Update on RBOC-BoatU.S. Call to Action - Vessel Registration Fee Increase

An update, with thanks to thousands of boaters who have been contacting their elected representatives in the California Senate and Assembly regarding the Governor’s proposal to increase boat registration fees by 300%.

The Governor has announced his signature of a package of 24 measures that includes the budget bill junior as well as numerous budget trailer bills: https://www.gov.ca.gov/2023/07/10/governor-newsom-signs-infrastructure-budget-legislation-to-build-more-faster/

This package does not include a revision to the vessel registration fees [set forth in Vehicle Code Section 9853].  The text of the previously announced budget trailer bill has not surfaced.

This package does not include an extension of the 1-1-24 sunset of the statute providing that a portion of initial vessel registration fees is provided to CARB [set forth Vehicle Code Section 9853.6].  It is our understanding that SB 84  [Gonzalez] that would extend the sunset will not move forward, and that AB 241 [Reyes] which as amended no longer includes this provision is the measure that may move forward.

The ongoing deficiency in the state Harbors and Watercraft Revolving Fund has therefore not been resolved for the state fiscal year that began on July 1.

The Governor and his administration have not stated that they are no longer proceeding with their proposed vessel registration fee increase, or that they have revised the proposal.

The Legislature is scheduled to begin its month-long summer recess on July 14, returning on August 14 for a final month of action.

So the possibility remains that the issue will be engaged before the Legislature adjourns on September 14.

RBOC is therefore continuing with our call-to-action, encouraging boaters to continue contacting their state legislators. To do so: click here

250% Boat Registration Fee Hike - Prevented for Now

RBOC appreciates the action taken by Governor Newsom and the State Legislature to remove a proposed 250% increase in boat registration fees from the state budget in response to the serious concerns raised by RBOC, our national advocacy partner BoatU.S., and boating associations including the Pacific Inter-Club Yacht Association, Southern California Yachting Association, Marine Recreation Association, California Association of Harbor Masters and Port Captains, California Yacht Brokers Association, National Marine Manufacturers Association, California Association of Harbor Masters and Port Captains, thousands of California boaters who took action, and several other allied organizations.

"This is the right decision for boaters," responded RBOC President Winston Bumpus. "The further we look into the many different pots where boater-generated fuel tax dollars are placed, the more questions boaters have identified about the fairness of a registration fee increase."

Continued Bumpus: "For instance, boaters pay $107 million each year in fuel taxes to the state, yet only $15 million [14%] is provided to the Harbors and Watercraft Revolving Fund [HWRF] for a number of programs and services including boater education and operator certification, safety and enforcement on the waterways, boating facilities, removal of abandoned and derelict watercraft, and efforts to combat invasive species."

Added David B. Kennedy with BoatU.S. Government Affairs: "This is a great demonstration of the benefits of boaters engaging on issues that matter to their boating. Working with RBOC, over 4,000 messages were sent by BoatU.S. members to the legislature and governor. It's clear their voices were heard."

The final state budget action allocates state general fund dollars to the Harbors and Watercraft Revolving Fund [HWRF] administered by the Division of Boating and Waterways [DBW] for a variety of programs and services that benefit boaters.

RBOC and others will participate in a public stakeholder process DBW will initiate in the near future to develop recommendations to the Legislature for long-term solutions to the deficiencies that DBW and State Parks state that the HWRF is experiencing. Boat registration fees will be part of that conversation, together with efficiencies and improvements to existing programs and revisions to better serve the boating public.

RBOC Advocating for Key Changes in Response to Proposed 250% Vessel Registration Fee Increase

RBOC and a number of additional boating community organizations are advocating for key revisions to Governor Newsom’s proposed 250% vessel registration fee increase that would take effect on July 1.

California boaters would see their boat registration fees increase from a minimum of $20 every two years to at least $70 every two years as soon as July 1 if the Governor’s state budget proposal is enacted.

Budget subcommittees in the state Senate and Assembly are discussing this proposal now, and are anticipated to decide on the issue in the next few weeks. as the state budget development process moves forward in the state capitol. RBOC leaders and advocate are lobbying and testifying.

For the February 16 joint boating community letter to the Legislature on this issue: click here

More information:

The Governor’s proposed state budget for the Division of Boating and Waterways [DBW] proposes adjustments to the Harbors and Watercraft Revolving Fund [HWRF].  

The HWRF receives no monies from the state’s General Fund.

It is comprised of boat fuel tax dollars, registration fees, federal monies, and interest payments on loans from the HWRF..

The HWRF support several programs and services that benefit boaters including infrastructure such as launch ramps, education, aquatic centers, local boating law enforcement, the boater certification card, and invasive species prevention and control.

The Governor’s proposal includes an increase in the minimum amount of vessel registration fees, from $20 every two years to $70 every two years, effective July 1. 

This proposed registration fee increase is being considered as the state increasingly dedicates boater fuel tax dollars to the state parks system. and not to the HWRF. This started decades ago, and now totals $107 million each year.

In contrast, only $15 million [14%] of the fuel taxes paid by boaters are placed in the HWRF for the programs and services that directly benefit boaters. 

It is also important to acknowledge that:

  • The owners and operators of more than 640,000 registered vessels in California also pay a very significant amount of property taxes to the counties.

  • The proposed 250% registration fee increase would extract an additional $20 million from California boaters - most of whom earn under $100K per year and 95% of whom own a small boat that is 26 feet long and smaller. 

  • The fee increase be levied during this unprecedented pandemic when individuals are finding outdoor on-the-water recreation to be a safe and enjoyable activity providing significant mental and physical benefits.

  • The HWRF also supports programs that are of little or no benefit to boaters including beach restoration.

RBOC, together with other boating organizations, is urging legislators to take one or more of the following actions:

  • Reduce the amount of the proposed increase to an amount significantly less than 250%.

  • Re-direct a small, yet reasonable portion of the $107 million in annual boat fuel tax dollars to the HWRF.

  • Permanently eliminate the authority for HWRF funds to be utilized for beach erosion control.

  • Establish an equitable funding structure for the invasive species program that includes other beneficiaries with a proportional financial framework.

  • Establish in statute the stakeholder process to be undertaken over the next few years to develop long-term funding approaches to the HWRF.

  • Add to the Boating and Waterways Commission’s statutory authority the responsibility to approve loans and grants from the HWRF.

The thought is that, taken together, these actions would provide the state’s boating community with an affirmation that the State of California is taking a balanced, reasonable approach, with increased transparency, to address boating revenues in a manner that respects the proper use of those funds for boating programs and services that directly benefit the boating public.

RBOC Urges Establishment of Clear Parameters for Responsible Boating - to get boaters out on the water

RBOC is urging the State of California to establish clear and reasonable parameters regarding recreational boating on our state’s waterways that provide the opportunity for Californians to act responsibly and to get out on the water.

In its September 17 request to Governor Gavin Newsom [click here] RBOC expresses its appreciation for the Governor’s continued leadership during these most challenging of times as we all work together to protect Californians during this unprecedented COVID-19 pandemic.

RBOC understands and appreciates that actions are taken at the state and local level, dependent upon circumstances that evolve not just month by month, but day by day and even hour by hour.

RBOC and the boating community encourage all boaters to practice social/physical distancing in all aspects and other measures to protect themselves and others during these challenging times.

RBOC has posted and communicated safe practice guidelines to assist club and individual efforts [click here].

As we all endeavor to protect public health and safety and defeat this pandemic, RBOC urges Governor Newsom and his capable executive team to establish clear and reasonable parameters regarding recreational boating on our state’s waterways that provide the opportunity for Californians to act responsibly and to get out on the water.

There is an opportunity and a need to provide clarity and to encourage boating as a recreational activity that is vital to our physical and mental health during these times. Boating also supports a $17 billion sector in the state’s economy.

Without clarity, boaters are challenged by conflicting and confusing rules and guidelines that can be counter-productive. It is difficult to determine what rules apply, in which areas, and on what dates.

Consideration should also be given to the various types of boating activities, from canoes and kayaks, to personal watercraft, to water skiing, fishing, regattas and racing.

The recreational boating community, as well as the boating industry, are identified, capable and ready to engage.

Indeed, a collaborative effort with the numerous stakeholders in the San Diego area has developed a Safe Reopening Plan for Recreational Boating that was considered by the San Diego County Board of Supervisors on September 15 and will soon be integrated into the county health order. This is a significant effort that RBOC supports being considered and endorsed by the State of California. That plan is enclosed with the RBOC letter [click here].

RBOC Urges Governor to Sign Vessel Operator Definition Fix

RBOC is urging Governor Gavin Newsom to sign into law AB 1183 [Ramos], legislation that would enhance safety on the state’s waterways by clarifying that an adult is responsible for supervising the children he or she allows to operate the vessel.

RBOC supports the provisions of AB 1183 that would revise the definition of “operator” of a vessel to mean the person aboard a vessel who meets any of the following:

  • Is steering the vessel while underway;

  • Is responsible for the operation of the vessel while underway; or

  • Is at least 18 years of age and is attentive and supervising the operation of the vessel by a person 12, 13, 14, or 15 years of age.

AB 1183 is sponsored by the California State Sheriffs Association.