program indefinitely. REGISTERED SUPPORT / OPPOSITION : Support California Assoc. of Harbor Masters and Port Captains California Marine Parks and Harbors Association California State Lands Commission California State Sheriffs' Association (support if amended) California Yacht Brokers Association City of Santa Barbara Marine Recreation Association National Marine Manufacturers Association Port San Luis Harbor District Recreational Boaters of California San Francisco Bay Conservation and Development Commission Solano County Board of Supervisors Student Policy Alliance Western Boaters Safety Group Opposition None on file SB 122 Page 5 Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093