BILL ANALYSIS
AB 166
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Date of Hearing: April 1, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin de Le?n, Chair
AB 166 (Lieu) - As Introduced: January 28, 2009
Policy Committee:
TransportationVote:14-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill strengthens and expands provisions governing local
agencies' efforts to address the environmental and public safety
impacts of abandoned vessels. Specifically, this bill:
1) Increases the existing minimum fine for vessel
abandonment from $500 to $1000.
2) Establishes a new class of vessel called "surrendered
vessel," as specified-one that has been willingly
surrendered by the verified title owner of the vessel to a
willing public agency, provided that (a) the public agency
has determined that vessel is in danger of being abandoned,
and (b) the decision to accept the vessel is based solely
on the potential of the vessel to be abandoned and cause
environmental degradation or become a hazard to navigation.
3) Authorizes a public agency that receives a surrendered
vessel to dispose of that vessel immediately upon
acceptance of the vessel.
4) Exempts surrendered vessels from provisions of transfer
that apply to the disposal of abandoned vessels, including
provisions that prevent a public agency from selling a
vessel with an appraised value of more than $2,000.
5) Allows local agencies to receive Department of Boating
and Waterways (DBW) grants from the existing Abandoned
Watercraft Abatement Fund (AWAF) to dispose of surrendered
vessels.
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6) Requires DBW to track the number of surrendered vessels
accepted by a local agency that disposes of surrendered
vessels using grants from the AWAF between January 1, 2010,
and January 1, 2012, as well as total expenditures from the
fund for surrendered vehicle abatement during that period
and to report to the Legislature by July 1, 2012.
7) Sunsets the provisions of this bill on January 1, 2013.
FISCAL EFFECT
1)Moderate reallocation, probably less than $500,000 annually
starting in 2009-10 through 2011-12, of DBW grant funds to
local agencies operating surrendered vessel programs. (AWAF).
2)Moderate cost pressures, likely in the range of a few hundred
of thousands of dollars annually starting in 2010-11 through
2011-12, to increase the level of funding annually transferred
from the Harbors and Watercraft Revolving Fund (HWRF) to the
AWAF to address increased local agency demand for grant funds.
3)Potential moderate penalty revenue increase, possibly in the
range of a few hundred of thousands of dollars annually
starting in 2010-11 through 2011-12, to the DBW and local
vessel enforcement agencies. (AWAF and local agency
accounts.)
COMMENTS
1)Rationale . The author argues there is a growing problem of
derelict vessels being abandoned on the state's waterways.
Owners dump or abandon these vessels rather than pay the
sometimes high cost of legal disposal. While local agencies
are primarily responsible for removal and storage of these
vessels, they do not have the fiscal resources or the legal
authority to expeditiously dispose of these vessels. The
author believes that higher minimum penalties imposed on
persons who abandon or wreck their vessels, and changes that
allow an owner to voluntarily surrender his or her vessel to a
local agency for resale at auction, will combine to reduce the
number of abandoned and wrecked vessels on public waterways.
2)Current DBW Program . The department administers the Abandoned
Watercraft Removal Program to provide grants to local agencies
to help pay the costs of removal, storage, and disposal of
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abandoned and wrecked vessels that pose navigational hazards
on the public waterways. The governor's budget proposes
grants totaling $500,000 for 2009-10.
3)Prior Legislation .
a) AB 1950 (Lieu, 2008) included provisions very similar to
those contained in this bill. AB 1950, which passed the
Assembly 77-0, was rejected with a generic veto applied to
numerous bills.
b) SB 172 (Rainey) - Chapter 930, Statutes of 1997 also
increased penalties and reduced waiting times related to
vessel abandonment. SB 172 increased, from $50 to $500,
the minimum fine for abandoning a vessel, and reduced, from
one year to 90 days from vessel removal, the period an
enforcing agency must wait before selling a wrecked vessel
at auction.
c) AB 1014 (Canciamilla) - Chapter 357, Statutes of 2004
required the Director of DBW to submit recommendations,
developed by an Abandoned Vessel Advisory Committee, to the
Legislature on strategies to prevent recreational vessels
from being abandoned and facilitate the ability of owners
to turn in their vessels in lieu of abandonment. In
January 2005, the DBW released 18 recommendations on
preventing vessel abandonment, including eight
recommendations on developing a pilot "turn-in" program
that allows a vessel owner to dispose of his or her vessel
through a local agency rather than abandoning the vessel.
d) AB 716 (Canciamilla) - Chapter 311, Statutes of 2005
adopted several of the Abandoned Vessel Advisory
Committee's recommendations, excluding those related to
voluntarily surrendered vessels since the pilot program had
not concluded. AB 166 adopts the surrendered vessel
recommendations by bringing these vessels into the
abatement and removal process and by allowing surrendered
vessel programs to be supported by DBW grant funds.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081