Key Legislation Update - As Legislature Has Adjourned

This is an update on a number of key legislative issues now that the state Legislature has recessed the first year of the 2017-2018 legislative session. 

The deadline for the Governor’s consideration of the measures that passed the Legislature in the final days prior to adjournment is October 15.

Prohibition against drinking an alcoholic beverage or smoking or ingesting marijuana or any marijuana product while driving, or while riding as a passenger

SB 65 [Hill] – has been enacted into law after provisions of concern to RBOC were removed at the organization's request. Those provisions would have prohibited drinking an alcoholic beverage while operating a vessel. The current, extensive provisions of state law strike an effective balance that prevents boating under the influence [BUI], effectively enforces the BUI laws, and acknowledges the boating experience. 

Elimination of mortgage interest deduction on second homes

AB 71 [Chiu] – was not taken up on the Assembly Floor and may be considered in 2018. RBOC has advocated in opposition to this measure.

Expansion of vessels eligible to use distinctive blue lights to include fire department and fire protection district vessels while engaged in public safety activities

AB 78 [Cooper] – this RBOC-supported measure has been enacted and will take effect on January 1, 2018.

Requirement that DBW, to the extent feasible, collaborate with the California Conservation Corps and use members of the corps in implementing its invasive aquatic plants control programs

SB 704 [Galgiani] – this RBOC-supported measure has been enacted into law and will take effect on January 1, 2018.

Enactment of a 12 cents per gallon motor vehicle gasoline tax increase, and a 20 cents per gallon diesel fuel tax, with the portion of the new gasoline taxes attributable to boats placed in the State Parks and Recreation Fund

SB 1 [Hertzberg] – has been enacted into law, with the increase taking effect on November 1, 2017. At least one initiative to repeal the tax is being pursued.

Authorization for a court to impound, for up to 30 days, a boat used in a violation of the BUI laws if the owner is convicted and the conduct resulted in the unlawful killing of a person

SB 644 [Stone] – was vetoed by Governor Brown: “I do not see the need, in these tragic but narrow instances, to additionally expand the powers of government to impound private property as an added punitive measure. Because this bill will not act as a deterrent, and existing criminal and civil penalties are sufficient to address the conduct contemplated, I am returning this measure without my signature.”

Establishment of an infraction to smoke on a state coastal beach or in a unit of the state park system

AB 725 [Levine] – has passed the Legislature and proceeds to the Governor for his consideration.

Establishment of an infraction punishable by a fine of up to $100 for a person to smoke on a state coastal beach or in a unit of the state park system

SB 386 [Glaser] – has passed the Legislature and proceeds to the Governor for his consideration.

Establishment of an infraction to possess an alcoholic beverage in a vessel on portions of the Mokelumne River during a summer period for which the Board of Supervisors has banned consumption on land portions of the Stillman Magee County Park

AB 934 [Flora] – was not heard in the initial policy committee and may be considered next year.

Imposition of a quagga and zebra mussel infestation prevention fee of up to $50 annually, on non-resident owners of vessels, to be paid before the vessel is placed in the state’s waterways

AB 1587 [Levine] – was held under submission in the Senate Appropriations Committee.

Prohibition against the sale of a nonbiodegradable toxic chemical in a container that indicates that the chemical could be used in a chemical toilet, a waste facility of a recreational vehicle, or a waste facility of a vessel

AB 852 [Caballero] – did not proceed through the Legislature and can be considered next year.

Proposed $3.5 billion water, parks, climate, coastal protection, and outdoor access bond measure – with potential funding for a Riverside County aquatic center

SB 5 [DeLeón] – has passed the Legislature and has proceeded to the Governor for possible placement before voters on the June 2018 statewide ballot.

Requirement that the lead agency provide information on costs for each water contractor and the benefits each contractor will receive from the proposed Delta water conveyance project prior to water contractors entering into specified agreements

AB 791 [Frazier] - was held under submission in the Assembly Appropriations Committee.

Prohibition against the Delta Stewardship Council granting a certification of consistency with the Delta Plan until completion of the update of the 2006 Water Quality Control Plan for the Bay-Delta Estuary

AB 792 [Frazier] – did not proceed through the Legislature and can be considered next year.

Declaration of state policy that the existing state of the Sacramento-San Joaquin Delta is recognized and defined as an integral component of California’s water infrastructure

AB 793 [Frazier] – did not proceed through the Legislature and can be considered next year.

Revision of the definition of a local emergency to include conditions of disaster or extreme peril to the safety of persons and property within the territorial limits of a district established under the Harbors and Navigation Code

SB 531 [Galgiani] - did not proceed through the Legislature and can be considered next year.

RBOC-Opposed Second Home Mortgage Interest Deduction Elimination Bill Passes Committee

AB 71 [Chiu], legislation opposed by Recreational Boaters of California [RBOC] that would eliminate the state tax deduction for mortgage interest on second homes, has passed the Assembly Commitee on Revenue and Taxation.

RBOC testified in committee that the organization remains opposed to AB 71 unless this provision is removed from the bill. The California Association of Realtors, the Howard Jarvis Taxpayers Association, and others are also advocating in opposition to this provision.

RBOC supports the provisions of AB 71 that propose to increase the amount of tax credits available for low income housing.

However, RBOC is concerned that the provisions of AB 71 that would eliminate the state tax deduction for mortgage interest on second homes would lead a significant number of prospective boat purchasers not to invest in a recreational vessel.

This would have a direct, negative impact on the future purchase of recreational vessels, the multibillion dollar state boating industry including ancillary products and services, as well as the economic health of many communities across the state that rely on revenues generated by boaters.

RBOC also stresses that it is important to note that the amount of the mortgage interest deduction is already capped regardless of whether the taxpayer has one home or two, and that recreational vessels that are second homes may not necessarily be vacation homes but could be used by owners who commute to work during the week.

RBOC Opposing Legislation Eliminating Second Home Mortgage Interest Deduction

RBOC is opposing AB 71 [Chiu] unless the measure is amended to remove the provision that would eliminate the state tax deduction for mortgage interest on second homes.

RBOC supports the provisions of AB 71 that propose to increase the amount of tax credits available for low income housing.

However, RBOC is concerned that the provisions of AB 71 that would eliminate the state tax deduction for mortgage interest on second homes would lead a significant number of prospective boat purchasers not to invest in a recreational vessel.

This would have a direct, negative impact on the future purchase of recreational vessels, the multibillion dollar state boating industry including ancillary products and services, as well as the economic health of many communities across the state that rely on revenues generated by boaters.

It is also important to note that the amount of the mortgage interest deduction is already capped regardless of whether the taxpayer has one home or two, and that recreational vessels that are second homes may not necessarily be vacation homes but could be used by owners who commute to work during the week.