BILL ANALYSIS Ó
AB 2092
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2092 (Frazier) - As Introduced February 17, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill expands the allowable uses of Abandoned Watercraft
Abatement Fund (AWAF) revenues to include the abatement,
removal, storage, or disposal of commercial vessels.
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FISCAL EFFECT:
Significant increased cost pressure on the AWAF of at least
several hundred thousand dollars annually.
The 2015-16 Budget Act funds the AWAF with a transfer of $1.75
million from the Harbors and Watercraft Revolving Fund (HWRF).
(The same transfer is proposed for 2016-17.) The current
transfer represents a significant increase from the $775,000
transferred to AWAF in 2013-14. Even with the increased funding,
demand on the fund exceeds available resources, as grant
requests exceeded $2.2 million. It should be noted that the
HWRF-the fund source for the AWAF-is projected to have a reserve
of $102 million at the end of 2016-17.
COMMENTS:
1)Background. The AWAF was established in 1998 and is funded
with proceeds from vessel fuel taxes, vessel registration
fees, yacht and ship broker and sales person licensing fees,
as well as fines collected pursuant to laws prohibiting vessel
abandonment. The fund is used to provide grants to public
agencies for the abatement of non-commercial abandoned
vessels, as well as marine debris or any other partially
submerged objects that pose a navigation hazard. According to
the Department of Boating and Waterways (DBW), AWAF funds
cannot be used to abate commercial vessels because the fund
was created by and revenues collected from recreational
boaters for the express use of abating recreational vessels.
2)Purpose. According to the sponsor, the California Sheriffs'
Association, because only non-commercial abandoned vessels
qualify for AWAF grants, and because local jurisdictions
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typically lack funds for vessel abatement, many commercial
vessels are not promptly removed. As a result, over time, the
vessels sink and disintegrate. The sponsor notes that once
the vessel is submerged and disintegrated, a local
jurisdiction can apply for AWAF revenues, because the vessel
is then considered "marine debris," and a qualifying use of
AWAF revenues. This sponsor contends this is situation is
ultimately more costly and environmentally damaging, and
argues that it makes more sense to remove vessels that present
a strike hazard or environmental impacts regardless of their
commercial or non-commercial status.
3)Opposition. The Recreational Boaters of California (RBOC) is
concerned that that opening up boater fuel tax and
registration fee revenues in AWAF to abate commercial vessels
would quickly deplete the fund since these vessels are
significantly more expensive to remove. RBOC argues that,
since commercial vessels do not contribute to the fund,
recreational vessel abatement should take priority.
Also in opposition, a number of private citizens, contend that
commercial vessels, while clearly representing a danger on
California waterways, are easily identified and, therefore,
the owners of these vessels should be required to pay the
abatement and clean-up costs.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081
AB 2092
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