House Staff Analysis: PCS for HB 529 Yacht and Ship Brokers Located out of State

Summary

A House of Representatives staff analysis dated February 5, 2022 of the PCS for HB 529, Yacht and Ship Brokers Located out of State, sponsored by the Regulatory Reform Subcommittee. It describes how the Florida Department of Business and Professional Regulation licenses yacht and ship brokers and salespersons under ch. 326, F.S., including bond, residency and fingerprint requirements. The analysis states the PCS would exempt from licensure a person who regularly conducts business as a yacht or ship broker or salesperson in another state if the transaction is executed with a broker or salesperson licensed in Florida. Its section directory lists an amendment to s. 326.004, F.S. and an effective date. The fiscal analysis states the PCS may have a minimal decrease in licensing fees and no fiscal impact on local governments.

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                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     PCS for HB 529 Yacht and Ship Brokers Located out of State
SPONSOR(S): Regulatory Reform Subcommittee
TIED BILLS:       IDEN./SIM. BILLS:

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

    Orig. Comm.: Regulatory Reform Subcommittee                                         Wright             Anstead


                                            SUMMARY ANALYSIS
The Florida Department of Business and Professional Regulation (DBPR) regulates and licenses various
businesses and professionals in Florida through 12 divisions, including the Division of Florida Condominiums,
Timeshares, and Mobile Homes (division), which regulates yacht and ship brokers and salespersons. A person
may not act as a broker or salesperson in Florida unless they are licensed by the division.

For the purposes of the practice act, “yacht” means any vessel which is propelled by sail or machinery in the
water which exceeds 32 feet in length, and which weighs less than 300 gross tons.

A yacht and ship “broker” is a person who, for or in expectation of compensation: sells, offers, or negotiates to
sell; buys, offers, or negotiates to buy; solicits or obtains listings of; or negotiates the purchase, sale, or
exchange of, yachts for other persons. A person may not be licensed as a broker unless they have been a
salesperson for at least 2 consecutive years.

A license is not required for:
      A person who sells his or her own yacht,
      An attorney at law for services rendered in his or her professional capacity,
      A receiver, trustee, or other person acting under a court order,
      A transaction involving the sale of a new yacht, or
      A transaction involving the foreclosure of a security interest in a yacht.

The PCS provides that a license is not required for a person who regularly conducts business as a yacht or
ship broker or salesperson in another state who engages in the purchase or sale of a yacht under this act, if
the transaction is executed with a broker or salesperson licensed in this state. This limitation does not apply to
a duly licensed attorney.

The bill may have a minimal indeterminate fiscal impact on state government, and no fiscal impact on local
governments.

The PCS is effective upon becoming law.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: pcs0529.RRS
DATE: 2/5/2022
                                                 FULL ANALYSIS

                                           I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Yacht and Ship Brokers

        The Florida Department of Business and Professional Regulation (DBPR) regulates and licenses
        various businesses and professionals in Florida through 12 divisions, including the Division of Florida
        Condominiums, Timeshares, and Mobile Homes (division).1

        The division provides consumer protection for Florida residents through education, complaint
        resolution, mediation and arbitration, and developer disclosure. 2 The division has limited regulatory
        authority over the following business entities and individuals:
             Condominium Associations;
             Cooperative Associations;
             Florida Mobile Home Parks and related associations;
             Vacation Units and Timeshares;
             Yacht and Ship Brokers and related business entities; and
             Homeowners’ Associations.3

        For the purposes of the practice act, “yacht” means any vessel which is propelled by sail or machinery
        in the water which exceeds 32 feet in length, and which weighs less than 300 gross tons. 4

        A yacht and ship “broker” is a person who, for or in expectation of compensation: sells, offers, or
        negotiates to sell; buys, offers, or negotiates to buy; solicits or obtains listings of; or negotiates the
        purchase, sale, or exchange of, yachts for other persons.5 A person may not be licensed as a broker
        unless they have been a salesperson for at least 2 consecutive years. 6

        A yacht and ship “salesperson” is a person who, for or in expectation of compensation, is employed by
        a broker to perform any acts of a broker.7

        Yacht and ship brokers, salespersons, and related business organizations are regulated under ch. 326,
        F.S., and by the division.8 A person may not act as a broker or salesperson in Florida unless they are
        licensed by the division.9

        An applicant for a license as a broker or salesperson must demonstrate or provide the following to the
        division:10
             Proof of good moral character.
             Proof that they have never been convicted of a felony.
             A $25,000 bond for broker or a $10,000 bond for salespersons to the division.
             Proof that they are a resident of Florida or that they conduct business in Florida.
             A full set of fingerprints taken within the 6 months immediately preceding the submission of the
                application.
             Proof that they have not operated as a broker or salesperson without a license.

1 S. 20.165, F.S.
2 Department  of Business and Professional Regulation, Division of Florida Condominiums, Timeshares, and Mobile
Homes, http://www.myfloridalicense.com/DBPR/condos-timeshares-mobile-homes/ (last visited Feb. 4, 2022).
3 Id.
4 S. 326.002(4), F.S.
5 S. 326.002(1), F.S.
6 S. 326.004(8), F.S.
7 S. 326.002(3), F.S.
8 Ch. 326, F.S.
9 S. 326.004(1), F.S.
10 S. 326.004(6), F.S.
STORAGE NAME: pcs0529.RRS                                                                                         PAGE: 2
DATE: 2/5/2022
        A license is not required for:11
              A person who sells his or her own yacht,
              An attorney at law for services rendered in his or her professional capacity,
              A receiver, trustee, or other person acting under a court order,
              A transaction involving the sale of a new yacht, or
              A transaction involving the foreclosure of a security interest in a yacht.

        There are no provisions for a license by endorsement, or licensure for persons who are licensed in
        another jurisdiction.

        Effect of the Bill

        The PCS provides that a license is not required for a person who regularly conducts business as a
        yacht or ship broker or salesperson in another state who engages in the purchase or sale of a yacht
        under this act, if the transaction is executed with a broker or salesperson licensed in this state. This
        limitation does not apply to a duly licensed attorney.

        The PCS is effective upon becoming law.

    B. SECTION DIRECTORY:

        Section 1:         Amends s. 326.004, F.S.; relating to a licensure exception.
        Section 2:         Provides an effective date.

                            II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
            The PCS may have a minimal decrease in licensing fees to the division due to less out-of-state
            yacht and ship brokers needing to have a Florida license to do business in Florida in certain
            circumstances.

        2. Expenditures:
            None.

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
            None.

        2. Expenditures:
            None.

    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        The PCS may allow more out-of-state yacht and ship brokers to do business in Florida.

    D. FISCAL COMMENTS:
        None.



11 S. 362.004(3),   F.S.
STORAGE NAME: pcs0529.RRS                                                                                    PAGE: 3
DATE: 2/5/2022
                                              III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not Applicable. This PCS does not appear to affect county or municipal governments.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       None.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                            IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: pcs0529.RRS                                                                       PAGE: 4
DATE: 2/5/2022


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