BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 166
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 166 (Lieu)
          As Amended  September 2, 2009
          Majority vote
           
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          |ASSEMBLY:  |79-0 |(June 1, 2009)  |SENATE: |39-0 |(September 4,  |
          |           |     |                |        |     |2009)          |
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           Original Committee Reference:   TRANS  .

           SUMMARY  :  Establishes a pilot program that authorizes the sale  
          of surrendered recreational vessels prior to their potential or  
          eventual abandonment.  Authorizes local agencies to accept title  
          of vessels from willing owners for the purposes of disposal.  

           The Senate amendments  :  
           
           1)Authorize the Department of Boating and Waterways (DBW) to  
            adopt rules and regulations to implement the bill's  
            provisions.  

          2)Clarify the definition of surrendered vessel to specifically  
            mean a recreational vessel.  

          3)Require a local agency, as a condition of receiving DBW  
            program funding, to provide data to DBW regarding the  
            abandoned and surrendered vessels removed or anticipated to be  
            removed.  (Note:  The bill does not establish a timeline on  
            when the local agency is to provide data to DBW.)
           
           4)Extend, by one year to July 1, 2013, the report due date;  
            establish the reporting time period from January 1, 2010 to  
            January 1, 2013; reassign the report recipient to the Senate  
            Committee on Natural Resources and Water instead of the Senate  
            Transportation and Housing Committee.  

          5)Extend, by one year to January 1, 2014, the bill's sunset  
            provisions.   

          EXISTING LAW  : 

          1)Holds the registered owner of an abandoned vehicle responsible  
            for the costs of abating and disposing of the vehicle, and any  








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            other past due fees and penalties.  

          2)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.  

          3)Makes it an infraction with a minimum $500 fine and maximum  
            $3,000 fine for a person to abandon a vessel upon a public  
            waterway or public or private property without the express or  
            implied consent of the owner or person in lawful possession or  
            control of the property, except for the urgent and immediate  
            concern for the safety of those aboard the vessel.  Provides  
            that 80% of the money collected as fines shall be deposited in  
            the Abandoned Watercraft Abatement Fund (AWAF).  Upon  
            appropriation by the Legislature, money in AWAF may be used  
            for grants to be awarded by the DBW to local agencies for the  
            abatement and removal of abandoned, wrecked, and dismantled  
            vessels or parts of those vessels.  Grant funds are prohibited  
            for use on commercial vessels.  

          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)States the Legislature's intent that a maximum $1 million be  
            appropriated from the Harbors and Watercraft Revolving Fund to  
            AWAF in each fiscal year and that grantees provide a 10% match  
            for use of AWAF grant funds.  

          6)Requires DBW to establish an Abandoned Vessel Advisory  
            Committee to study ways to prevent the abandonment of boats. 

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version passed by the Senate.  









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           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, reallocation, probably less than $500,000 in 2010-11  
          and in 2011-12, of DBW grant funds to local agencies operating  
          surrendered vessel programs.  

           COMMENTS  :  

          Background:  Prior to 1998, abandoned vessels were removed  
          primarily by peace officers if the vessel was left unattended on  
          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.  

          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  








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          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  
          old and dilapidated boat prior to abandonment.  This bill  
          basically implements the recommendation of the advisory  
          committee to retrieve and dispose of boats before they are  
          abandoned.  

          Prior legislation:  AB 1950 (Lieu) of 2008, a similar bill that  
          was vetoed by the Governor due to the delay in passing the  
          2008-2009 State Budget.  The Governor vetoed hundreds of bills  
          and only signed bills "that are the highest priority for  
          California."  Unfortunately, AB 1950 did not meet the Governor's  
          priority standards and, thus, was not signed.  

          AB 1014 (Canciamilla), Chapter 357, Statutes of 2004, was a  
          similar bill that was eventually amended to only require the  
          establishment of an Abandoned Vessel Advisory Committee to  
          assist DBW in submitting recommendations on strategies to  
          prevent recreational vessels from being abandoned.  

          Arguments in Support:  According to this bill's sponsors, "there  
          is a large problem with older vessels being abandoned when they  
          reach their useful life.  The state already has a program to  
          fund the abatement of these vessels after they are abandoned.   
          This bill attempts to stretch the grant dollars available by  
          abating these vessels before they are abandoned and, therefore,  
          less expensive to dispose of."  

          Arguments in Opposition:  This bill would allow a willing public  
          agency to accept a surrendered vessel that, in its sole  
          discretion, is in danger of being abandoned.  However, this bill  
          could allow boat owners to be absolved of responsibility to  
          properly retrieve and dispose of their vessel, regardless of  
          their ability to pay.  Further, without any funding limits  
          placed upon AWAF to fund surrendered vessels, the impact upon  
          the removal of abandoned vessels is undetermined but should be  
          documented in DBW's report.  Lastly, should AWAF become  
          oversubscribed and unable to fully fund surrendered vessels as  
          well as abandoned vessels, this could lead to cost pressures to  
          increase fund transfers to the AWAF from the Harbors and  
          Watercraft Revolving Fund.  

           
          Analysis Prepared by  :    Ed Imai / TRANS. / (916) 319-2093  








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