HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 95 Yacht and Ship Brokers' Act
SPONSOR(S): Regulatory Reform & Economic Development Subcommittee, LaMarca
TIED BILLS: IDEN./SIM. BILLS: SB 92
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 12 Y, 0 N, As CS Wright Anstead
Subcommittee
2) State Administration & Technology 10 Y, 0 N Helpling Topp
Appropriations Subcommittee
3) Commerce Committee 17 Y, 0 N Wright Hamon
SUMMARY ANALYSIS
The Florida Department of Business and Professional Regulation, Division of Florida Condominiums,
Timeshares, and Mobile Homes (division), regulates yacht and ship brokers and salespersons. 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 bill expands the definition of “yacht” by:
Increasing the number of vessels included by removing the vessel weight limit, and
Requiring that the vessel be:
o Manufactured or operated primarily for pleasure; or
o Leased, rented, or chartered to someone other than the owner for the other person's pleasure.
The bill 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 in Florida, if the
transaction is executed with a Florida broker or salesperson.
The bill amends the requirements to become a broker by:
Removing the requirement that the applicant be licensed as a salesperson for two years, and
Requiring that the applicant has been a salesperson and can either:
o Demonstrate direct involvement in at least four transactions that resulted in the sale of a yacht, or
o Certify that he or she has obtained at least 20 education credits.
See Fiscal Analysis & Economic Impact Statement for fiscal impact of the bill.
The effective date of the bill is October 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0095e.COM
DATE: 2/9/2024
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 Nov. 12, 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.
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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.
Currently, there are 2,818 licensed salespersons and 1,27012 licensed brokers. Last fiscal year, there
were 29 yacht and ship broker complaints to the division, and there was one 13 disciplinary action.14
There are no provisions for a license by endorsement, or licensure for persons who are licensed in
another jurisdiction.
Effect of the Bill
The bill expands the definition of “yacht” by:
Increasing the number of vessels included by removing the vessel weight limit, and
Requiring that the vessel be:
o Manufactured or operated primarily for pleasure; or
o Leased, rented, or chartered to someone other than the owner for the other person's
pleasure.
The bill 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 in
Florida, if the transaction is executed with a broker or salesperson licensed in this state.
The bill amends the requirements to become a broker by:
Removing the requirement that the applicant first be licensed as a salesperson for at least two
consecutive years, and
Requiring that the applicant has been a salesperson and can either:
o Demonstrate that he or she has been directly involved in at least four transactions that
resulted in the sale of a yacht, or
o Certify that he or she has obtained at least 20 education credits approved by the
division.
The effective date of the bill is October 1, 2024.
B. SECTION DIRECTORY:
Section 1: Amends s. 326.002, F.S.; relating to a definition.
Section 2: Amends s. 326.004, F.S.; relating to a licensing exception and a licensing requirement.
Section 3: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
11 S. 362.004(3), F.S.
12 There are 938 employing brokers and 332 yacht and ship brokers.
13 The division issued one warning letter.
14 Email from Chris Kingry, Deputy Director of Legislative Affairs, Department of Business and Professional Regulation,
RE: Yachts (Nov. 14, 2023).
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The bill may have an insignificant negative fiscal impact related to licensing fees collected by the
division due to fewer out-of-state yacht and ship brokers needing to have a Florida license to do
business in Florida in certain circumstances. However, the bill amends the requirements for an
individual to become a broker which may increase fees as a result in increased licensure.
2. Expenditures:
DBPR estimates that 4.00 new FTE will be needed to implement the requirements in the bill
including $286,776 in salaries and benefits and $54,526 in expense budget authority. 15 However, as
of January 2, 2024, the Division of Florida Condominiums, Timeshares and Mobile Homes, which
oversees the Yacht and Ship Program, had 28.5 vacant FTE. Of these FTE, 12.5 have been vacant
in excess of 150 days.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill will bring very large and heavy yachts under the regulatory practice act. The bill may allow
more out-of-state yacht and ship brokers to do business in Florida. Applicants for a broker license who
opt to qualify for a license by completing 20 hours of education will incur costs related to completing
those education hours.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The division will need to adopt rules to approve education credits.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
15 Florida Department of Business and Professional Regulation, Agency Analysis of 2023 Senate Bill 92, p. 4 (November
2, 2023).
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IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On November 16, 2023, the Regulatory Reform & Economic Development Subcommittee adopted an
amendment and reported the bill favorably as a committee substitute. The committee substitute clarifies
that pre-licensure education is not “continuing” education.
This analysis is drafted to the committee substitute as passed by the Regulatory Reform & Economic
Development Subcommittee.
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Statutes affected: H 95 Filed: 326.002
H 95 c1: 326.002