AN ACT CONCERNING MARINE DEALERS, MARINE SURVEYORS AND YACHT BROKERS.

This bill defines “marine surveyor” and “yacht broker” and allows the Department of Environmental Protection (DEP) commissioner to develop regulations for fees to provide registration numbers for these entities and marine dealers and engine manufacturers. It extends the current law's registration and operation requirements for marine dealers and engine manufacturers to marine surveyors and yacht brokers, with one exception.

Under current law, “marine dealers” and “marine engine manufacturers” must, by definition, have an established place of business for their trades. The bill, instead, requires these entities and marine surveyors to swear to an established place of business in an affidavit when applying for marine dealer registration numbers. The bill specifically exempts yacht brokers from this requirement.

The bill defines a “marine surveyor” as a person certified by the National Association of Marine Surveyors or accredited by the Society of Accredited Marine Surveyors and engaged in the business of inspection, survey or examination of vessels or associated equipment to assess, monitor and report on their condition.

It defines as “yacht broker” as a marine dealer, who, for compensation or an expectation of compensation, sells or negotiates to sell or offers to sell; buys or offers to buy solicits or obtains listings of; or negotiates the purchase, sale or exchange of vessels, but who does not own them.

By law, a “marine dealer” is a person engaged in the business of manufacturing, selling, or repairing new or used vessels. A “yacht broker” is, thus, a subset of the “marine dealer” category under the bill.

By law, marine dealers and engine manufacturers must have a marine dealer registration number and certificate to operate vessels they use. Current law allows a marine dealer or marine engine manufacturer to obtain one or more marine dealer registration numbers by paying a fee to DEP. They may use the registration numbers on vessels only for reasons the law allows. The bill extends the acquisition of these numbers to marine surveyors and yacht brokers. By law, a registration certificate, or a copy of it, must be carried aboard and made available for inspection upon each vessel that displays the dealer's number whenever the vessel is operating.

Under current law, marine dealers' or engine manufacturers' registration certificates must be designated as such (i. e. , marine dealer or engine manufacturer) and contain the person's name, resident and business addresses, registration number, the certificate's expiration date, and other information the commissioner may require. The bill adds marine surveyors and yacht brokers (as they are considered marine dealers) to these certificate requirements.

Under current law, marine dealers and engine manufacturers must renew their certificates on May 1 annually. Certificates expire April 30, unless terminated sooner or surrendered. DEP must notify each dealer or manufacturer of expiration at least 30 days before it. Within 90 days before expiration, each marine dealer or engine manufacturer may apply to and pay DEP for certificate renewal. Each registration number assigned to a marine dealer or engine manufacturer remains the same for as long they continue under the same name in the business described in their application. The bill extends these requirements to include marine surveyors and yacht brokers.

The bill requires any vessel that a marine surveyor uses to inspect, survey, or examine a vessel or associated equipment for assessing, monitoring, or reporting on the condition of a vessel or its associated equipment to display a marine dealer's registration number. Current law requires (1) marine dealers to display registration numbers (a) when using a vessel for sale, trade, repair or transport and (b) on any vessel sold by such dealers for no more than five days after the date of such sale and (2) engine manufacturers to display registration numbers on any vessel they use for the sole purpose of testing or demonstrating marine engines they manufactured or repaired. The bill extends the requirement to yacht brokers as well, by definition.

The law allows a marine dealer's bona fide employees to use vessels for specific reasons (see BACKGROUND). The bill allows any marine surveyor or his or her bona fide full-time employee to operate a vessel with a marine dealer's registration number when inspecting, surveying or examining the vessel or associated equipment, provided the surveyor has a written contract to perform the work and a copy of the contract is on the vessel while the surveyor's registration number is displayed on the vessel.

Under current law, a “bona fide full-time employee” is a person who a marine dealer employs for at least 35 hours per week and appears in the marine dealer's records as an employee for whom tax is withheld for Social Security, federal income tax, and any other withholding or deductions from salary the law requires. The bill adds “marine surveyors” to this and, by definition, yacht brokers.

Under current law and the bill, nobody may use a vessel with a marine dealer's or marine engine manufacturer's registration number for any purpose other than those the law allows. The bill extends this prohibition on unauthorized activities to marine surveyors' and yacht brokers' registration numbers.

The bill prohibits a marine surveyor from renting, hiring out, or conveying passengers or merchandise or freight for hire on, any vessel registered with a marine surveyor's number and certificate. The law prohibits these actions for marine dealers, and thus yacht brokers under the bill, and engine manufacturers.

The bill also prohibits marine surveyors from loaning a number certificate to anyone. By law, marine dealers and engine manufacturers may do so for specific reasons, such as for vessel demonstration, which the bill extends to yacht brokers.

Under current law, the DEP commissioner may revoke any marine dealer's or engine manufacturer's registration number if any vessel with a number issued to the dealer or engine manufacturer is used in violation of the law. The bill extends this authority to vessels with a number issued to marine surveyors and yacht brokers.

The bill allows the DEP commissioner to adopt regulations for marine dealers (including yacht brokers), engine manufacturers, and surveyors concerning: (1) establishing fees for each marine dealer registration number issued; (2) the application for such numbers; (3) examination of a marine dealer, marine engine manufacturer, or marine surveyor with respect to criteria for number issuance; and (4) issuance and display of marine dealer registration numbers.

Under current law, the fee for marine dealers and engine manufacturers is $ 50 for each number.

The law allows marine dealers to operate, or direct their bona fide full-time employees to operate, a vessel with a marine dealer's registration number when:

1. a potential purchaser or customer is aboard;

2. running a new vessel from an import terminal to the dealer's place of business;

3. test running a new vessel after receiving it from the manufacturer;

4. delivering a sold vessel to the new owner;

5. running a trade-in vessel from a buyer;

6. test running a trade-in vessel before it is made available for sale;

7. running a vessel to, and using a vessel in, a fishing tournament;

8. test running a vessel after repairs, maintenance or winter storage;

9. used in connection with the business of the marine dealer;

10. running the vessel to obtain or deliver parts for the repair of the vessel or another vessel; and

11. for the marine dealer's personal use.

Yea

Nay

(03/13/2009)

Yea

Nay

(04/16/2009)