State California Regulations TITLE 14. NATURAL RESOURCES DIVISION 4. DEPARTMENT OF BOATING AND WATERWAYS database is current through 08/11/06, Register 2006, No. 32. s 5000. Short Title. This article shall be known and may be cited as the Boating and Waterways Planning Loan Regulations under which the Department of Boating and Waterways may make planning loans to eligible applicants in accordance with the provisions of section 71.4 of the Harbors and Navigation Code. Note: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.4 and 85.2, Harbors and Navigation Code. s 5001. Loan Conformity. Any loan made to a county, city, or district for the purpose of planning for the acquisition, construction, improvement, maintenance or operation of small craft harbors shall be in conformity with this article. Note: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.4 and 85.2, Harbors and Navigation Code. s 5002. Application. No planning loan shall be made unless written application therefor is filed with the Department of Boating and Waterways. All such applications shall contain a statement of facts certified as true by the governing body of the applicant showing that the loan in the amount requested, if made, will not be in violation of the California Constitution, Article XVI, Section 18, or of the Harbors and Navigation Code, Section 71.6. Note: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.6 and 85.2, Harbors and Navigation Code. s 5003. Terms of Loan. Planning loans shall be for a period not to exceed ten years. Note: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.4 and 85.2, Harbors and Navigation Code. s 5004. Approval. Note: Authority cited: Section 38, Harbors and Navigation Code. Reference: Section 71.6, Harbors and Navigation Code. s 5100. Short Title. This article shall be known and may be cited as the Boating and Waterways Public Small Craft Harbor Loan Regulations under which the Department of Boating and Waterways may make construction loans to eligible applicants for small craft harbor facilities and connecting waterways in accordance with the provisions of section 71.4 of the Harbors and Navigation Code. Note: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.4 and 85.2, Harbors and Navigation Code. s 5101. Definitions. As used in this article: (a) "Applicant." A city, county, or district which requests or receives a loan and has the statutory authority to undertake the development of a small craft harbor, described in Section 71.4 of the Harbors and Navigation Code. (b) "Collateral." Property, both real and personal, whether tangible or not, pledged as security for repayment of a debt, including but not limited to any or all of the following: an interest in real property; a mortgage or security interest (deed of trust) in real estate, including buildings or property of the applicant, a deed of trust or lease and leaseback of the project area; an irrevocable letter of credit in an amount equal to the principal and estimated accrued interest; a collateral assignment of rents and leases equal to not less than 125 percent of applicant's total annual debt service to the department; a security agreement; a Uniform Commercial Code financing statement (UCC-1). (c) "Commission." The Boating and Waterways Commission. (d) "Contract." A contract to implement the disbursement of loan funds. (e) "Default": (1) The failure of an applicant to make any payment required by the contract within 30 days of the due date of the payment, (2) the failure of an applicant to comply with any other requirement of the contract. Such defaults, for failure to comply with terms of contract other than payments, may be cured by complying with the requirement within 180 days after receipt of written notice from the department specifying such failure, (3) the provision of false representations or false warranties by the applicant in response to any obligations under the contract, (4) the failure of an applicant to conduct appropriate proceedings in good faith to contest any levy or proceeding against the collateral or applicant's interest therein; or (5) the filing of a petition by an applicant under the provisions of the Bankruptcy Code, or the failure of an applicant to conduct appropriate proceedings in good faith to contest a bankruptcy filing by a third party when such action affects the collateral. (f) "Department." The Department of Boating and Waterways. (g) "Loan." A loan for the purpose of acquisition, construction, and/or improvement, maintenance or operation of small craft harbors, related facilities, or connecting waterways, pursuant to Harbors and Navigation Code Section 71.4. (h) "Project." Any construction, improvement, acquisition, maintenance or operation of small craft harbors, related facilities, or connecting waterways. (i) "Project Area." A delineated area in which the project is to be located. (j) "Project Costs." Those contract, equipment, labor, material and construction costs which are incurred by the applicant for the purpose of completing the project; however, such project costs shall not include indirect or overhead charges incurred by the applicant for its own personnel. (k) "Reserve Fund." A separate and independent fund for the exclusive purpose of providing extraordinary, non-routine maintenance, repair or replacement during the loan period. ( l) "Surplus Revenues." Revenues received by an applicant from any source within a project area less the applicant's expenses for (1) loan repayment, and (2) operation and maintenance (including the Reserve Fund) of the project; tax revenues may be considered as a revenue source. (m) "Unpaid Balance." Total outstanding debt, including principal, interest and penalties, if applicable. Note: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.4 and 85.2, Harbors and Navigation Code. s 5102. Application. (a) Preliminary Coordination: Loans will be processed in accordance with departmental guidelines and criteria. The applicant may seek departmental assistance in formulating the project. (b) Preliminary Study: The applicant's formal request for a loan will not be submitted until the department's reconnaissance survey of the proposed project area has determined the initial acceptability of the project and the applicant has been so notified. (c) Formal Application: Upon receipt of a favorable preliminary report from the department, the applicant may make a formal loan application which shall include: (1) Feasibility Study: A report containing sufficient information and detail to demonstrate that the project is both engineeringly and financially feasible. The report shall include, but not be limited to: (A) A project plan and map which establishes the project area and location. (B) Preliminary project layout and designs of project features in sufficient detail to develop accurate cost estimates. (C) A plan for operational and fiscal management of the project throughout the loan period. (D) The proposed method and means of retiring the loan, meeting other financial obligations of the project, and, if the project is to be undertaken with funds in addition to the loan applied for, a funding plan indicating the sources of such additional construction funds. (E) A report on the effect the project would have on the environment. The department will provide the applicant with a copy of the latest law on this subject. (F) A plan to capitalize a reserve fund in an amount specified by the department. (G) Collateral acceptable to the department. (2) A designation of a representative authorized to act for the applicant to sign any necessary papers or to otherwise act as the representative of the applicant. Note: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.4 and 85.2, Harbors and Navigation Code. s 5103. Feasibility Review. The applicant's formal application will be judged as to the following considerations: (a) Engineering feasibility, including a determination as to whether or not the project can be developed within the total amount of funds to be made available. (b) Financial feasibility, including an analysis of the availability of capital to finance construction to completion, users' willingness and ability to pay anticipated berthing and other charges used in estimating revenues, and evaluation of the sufficiency of revenues to cover annual cost on a year-by-year basis, including maintenance of a reserve fund and the amortization of the applied for loan. Note: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.4 and 85.2, Harbors and Navigation Code. s 5104. Priority. When considering applications, the department shall, in addition to priorities set forth in the Harbors and Navigation Code, rank applications based upon the following: (a) First priority shall be given to projects based upon issues of the health and safety of boaters using the facilities. (b) Next, priority shall be given to projects currently receiving phased funding from the department. (c) Next, priority shall be given based upon availability of matching funds. (d) Next, priority shall be given based upon relative demand for facilities in the same market area, as determined by the department. Consideration shall be given to: (1) Population size of the market area. (2) Similar facilities in the market area. (3) Boating activity in the market area. (e) In the event that a priority between applications cannot be established by Subsections (a) through (d), priority shall be given to applicants with greatest ability to repay the loan. (1) Evaluation of the applicant's ability to repay shall be based on the applicant's audited financial statements for the previous three years, if available. (2) If financial statements are not available, the applicant will provide other information acceptable to the department which establishes a financial ability to repay the loan. Note: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.4, 85.2 and 87, Harbors and Navigation Code. s 5105. Loan Terms and Conditions. The agreement between the department and the applicant shall include but not be limited to the following provisions: (a) A provision to the effect that the loan will be used for the purpose of developing the project in a continuous and expeditious manner to completion and that the project when completed will be made available and open to all on equal and reasonable terms. (b) A provision specifying that no loan funds for construction purposes shall be released to an applicant until final plans and specifications for the project (or a particular portion thereof to be constructed with such funds) are approved in writing by the department. (c) A provision requiring applicant to comply with department approved construction plans and specifications and change orders thereto. (d) A repayment plan setting forth the provisions for repayment of principal and interest until the loan is repaid in full. (e) A provision permitting inspection of the project by the department or its agents at any time during construction or after completion, and permitting the inspection and audit of all records of the applicant relating to the project until the loan is paid in full. (f) A provision that the applicant will provide fire and extended coverage insurance to ninety percent of the value of insurable structures within the project area with the department named as additional insured. (g) A provision that the applicant will provide insurance, with the department named as additional insured, to cover liability arising from design, planning, construction, maintenance or operation of the project in the following minimum amounts: (1) Bodily injury $300,000 each person $1,000,000 each occurrence (2) Property and product damage $500,000 each occurrence $1,000,000 each aggregate (h) A provision allowing applicant to provide self-insurance in the amounts prescribed in subsection (g), above. (i) A provision that during the loan repayment period applicant shall not sell, lease, transfer, exchange, mortgage or hypothecate in any manner all or any portion of the real property or improvements within the project area without prior written approval of the department. (j) A provision requiring applicant to establish and capitalize a reserve fund in an amount and under terms and conditions specified by the department. (1) The reserve fund shall be an interest-bearing account. (2) In order to withdraw funds from the reserve fund, the signature of the director, or his or her designee shall be required. (3) All funds remaining in the reserve fund account shall be returned to the borrower upon full performance of the loan contract. However, unless and until all reserve funds, including accumulated interest, are first committed to improvements at the marina, the borrower may not apply for additional department funding for any project within the marina for a period of five years beginning on the last date any reserve funds are returned to the borrower. (k) A statement that surplus revenues shall be administered as follows: (1) The applicant shall retain and invest in reasonable liquid assets all surplus revenues; (2) Except for the purpose of making capital improvements and at the discretion of the department, no expenditure of surplus revenues other than for the advance repayment of the loan will be permitted until the loan is paid in full; (3) The applicant shall record all surplus revenues in a separate account and such account shall reflect all receipts by the applicant of revenues originating within the project area. (l ) A provision that the department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and copy any records for possible audit for a minimum of three years after final payment, unless a longer period of records retention is stipulated. (m) A provision that the borrower agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Note: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.4 and 85.2, Harbors and Navigation Code; and General Services, Standard Agreement Language, as found in GTC 699 (as amended 6/99). s 5106. Project Development. (a) All plans and specifications shall be prepared by persons licensed by the State of California to undertake the type of design work required by the project. All design plans, specifications and reports shall be signed by the licensee. The designer's license number shall appear on the documents. Plans and specifications for work to be accomplished by force account shall be in final form to permit immediate undertaking of the project. (b) Property Control. Land and water area to be acquired with the loan funds shall be acquired promptly after execution of the loan agreement. No loan funds for strictly construction purposes shall be released until all land and water areas necessary for the construction of the project have been acquired as evidenced by a title insurance policy or other evidence satisfactory to the department. If the loan is based upon a leasehold estate, applicant's leasehold estate (including renewal options) as specified by contract and with finite time periods, must extend at least to the end of the loan period. Note: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.4 and 85.2, Harbors and Navigation Code. s 5107. Default Remedies. Upon the occurrence of a default, the department: (a) May exercise all rights and remedies accorded to the department by law, including, but not limited to, those rights established in the Harbors and Navigation Code; (b) May declare all unperformed obligations, in whole or in part, of the applicant immediately due and payable without demand or notice. (c) May deposit funds obtained from the sale of collateral, less reasonable cost of recovery or maintenance of property, in the Harbors and Watercraft Revolving Fund. Any remaining funds shall be provided to the borrower, in accordance with California law. Note: Authority cited: Sections 63.9(e) and 71.4, Harbors and Navigation Code. Reference: Sections 71.4 and 85.2, Harbors and Navigation Code. s 5150. Short Title. This article shall be known and may be cited as the Boating and Waterways Launching Facility Grant Regulations under which the Department of Boating and Waterways may make grants to eligible applicants in accordance with the provisions of Section 72.5 of the Harbors and Navigation Code. Note: Authority cited: Sections 63.9(e) and 72.5, Harbors and Navigation Code. Reference: Sections 72.5 and 85.2, Harbors and Navigation Code. s 5151. Grant Conformity. Any grant made to a county, city, or district for the purpose of construction and development of small craft launching facilities shall be in conformity with this article. Note: Authority cited: Sections 63.9(e) and 72.5, Harbors and Navigation Code. Reference: Sections 72.5 and 85.2, Harbors and Navigation Code. s 5152. Application. Applications for launching facility grants shall be in accordance with procedures established by the department, and shall include a feasibility report, prepared at applicant's expense, containing demonstrations of site suitability, engineering and financial feasibility, and economic justification. Note: Authority cited: Sections 63.9(e) and 72.5, Harbors and Navigation Code. Reference: Sections 72.6 and 85.2, Harbors and Navigation Code. s 5153. Approval of Grant. Note: Authority cited: Section 38, Harbors and Navigation Code. Reference: Sections 72.6 and 82, Harbors and Navigation Code. s 5154. Construction and Operation Agreement. A construction and operation agreement between the applicant and the department will be entered into after funds are appropriated, specifying that applicant will carry insurance as required by the department and that the completed facility will be operated and maintained for a period of 20 years at no cost to the department. If the applicant fails to construct, maintain or operate the facility in accrdance with the terms of the agreement, he may be required, at the option of the department, to reimburse the department for the State's share of the costs of development on a prorated unexpired term basis. Note: Authority cited: Sections 63.9(e) and 72.5, Harbors and Navigation Code. Reference: Sections 72.5 and 85.2, Harbors and Navigation Code. s 5160. Short Title. This article shall be known and may be cited as the Boating and Waterways Floating Rest Room Grant Regulations under which the Department of Boating and Waterways may make grants to eligible applicants in accordance with the provisions of Section 72.7 of the Harbors and Navigation Code. Note: Authority cited: Sections 63.9(e) and 72.7, Harbors and Navigation Code. Reference: Sections 72.7 and 85.2, Harbors and Navigation Code. s 5161. Grant Conformity. Any grant made to a county, city, district, or other public agency for the purpose of construction and development of floating rest room facilities shall be in conformity with this article. Note: Authority cited: Sections 63.9(e) and 72.7, Harbors and Navigation Code. Reference: Sections 72.7 and 85.2, Harbors and Navigation Code. s 5162. Application. Applications for floating rest room grants shall include: (a) A demonstration that the body of water on which the rest room would be located is affected by significant seasonal fluctuation in water surface elevation and/or a lack of conveniently located and accessible landside sanitary facilities; and (b) A finding that due to either or both of the aforesaid conditions, conventional rest rooms cannot meet the needs of boaters and the presence of floating rest rooms may lessen environmental degradation of the body of water. Note: Authority cited: Sections 63.9(e) and 72.7, Harbors and Navigation Code. Reference: Sections 72.7 and 85.2, Harbors and Navigation Code. s 5163. Construction and Operation Agreement. A construction and operation agreement between the applicant and the Department will be entered into after funds are appropriated, specifying that applicant will carry insurance as required by the Department, and that the completed rest room will be operated and maintained for a period of ten years at no cost to the Department. If the applicant fails to construct, maintain or operate the rest room in accordance with the terms of the agreement, the applicant may be required, at the option of the Department, to reimburse the Department for the State's share of the costs of development on a prorated unexpired term basis. Note: Authority cited: Sections 63.9(e) and 72.7, Harbors and Navigation Code. Reference: Sections 72.7 and 85.2, Harbors and Navigation Code. s 5170. Short Title. This article shall be known and may be cited as the Boating and Waterways Recreational Marina Loan Regulations under which the Department of Boating and Waterways may make loans to private marina owners in accordance with the provisions of section 76.3 of the Harbors and Navigation Code. Note: Authority cited: Sections 63.9(e) and 76.8, Harbors and Navigation Code. Reference: Sections 76.3 and 85.2, Harbors and Navigation Code. s 5171. Definitions. For the purposes of this article, the definitions found in Harbors and Navigation Code Sections 30 through 40 and 76 through 76.8 shall apply unless otherwise indicated. The following supplementary definitions shall also govern the construction of this article: (a) "Collateral." Property, both real and personal, whether tangible or intangible, pledged as security for repayment of a debt, including but not limited to: a mortgage or security interest in real estate, buildings, equipment accounts, contract rights and chattel paper of the borrower or any third party legally bound as a surety with the knowledge that the surety is bound. (b) "Commission." The Boating and Waterways Commission. (c) "Contract." The Recreational Marina Loan agreement to implement the disbursement of loan funds. (d) "Default": (1) the failure of a borrower to make any payment required by the contract within 30 days of the due date of the payment, (2) the failure of a borrower to comply with any other requirement of the contract. Such default may be cured by complying with the requirement within 30 days after receipt of written notice from the department specifying such failure, (3) the provision of false representations or false warranties by the borrower in response to any obligations under the contract, (4) the failure of a borrower to conduct appropriate proceedings in good faith to contest any levy or proceeding against the collateral or borrower's interest therein; or (5) the filing of a petition by a borrower under the provisions of the Bankruptcy Code, or the failure of a borrower to conduct appropriate proceedings in good faith to contest a bankruptcy filing by a third party when such action affects the collateral. (e) "Department." The Department of Boating and Waterways. (f) "Loan" A loan made pursuant to Section 76.3 of the Harbors and Navigation Code. (g) "Project." The development of boating facilities specified in the contract. (h) "Project Area." A delineated area in which the project is to be located. (i) "Project Costs." Those equipment, labor, material and construction costs that are incurred by the borrower for the purpose of completing the project; however, such project costs shall not include indirect or overhead charges incurred by the borrower for its own personnel and shall not include any expenses incurred prior to the effective date of the contract. (j) "Reserve Fund." A separate and independent fund for the exclusive purpose of providing extraordinary, non-routine, maintenance, repair or replacement during the loan period. (k) "Unpaid Balance." Total outstanding debt, including principal, interest and penalties, if applicable. Note: Authority cited: Sections 63.9(e) and 76.8, Harbors and Navigation Code. Reference: Sections 76.3 and 85.2, Harbors and Navigation Code. s 5172. Application. (a) Loan Application: An application for any loan under Section 76.3 of the Harbors and Navigation Code shall be filed with the department and shall include a copy of: (1) Federal income tax returns for the business and/or owners and partners, as requested by the department, for the three years immediately preceding an application for a loan. Federal income tax returns shall not be released by the department, except with permission of an applicant or borrower, unless ordered, as specified by court order. (2) All land and water use permits required such as by federal, state and local planning agencies needed to develop the project. (3) An "as is" or current appraisal of any assets to be used as loan collateral required by the department. (4) Preliminary construction plans, including a site plan and any normally required engineering. (5) Preliminary title report for any property used as loan collateral. (6) A feasibility study containing sufficient information and detail to demonstrate that the project is engineeringly and financially feasible. (7) Evidence of compliance with the California Environmental Quality Act [Division 13 (commencing with Section 21000) of the Public Resources Code]. (8) A list of all costs incurred by the borrower in processing and obtaining loan proceeds. (9) The proposed method and means of retiring the loan, meeting other financial obligations of the project, and, if the project is to be undertaken with funds in addition to the construction loan applied for, a funding plan indicating the sources of such additional construction funds. Note: Authority cited: Sections 63.9(e) and 76.8, Harbors and Navigation Code. Reference: Sections 76.3, 76.4 and 85.2, Harbors and Navigation Code. s 5173. Application Review. (a) The borrower's formal application will be judged as to the following principal considerations: (1) Engineering feasibility, including a determination as to whether or not the project can be developed within the total amount of funds to be made available. (2) Financial feasibility, including an analysis of the availability of capital to finance construction to completion, market analysis or market survey to determine the financial feasibility of the project, anticipated berthing and other charges used in estimating revenues, and evaluation of the sufficiency of revenues to cover annual costs on a year-by-year basis, including the amortization of the applied-for loan. (b) Upon request of the applicant, the department may issue a letter of intent, explaining the availability of State funds, the status of the loan application and other requirements necessary for the approval of the loan. Note: Authority cited: Sections 63.9(e) and 76.8, Harbors and Navigation Code. Reference: Sections 76.3, 76.4, 76.5 and 85.2, Harbors and Navigation Code. s 5174. Priority. When considering applications, the department shall, in addition to priorities set forward in Sections 76 through 77.1 of the Harbors and Navigation Code, rank borrowers based upon the following; however, in no case shall the department make a loan to any recreational marina that restricts access or bars the public other than in ways that are lawful and consistent with general commercial business practices: (a) First priority shall be given to projects based upon issues of the health and safety of boaters using the facilities. (b) Next, priority will be given for completion of projects that are being phase-funded. (c) Next, priority shall be given to projects that are receiving significant capital investment funds from borrowers in addition to loan funds. (d) Next, priority shall be given based upon relative demand for facilities in the market area. Consideration shall be given to: (1) Population size of the market area. (2) Similar facilities in the market area. (3) Boating activity in the market area. (e) In the event that a priority between applications cannot be established by subsections (a) through (c), priority will be given to borrowers with the greatest ability to repay the loan. Evaluation of the borrower's ability to repay shall be based on: (1) The department's relative security position. (2) The loan-to-value (LTV) ratio. (3) The borrower's audited financial statements for the three years immediately preceding the application, if available. i. Each of these statements shall consist of a balance sheet, an income statement, and a statement of changes in financial position, all of which shall have been prepared according to generally accepted accounting principles. ii. If the latest complete financial statement is more than six months old, an interim financial statement not older than sixty days shall be included. (4) Other information acceptable to the department, if financial statements are not available, which establishes a financial ability to repay the loan, such as: i. Federal income tax returns, filed with the application, and ii. Credit reports from credit reporting agencies. (5) An appraisal report showing the current market value of real and personal property which is suitable as collateral. (6) The type and liquidity of the collateral. (f) In the event that a priority between applications cannot be established by subsections (a) through (d), priority will be given to those applications with the smallest dollar value, in order to allow the maximum number of projects to be made within the limits of the Recreational Marina Loan Program. Note: Authority cited: Sections 63.9(e) and 76.8, Harbors and Navigation Code. Reference: Sections 76.3, 76.4, 76.5 and 85.2, Harbors and Navigation Code. s 5175. Loan Terms and Conditions. Loan Terms and conditions, in addition to those specified in Sections 76 through 77.1 of the Harbors and Navigation Code, shall also include the following provisions: (a) The borrower shall establish and capitalize a reserve fund in an amount and under terms and conditions specified by the department. (1) The reserve fund shall be an interest-bearing account. (2) In order to withdraw funds from the reserve fund, the signature of the director, or his or her designee, shall be required. (3) All funds remaining in the reserve fund account shall be returned to the borrower upon full performance of the loan contract. However, unless and until all reserve funds, including accumulated interest, are first committed to improvements at the marina, the borrower may not apply for additional department funding for any project within the marina for a period of five years beginning on the last date any reserve funds are returned to the borrower. (b) The loan shall be secured by collateral equal to or greater than 110 percent of the loan amount, such as, but not limited to, a mortgage or security interest in real estate, and buildings or personal property of the borrower. These items may only be subject to encumbrances that the department may approve, such as, assignment or pledges of leases, and personal or corporate guarantees. Only the unencumbered equity portion of the property accepted as collateral shall be considered as collateral. Personal guarantees of the principals shall be required, unless reasons satisfactory to the department are presented that justify not requiring such guarantees. The value of the collateral shall be subject to reappraisal as requested by the department from time to time at its discretion, and if, as a result of such reappraisal, it is determined that the value of the collateral has dropped below 110 percent of the then-outstanding loan amount, the borrower shall provide additional collateral as security as required by the department. (c) Real estate or stationary machinery or equipment pledged as a significant portion of collateral for repayment of a guaranteed loan shall be located within the State of California. Real estate pledged as collateral shall not include land that has been used as a solid waste disposal site. Any appraisal of property shall be conducted by a licensed appraiser acceptable to the borrower and the department. (d) The borrower shall obtain and maintain, throughout the duration of the loan, fire and extended coverage insurance in an amount equal to 100 percent of the current replacement cost of all improvements which are part of the collateral, with the department named as additional insured. (e) The borrower will obtain insurance to cover liability arising from design, planning, construction, maintenance or operation of the project, with the department named as additional insured, in the following minimum amounts: (1) Bodily injury $300,000 each person, $1,000,000 each occurrence. (2) Property and product damage $500,000 each occurrence, $1,000,000 each aggregate. (f) The loan shall become due and payable in full upon transfer of the marina, unless such transfer is: (1) By reason of death of the borrower, and the marina is transferred to the borrower's heirs. (2) Transfer is to another business entity controlled by the borrower, provided that the transaction does not result in a material change in control or ownership of the recreational marina and collateral associated with the loan. (g) The loan shall not be subordinated to any future loans obtained by a private marina owner except in those cases involving loans acquired for refinancing previous senior loans. (h) A provision that the department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and copy any records for possible audit for a minimum of three years after final payment, unless a longer period of records retention is stipulated. (i) A provision that the borrower agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Note: Authority cited: Sections 63.9(e) and 76.8, Harbors and Navigation Code. Reference: Sections 76.3, 76.6 and 85.2, Harbors and Navigation Code; and Department of General Services (DGS), Standard Agreement Language, as found in GTC 699 (and as may be subsequently amended by DGS). s 5176. Default Remedies. Upon the occurrence of a default, the department: (a) Has and may exercise all rights and remedies accorded to the department by law, including but not limited to the provisions and remedies contained in the California Uniform Commercial Code; (b) May declare all unperformed obligations, in whole or in part, of borrower immediately due and payable without demand or notice; (c) May require borrower to take any and all action necessary to transfer the collateral in an amount equal to the unpaid balance of the loan to the secured party; (d) May deposit all funds obtained from the sale of collateral, less reasonable costs of recovery or maintenance of property, to the Harbors and Watercraft Revolving Fund. Note: Authority cited: Sections 63.9(e) and 76.8, Harbors and Navigation Code. Reference: Sections 76.3, 77.1 and 85.2, Harbors and Navigation Code. s 5200. Shoreside Facilities for Removing Waste from Vessel Holding Tank. Note: Authority cited: Sections 38, 63.9 and 669, Harbors and Naigation Code. Reference: Section 654.1, Harbors and Navigation Code. s 6500. Purpose. s 6501. Applicability. (a) This article applies to each vessel used on waters subject to the jurisdiction of the State of California and on the high seas for vessels whose last port of call was within the State of California that: (1) Is used by its operator for recreational purposes; or (2) Is required to be numbered under Section 9850 of the California Vehicle Code. (b) This article does not apply to a vessel required to have a certificate of inspection under Chapter 1 of Title 46, Code of Federal Regulations. Note: Authority cited: Section 656, Harbors and Navigation Code. Reference: Section 656, Harbors and Navigation Code. s 6502. Immediate Notification of Death or Disappearance. (a) When, as a result of an occurrence that involves a vessel or its equipment, a person dies or disappears from a vessel, the operator shall, without delay, by the quickest means available, notify the Department of Boating and Waterways and the nearest enforcement agency having jurisdiction over the waterbody of: (1) The date, time, and exact location of the occurrence; (2) The name of each person who died or disappeared; (3) The registration number or name of the vessel as documented, and (4) The names and addresses of the owner and operator. (b) When the operator of a vessel cannot give the notice required by paragraph (a) of this section, each person on board the vessel shall notify the Department of Boating and Waterways and the enforcement agency having jurisdiction over the waterbody or determine that the notice has been given. Note: Authority cited: Section 656, Harbors and Navigation Code. Reference: Section 656, Harbors and Navigation Code. s 6503. Peace Officer Reports to Department. Pursuant to section 656(d) of the Harbors and Navigation Code, a peace officer or harbor policeman, upon receiving an initial report of a casualty involving the death or disappearance of a person as a result of a boating occurrence, shall immediately forward such report, by quickest means available, to the Department of Boating and Waterways in Sacramento. Note: Authority cited: Section 656, Harbors and Navigation Code. Reference: Section 656, Harbors and Navigation Code. s 6504. Boat Accident Reports in Writing. (a) The operator(s) or owner(s) of the boat(s) shall, in addition to the report required by section 6502, submit a written report(s) on forms provided by the Department of Boating and Waterways, directly to the State of California, Department of Boating and Waterways, to the address shown on the forms when, as a result of an occurrence that involves the vessel or its equipment: (1) A person dies; (2) A person is injured and requires medical treatment beyond first aid; (3) Damage to the vessel and other property damage totals more than $500, or there is a complete loss of a vessel; or (4) A person disappears from the vessel under circumstances that indicate death or injury. (b) A report required by this section must be made within forty-eight hours of the occurrence if: (1) A person dies within twenty-four hours of the occurrence; (2) A person disappears; (3) A person is injured and receives medical treatment beyond first aid. (c) A report required by this section must be made within ten days of the occurrence if an earlier report is not required by this section if: (1) A person dies more than twenty-four hours after the occurrence; (2) Damage to the vessel and other property damage totals more than $500, or there is a complete loss of a vessel. Note: Authority cited: Section 656, Harbors and Navigation Code. Reference: Section 656, Harbors and Navigation Code. s 6505. Content. Each accident report must be in writing, dated upon completion, and signed by the person who prepared it, and must contain, if available, at least the following information about the accident: (a) The registration numbers or names as documented of each vessel involved. (b) The name and address of each owner of each vessel involved. (c) The name of the nearest city or town, the county, the state, and the body of water. (d) The time and date the casualty or accident occurred. (e) The location on the water. (f) The visibility, weather, and water conditions. (g) The estimated air and water temperatures. (h) The name, address, age, or date of birth, telephone number, vessel operating experience, and boating safety training of the operator making the report. (i) The name and address of each operator of each vessel involved. (j) The number of persons on board and towed on skis by each vessel. (k) The name, address, and date of birth of each person who died, was injured or disappeared. ( l) The cause of each death. (m) Weather forecasts available to, and weather reports used by, the operator before and during the use of each vessel. (n) The name and address of each owner of property involved. (o) The number, availability, and use of personal flotation devices. (p) The type and size of each fire extinguisher used. (q) The nature and extent of each injury. (r) A description of all property damage and vessel damage with an estimate of the cost of all repairs. (s) A description of each equipment failure that caused or contributed to the cause of the casualty or accident. (t) A description of the vessel casualty or accident. (u) The type of vessel operation (cruising, drifting, fishing, hunting, skiing, racing or other) and the type of accident (capsizing, sinking, fire, explosion, or other). (v) The opinion of the person making the report as to the cause of the accident. (w) The make, model, type (open, cabin, house, or other), beam width at widest point, length, depth from transom to keel, horsepower, propulsion (outboard, inboard, inboard/outdrive, sail, or other), fuel (gas, diesel, or other), construction (wood, steel, aluminum, plastic, fiberglass, or other), and year built (model year) of the reporting operator's vessel. (x) The name, address, and telephone number of each witness. (y) The manufacturer's hull identification number, if any, of reporting operator's vessel. (z) The name, address, and telephone number of the person submitting the report. Note: Authority cited: Section 656, Harbors and Navigation Code. Reference: Section 656, Harbors and Navigation Code. s 6550. Purpose. s 6550.5. Scope of Articles 4 and 5. (a) The regulations in this article and in Article 5 apply to vessels operating on the waters of this State that are defined in Government Code Section 170. All vessels complying with the construction and equipment requirements of the International Regulations for Preventing Collisions at Sea, 1972, are considered to be in compliance with these Rules. (b) Where federal law, including the United States Coast Guard regulations, provides an exemption to any of the provisions of the federal equipment or operation requirements which conform to the state requirements set forth in Articles 4 and 5 of this chapter, such exemption shall also apply to the state requirements. (c) Any peace officer or harbor policeman authorized to enforce the provisions of Chapter 5 of the Harbors and Navigation Code may inspect a vessel using California waterways for compliance with safety laws, rules, and/or regulations where he has probable cause or a reasonable suspicion to believe that a violation of such laws, rules, or regulations exists. (d) Any peace officer authorized to enforce the provisions of Chapter 5 of the Harbors and Navigation Code may order the operator of an unsafe vessel to remove such vessel to the shore or to a safe moorage or anchorage in accordance with the requirements of this subsection. An officer may order an unsafe vessel so removed where it is being operated with one or more of the following hazardous conditions, where such conditions cannot be corrected on the spot, and where, in the judgment of the officer, continued operation of the vessel would create an immediate danger to life, limb, or property. (1) Boat being used without sufficient personal flotation devices, as prescribed by Section 6565 of this chapter; (2) Boat being used without sufficient firefighting devices, as prescribed by Section 6569 of this chapter; (3) Boat does not display required navigation lights between sunset and sunrise, as prescribed by Section 6600.1 of this Chapter; (4) Boat has fuel leakage from either the fuel system or engine, or both; (5) Boat has accumulation of fuel in bilges or compartment other than a fuel tank; (6) Boat does not have legal and serviceable ventilation system, as prescribed by Section 6575 of this chapter; (7) Boat does not have proper backfire flame control system, as prescribed by Section 6574 of this chapter; (8) Boat is overloaded to such an extent that there exists so little freeboard the danger of sinking or capsizing may be imminent. Any person operating an unsafe vessel, as specified in this subsection, shall remove it to the shore or to a safe moorage or anchorage as directed by the peace officer. Note: Authority cited: Sections 662 and 655, Harbors and Navigation Code. Reference: Sections 652, 655, 663, 663.5, and 663.6, Harbors and Navigation Code; and PL 96-591, Rule 1(b)(ii). s 6551. Invalidity of Provision or of Application to Particular Person or Circumstance. If any provision of this article, or its application to any person or circumstance, is held invalid the remainder of this article, and the application of its provisions to any other person or circumstance, is not affected. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Sections 650 and 652, Harbors and Navigation Code. s 6552. Definitions. As used in Articles 4 and 5: (a) "Approved" means approved by the Commandant of the United States Coast Guard. (b) "Barge" means any nonself-propelled vessel. (c) "Carrying passengers for hire" means the carriage of a person by a vessel for a valuable consideration, whether directly or indirectly flowing to the owner, charterer, operator, agent, or any other person interested in the vessel. (d) "Ferry" includes a vessel having provisions only for deck passengers and/or vehicles, operating on a short run on a frequent schedule between two points over the most direct water route, and offering a public service of a type normally attributed to a bridge or tunnel. "Ferry" does not include a vessel navigating the water of the ocean. (e) "Fire extinguisher" means a marine-type fire extinguisher, as approved by the Commandant of the Coast Guard. (f) "High Seas" means: (1) Crescent City Harbor. Those waters outside of a line drawn from Crescent City Entrance Light to the southeasternmost extremity of Whaler Island. (2) Arcata-Humboldt Bay. Those waters outside of a line drawn from Humboldt Bay Entrance Light 4 to Humboldt Bay Entrance Light 3. (3) Noyo River. Those waters outside of a line drawn from Noyo River Entrance Daybeacon 4 to Noyo River Entrance Light 5. (4) Albion River. Those waters outside of a line drawn on an axis of 030 true through Albion River Light 1 across Albion Cove. (5) Bodega Bay. Those waters outside of a line drawn from the seaward extremity of Bodega Harbor North Breakwater to Bodega Harbor Entrance Light 1. (6) Tomales Bay. Those waters outside of an east-west line drawn from Sand Point to Avalis Beach. (7) San Francisco Harbor. Those waters outside of a straight line drawn from Point Bonita Light through Mile Rocks Light to the shore. (8) Pillar Point Harbor. Those waters outside of a line drawn from Pillar Point Harbor Light 6 to Pillar Point Harbor Entrance Light. (9) Santa Cruz Harbor. Those waters outside of a line drawn from the seaward extremity of the Santa Cruz Harbor East Breakwater to Santa Cruz Harbor West Breakwater Light; thence to Santa Cruz Light. (10) Moss Landing Harbor. Those waters outside of a line drawn from the seaward extremity of the pier located 0.3 mile south of Moss Landing Harbor entrance to the seaward extremity of the Moss Landing Harbor North Breakwater. (11) Monterey Harbor. Those waters outside of a line drawn from Monterey Harbor Light 6 to the northern extremity of Monterey Municipal Wharf 2. (12) Estero-Morro Bay. Those waters outside of a line drawn from the seaward extremity of the Morro Bay East Breakwater to the Morro Bay West Breakwater Light. (13) San Luis Obispo Bay. Those waters outside of a line drawn from the southernmost extremity of Fossil Point to the seaward extremity of Whaler Island Breakwater. (14) Santa Barbara Harbor. Those waters outside of a line drawn from Santa Barbara Harbor Light 4 to Santa Barbara Harbor Breakwater Light. (15) Ventura Marina. Those waters outside of a line drawn from Ventura Marina South Jetty Light 6 to Ventura Marina Breakwater South Light 3; thence to Ventura Marina North Jetty Light 7. (16) Channel Islands Harbor. (A) Those waters outside of a line drawn from Channel Islands Harbor South Jetty Light 2 to Channel Islands Harbor Breakwater South Light 1. (B) Those waters outside of a line drawn from Channel Islands Harbor Breakwater North Light to Channel Islands Harbor North Jetty Light 5. (17) Port Hueneme. Those waters outside of a line drawn from Port Hueneme East Jetty Light 4 to Port Hueneme West Jetty Light 3. (18) Marina del Rey. (A) Those waters outside of a line drawn from Marina del Rey Breakwater South Light 1 to Marina del Rey Light 4. (B) Those waters outside of a line drawn from Marina del Rey Breakwater North Light 2 to Marina del Rey Light 3. (C) Those waters outside of a line drawn from Marina del Rey Light 4 to the seaward extremity of the Ballona Creek South Jetty. (19) Redondo Harbor. Those waters outside of a line drawn from Redondo Beach East Jetty Light 2 to Redondo Beach West Jetty Light 3. (20) San Pedro Bay-Anaheim Bay. (A) Those waters outside of a line drawn across the seaward extremities of Anaheim Bay Entrance Jetties; thence to Long Beach Breakwater East End Light 1. (B) Those waters outside of a line drawn from Long Beach Channel Entrance Light 2 to Long Beach Light. (C) Those waters outside of a line drawn from Los Angeles Main Entrance Channel Light 2 to Los Angeles Light. (21) Newport Bay. Those waters outside of a line drawn from Newport Bay East Jetty Light 4 to Newport Bay West Jetty Light 3. (22) Santa Catalina Island. Those waters within the harbors of Santa Catalina Island. (23) Dana Point Harbor. Those waters outside of a line drawn from Dana Point Jetty Light 6 to Dana Point Breakwater Light 5. (24) Oceanside Harbor. Those waters outside of a line drawn from Oceanside South Jetty Light 4 to Oceanside Breakwater Light 3. (25) Mission Bay. Those waters outside of a line drawn from Mission Bay South Jetty Light 2 to Mission Bay North Jetty Light 1. (26) San Diego Harbor. Those waters outside of a line drawn from Zuniga Jetty Light "V" to Zuniga Jetty Light "Z"; thence to Point Loma Light. (27) Other Entrances. At all buoyed entrances from seaward to bays, sounds, rivers, or other estuaries for which specific lines are not described in this section, the waters outside of a line approximately parallel with the general trend of the shore, drawn through the outermost buoy or buoys or other aid to navigation of any system of aids. (g) "Inland Waters" means any waters within the territorial limits of California other than those that are defined in Section 6552(f) of these regulations as the "high seas." (h) "Machinery" includes an inboard or outboard engine and any other type of motor or mechanical device capable of propelling a vessel. (i) "Nonself-propelled vessel" means a vessel without sufficient means for self-propulsion and is required to be towed. (j) "Operator" means the person who operates or who has charge of the navigation or use of a vessel. (k) "Passenger" means every person, other than the master and a member of the crew or other persons employed or engaged in any capacity on board a vessel in the business of that vessel. ( l "Power driven vessel" means any vessel propelled by machinery. (m) "Sailing vessel" means any vessel under sail provided that propelling machinery, if fitted, is not being used. (n) "Ship's lifeboat" means a lifeboat used solely for lifesaving purposes and does not include dinghies, tenders, speedboats, or other types of craft carried aboard a vessel and used for other than lifesaving purposes. (o) "Whistle" means any sound signaling appliance capable of producing the prescribed blasts. (p) "Boat" means any vessel which is any of the following: (1) Manufactured or used primarily for noncommercial use. (2) Leased, rented, or chartered to another for the latter's noncommercial use. (3) Engaged in the carrying of six or fewer passengers, including those for-hire vessels carrying more than three passengers while using inland waters of the state that are not declared navigable by the United States Coast Guard. (4) Commercial vessels required to be numbered pursuant to Section 9850 of the Vehicle Code. (q) "Vessel" includes every description of water craft, including nondisplacement craft and seaplanes, used or capable of being used as a means of transportation on water; (r) "Seaplane" includes any aircraft designed to maneuver on the water. (s) "Vessel engaged in fishing" means any vessel fishing with nets, lines, trawls, or other fishing apparatus which restricts maneuverability, but does not include a vessel fishing with trolling lines or other fishing apparatus which do not restrict maneuverability; (t) "Vessel not under command" means a vessel which, through some exceptional circumstance, is unable to maneuver as required by these Rules, and is, therefore, unable to keep out of the way of another vessel. (u) "Vessel restricted in her ability to maneuver" means a vessel which, from the nature of her work, is restricted in her ability to maneuver as required by these Rules, and is, therefore, unable to keep out of the way of another vessel; vessels restricted in their ability to maneuver include, but are not limited to: (1) A vessel engaged in laying, servicing, or picking up a navigation mark, submarine cable, or pipeline; (2) A vessel engaged in dredging, surveying, or underwater operations; (3) A vessel engaged in replenishment or transferring persons, provisions, or cargo while underway; (4) A vessel engaged in the launching or recovery of aircraft; (5) A vessel engaged in minesweeping operations; and (6) A vessel engaged in a towing operation such as severely restricts the towing vessel and her tow in their ability to deviate from their course. (v) "Underway" means that a vessel is not at anchor, or made fast to the shore, or aground. (w) "Length" and "breadth" of a vessel mean her length overall and greatest breadth. (x) Vessels shall be deemed to be in sight of one another only when one can be observed visually from the other. (y) "Restricted visibility" means any condition in which visibility is restricted by fog, mist, falling snow, heavy rainstorms, sandstorms, or any other similar causes. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6553. Classes of Motorboats. s 6554. Measurement. s 6555. Equipment for Sound Signals. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code; and PL 96-591, Rule 33. s 6556. Whistle or Other Sound-Producing Mechanical Appliance -While Operating on Inland Waters. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code; and PL 96-591, Annex II. s 6557. Equipment for Sound Signals -While Operating on the "High Seas." Note: Authority cited: Sections 652, 655.3 and 669, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6557.1. Technical Details of Sound Signal Appliances Required for Use on Vessels Operating on the "High Seas." Note: Authority cited: Sections 652, 655.3 and 669, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6558. Foghorn. s 6559. Foghorn -While Operating on Inland Waters. s 6560. Foghorn -While Operating on the "High Seas." s 6561. Bell and Other Fog Sound Signal Devices. s 6562. Bell and Other Fog Sound Signal Devices -While Operating on Inland Waters. s 6563. Bell and Other Sound Signal Devices -While Operating on the "High Seas." s 6564. Personal Flotation Devices. Pursuant to Section 652, Harbors and Navigation Code, a vessel being operated on the waters of this State shall carry personal flotation equipment as prescribed in Sections 6565 to 6566, inclusive. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6565. Personal Flotation Devices for Boats. In accord with Federal regulations (33 CFR Part 175), a boat or recreational boat shall be equipped with personal flotation devices as set forth in sections 6565.2 through 6565.9. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6565.1. Applicability. Note: Authority cited: Sections 38, 82, 652, 655.3 and 669, Harbors and Navigation Code. Reference: Division 3, Chapter 5, Harbors and Navigation Code. s 6565.2. Definitions. As used in sections 6565.2 through 6565.8: (a) "Boat" means any vessel manufactured or used primarily for noncommercial use; leased, rented, or chartered to another for the latter's noncommercial use; or engaged in the carrying of six or fewer passengers. (b) "Recreational boat" means any vessel manufactured or used primarily for noncommercial use; or leased, rented, or chartered to another for the latter's noncommercial use. It does not include a vessel engaged in the carrying of six or fewer passengers. (c) "Vessel" includes every description of watercraft other than a seaplane on the water, used or capable of being used as a means of transportation on the water. (d) "Use" means operate, navigate, or employ. (e) "Passenger" means every person carried on board a vessel other than: (1) The owner or his representative; (2) The operator; (3) Bona fide members of the crew engaged in the business of the vessel who have contributed no consideration for their carriage and who are paid for their services; or (4) Any guest on board a vessel which is being used exclusively for pleasure purposes who has not contributed any consideration, directly or indirectly, for his carriage. (f) "Racing shell, rowing scull, racing canoes and racing kayak," means a manually-propelled boat that is recognized by national or international racing associations for use in competitive racing and one in which all occupants row, scull, or paddle, with the exception of a coxswain, if one is provided, and is not designed to carry and does not carry any equipment not solely for competitive racing. Note: Authority cited: Sections 652 and 669, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6565.3. Applicability. Sections 6565.2 through 6565.8 apply to all recreational boats that are propelled or controlled by machinery, sails, oars, paddles, poles, or another vessel except racing shells, rowing sculls, racing canoes, and racing kayaks. Note: Authority cited: Sections 652 and 669, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6565.4. Definitions. As used in sections 6565.2 through 6565.8: (a) "Personal flotation device" means a device that is approved by the Commandant under 46 CFR Part 160. (b) "PFD" means "personal flotation device." Note: Authority cited: Sections 652 and 669, Harbors and Navigation Code.Reference: Section 652, Harbors and Navigation Code. s 6565.5. Personal Flotation Devices Required. Except as provided in Section 6565.6: (a) Effective January 1, 1998, no person may use a recreational boat unless at least one PFD of the following types is on board for each person: (1) Type I PFD, (2) Type II PFD, or (3) Type III PFD. (b) Prior to January 1, 1998, a Type IV may be carried in lieu of any Type I, II, or III PFD, for each person on board a recreational boat less than 16 feet in length or any canoe or kayak of any length. (c) No person may use a recreational boat 16 feet or more in length, except a canoe or kayak, unless (1) One Type IV PFD is on board, and (2) At least one PFD of the following types is on board for each person: (i) Type I PFD; (ii) Type II PFD; or (iii) Type III PFD. Note: Authority cited: Sections 652 and 669, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6565.6. Exceptions. A Type V PFD may be carried in lieu of any PFD required under Section 6565.5 provided: (a) The approval label on the Type V PFD indicates that the device is approved: (1) For the activity in which the boat is being used; or (2) As a substitute for a PFD of the Type required on the boat in use; (b) The PFD is used in accordance with any requirements on the approval label; and (c) The PFD is used in accordance with requirements in its owner's manual, if the approval label makes reference to such a manual. Note: Authority cited: Sections 652 and 669, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6565.7. Stowage. (a) No person may use a recreational boat unless each Type I, II or III PFD required by Section 6565.5 or equivalent type allowed by 6565.6 is readily accessible. (b) No person may use a recreational boat unless each Type IV PFD required by Section 6565.5 or equivalent type allowed by 6565.6 is immediately available. Note: Authority cited: Sections 652 and 669, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6565.8. Conditions; Size and Fit; Approval Marking. No person may use a recreational boat unless each PFD required by Section 6565.5 or allowed by Section 6565.6 is: (a) In serviceable condition; (b) Of an appropriate size and fit for the intended wearer, as marked on the approval label; and (c) Legibly marked with its approval number, as specified in 46 CFR Part 160. Note: Authority cited: Sections 652 and 669, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6565.9. Personal Flotation Device Equivalents. Note: Authority cited: Sections 652, 655.3 and 669, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6566. Life Preservers and Lifesaving Equipment -Passengers-for-Hire Vessels. (a) In accordance with Federal regulation (46 CFR, Part 25.25), commercial vessels and those carrying passengers for hire shall be equipped with life preservers and other lifesaving equipment as follows: (1) Application. This section applies to each vessel to which this section applies, except: (A) Vessels used for noncommercial use; (B) Vessels leased, rented, or chartered to another for the latter's noncommercial use; (C) Commercial vessels propelled by sail not carrying passengers for hire; or (D) Commercial barges not carrying passengers for hire. (2) Definitions. As used in this section: (A) "Approved" means approved by the Commandant under 46 CFR, Part 160. (B) "Use" means operate, navigate, or employ. (3) Life preservers and other lifesaving equipment required. (A) No person may operate a vessel to which this section applies unless it meets the requirements of this section. (B) Each vessel not carrying passengers for hire less than 40 feet in length, must have at least one life preserver, buoyant vest, or special purpose water safety buoyant device intended to be worn approved by the Commandant under 46 CFR, Part 160, of a suitable size for each person on board. Kapok and fibrous glass life preservers that do not have plastic-covered pad inserts are not acceptable as equipment required by this paragraph. (C) Each vessel carrying passengers for hire and each vessel 40 feet in length or longer not carrying passengers for hire must have at least one approved life preserver of a suitable size for each person on board. Kapok and fibrous glass life preservers which do not have plastic-covered pad inserts are not acceptable as equipment required by this paragraph. (D) Each vessel 26 feet in length or longer must have at least one ring life buoy approved under Title 46, CFR, Subparts 160.009 or 160.050, in addition to the equipment required in paragraph (B) or (C) of this section. (E) On each vessel, regardless of length and regardless of whether carrying passengers for hire, an approved commercial hybrid PFD may be substituted for a life preserver, buoyant vest, or marine buoyant device required by paragraphs (B) or (C) of this section, only if it is: 1. Worn when the vessel is underway and the intended wearer is not within an enclosed space; 2. Used in accordance with the conditions marked on the PFD and in the owner's manual; and 3. Labeled for use on uninspected commercial vessels. (F) Each vessel not carrying passengers for hire may substitute an exposure suit for a life preserver, buoyant vest, or marine buoyant device required under paragraphs (B) or (C) of this section. Each exposure suit carried in accordance with this paragraph must be of a type approved under Title 46, CFR, Subpart 160.071. (4) Marking. The lifesaving equipment required by this section must be legibly marked as specified in 46 CFR, Part 160. (5) Storage. (A) The lifesaving equipment designed to be worn as required in subsection (3), (B) (C) and (E) must be readily accessible. (B) Lifesaving equipment designed to be thrown as required in subsection (3) (D) must be immediately available. (6) Condition. The lifesaving equipment required by this section must be in serviceable condition. (7) Retroreflective material for personal flotation devices. (A) Each life preserver, each marine buoyant device intended to be worn, and each buoyant vest carried on a vessel to which this section applies, must have Type I retroreflective material that is approved under 6 CFR, Subpart 164,018. (B) Each item required to have retroreflective material must have at least 200 sq. cm (31 sq. in.) of material attached to the front side, at least 200 sq. cm of material on its back side, and if the item is reversible, at least 200 sq. cm of material on each of its reversible sides. The material attached on each side of the item must be divided equally between the upper quadrants of the side, and the material in each quadrant must be attached as closely as possible to the shoulder area of the item. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Sections 650 and 652, Harbors and Navigation Code. s 6567. Life Preserver and Other Lifesaving Equipment -Class 3(b) Motorboat. s 6568. Life Preserver and Other Lifesaving Equipment -Barge Carrying Passengers for Hire. s 6568.1. Lifesaving Devices for Boats Other Than Motorboats. s 6569. Fire Extinguishing Equipment. Pursuant to Section 652, Harbors and Navigation Code, a boat being operated on the waters of this State shall be provided with fire extinguishers as prescribed in Sections 6570 to 6573, inclusive, which shall at all times be kept in condition for immediate and effective use, and shall be so placed as to be readily accessible. Note: Authority cited: Sections 652 and 669, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6570. Fire Extinguishing Equipment -Definitions. (a) A "B" type fire extinguisher means a fire extinguisher system suitable for extinguishing fires involving flammable liquids, greases, etc. (b) "Hand-portable fire extinguisher" means a fire extinguisher of either of the following minimum sizes: Carbon Dry Foam dioxide, chemicals, Freon, Size gallons pounds pounds pounds I..... 1 1/4 4 2 2 1/2 II.... 2 1/2 15 10 - (c) "Semiportable fire extinguisher" means a fire extinguisher system of the following size or larger which is fitted with suitable hose and nozzle or other practicable means so that all portions of the space concerned may be covered. Carbon Dry Foam dioxide, chemicals, Size gallons pounds pounds III.... 12 35 20 (d) "Fixed fire extinguishing system" means a fire extinguishing system of an approved carbon dioxide type, designed and installed in agreement with the applicable provisions of subpart 76.15 of subchapter H of Title 46, Code of Federal Regulations, as amended. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6571. Fire Extinguishing Equipment - Vaporizing -Liquid Type. A vaporizing-liquid type fire extinguisher containing carbon tetrachloride or chlorobromomethane or other toxic vaporizing liquids are not acceptable as equipment required by Section 6573. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6572. Fire Extinguishing Equipment -Markings Required. (a) Each hand portable fire extinguisher and semiportable fire extinguishing system shall have permanently attached thereto a metallic name plate giving the (1) Name of the item (2) Rated capacity in gallons, quarts, or pounds (3) Name of the person or firm for whom approved (4) Address of the person or firm for whom approved, and (5) The identifying mark of the actual manufacturer. (b) Each hand portable fire extinguisher and semiportable fire extinguisher shall bear a label containing the "marine type" listing manifest issued by a recognized laboratory, as defined in 46 CFR 162.028-5 and 162.039-5. This label will include the classification of the extinguisher in accordance with the Coast Guard approval number, thus: "Marine Type USCG Type ________ , Approval No. 162.028/________ , or 162.039/Ex. ____." Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6573. Fire Extinguishing Equipment -Requirements. (a) Boat Propelled by Machinery Sixty-five Feet or Less in Length. A boat propelled by machinery 65 feet or less in length shall carry at least the minimum number of hand-portable fire extinguishers set forth in Table 2. TABLE 2 Minimum number of type B-I hand-portable fire extinguishers required [FN1] ________________________________________________ Without fixed fire With fixed fire Size of extinguishing system extinguishing system boat Length, feet in machinery space in machinery space Under 16..................... 1 0 16 and over, but under 26.... 1 0 26 and over, but under 40.... 2 1 40 and over, but not over 3 2 65......................... FN1 One type B-II hand-portable fire extinguisher may be substituted for two type B-I hand-portable fire extinguishers. (1) Exceptions: A boat of any of the following types is not required to carry a fire extinguisher. (A) Less than 26 feet in length, not carrying passengers for hire, propelled by an outboard motor, without permanently installed fuel tanks, and of a construction which will not permit the entrapment of explosive or flammable gasses or vapors. (b) Boat Propelled by Machinery Over Sixty-Five Feet in Length. A boat propelled by machinery over 65 feet in length shall carry at least the minimum number of hand-portable fire extinguishers set forth in Table 3 and in addition shall carry: (1) One type B-II hand-portable fire extinguisher for each 1,000 B.H.P. of the main engine or fraction thereof. However, not more than six such extinguishers need be carried. (2) On boats propelled by machinery over 65 feet in length and over 300 gross tons, either one type B-III semi-portable fire extinguishing system shall be fitted, or alternatively, a fixed fire extinguishing system shall be fitted in the machinery space. TABLE 3 Gross tonnage Minimum number of B-II hand- ________________ Over Not over portable fire extinguishers __ 50....... 1 50 100...... 2 100 500...... 3 500 1,000.... 6 1,000 __....... 8 (c) Barge Carrying Passengers. (1) 65 Feet in Length or Less. A barge 65 feet in length or less carrying passengers, which is regularly operated with a boat propelled by machinery, shall be fitted with hand-portable fire extinguishers as required by Table 2 depending upon the length of the barge. (2) Over 65 Feet in Length. A barge of over 65 feet in length carrying passengers, which is regularly operated with a boat propelled by machinery, shall be fitted with hand-portable fire extinguishers as required by Table 3, depending upon the gross tonnage of the barge. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6574. Backfire Flame Control. Pursuant to Section 652, Harbors and Navigation Code, every gasoline engine installed in a boat after April 25, 1940, except outboard motors, shall be equipped with one of the following: (a) Backfire flame arrestor, suitably secured to the air intake with flametight connection, that is approved or complies with SAE J-1928 or UL 1111 and marked accordingly. (b) A reed valve assembly or an air and fuel induction system installed in accordance with SAE J-1928. (c) Any attachment to the carburetor or location of the engine air induction system by means of which flames caused by engine backfire will be dispersed to the atmosphere outside the vessel in such a manner that the flames will not endanger the vessel, persons on board, or nearby vessels and structures. All attachments shall be of metallic construction with flametight connections and firmly secured to withstand vibration, shock, and engine backfire. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6575. Ventilation. (a) Pursuant to Section 652, Harbors and Navigation Code, all boats propelled by machinery being operated on the waters of this State except open boats, and as provided in paragraphs (c) and (d) of this section, the construction or decking over of which is commenced after April 25, 1940, and which use fuel having a flashpoint of 110U F. or less, shall have at least 2 ventilator ducts, fitted with cowls or their equivalent, for the efficient removal of explosive or flammable gases from the bilges of every engine and fuel tank compartment. There shall be at least one exhaust duct installed so as to extend from the open atmosphere to the lower portion of the bilge and at least one intake duct installed so as to extend to a point at least midway to the bilge or at least below the level of the carburetor air intake. The cowls shall be located and trimmed for maximum effectiveness and in such a manner so as to prevent displaced fumes from being recirculated. (b) As used in this section, the term "open boats" means those boats propelled by machinery with all engine and fuel tank compartments, and other spaces to which explosive or flammable gases and vapors from these compartments may flow, open to the atmosphere and so arranged as to prevent the entrapment of such gases and vapors within the vessel. (c) Boats, as defined in the Federal Boat Safety Act of 1971, built after July 31, 1980, or which are in compliance with 33 CFR, Part 183, are excepted from these requirements. (d) Boats, as defined in the Federal Boat Safety Act of 1971, built after July 31, 1978, are excepted from the requirements of paragraph (a) for fuel tank compartments that - (1) Contain a permanently installed fuel tank if each electrical component is ignition protected in accordance with 33 CFR 183.410(a); and (2) Contain fuel tanks that vent to the outside of the boat. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6575.1. Operator Responsibility. No person may operate a boat built after July 31, 1980, that has a gasoline engine for electrical generation, mechanical power, or propulsion unless it is equipped with an operable ventilation system that meets the requirements of Section 6575.5(a), (b), (d), (e), and (f), and 6575.6(a). Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code; and 33 CFR 175.201. s 6575.2. Applicability. This regulation applies to all new boats that - (a) Have gasoline engines for electrical generation, mechanical power, or propulsion; and (b) Are built after July 31, 1980, except that a manufacturer may elect to comply with this subpart at any time after July 31, 1978. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code; and 33 CFR 183.601. s 6575.3. Definitions. "AMCA" means Air Moving and Conditioning Association. "ASTM" means American Society for Testing and Materials. "Fuel" means gasoline. "Open to the atmosphere" means a compartment that has at least 15 square inches of open area directly exposed to the atmosphere for each cubic foot of net compartment volume. "UL" means Underwriters Laboratories, Incorporated. Note: Authority cited: Sections 652 and 656.4, Harbors and Navigation Code. Reference: Sections 650 and 652, Harbors and Navigation Code; and 33 CFR 183.605. s 6575.4. Incorporation by Reference. (a) The following standards are incorporated by reference. Copies may be obtained from the sources indicated. They are also available for inspection at the Department of Boating and Waterways; Archives, Secretary of State, 1020 "O" Street, Sacramento, California 95814; Coast Guard Headquarters, 2100 Second Street, S.W., Washington, D.C. 20593-0001; and at the Office of the Federal Register Library, National Archives, Washington, D.C. 20408. (1) AMCA Standard 210-74, Figure 12, dated 1974, Air Moving and Conditioning Association International, Inc., 30 West University Drive, Arlington Heights, Illinois 60004. (2) ASTM Standard D-471-79 dated May 1979. American Society for Testing and Materials International, 100 Barr Harbor Drive, P.O. Box C700, West Conshohocken, Pennsylvania 19428-2959. (3) UL Standard 1128, dated August 23, 1977, published by Underwriters Laboratories, Incorporated, is available by contacting COMM-2000, 1414 Brook Drive, Downers Grove, Illinois 60515, telephone number 1 (888) 653-3503, or on the Internet: www.COMM-2000 .com. Note: Authority cited: Sections 652 and 656.4, Harbors and Navigation Code. Reference: Sections 650 and 652, Harbors and Navigation Code; and 33 CFR 183.607. s 6575.5. Powered Ventilation System. (a) Each compartment in a boat that has a permanently installed gasoline engine with a cranking motor must - (1) Be open to the atmosphere, or (2) Be ventilated by an exhaust blower system. (b) Each exhaust blower or combination of blowers must be rated an at air flow capacity not less than that computed by the formulas given in Table A, Column 2. Blower rating must be determined according to AMCA Standard 210-74, Figure 12, dated 1974, or UL Standard 1128 dated August 23, 1977. FR=V/2 + 100 FO=0.2V+ 40 M Table A Col. 1 [FN1] Col. 2 [FN2] Col. 3 [FN3] Below 34.................. Fr=50..................... Fo=20 34 to 100................. Fr=1.5V................... Fo=0.6V Over 100.................. Fr=V/2 + 100.............. Fo=0.2V + 40 FN1 Net compartment volume of engine compartment and compartments open thereto (V) cubic feet. FN2 Rated blower capacity (Fr) cubic feet per minute. FN3 Blower system output (Fo) cubic feet per minute. (c) Each exhaust blower system required by paragraph (a) (2) of this section must exhaust air from the boat at a rate which meets the requirements of Table A, Column 3, when the engine is not operating. (d) Each intake duct for an exhaust blower must be in the lower one-third of the compartment and above the normal level of accumulated bilge water. (e) More than one exhaust blower may be used in combination to meet the requirements of this section. (f) Each boat that is required to have an exhaust blower must have a label that - (1) Is located as close as practicable to each ignition switch; (2) Is in plain view of the operator; and (3) Has at least the following information: WARNING -GASOLINE VAPORS CAN EXPLODE. BEFORE STARTING ENGINE, OPERATE BLOWER FOR 4 MINUTES AND CHECK ENGINE COMPARTMENT BILGE FOR GASOLINE VAPORS. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code; and 33 CFR 183.610. s 6575.6. Natural Ventilation System. (a) Except for compartments open to the atmosphere, a natural ventilation system that meets the requirements of Section 6575.7 must be provided for each compartment in a boat that - (1) Contains a permanently installed gasoline engine; (2) Has openings between it and a compartment that requires ventilation, where the aggregate area of those openings exceeds two percent of the area between the compartments, except as provided in paragraph (c) of this section; (3) Contains a permanently installed fuel tank and an electrical component that is not ignition protected in accordance with 33 CFR 183.410(a); (4) Contains a fuel tank that vents into that compartment; or (5) Contains a nonmetallic fuel tank with an aggregate permeability rate of more than the greater of 1.2 grams of fuel loss in 24 hours, or 1.2 grams of fuel loss in 24 hours per cubic foot of net compartment volume. Reference fuel "C" at 40 C plus or minus 2 C from ASTM standard D-471-79, dated May, 1979, is to be used in determining the permeability rate. (b) Each natural ventilation system must be constructed so that - (1) Each supply opening required in Section 6575.7 is located on the exterior surface of a boat; or (2) Air will flow into or out of the supply or exhaust openings required in Section 6575.7 when the boat is in a wind flowing from bow to stern at a velocity of ten miles per hour when the engine is not operating. (c) An accommodation compartment above a compartment requiring ventilation that is separated from the compartment requiring ventilation by a deck or other structure is excepted from paragraph (a)(2) of this section. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code; and 33 CFR 183.620. s 6575.7. Standards for Natural Ventilation. (a) For the purpose of Section 6575.6, "natural ventilation" means an airflow in a compartment in a boat achieved by having - (1) A supply opening or duct from the atmosphere or from a ventilated compartment or from a compartment that is open to the atmosphere; and (2) An exhaust opening into another ventilated compartment or an exhaust duct to the atmosphere. (b) Each exhaust opening or exhaust duct must originate in the lower third of the compartment. (c) Each supply opening or supply duct and each exhaust opening or exhaust duct in a compartment must be above the normal accumulation of bilge water. (d) Except as provided in paragraph (e) of this section, supply openings or supply ducts and exhaust openings or exhaust ducts must each have a minimum aggregate internal cross-sectional area calculated as follows: A = 5 1n (V/5); where: (1) A is the minimum aggregate internal cross-sectional area of the openings or ducts in square inches; (2) V is the net compartment volume in cubic feet, including the net volume of other compartments connected by openings that exceed two percent of the area between the compartments; and (3) 1n (V/5) is the natural logarithm of the quantity (V/5). (e) The minimum internal cross-sectional area of each supply opening or duct and exhaust opening or duct must exceed 3.0 square inches. (f) The minimum internal cross-sectional area of terminal fittings for flexible ventilation ducts installed to meet the requirements of paragraph (d) of this section must not be less than 80 percent of the required internal cross-sectional area of the flexible ventilation duct. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code; and 33 CFR 183.630. s 6576. Liquefied Petroleum Gas. Pursuant to section 652, Harbors and Navigation Code, a vessel carrying passengers for hire on the waters of this State using liquefied petroleum gas or compressed natural gas for heating, cooking, or lighting must adhere to the federal regulations as contained in 46 CFR 25, 58, 147, and 184. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6580. Capacity Plate. s 6581. Exemptions. s 6590. Law Enforcement Vessels. Vessels used as law enforcement vessels under the authority of Section 663.5, Harbors and Navigation Code, shall be identified as follows: (a) They shall be of a distinctive color compatible with use as harbor police vessels. (b) They shall be marked with words such as "Harbor Police," "Port Police," "Harbor Patrol," or "Port Patrol" or their equivalent. These identifying words shall be placed on each side of the vessel in a manner which will provide clear legibility and maximum opportunity for identification. The letters shall be of block character, of good proportion, and not less than six (6) inches in height. They shall be of a color which will form a good contrast with the color of the background and so maintained as to be clearly visible and legible. In addition to this marking, the vessel shall display prominently the identification of the operating agency. Note: Authority cited: Section 663.5, Harbors and Navigation Code. Reference: Sections 650 and 663.5, Harbors and Navigation Code. s 6591. Blue Light for Enforcement Vessels. The distinctive light prescribed by Section 652.5, Harbors and Navigation Code, for law enforcement vessels shall be a blue colored, revolving horizontal beam, low intensity light rotating or appearing to rotate because of a pulsating effect gained by means of a rotating reflector which causes a flashing or periodic peak intensity effect. The light shall be located at any effective point on the forward exterior of the vessel. A shield or other device, fixed or movable, to restrict the arc of visibility may be used if desired. Note: Authority cited: Section 652.5, Harbors and Navigation Code. Reference: Sections 650 and 652.5, Harbors and Navigation Code. s 6592. Sound Level Measuring Instruments. Pursuant to the authority provided in Section 654.05(d) of the Harbors and Navigation Code, a precision sound level meter which meets the Type II requirements of ANSI S1.4-1983 (revision of S1.4-1971), titled "Specification For Sound Level Meters," published in 1983, may be substituted for the Type I referred to in the Society of Automotive Engineers Technical Report J34 for measuring pleasure motorboat sound levels, titled "Exterior Sound Level Measurement Procedure For Pleasure Motorboats -SAE J34," published in 1973. Note: Authority cited: Sections 652 and 654.05(d), Harbors and Navigation Code. Reference: Sections 652, 654, 654.05 and 654.06, Harbors and Navigation Code. s 6593. Short Title. This article shall be known and may be cited as the Boating Safety and Enforcement Financial Aid Program Regulations under which the Department of Boating and Waterways may provide State financial aid to local agencies' qualified boating safety and enforcement programs pursuant to Section 663.7 of the Harbors and Navigation Code. Note: Authority cited: Section 663.7(k), Harbors and Navigation Code. Reference: Sections 650 and 663.7, Harbors and Navigation Code. s 6593.1. Purpose. The purpose of the Boating Safety and Enforcement Financial Aid Program is to augment a participating agency's revenues for boating safety and enforcement activities when an agency incurs boating safety and enforcement program costs that exceed actual vessel taxes received by the county for boating safety and enforcement activities. The program is not intended to fully fund a participating agency's boating safety and enforcement activities, and agency participation in the program is entirely voluntary. Note: Authority cited: Section 663.7(k), Harbors and Navigation Code. Reference: Sections 650 and 663.7, Harbors and Navigation Code. s 6593.2. Definitions. The following definitions shall be used in this article. (a) "Administrative costs" are the costs incurred by a participating agency for indirect services necessary for the operation of a participating agency's boating safety and enforcement program. (b) "Agency" means a county of the State, or a city, district or other public agency within a county, that participates, or applies to participate, in the Boating Safety and Enforcement Financial Aid Program. (c) "Allowable costs or expenses" means the costs or expenditures made by a participating agency that are authorized by the department. (d) "Baseline financial aid eligibility allocation" means a participating agency's financial eligibility allocation as described in Section 6593.7 of this article. (e) "Boat patrol" means a boating safety and enforcement unit of qualified boating safety and enforcement officers (full-time or seasonal). (f) "Boating safety and enforcement officer" means trained personnel authorized and retained by a participating agency to perform boating safety and enforcement activities. (g) "Boating safety programs" and "boating safety and enforcement programs" are participating agency programs comprised of boating safety and enforcement activities. (h) "Calendar year" means the period of twelve consecutive months that runs from January 1 through December 31 of the same year. (i) "Department" means the California Department of Boating and Waterways, unless otherwise specified. (j) "Equipment" means boating-specific equipment or other support equipment used to implement or conduct boating safety and enforcement activities. (k) "Fiscal year" means the period of twelve consecutive months that runs from July 1 of one year through June 30 of the following year. (l) "Fringe benefits percent" is the percentage used by the participating or applicant agency to estimate the costs of non-salary benefits for an employee, such as workers' compensation premiums, retirement contributions, uniform allowances, insurance, payments made under the Federal Insurance Contributions Act, and any other employee benefit approved by the department. The percent is expressed as a percentage of direct salary costs and is calculated by dividing the fringe benefits cost by the direct salary cost of an employee. (m) "Mid-range or equivalent journeyman level average hourly pay" is the average hourly pay for a typical employee of an applicant agency. The mid-range is used if there are an odd number of pay steps or an equivalent is used if there is an even number of pay steps. An equivalent is calculated by averaging the two middle pay steps. (n) "Quarter" means a period of three consecutive months during the fiscal year. The quarters of the State's fiscal year are comprised of four consecutive three-month segments, as noted below. (1) Quarter 1 = July 1 through September 30 (2) Quarter 2 = October 1 through December 31 (3) Quarter 3 = January 1 through March 31, and (4) Quarter 4 = April 1 through June 30. (o) "Program reduction" means a reduction in a participating agency's annual allocation due to insufficient program expenditures as described in Section 6593.7 of this article. (p) "Unallocated funds" are funds that have not been spent or used by participating agencies' boating safety and enforcement programs pursuant to section 6593.7(c) of this article. (q) "Vessel taxes received by the county" are funds equal to 100 percent of the amount received by the county from the share of personal property taxes on vessels allocated to the County General Fund for boating safety and enforcement activities. Note: Authority cited: Section 663.7(k), Harbors and Navigation Code. Reference: Sections 650 and 663.7, Harbors and Navigation Code. s 6593.3. Boating Safety and Enforcement Activities. For the purposes of receiving State financial aid under Section 663.7 of the Harbors and Navigation Code, boating safety and enforcement activities include: (a) Enforcement of State and local laws and regulations for boating activities by means of vessel, foot patrol, motor vehicle, or aircraft. Educating the public on State and local laws and regulations is included as enforcement. (b) Inspection of vessels for compliance with required safety equipment, registration requirements, and sanitation and pollution control that satisfy the intent of State law. (c) Supervision of organized on-the-water boating activities or water events that allows for the protection and safety of the boating public during such activities or events. (d) Search and rescue operations originating from on-the-water boating activities, including the recovery of drowned bodies that are the result of boating activities. Note: Authority cited: Section 663.7(k), Harbors and Navigation Code. Reference: Sections 650 and 663.7, Harbors and Navigation Code. s 6593.4. Eligibility. Agencies requesting permission to participate are entitled to receive State financial aid for boating safety and enforcement programs on waters under their jurisdiction, provided the following conditions are satisfied: (a) An applicant agency provides a certified copy of the resolution or minute order from the county board of supervisors with the application for financial aid under the provisions of Section 663.7 of the Harbors and Navigation Code. (1) In the case of a local government agency within a county, a certified copy of the resolution or minute order shall accompany the application for financial aid from that local government entity, as well as a certified copy of the resolution or minute order from its county board of supervisors, authorizing the agency to participate in the program. (2) The resolution or minute order shall: (A) Authorize the chairperson, or designated representative, to sign the application and contract. (B) Authorize the chairperson, or designated agency representative, to sign the department's form for each reimbursement claim. (C) Authorize the county auditor to certify the amount of prior year vessel taxes received by the county. (3) The department may deny the application if the applicant agency fails to provide the above-referenced information or data. (b) An applicant agency submits a completed application that complies with the requirements of Section 6593.5. (c) The county in which an applicant agency resides agrees to spend an amount equal to 100 percent of vessel taxes received by the county for boating safety and enforcement activities prior to the agency receiving State financial aid under this program. (d) An applicant agency maintains an operational boat patrol while receiving State financial aid under this program. (e) An applicant agency agrees to comply with the reimbursement process in Section 6593.9. (f) An applicant agency agrees to comply with the reporting requirements in Section 663.7 of the Harbors and Navigation Code. Note: Authority cited: Section 663.7(k), Harbors and Navigation Code. Reference: Sections 650 and 663.7, Harbors and Navigation Code. s 6593.5. Application. (a) An agency applying for financial aid under the Boating Safety and Enforcement Financial Aid Program shall complete an annual application. The annual Boating Safety and Enforcement Financial Aid Program application for a county shall accompany all applications from other governmental agencies within the county requesting aid from the department. (b) The application shall include, at a minimum, the following estimates for waterways under the jurisdiction of each applicant agency: • Size of waterway(s) (in square miles for lakes and in miles for rivers or coastline) • Usage of waterway(s) (types of boating activities) • Types of patrols (on-water, foot, truck/vehicle, and/or air) • Workload seasonality adjustments (unusual increases/decreases in staffing) • Number of boats on the waterways. (c) A participating agency shall submit a completed application to the department at least six months prior to the start of the fiscal year for which State financial aid is requested. A new applicant agency shall submit a completed application to the department at least 14 months prior to the start of the fiscal year for which State financial aid is requested. (d) Subsequent to the expiration of the filing date, amendments to the applications shall be allowed only subject to the approval of the department. Note: Authority cited: Section 663.7 (k), Harbors and Navigation Code. Reference: Sections 650 and 663.7, Harbors and Navigation Code. s 6593.6. Annual Contract. (a) Beginning in fiscal year 2003-04, every participating agency shall enter into an annual contract with the department prior to the start of the fiscal year. The contract shall indicate, at a minimum, the financial aid eligibility allocation amount for the ensuing fiscal year and whether a participating agency is to submit reimbursement claims on a monthly or quarterly basis. (b) The department shall send every participating agency a contract at least 90 days prior to the start of the fiscal year. A participating agency shall sign and return the contract to the department at least 15 days prior to the start of the fiscal year. Failure of a participating agency to sign and return the contract 15 days prior to the start of the fiscal year may result in a participating agency losing its financial aid eligibility allocation for that fiscal year. Note: Authority cited: Section 663.7 (k), Harbors and Navigation Code. Reference: Sections 650 and 663.7, Harbors and Navigation Code. s 6593.7. Financial Eligibility Formula. The following formula shall be used for determining annual maximum eligibility allocation amounts for a participating agency eligible for State financial aid under the Boating Safety and Enforcement Financial Aid Program. The State boating safety and enforcement program financial eligibility allocation shall include total State boating safety and enforcement program financial aid for all public entities within a county. (a) A county that received an allocation in fiscal year 1996-97 shall receive, at a minimum, the amount of the fiscal year 1996-97 allocation, unless the county's program has been reduced by the county or the State. This fiscal year 1996-97 amount is defined as the baseline State financial eligibility allocation. (See Exhibit 1 in Section 6593.11 - Baseline State Financial Eligibility Allocations) (b) A county that received an allocation subsequent to fiscal year 1996-97 but prior to fiscal year 2003-04 shall receive, at a minimum, the amount of the most recent fiscal year allocation, unless the county's program has been reduced. This amount is also defined as the baseline State financial eligibility allocation and is likewise shown in Exhibit 1 in Section 6593.11. (c) Beginning with fiscal year 2005-06 and continuing with each fiscal year thereafter: (1) A participating agency that spends less than its baseline State financial eligibility allocation in both calendar year 2003 and calendar year 2004 shall have its eligibility allocation reduced in fiscal year 2005-06. The reduced eligibility allocation amount shall equal the higher amount spent in either calendar year 2003 or calendar year 2004. (See Exhibit 2 in Section 6593.11 - Example of Program Reduction) (2) A participating agency that spends less than its baseline State financial eligibility allocation during a calendar year period, in the two most recent calendar years, shall have its eligibility allocation reduced in the next fiscal year. The revised eligibility allocation amount shall equal the higher amount spent during one of the two most recent calendar years. (3) Unallocated funds as a result of (1) or (2) shall be reallocated on an annual one-time basis to those participating agencies that incurred expenditures exceeding their baseline eligibility allocations during the most recent calendar year. These unallocated funds shall be allocated on a prorated basis to participating agencies based on the individual participating agency's expenditures that exceeded baseline eligibility allocations divided by the total statewide expenditures that exceeded baseline eligibility allocations applied to the total statewide unallocated funds. Under no circumstances shall a participating agency receive more than 20 percent of the total funds appropriated to all participating agencies for boating safety and enforcement programs. The total amount of funds that are reallocated shall not exceed the amount of the total statewide surplus. The reallocated funds shall be treated as a one-time reallocation of unspent funds. (See Exhibit 3 in Section 6593.11 -Example of Reallocation of Unspent Funds) (d) Beginning with fiscal year 2003-04 and continuing with each fiscal year thereafter, the formula for a new, non-participating applicant agency applying to the program shall be as follows, provided that sufficient funds are appropriated specifically for new agencies: Total Estimated Boating Safety and Enforcement Costs Less Vessel Taxes Received by the county Equals State Financial Eligibility Allocation (1) Total Estimated Boating Safety and Enforcement Costs shall be based on the estimated work-hours of patrol required for boating safety and enforcement activities. Each agency shall justify the estimated number of work hours of patrol by documenting various operations data as part of the application. (2) The number of work hours shall be multiplied by either the agency's actual hourly pay of boating safety and enforcement officers, or the agency's mid-range or equivalent (i.e., third of five pay steps) journeyman level average hourly pay, and either the agency's actual fringe benefit percent for boating safety and enforcement officers, or the agency's customary average fringe benefits percent, to estimate total personnel costs. This total personnel costs amount shall be multiplied by 30 percent to estimate associated operations, maintenance, and equipment costs. The sum of total personnel costs, and associated operations, maintenance, and equipment costs, shall equal estimated boating safety and enforcement direct costs, which may be increased by up to 5 (five) percent for allowable administrative costs to determine the total estimated boating safety and enforcement costs. These total estimated costs shall be offset by the actual prior year vessel taxes received by the county to determine the net amount of State financial eligibility allocation. (See Exhibit 4 in Section 6593.11 -Example of New Program Calculation) (3) Each agency applying for financial aid under this section shall submit documentation supporting its calculations as requested by the department. The first-year eligibility allocation for any new agency applying to the program shall be considered that agency's baseline State financial eligibility allocation. (e) Beginning with fiscal year 2004-05 and continuing with each fiscal year thereafter, a participating agency that demonstrates that its expenditures exceed its baseline State financial eligibility allocations may be eligible for any additional funds appropriated for expansion of existing participating agencies' boating safety and enforcement programs. Any additional funds allocated to a participating agency under this subsection shall be treated as a program increase to the participating agency's baseline State financial eligibility allocation. (f) Beginning with fiscal year 2004-05 and continuing with each fiscal year thereafter, if funds budgeted for the boating safety and enforcement program are less than the sum of the prior year's individual participating agency allocations, each individual participating agency may have its eligibility allocation reduced in proportion to the overall program shortfall. (See Exhibit 5 in Section 6593.11 -Example of Fund Shortfall Calculation) Note: Authority cited: Section 663.7 (c), Harbors and Navigation Code. Reference: Sections 650 and 663.7, Harbors and Navigation Code. s 6593.8. Allowable and Non-Allowable Costs. Beginning in fiscal year 2003-04, all program expenditures under this program shall be spent on personnel and operations, maintenance, and equipment that are used by a participating agency's boat patrol when conducting boating safety and enforcement activities, and administrative costs attributable to a participating agency's boating safety and enforcement program. All program expenditures, including those made with vessel taxes received by the county, shall comply with the requirements of this section. (a) The following are allowable costs under the program: (1) Personnel costs of boating safety and enforcement officers, including, but not limited to, salaries, wages, overtime and holiday pay, differential pay, on-call pay, workers' compensation premiums, retirement contributions, uniform allowances, insurance, payments made under the Federal Insurance Contributions Act, and any other employee benefit approved by the department. (2) Operations, maintenance, and equipment costs, including, but not limited to, fuel; vessel, vessel trailer and equipment repair; storage of vessels, vessel trailers and equipment; vehicle mileage for vehicles used to tow vessels; hull insurance for vessels; communications equipment for items to be attached or mounted to a vessel or vehicle; per diem and other costs associated with non-POST (California Commission on Peace Officer Standards and Training) boating safety and enforcement training; per diem costs associated with overnight boating safety and enforcement assignments that occur at least 50 miles from the main headquarters; dive gear; utilities (including gas, electricity, water, land-based telephone service, and propane charges), office rental and leases, and office equipment for a boat patrol office located in a geographically separate location than the main headquarters; prorated share of vehicle and aircraft leases; and miscellaneous boating equipment. (3) Administrative costs attributable to a participating agency's boating safety and enforcement program provided such administrative costs are not more than five percent of the total allowable direct program costs. (4) A participating agency shall provide written justification and obtain prior written approval from the department in order to be reimbursed for the following costs: (A) Purchase of communications equipment or the rental or leasing of office space. (B) Any non-POST training course that an employee of a participating agency plans to attend. (C) Prorated share of leased vehicles and aircraft. (D) Out-of-state travel. (b) The following are not allowable costs under the program: (1) Any cost, either in its entirety or a prorated share, not associated with a participating agency's boating safety and enforcement program. (2) The purchase of any type of vessel, vessel trailer, vehicle, or aircraft with State funds. Note: the department administers a financial assistance program for purchase of vessels outside of the boating safety and enforcement program. A participating agency may use vessel taxes received by the county for the purchase, or a prorated share of the purchase, of any type of vessel, vessel trailer, vehicle, or aircraft provided such equipment is dedicated solely, or on a prorated basis, for boating safety and enforcement activities. (3) The general costs necessary in employing, outfitting with weapons, and training personnel in accordance with prescribed statutes affecting peace officers, including, but not limited to, drug screening tests, background checks, psychological testing, fingerprinting fees, law enforcement training unrelated to boating safety and enforcement activities, and training in weaponry. (4) One-time payments for vacation, sick leave, or compensation time off in lieu of overtime due to separation or medical causes. (5) Any administrative or overhead costs that exceed five percent of the total allowable direct program costs of a participating agency's boating safety and enforcement program. Note: Authority cited: Section 663.7 (k), Harbors and Navigation Code. Reference: Sections 650 and 663.7, Harbors and Navigation Code. s 6593.9. Reimbursement Procedures. Beginning in fiscal year 2003-04, the following procedures shall be used to reimburse a participating agency for allowable expenditures under the Boating Safety and Enforcement Financial Aid Program. A participating agency may only receive State reimbursement under this program when actual allowable expenditures on boating safety and enforcement activities exceed actual prior year vessel taxes received by the county. (a) The department shall provide financial aid, under Section 663.7 of the Harbors and Navigation Code, in the form of reimbursements to cover the costs incurred by a participating agency for boating safety and enforcement activities that exceed vessel taxes received by the county, up to the participating agency's State financial eligibility allocation amount. Reimbursements shall equal the actual amount of allowable costs incurred by a participating agency over and above the actual prior year vessel taxes received by the county, up to the State financial eligibility allocation amount. (b) A participating agency shall submit claims to the department for the purpose of reimbursement under this program. Claims may be submitted by a participating agency on a monthly or quarterly basis as specified in the annual contract. A participating agency shall submit claims indicating actual costs incurred during the month or quarter and total year-to-date actual costs. Claims shall be submitted irrespective of whether State financial aid is reimbursed to the participating agency during the month or quarter. (c) Personnel costs shall be reimbursed based on the actual number of hours spent on boating safety and enforcement activities, including associated sick leave, vacation, and compensatory time off, during the month or quarter by each boating safety and enforcement officer of the participating agency. Actual hours, and associated sick leave, vacation, and compensatory time off, for each boating safety and enforcement officer shall be multiplied by the boating safety and enforcement officer's hourly pay to determine direct salary costs. Direct salary costs are multiplied by the participating agency's customary average fringe benefits percent to determine total personnel costs. (d) Associated operations, maintenance, and equipment costs shall be reimbursed based on actual costs. (e) Administrative costs attributable to a participating agency's boating safety and enforcement program may either be directly identified or indirectly allocated to the program. (1) Administrative personnel costs directly identified to a participating agency's boating safety and enforcement program shall be reimbursed based on the actual number of hours spent on administrative activities related to boating safety and enforcement activities during the month or quarter. Actual hours for each administrative staff shall be multiplied by the staff's hourly pay to determine administrative salary costs. Administrative salary costs are multiplied by the participating agency's customary average fringe benefits percent to determine administrative personnel costs. (2) Administrative costs that are not readily assignable to a participating agency's boating safety and enforcement program, but are necessary for the operation of the participating agency, shall be identified through the use of an Indirect Cost Rate Proposal (ICRP), a formal allocation method. It is recommended but not required that participating agencies using this indirect method obtain the following federal publication: Office of Management and Budget (OMB) Circular A-87, "Cost Principles for State, Local, and Indian Tribal Governments." This publication explains how indirect costs may be handled. This publication is available from the department. (f) Year-to-date allowable costs shall be offset by annual actual prior year vessel taxes received by the county and year-to-date State financial aid reimbursements to determine the amount of State financial aid on a claim. If actual prior year vessel taxes received by the county have not been expended on boating safety and enforcement activities, a participating agency shall not receive State financial aid during that month or quarter. (g) The department shall conduct a review of each claim for accuracy, completeness, and applicability to the program. The department may request additional supporting information from a participating agency for justification of expenditures prior to approving a participating agency's claim. Claims that result in reimbursement to a participating agency shall be forwarded to the State Controller's Office for payment once the department has completed the review and approved the claim for payment. (h) Any expenditure omitted by a participating agency from a claim for State financial aid may be submitted by a participating agency for reimbursement with any succeeding claim within 60 days following the last day of the fiscal year. (1) The issue date of a purchase order, invoice date, or day in which the hours were worked determines the fiscal year in which expenditures occur for the purposes of submitting claims. Date of payment, date received, shipping date, and date of invoice received are not factors in determining the fiscal year in which expenditure is made. (2) If the cost of utilities overlaps fiscal years, the total cost may be claimed in either fiscal year. (i) Claims for reimbursement for State financial aid shall be submitted within 60 days following the last day of the monthly or quarterly reporting period. The department may reduce a participating agency's total State financial aid allocation by five percent if the participating agency exceeds the sixty-day billing period and an additional five percent for every thirty-day period thereafter that the participating agency is late in filing a claim for State financial aid. Note: Authority cited: Section 663.7(k), Harbors and Navigation Code. Reference: Sections 650 and 663.7, Harbors and Navigation Code. s 6593.10. Audits and Appeals. (a) The department shall maintain adequate controls to ensure responsibility and accountability for the expenditure of State funds. The department may conduct periodic systematic audits of a participating agency in order to determine whether an agency is in compliance with State law and the claims submitted by a participating agency accurately represent the amount due the agency under the Boating Safety and Enforcement Financial Aid Program. (b) The department shall notify a participating agency in writing at least one week in advance of all scheduled audits. (c) A participating agency shall make records available for review to the department or its representatives. A participating agency shall maintain records deemed necessary by the department for a minimum of five years and shall include, at a minimum, supporting documentation for any claims for reimbursement by the participating agency. Such records shall include actual hours spent on the program (including the name and classification of each employee and the specific boating safety and enforcement activity for which the hours relate), documents supporting the actual salaries used to determine personnel costs, documents supporting the participating agency's customary fringe benefits percentage, receipts for associated operations, maintenance, and equipment costs, equipment maintenance and repair reports, current equipment inventory report, documentation supporting actual vessel taxes received by the county, and other applicable documentation as requested by the Department. (d) The audit shall include an evaluation of the accounting and control systems of the participating agency. (e) If the department conducts an audit of a participating agency, the department shall issue an audit report to the participating agency. The audit report shall include a description of how the audit was performed and a summary of audit exceptions and management improvement recommendations. If applicable, a correction plan shall be discussed with the participating agency describing the specific actions that are recommended to be taken, or that have been taken, to correct the deficiencies identified by the department. Future State financial aid payments may be withheld from the participating agency until the deficiencies have been corrected. (f) When an audit indicates that a participating agency has claimed and received payments from the department under this program to which it is not entitled, the participating agency shall pay, in addition to that portion of the claim that was improperly claimed, interest on the amount of overpayment from the date in which the amount was improperly claimed to the next claim. The overpayment, plus interest, may be repaid through a reduction to the next claim for State financial aid. The interest rate shall equal the monthly average rate received on investments in the State Surplus Money Investment Fund. (g) When it is established that a participating agency fraudulently claimed and received payments under this program, the participating agency shall pay, in addition to that portion of the claim that was improperly claimed, a penalty of 300 percent of the amount improperly claimed. Payments due from a participating agency may be recovered through an offset to the next claim(s) for State financial aid. (h) A participating agency has the right to appeal the findings of any audit to the director of the department in writing within 90 days after completion of the audit report. The participating agency shall include in the written appeal a description of the items in question and the participating agency's reason for the appeal. The appeal process shall commence with a conference between a representative of the department and the participating agency to review the items in question. If the appeal is not resolved to the participating agency's satisfaction, the participating agency may request that the matter be reviewed through a formal hearing conducted in accordance with Government Code Section 11500 et seq. Note: Authority cited: Section 663.7 (k), Harbors and Navigation Code. Reference: Sections 650 and 663.7, Harbors and Navigation Code. s 6593.11. Exhibits. This section contains the Exhibits referenced in Section 6593.7. Exhibit 1 - FY Subsequent Baseline Baseline State 1996-97 to State Financial Eligibility Allocations State Subseque- FY 1996-97 Financial Financial nt but Eligibility Program Prior to FY Eligibili- ty County Allocati- Reductions 2003-04 Allocation on 1. Amador County $95,781 $95,781 2. Butte County $148,069 148,069 3. Calaveras 159,868 159,868 County 4. Colusa County 96,091 96,091 5. Contra Costa 379,713 379,713 County 6. Del Norte 130,775 130,775 County 7. El Dorado 309,479 309,479 County 8. Fresno County 356,210 356,210 9. Glenn County 108,111 108,111 10. Humboldt 110,313 110,313 County 11. Imperial 223,536 223,536 County 12. Kings County 67,428 67,428 13. Lake County 271,380 271,380 14. Lassen 91,912 91,912 County 15. Los Angeles 1,500,000 1,500,000 County 16. Mariposa 213,873 213,873 County 17. Mono County 101,444 101,444 18. Napa County 246,087 246,087 19. Nevada 83,243 83,243 County 20. Placer 52,916 52,916 County 21. Plumas 118,687 118,687 County 22. Sacramento 370,000 370,000 County 23. San 190,000 190,000 Bernardino County 24. San Joaquin 376,279 376,279 County 25. Shasta 523,567 523,567 County 26. Sierra 57,088 57,088 County 27. Siskiou 71,489 71,489 County 28. Solano 232,444 232,444 County 29. Sonoma 263,226 263,226 County 30. Sutter 167,584 167,584 County 31. Tehama 120,000 120,000 County 32. Trinity 106,714 106,714 County 33. Tulare 174,132 174,132 County 34. Tuolumne 215,880 215,880 County 35. Yolo County 225,776 225,776 36. Yuba County 140,905 140,905 Total $7,324,5- $0 $775,497 $8,100,000 03 Exhibit 2 - Example of Agency A Agency B Program Reduction Baseline State Financial $100,000 $100,000 Eligibility Allocation (SFEA) - FY 2004-05 Calendar Year 2003 90,000 95,000 Expenditures Calendar Year 2004 95,000 90,000 Expenditures FY 2005-06 SFEA 95,000 95,000 Exhibit 3 - Example of Rest of Reallocation of Unspent Funds Agency C Agencies Total Baseline State Financial $100,000 $8,000,- $8,100,- Eligibility Allocation 000 000 (SFEA) - FY 2004-05 Calendar Year 2004 Deficit -10,000 -390,000 -400,000 Percent of Statewide Deficit 2.5% 97.5% 100% Unallocated Funds 100,000 100,000 Reallocation of Funds 2,50097- ,500 _____ 100,000 FY 2005-06 SFEA $102,500 $7,997,- $8,100,- 500 000 Calendar Year 2005 Deficit -10,000 -90,000 -100,000 Percent of Statewide Deficit 10.0% 90.0% 100% Unallocated Funds 10,000 10,000 Reallocation of Funds 1,0009,- 000 _____ 10,000 FY 2006-07 SFEA $101,000 $7,999,- $8,100,- 000 000 Exhibit 4 - Example of New Total Estimated Program Calculation Boating Safety and Enforcement Costs Provided by Agency 1. Estimated Work 1,300 Hours Provided by Agency 2. Hourly Pay $25.00 Provided by Agency 3. Fringe Benefits 33% Percent --------- Product of Lines 1-3 4. Total Personnel $43,225 Costs Determined by DBW 5. Associated 30% Operations, Maintenance & Equipment Ratio --------- Line 4 times Line 5 6. Associated $12,968 Operations, Maintenance & Equipment Costs --------- Line 4 plus Line 6 7. Estimated Boating $56,193 Safety and Enforcement Direct Costs Line 7 times 5% 8. Maximum Allowable $2,810 Administrative Costs Line 7 plus Line 8 9. Total Estimated $59,003 Boating Safety and Enforcement Costs --------- Provided by Agency Less Vessel Taxes (9,003) Received by the county --------- FY 2003-04 Baseline State $50,000 Financial Eligibility Allocation Exhibit 5 - Baseline Example of Fund State Shortfall Calculation Financial State FY 2004-05 Financial Eligibility Eligibility State Fin- ancial Allocation Percent of Allocation Eligibili- ty Participating (SFEA) Baseline Reduction Allocation Agency SFEA 1. Amador County $95,781 1.2% $7,200 $88,581 2. Butte County 148,069 1.8% 10,800 137,269 3. Calaveras 159,868 2.0% 12,000 147,868 County 4. Colusa County 96,091 1.2% 7,200 88,891 5. Contra Costa 379,713 4.7% 28,200 351,513 County 6. Del Norte 130,775 1.6% 9,600 121,175 County 7. El Dorado 261,766 3.2% 19,200 242,566 County 8. Fresno County 356,210 4.4% 26,400 329,810 9. Glenn County 108,111 1.3% 7,800 100,311 10. Humboldt 110,313 1.4% 8,400 101,913 County 11. Imperial 223,536 2.8% 16,800 206,736 County 12. Kings County 67,428 0.8% 4,800 62,628 13. Lake County 271,380 3.4% 20,400 250,980 14. Lassen County 91,912 1.1% 6,600 85,312 15. Los Angeles 1,500,000 18.5% 111,000 1,389,000 County 16. Mariposa 213,873 2.6% 15,600 198,273 County 17. Mono County 101,444 1.3% 7,800 93,644 18. Napa County 246,087 3.0% 18,000 228,087 19. Nevada County 83,243 1.0% 6,000 77,243 20. Placer County 52,916 0.7% 4,200 48,716 21. Plumas County 118,687 1.5% 9,000 109,687 22. Sacramento 370,000 4.6% 27,600 342,400 County 23. San Bernardino 190,000 2.3% 13,800 176,200 County 24. San Joaquin 376,279 4.6% 27,600 348,679 County 25. Shasta County 523,567 6.5% 39,000 484,567 26. Sierra County 57,088 0.7% 4,200 52,888 27. Siskiou County 71,489 0.9% 5,400 66,089 28. Solano County 193,103 2.4% 14,400 178,703 29. Sonoma County 263,226 3.2% 19,200 244,026 30. So. Lake Tahoe 47,713 0.6% 3,600 44,113 City 31. Suisun City 39,341 0.5% 3,000 36,341 32. Sutter County 167,584 2.1% 12,600 154,984 33. Tehama County 120,000 1.5% 9,000 111,000 34. Trinity County 106,714 1.3% 7,800 98,914 35. Tulare County 174,132 2.1% 12,600 161,532 36. Tuolumne 215,880 2.7% 16,200 199,680 County 37. Yolo County 225,776 2.8% 16,800 208,976 38. Yuba County 140,905 1.7% 10,200 130,705 Total $8,100,000 100.0% $600,000 $7,500,0- 00 Amount in Fund for $7,500,000 FY 2004-05 FY 2004-05 $600,000 Shortfall Note: Authority cited: Section 663.7(k), Harbors and Navigation Code. Reference: Sections 650 and 663.7, Harbors and Navigation Code. s 6595. Prohibition of Watercraft Powered by Certain Spark-Ignition Two-Stroke Engines. Commencing October 4, 2001, the operation of all two-stroke-engine-powered watercraft on Lake Tahoe, Cascade Lake, Fallen Leaf Lake and Echo Lake, is prohibited, except watercraft powered by a two-stroke-powered engine whose engine is certified and labeled as meeting either of the following pollution air emissions standards: (a) the 2006 or later model year United States Environmental Protection emissions standards, as specified in Title 40, Code of Federal Regulations, Part 91, or (b) the 2001 or later California Air Resources Board emissions standard, as specified in Title 13, California Code of Regulations, Chapter 9, Sections 2440 et seq. Note: Authority cited: Section 660(b), Harbors and Navigation Code. Reference: Section 660(b), Harbors and Navigation Code. s 6600. Purpose. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6600.1. Incorporation by Reference. (a) The following rules of the road and pilot rules promulgated by the United States Coast Guard are incorporated by reference. Copies may be obtained from sources indicated. They are also available for inspection at the Department of Boating and Waterways, and Archives, Secretary of State, 1020 "O" Street, Sacramento, California 95814. (1) SUBCHAPTER D -International Navigation Rules, Title 33, Code of Federal Regulations, Part 81-72 COLREGS: IMPLEMENTING RULES and Appendix A - Proclamation of January 19, 1977, and 72 COLREGS. (2) SUBCHAPTER E -Inland Navigation Rules, Title 33 Code of Federal Regulations, Part 84, Part 85, Part 86, Part 87, Part 88, and Part 89. (3) Public Law 96-591, December 24, 1980, known as the INLAND NAVIGATION RULES ACT OF 1980, Section 33, United States Code 2001. (4) Subsequent modifications, amendments, and/or changes, to federal regulations pertaining to rules of the road and pilot rules shall be effective in this section upon adoption. Note:These regulations and statutes are published by the U.S. Coast Guard in NAVIGATION RULES INTERNATIONAL -INLAND (COMMANDANT INSTRUCTION M16672.2. (Series.)) The public may purchase copies of this pamphlet from the Government Printing Office Bookstore, ARCO Plaza Level C, 505 South Flower, Los Angeles, CA 90071. Telephone (213) 239-9844 for cost and availability of this pamphlet. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6601. Invalidity of Provision or of Application to Particular Person or Circumstance. If any provision of this article, or its application to any person or circumstances, is held invalid the remainder of this article, and the application of its provisions to any other person or circumstance, is not affected. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6602. Definitions. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6604. Maneuvering and Warning Signals. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6605. Sound Signal -One Short Blast. s 6606. Sound Signal -Two Short Blasts. s 6607. Sound Signal -Three Short Blasts. s 6608. Cross Signals -Forbidden. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Section 655.3, Harbors and Navigation Code. s 6609. Sound Signals in Restricted Visibility. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6610. Sound Signal -Reduced Visibility -Power Driven Vessel Underway. s 6611. Sound Signal -Reduced Visibility -Power Driven Vessel Towing. s 6612. Sound Signal -Reduced Visibility -Vessel Towed. s 6613. Sound Signal -Reduced Visibility -Sail Vessel Underway. s 6614. Application. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code . s 6615. Safe Speed. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6616. Reduced Visibility -Fog Signal Forward of Beam. s 6617. Sound Signals -Reduced Visibility -Vessel at Anchor. s 6618. Risk of Collision. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6618.1. Action to Avoid Collision. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6619. Responsibilities Between Vessels. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6619.1. Vessel Traffic Services. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6619.2. Conduct of Vessels in Sight of One Another. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6620. Sailing Vessels. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6621. Steering and Sailing Rules -Meeting of Power Driven Vessels and Sailing Vessels. s 6622. Steering and Sailing Rules -Danger Signal. s 6623. Steering and Sailing Rules -Signals Only When in Sight. s 6624. Narrow Channels. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6625. Action by Give-Way Vessel. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6626. Steering and Sailing Rules -Vessels Passing Each Other. s 6627. Head-On Situation. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6628. Overtaking. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6629. Crossing Situation. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code . s 6629.1. Action by Stand-On Vessel. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6630. Steering and Sailing Rules -Vessels Nearing Bend or Curve in Channel; Moving from Docks. s 6630.1. Conduct of Vessels in Restricted Visibility. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6631. Responsibility. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code . s 6632. Steering and Sailing Rules -Passing Floating Plant Working in Navigable Channels -Passing Signals. s 6633. Copy of Rules. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6634. Day Signals and Day Marks -Vessels over 65 Feet in Length Moored or at Anchor. s 6635. Day Signals and Day Marks -Signals to Be Displayed by a Towing Vessel When Towing a Submerged or Partly Submerged Object upon a Hawser When No Signals Can Be Displayed upon the Object Which Is Towed. s 6636. Day Signals and Day Marks -Power Driven Vessels, Derrick Boats, Lighters, or Other Types of Vessels Made Fast Alongside a Wreck, or Moored over a Wreck Which Is on the Bottom or Partly Submerged, or Which May Be Drifting. s 6637. Day Signals and Day Marks -Dredges Held in Stationary Position by Moorings or Spuds. s 6638. Day Signals and Day Marks -Self-Propelling Suction Dredges Underway and Engaged in Dredging Operations. s 6639. Day Signals and Day Marks -Vessels Moored or Anchored and Engaged in Laying Cables or Pipe, Submarine Construction, Excavation, Matsinking, Bank Grading, Dike Construction, Revetment, or Other Bank Protection Operations. s 6640. Day Signals and Day Marks -Day Marks for Fishing Vessels with Gear Out. s 6641. Passing U.S. Coast Guard Vessel Handling or Servicing Aid to Navigation. s 6642. Passing Floating Plant -Speed of Vessels Passing Floating Plant Working in Channels. s 6643. Passing Floating Plant -Light-Draft Vessels Passing Floating Plant. s 6644. Passing Floating Plant -Aids to Navigation Marking Floating-Plant Moorings. s 6645. Passing Floating Plant -Obstruction of Channel by Floating Plant. s 6646. Passing Floating Plant -Clearing of Channels. s 6647. Passing Floating Plant -Protection of Marks Placed for the Guidance of Floating Plant. s 6648. Lights and Shapes -Application. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6648.1. Running Lights -Vessels -When Operating on "Inland Waters." Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6648.2. Running Lights -Vessels -When Operating on "Inland Waters" - Visibility of Lights. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6648.3. Positioning and Technical Details of Lights and Shapes. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6648.4. Additional Signals for Fishing Vessels Fishing in Close Proximity. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6649. Running Lights -Vessels -When Operating on "Inland Waters" -Power-Driven Vessels Underway. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6649.1. Running Lights -Vessels -When Operating on "Inland Waters" -Towing and Pushing. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6649.2. Running Lights -Vessels -When Operating on "Inland Waters" - Sailing Vessels Underway and Vessels Under Oars. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6649.3. Running Lights -Vessels -When Operating on "Inland Waters" - Fishing Vessels. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6649.4. Running Lights -Vessels -When Operating on "Inland Waters" - Vessels Not Under Command or Restricted in Their Ability to Maneuver. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6649.5. Running Lights -Vessels -When Operating on "Inland Waters." Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6649.6. Running Lights -Vessels -When Operating on "Inland Waters" - Anchored Vessels and Vessels Aground. Note: Authority cited: Section 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6649.7. Running Lights -Seaplanes -When Operating on "Inland Waters." Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6649.8. Lights on Barges at Bank or Dock. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650, 652 and 655.3, Harbors and Navigation Code. s 6650. Running Lights -Vessels -While Operating on the "High Seas." Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 652 and 655.3, Harbors and Navigation Code. s 6650.1. Positioning and Technical Details of Lights Required for Use on Vessels Operating on the "High Seas." Note: Authority cited: Sections 82, 652 and 655.3, Harbors and Navigation Code. Reference: Sections 650 and 652, Harbors and Navigation Code. s 6651. Towing Astern -Running Lights -Power Driven Vessels Less Than 26 Feet in Length. s 6652. Towing Astern -Running Lights -Power Driven Vessels 26 Feet or Over in Length. s 6653. Towing Alongside -Running Lights -Power Driven Vessels Less Than 26 Feet in Length. s 6654. Towing Alongside -Running Lights -Power Driven Vessels 26 Feet or Over in Length. s 6655. Pushing Ahead -Running Lights -Power Driven Vessels Less Than 26 Feet in Length. s 6656. Pushing Ahead -Running Lights -Power Driven Vessels 26 Feet and Over in Length. s 6657. Lights to Be Displayed by a Towing Vessel When Towing a Submerged or Partly Submerged Object upon a Hawser When No Signals Can Be Displayed upon the Object Which Is Towed -Power Driven Vessels. s 6658. Sailing Vessel -Running Lights -Starboard Side. s 6659. Sailing Vessel -Running Lights -Port Side. s 6660. Sailing Vessel -Running Lights -Side Light Screen. s 6661. Sailing Vessel -Running Lights -Stern. s 6662. Small Vessel -Running Lights -Less Than 10 Gross Tons. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 652 and 655.3, Harbors and Navigation Code. s 6663. Sailing Vessel -Running Lights -Motorboat Propelled by Sail Alone. s 6664. Vessels Towed -Lights. s 6665. Trawling, Dredging or Fishing -Lights. s 6666. Rowing Boats -Running Lights. s 6667. Ferryboats -Running Lights. s 6668. Lights for Barges, Canal Boats, Scows, and Other Nondescript Vessels. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Sections 652 and 655.3, Harbors and Navigation Code. s 6669. Barges, Canal Boats, Scows, and Other Nondescript Vessels Temporarily Operating on Waters Requiring Different Lights. s 6670. Visibility Requirement of Lights on Floating Plants. s 6671. Power Driven Vessels, Derrick Boats, Lighters, or Other Types of Vessels Made Fast Alongside a Wreck, or Moored over a Wreck Which Is on the Bottom or Partly Submerged, or Which May Be Drifting -Lights. s 6672. Dredges Held in Stationary Position by Moorings or Spuds -Lights. s 6673. Self-Propelling Suction Dredges Underway and Engaged in Dredging Operations -Lights. s 6674. Vessels Moored or Anchored and Engaged in Laying Cable or Pipe, Submarine Construction, Excavation, Matsinking, Bank Grading, Dike Construction, Revetment, or Other Bank Protection Operations -Lights. s 6675. Lights on Dredge Pipelines. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 652 and 655.3, Harbors and Navigation Code. s 6675.1. Pipelines Disengaged from Dredges -Lights. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Sections 652 and 655.3, Harbors and Navigation Code. s 6676. Floating Plant -Lights. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 652 and 655.3, Harbors and Navigation Code. s 6677. Rafts and Other Craft -Lights. s 6678. Vessels Other Than Raft or Rowboat -Lights. s 6679. Raft -Lights. s 6680. Lights of Vessel at Anchor. Note: Authority cited: Section 38, Harbors and Navigation Code. Reference: Section 652, Harbors and Navigation Code. s 6681. Anchor Lights -Vessel Under 150 Feet in Length. s 6682. Vessel Not More Than 65 Feet in Length -Special Anchorage Area - Lights. s 6683. Lights for an Overtaken Vessel. s 6684. Special Signals to Attract Attention. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 652 and 655.3, Harbors and Navigation Code. s 6685. White Lights for Power Driven Vessels Carried on Centerline. s 6686. Towing of Barges -Tows of Seagoing Barges Within Waters of California. s 6687. Towing of Barges -Hawser Length -General. s 6688. Towing of Barges -Hawser Length -Exceptions. s 6689. Towing of Barges -Bunching of Tows. s 6690. Look-Out. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 652 and 655.3, Harbors and Navigation Code. s 6691. Distress Signals -Recognized. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 652 and 655.3, Harbors and Navigation Code. s 6692. Visual Distress Signals -Required. (a) Applicability. Except for Section 6692.1 of Title 14 of the California Code of Regulations, these rules apply to boats on coastal waters of California as defined in (b) (2) of this section. (b) Definitions. (1) "Visual distress signal" means a device that is approved by the Commandant of the United States Coast Guard under Title 46, Code of Federal Regulations, Part 160, or certified by the manufacturer under Title 46, Code of Federal Regulations, Parts 160 and 161. (2) "Coastal Waters" means the high seas of the State of California as defined in Section 6552(f) of Title 14 of the California Code of Regulations. (3) "Passenger" means every person carried on board a vessel other than: (A) The owner or his representative; (B) The operator; (C) Bona fide members of the crew engaged in the business of the vessel who have contributed no consideration for their carriage and who are paid for their services; or (D) Any guest on board a vessel which is being used exclusively for pleasure purposes who has not contributed any consideration, directly or indirectly, for his carriage. (c) Visual distress signals required. (1) No person may use a boat 16 feet or more in length or any boat carrying six or less passengers for hire unless visual distress signals selected from the list in paragraph (i) of this section, or the alternatives in paragraph (j) of this section in the number required are on board. Devices suitable for day use and devices suitable for night use, or devices suitable for both day and night use must be carried. (2) Between sunset and sunrise, no person may use a boat less than 16 feet in length unless visual distress signals, suitable for night use, selected from the list in paragraph (i) of this section, or paragraph (j) of this section, in the number required are on board. (d) Launchers. When a visual distress signal carried to meet the requirements of paragraph (c) of this section requires a launcher to activate, then a launcher approved under Title 46, Code of Federal Regulations, Part 160.28, must also be carried. (e) Exceptions. The following persons need not comply with paragraph (c) of this section; however, each must carry on board visual distress signals suitable for night use, selected from the list in paragraph (i), or paragraph (j) of this section, in the number required, between sunset and sunrise: (1) A person competing in any organized marine parade, regatta, race, or similar event; (2) A person using a manually propelled boat; or (3) A person using a sailboat of completely open construction not equipped with propulsion machinery, under 26 feet in length. (f) Stowage. No person may use a boat unless the visual distress signals required by paragraph (c) of this section are readily accessible. (g) Serviceability. No person may use a boat unless each signal required by paragraph (c) of this section is in serviceable condition, and the service life of the signal, if indicated by a date marked on the signal, has not expired. (h) Marking. No person may use a boat unless each signal required by paragraph (c) of this section is legibly marked with the approval number or certification statement, as specified in Title 46, Code of Federal Regulations, Parts 160 and 161. (i) Visual distress signals accepted. Any of the signals listed in the following table, when carried in the number required, can be used to meet the requirements of paragraph (c) of this section. (1) An electric distress light meeting the standards of 46 CFR 161.013. One is required to meet the night only requirement. (2) An orange flag meeting the standards of 46 CFR 160.072. One is required to meet the day only requirement. (3) Pyrotechnics meeting the standards noted in the following table. TABLE Approved Number Number Required Under Accepted to Be 46 CFR Pyrotechnic Signal Devices for Use Carried 160.021........ Hand-Held Red Flare Distress Day and night 3 Signal [FN3] 160.022........ Floating Orange Smoke Distress Days only 3 Signals 160.024........ Pistol-Projected Parachute Red Flare Distress Signals. Day and night 3 [FN1] 160.036........ Hand-Held Rocket-Propelled Para- chute Red Flare Distress Signals Day and night 3 160.037........ Hand-Held Orange Smoke Distress Signals. Day only 3 160.057........ Floating Orange Smoke Distress Day only 3 Signals 160.066........ Distress Signal for Boats, Red Aerial Pyrotechnic Flare Day and night 3 [FN2] FN1 These signals require use in combination with a suitable launching device approved under Title 46, Code of Federal Regulations, Part 160.028. FN2 These devices may be either self-contained or pistol launched, and either meteor or parachute assisted type. Some of these signals may require use in combination with a suitable launching device approved under Title 46, Code of Federal Regulations, Part 160.028. FN3 Must have manufacturers date of October 1, 1980 or later. (j) Any combination of signal devices selected from the types noted in paragraphs (i)(1), (2), and (3) of this section, when carried in the number required, may be used to meet both day and night requirements. Examples -the combination of the two hand-held red flares (160.021) and one parachute red flare (160.024 or 160.036) meets both day and night requirements. Three hand-held orange smoke (160.037) with one electric distress light (161.013) meet both day and night requirements. (k) Existing equipment. (1) Launchers manufactured before 1 January, 1981, which do not have approval numbers, are acceptable for use with meteor or parachute signals listed in table in Section (i)(3) as long as they remain in serviceable condition. Note: Authority cited: Section 652, Harbors and Navigation Code. Reference: Section 650, Harbors and Navigation Code. s 6692.1. Visual Distress Signals - Prohibited Use. No person in a boat shall display a visual distress signal on waters of the State under any circumstance except a situation where asssistance is needed because of immediate or potential danger to persons on board. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Sections 650 and 655.3, Harbors and Navigation Code. s 6694. Orders to Helmsman. s 6695. Searchlights or Other Blinding Lights. (a) Except for law enforcement or search and rescue activities, flashing a searchlight or other blinding light onto the bridge or onto the pilothouse of any vessel underway is prohibited. (b) All floodlights or headlights which may interfere with the proper navigation of an approaching vessel shall be so shielded that the lights will not blind the pilot of such vessel. Note: Authority cited: Section 655.3, Harbors and Navigation Code. Reference: Section 655.3, Harbors and Navigation Code. s 6696. Unnecessary Use of Sound Signaling Device. Note: Authority cited: Sections 652 and 655.3, Harbors and Navigation Code. Reference: Sections 652 and 655.3, Harbors and Navigation Code. s 6697. Prima-Facie Evidence of Negligent Operation. Pursuant to the provisions of Section 655 of the Harbors and Navigation Code, the following described acts endanger life, limb or property and constitute evidence of reckless or negligent operation: (a) Riding on the bow, gunwale or transom of a vessel propelled by machinery underway when such position is not protected by railing or other reasonable deterrent to falling overboard, or riding in a position or manner which is obviously dangerous. These provisions shall not apply to a vessel's crewmen in the act of anchoring, mooring or making fast to a dock or another vessel, or the necessary management of a sail. (b) Maneuvering towed skiers, or other devices, so as to pass the towline over another vessel or its skier. (c) Navigating a vessel, skis or other devices between a towing vessel and its tow or tows. Note: Authority cited: Section 655, Harbors and Navigation Code. Reference: Sections 650, 655 and 655.3, Harbors and Navigation Code. s 6698.1. Definitions. The following definitions shall apply to the terminology used in this article: (a) "department" means the Department of Boating and Waterways. (b) "director" means the director of the Department of Boating and Waterways. (c) "Sacramento-San Joaquin Delta and its tributaries and distributaries" means all or any part of the area identified in Section 12220 of the California Water Code and waterways flowing into and out of the Sacramento-San Joaquin Delta. (d) "recreational vessel" means a vessel being used only for pleasure. Note: Authority cited: Sections 63.9(e) and 660(b) and (c), Harbors and Navigation Code. Reference: Sections 33, 63.9(e), 650, 651 and 660(b) and (c), Harbors and Navigation Code; Section 8558(b) and (c), Government Code; Executive Order W-156-97; and Attorney General Opinion No. 97- 307. s 6698.2. Director's Authority for Restrictions or Closures. (a) During emergency situations, such as actual or projected high water levels or flooding, and in the interest of preserving the safety of persons and property, the director, or his or her designee, may restrict or order the closure of all or any part of the waters in the Sacramento-San Joaquin Delta, its tributaries and distributaries, and Suisun Bay, Grizzly Bay, and Honker Bay and their tributaries and distributaries to recreational vessels. (b) In accordance with Section 660 of the Harbors and Navigation Code, all emergency restrictions or closures issued by the Department shall be effective for no more than 60 days. However, the director, or his or her designee may issue new restrictions or closures when the emergency is expected to continue beyond the 60 day period, after a public hearing is held by the department to receive comments from the public. (c) The director, or his or her designee, may rescind or modify the restrictions or closures based on the status of the emergency conditions and/or the information or testimony provided at the public hearing referenced in subsection (b) above. (d) When the director, or his or her designee, determines that the emergency situation, such as high water levels or flooding, has diminished, a notice shall be issued to law enforcement agencies, marinas, and news organizations rescinding the restrictions or closure. Note: Authority cited: Sections 63.9(e) and 660(b) and (c), Harbors and Navigation Code. Reference: Sections 33, 63.9(e), 650 and 660(b) and (c), Harbors and Navigation Code; Executive Order W-156-97; and Attorney General Opinion No. 97-307. s 6698.3. Removal of Restrictions or Closures. Note: Authority cited: Sections 63.9(e) and 660(b) and (c), Harbors and Navigation Code. Reference: Sections 33, 63.9(e), 650 and 660(b) and (c), Harbors and Navigation Code; Section 8558(b) and (c), Government Code; and Executive Order W-156-97. s 7000. Scope. Pursuant to the authority vested in it by Section 659, Harbors and Navigation Code, the Department adopts rules and regulations for a uniform system for marking the State's waters; such rules and regulations to establish, (a) a system of regulatory markers for use on all waters of the State to meet needs not provided for by the U.S. Coast Guard system of navigational aids, and (b) a system of navigational aids for use on the waters of the State not marked by the U.S. Coast Guard and/or not determined to be United States navigable waters; provided that such rules and regulations shall not be in conflict with the markings prescribed by the U.S. Coast Guard. Note: Authority cited: Section 659, Harbors and Navigation Code. Reference: Sections 650 and 659, Harbors and Navigation Code. s 7001. Definition (as used in this article). (a) Waterway marker is any device designed to be placed in, on or near the water to convey an official message to a boat operator on matters which may affect health, safety, or well being, except that such devices of the United States or an agency of the United States are excluded from the meaning of this definition. (b) Regulatory Marker is a waterway marker which has no equivalent in the U.S. Coast Guard system of navigational aids. (c) State Aid to Navigation is a waterway marker which is the equivalent of a U.S. Coast Guard aid to navigation. (d) Buoy is any device designed to float which is anchored in the water and which is used to convey a message. (e) Sign is any device for carrying a message which is attached to another object such as a piling, buoy, structure or the land itself. (f) A Display Area is the area on a sign or buoy needed for display of a waterway marker symbol. (g) Symbols are geometric figures such as a diamond, circle, rectangle, used to convey a basic message. (h) "Department" means the Department of Boating and Waterways. Note: Authority cited: Section 659, Harbors and Navigation Code. Reference: Sections 650 and 659, Harbors and Navigation Code. s 7002. Waterway Markers Used on the Waters of This State Shall Be As Follows. (a) State Aids to Navigation. (1) A red buoy or sign shall indicate that side of a channel to be kept to the right of a vessel when entering the channel from the main water body or when proceeding upstream; a green buoy or sign shall indicate that side of a channel to be kept to the left of a vessel when entering the channel from the main water body or when proceeding upstream. These buoys or signs shall normally be used in pairs and only for the purpose of marking a clearly defined channel. (2) A red and white vertically striped buoy or sign shall indicate the center of a navigable waterway. (3) A red and green horizontally striped buoy or sign shall indicate a junction in the channel, or a wreck or obstruction which may be passed on either side. If the top band is red, the preferred channel is to the left when proceeding upstream or leaving the main water body. If the top band is green the preferred channel is to the right when proceeding upstream or leaving the main water body. (4) White buoys shall indicate anchorage areas. (5) The shapes of state aids to navigation shall be compatible with the shapes established by Coast Guard regulations for the equivalent Coast Guard aids to navigation. (6) When lights are placed on buoys as an aid to navigation, their characteristics shall be compatible with those designated by Federal Regulations for federal aids to navigation. Red lights for this purpose shall be used only on red buoys and green lights only on green buoys. (b) Regulatory Markers. (1) A diamond shape of international orange with white center shall indicate danger. The nature of the danger may be indicated by words or well-known abbreviations in black letters inside the diamond shape, or above and/or below it on white background. (2) A diamond shape of international orange with a cross of the same color within it against a white center without qualifying explanation shall indicate a zone from which all vessels are excluded. (3) A circle of international orange with white center will indicate a control or restriction. The nature of the control or restriction shall be indicated by words, numerals, and/or well-known abbreviations in black letters inside the circle. Additional explanation may be given above and/or below it in black letters on white background. (4) A rectangular shape of international orange with white center will indicate information, other than a danger, control or restriction, which may contribute to health, safety or well-being. The message will be presented within the rectangle in black letters. (c) Letters or Numbers on Waterway Markers. (1) Numbers, letters or words on a state aid to navigation or regulatory marker shall be placed in a manner to enable them to be clearly visible to an approaching or passing vessel. They shall be block style, well proportioned and as large as the available space permits. Numbers and letters on red or black backgrounds shall be white; numbers and letters on white backgrounds shall be black. (2) State aids to navigation shall be numbered or lettered for identification. Red buoys and signs marking channels shall be identified with even numbers, and green buoys and signs marking channels shall be identified with odd numbers, the numbers increasing from the main water body or proceeding upstream. Buoys and signs indicating the center of a waterway or a channel junction shall be identified by letters of the alphabet. All numbers and letters used to identify state aids to navigation shall be preceded by the letters "CF." (d) Reflectorized Material. Where reflectorized materials are used, a red reflector will be used on a red buoy, a green reflector on a green buoy, and white reflectors only will be used on all other waterway markers, except that orange reflectors may be used on orange portions of regulatory markers, and yellow reflectors may be used on Special Markers, as defined in Section 7002.1. Note: Authority cited: Section 659, Harbors and Navigation Code. Reference: Sections 650 and 659, Harbors and Navigation Code. s 7002.1. Special Markers. Special markers are not primarily intended to assist navigation, but are used to indicate a special area or feature (i.e., traffic separation, anchorage areas, dredging, fish net areas, etc.) whose nature may be apparent from reference to a chart or other nautical document. (a) Aids used to mark these areas or systems will be all yellow. Note: Authority cited: Section 659, Harbors and Navigation Code. Reference: Sections 650, 655.3, and 659, Harbors and Navigation Code. s 7003. Authority to Place Markers. (a) No waterway marker shall be placed on, in, or near the waters of the State unless such placement is authorized by the agency or political subdivision of the State having power to give such authorization, except that the provisions of this section shall not apply to private aids to navigation under the jurisdiction of the U.S. Coast Guard. (b) Such agency or political subdivision of the State will, prior to authorizing placement, obtain the necessary clearances of any federal and state agencies concerned. Nothing herein contained shall be construed to require such prior clearance with the Department. (c) The agency or political subdivision of the State authorizing the placement of a waterway marker will inform the Department of the following: (1) Exact location of the marker, expressed in latitude and longitude, or in distance and direction from one or more fixed objects whose precise location is known. (2) The description and purpose of the marker, including its identifying number, if any, as required by Section 7002(a)(5), above. Note: Authority cited: Section 659, Harbors and Navigation Code. Reference: Sections 650 and 659, Harbors and Navigation Code. s 7004. Maintenance of Waterway Markers. Waterway markers shall be maintained in proper condition, or be replaced or removed. Note: Authority cited: Section 659, Harbors and Navigation Code. Reference: Sections 650 and 659, Harbors and Navigation Code. s 7005. Display of Waterway Markers. (a) A waterway marker may be displayed as a sign on a fixed support, as a buoy bearing a symbol on its surface, or as a sign mounted on a buoy. (b) When a buoy is used to carry a symbol on its surface, it will be white, with a band of international orange at the top and a band of international orange above the water line at the bottom. (c) A buoy whose sole purpose is to carry a sign above it will be marked with three bands of international orange alternating with two bands of white, each band occupying approximately one-fifth of the total area of the buoy above the water line, except where the sign itself carries orange bands; however, nothing in these regulations will be construed to prohibit the mounting of a sign on a buoy which has been placed for a purpose other than that of carrying a sign. (d) When symbols are placed on signs, a suitable white background may be used outside the symbol. Note: Authority cited: Section 659, Harbors and Navigation Code. Reference: Sections 650 and 659, Harbors and Navigation Code. s 7006. Specifications for Waterway Markers. (a) The size, shape, material, and construction of all markers, both fixed and floating, shall be such as to be observable under normal conditions of visibility at a distance such that the significance of the marker or aid will be recognizable in time to avoid danger. (b) Waterway markers shall be made of materials which will retain, despite weather and other exposures, the characteristics essential to their basic significance, such as color, shape, legibility and position. Note: Authority cited: Section 659, Harbors and Navigation Code. Reference: Sections 650 and 659, Harbors and Navigation Code. s 7007. Other Waterway Marking Devices. (a) Mooring Buoys. In order that mooring buoys shall not be mistaken for aids to navigation or regulatory markers, they shall be white, with a blue band clearly visible above the waterline. (b) Placement of markers such as mooring buoys and permanent race course markers will be processed in the same manner as waterway markers. (c) Such markers shall not be of a color, shape, configuration or marking which could result in their confusion with any federal or state aid to navigation or any state regulatory marker, and shall not be placed where they will obstruct navigation, cause confusion, or constitute a hazard. Note: Authority cited: Section 659, Harbors and Navigation Code. Reference: Sections 650 and 659, Harbors and Navigation Code. s 7008. The Divers Flag. (a) A red flag with a white diagonal running from the upper left hand corner to the lower right hand corner (from masthead to lower outside corner) and known as the "Divers Flag" shall when displayed on the water, indicate the presence of a person engaged in diving in the water in the immediate area. (b) Recognition of this flag by regulation will not be construed as conferring any rights or privileges on its users, and its presence in a water area will not be construed in itself as restricting the use of the water area so marked. (c) Operators of vessels will, however, exercise precaution commensurate with conditions indicated. (d) This flag may be displayed only when diving is in progress, and its display in a water area when no diving is in progress is that area will constitute a violation of the regulation and of section 659 of the Harbors and Navigation Code. (e) Nothing in this section will require the carriage of a divers flag for any purpose. Note: Authority cited: Section 659, Harbors and Navigation Code. Reference: Sections 650, and 659, Harbors and Navigation Code. s 7009. The Ski Flag. (a) A red or orange flag measuring no less than 12 inches on each side, in the shape of a square or rectangle, mounted or displayed in such a manner as to be visible from every direction shall be known as a ski flag. (b) The use of this flag will not be construed as conferring any rights or privileges on its users, and its display will not be construed in itself as restricting the use of the water in the vicinity of the vessel displaying the flag. (c) Operators of vessels will, however, exercise precaution commensurate with conditions indicated. (d) The ski flag shall be displayed when one or more of the following conditions exists. (1) A downed skier. (2) A skier in the water preparing to ski. (3) A ski line extended from the vessel. (4) A ski in the water in the vicinity of the vessel. The ski flag shall not be displayed at any other time. Note: Authority cited: Sections 652, 658, 658.7 and 659, Harbors and Navigation Code. Reference: Sections 650, 655.3, 658.7 and 659, Harbors and Navigation Code. s 7500. Definitions. (a) As used in Article 2, (commencing with Section 760) Chapter 5 of Division 3, Harbors and Navigation Code, the terms "carrying more than three passengers for hire" and "carrying passengers for hire" mean the carriage of more than three persons by a vessel for a valuable consideration, whether directly or indirectly flowing to the owner, charterer, operator, agent or any other person interested in the vessel. (b) "Passenger" means every person, other than the master and a member of the crew or other persons employed or engaged in any capacity on board a vessel in the business of that vessel. (c) "Department" means the Department of Boating and Waterways. Note: Authority cited: Section 770, Harbors and Navigation Code. Reference: Section 760, Harbors and Navigation Code. s 7501. Requirements for Examination. (a) Prior to the issuance of a For-Hire Vessel Operator's License, every applicant shall meet the following requirements: (1) Have attained the age of eighteen (18) years. (2) Show evidence of at least one year's experience in operating the type of motorboat or motor vessel for which the applicant requests license to operate, on the type of water for which applicant requests license to operate. (A) (Reserved) (B) Other experience or training, which in the judgment of the Department is a reasonable equivalent, may be substituted. (3) Furnish information to the Department on forms provided by the Department regarding the following: (A) Name, address, date and place of birth, and description of applicant. (B) Type of vessel the applicant requests license to operate. (C) Waters on which applicant requests license to operate. (D) Statement as to physical defects. (E) Statement of experience and training in vessel operation. (F) Certified statements regarding applicant's boat handling ability and moral character from three persons having knowledge of these matters but who are not members of the applicant's family. (G) Certification of the truth of the statements submitted in his application. (H) Applicant's signature. (4) Submit a report, on forms provided by the Department, of a medical examination by a licensed physician within sixty (60) days of the date of application indicating: (A) Diseases and other physical or mental defects. Conditions such as epilepsy, insanity, senility, acute general disease or neurosyphilis, badly impaired hearing, or other defect that would render the applicant incompetent to perform the ordinary duties of a licensed operator are grounds for refusal to issue a license. (B) Possession, either with or without glasses, of at least 20/20 vision in one eye and at least 20/40 in the other. The applicant who wears glasses, however, must also be able to pass a test without glasses of at least 20/100 in both eyes. (C) Unimpaired color sense as tested by a test utilized by the U.S. Coast Guard to determine color sense, or a similar test. This requirement may be waived if the operation of vessels for which the license is sought will be limited to hours of daylight; provided that any license issued on the basis of such waiver will be limited to operation of vessels during hours of daylight. (D) Any of the requirements of this subdivision (4) may be waived where the Department determines that because of exceptional and unusual experience and skill or because of other unusual qualifications, the applicant evidences that he is a reliable and competent operator of the type of vessel for which he requests license to operate, on the water on which he requests license to operate. In granting any such waiver, the Department may impose such restrictions, limitations and conditions on the operation of for-hire vessels by such applicant as the Department deems necessary for the safety and protection of all persons carried on board such vessels. (5) Successfully complete a written test of knowledge of factors affecting boat operation, including: (A) State laws and regulations governing operation and equipment of undocumented vessels. (B) Fire protection measures. (C) Vessel and motor maintenance. (D) Navigational aids. (E) Safe operation of motorboats. (F) First aid and life saving measures. (6) In addition to the above requirements, an actual demonstration of the applicant's ability to exercise ordinary and reasonable control in operating a vessel may also be required. (b) Upon presentation to the Department of a valid master's, mate's, or operator's license issued by the U.S. Coast Guard as authorized by 46 CFR 15.605 and 15.607, the Department may waive the requirements listed in subdivisions (2), (3) (F), (4), (5) and (6) of subsection 7501(a). (c) The Department may at any time terminate restrictions, limitations and conditions placed on a license whenever the licensee furnishes evidence that the basis for the restrictions, limitations and conditions no longer exists. Note: Authority cited: Section 770, Harbors and Navigation Code. Reference: Section 767, Harbors and Navigation Code. s 7501.1. Time Periods for Processing For-Hire Vessel Operator's License. (a) The Department shall notify the applicant, in writing, within 10 days from receipt of application that the application is complete, or that the application is deficient, and what specific information is required. (b) The Department shall then process the completed application for license, as required by Sections 762 and/or 767 of the Harbors and Navigation Code, and reach a decision to issue a license within 30 to 90 days, the median being 60 days. Note: Authority cited: Section 764, Harbors and Navigation Code. Reference: Sections 762, 765 and 766, Harbors and Navigation Code; and Section 15376(a)-(c), Government Code. s 7502. Grounds for Refusal to Issue License. The Department may refuse to issue a license for any of the following reasons: (a) Failure of the applicant to meet the requirements set forth in Subdivisions (1) through (6) of Subsection 7501(a). (b) Habitual use by the applicant of intoxicating liquor, or any narcotic drug, barbiturate or marijuana. (c) Material misrepresentation or false statements in any application. Note: Authority cited: Section 770, Harbors and Navigation Code. Reference: Section 766, Harbors and Navigation Code. s 7503. Renewal of License. Following are the requirements for renewal of licenses: (a) Applicant must present evidence of satisfactory operation of vessels during the past five years, including at least one year of operation of the type of motorboat or motor vessel for which license was issued, on the type of water for which license was issued, or present other experience of training which, in the judgment of the Department, is a reasonable equivalent. (b) Applicant must submit a report, on forms provided by the Department, of a medical examination by a licensed physician within 60 days of the date of the application for renewal indicating: (1) Diseases and other defects. Conditions such as epilepsy, insanity, senility, acute general disease or neurosyphilis, badly impaired hearing, or other defect that would render the applicant incompetent to perform the ordinary duties of a licensed operator are grounds for refusal to renew a license. (2) Possession, either with or without glasses, of at least 20/20 vision in one eye and at least 20/40 in the other. The applicant who wears glasses, however, must also be able to pass a test without glasses of at least 20/100 in both eyes. (3) Unimpaired color sense as tested by a test utilized by the U.S. Coast Guard to determine color sense, or a similar test. This requirement may be waived if the operation of vessels under the license will be limited to hours of daylight; provided that any license renewed on the basis of such waiver will be limited to operation of vessels during hours of daylight. (4) Any of the requirements of this subsection (b) may be waived where the Department determines that because of exceptional and unusual experience and skill or because of other unusual qualifications, the applicant evidences that he is a reliable and competent operator of the type of vessel for which he requests license to operate, on the water on which he requests license to operate. In granting any such waiver, the Department may impose such restrictions, limitations and conditions on the operations of for-hire vessels by such applicant as the Department deems necessary for the safety and protection of all persons carried on board such vessels. (c) Upon presentation to the Department of a valid master's, mate's or operator's license issued by the U.S. Coast Guard as authorized by 46 CFR 15.605 and 15.905, the Department may waive the requirements listed in subsection (b) of this section. Note: Authority cited: Section 770, Harbors and Navigation Code. Reference: Section 767, Harbors and Navigation Code. s 7504. Provisions Affecting Use of License. (a) No licensee or holder of an operator's license shall operate any for-hire vessel in violation of the terms and conditions upon which such license is issued, nor shall operate any vessel carrying passengers for hire subject to the provisions of this article, other than of the type designated on his license nor operate such vessel on any waters other than those designated on his license. (b) The licensee shall notify the Department of any change of address within 30 days of such change. (c) The operator of any vessel subject to the provisions of this article and article 2 (commencing with section 760) chapter 2, division 3, of the harbors and navigation code, shall have his license as operator in his possession and available for examination at all times when the vessel in being operated. Note: Authority cited: Section 770, Harbors and Navigation Code. Reference: Sections 761, 767 and 769, Harbors and Navigation Code. s 7505. Investigations. (a) The Department may make periodic or special investigation of any licensee to ascertain his competence and physical condition with respect to operating for-hire vessels. (b) The Department may investigate the operation of any vessel subject to this article and article 2 (commencing with section 760) chapter 2, division 3 of the Harbors and Navigation Code, for the sole purpose of ascertaining compliance therewith. Note: Authority cited: Section 770, Harbors and Navigation Code. Reference: Sections 764, 765, 766, 767 and 769, Harbors and Navigation Code. s 7601. General Definitions. Unless otherwise expressly indicated or compelled by the context in which used, words, phrases, and references appearing in this Chapter shall have meanings as ascribed herein. (a) An "exclusive listing" is a written agreement between the owner of a vessel and a broker which provides that the commission is due the broker named in the contract if the boat is sold, traded, or exchanged with in the time limit which must be specified in the contract by the said broker, by any other broker, or by the owner. (b) An "open listing" is a written agreement between the owner of a vessel and a broker which authorizes the broker to negotiate the sale, trade, or exchange of the vessel, but reserves to the owner the right, without incurring a liability for the payment of a commission to said broker, to negotiate the sale, trade, or exchange of said vessel himself, or to enter into open listing agreements with other brokers respecting said vessel. (c) "Advertising" is any written or printed communication or oral communication made in accordance with a text or outline that has been reduced to written form which is published for the purpose of inducing persons to sell or purchase a product or use a service. (d) An "applicant" is a person applying to the Department of Boating and Waterways for a license. (e) The "Act" is the Yacht and Ship Brokers Act and regulations pertaining thereto. (f) The "Code" is the Harbors and Navigation Code. (g) The "Director" is the Director of the Department of Boating and Waterways. (h) The "Department" is the Department of Boating and Waterways. (i) An "examination" is an examination to qualify for any license issued under authority of the Yacht and Ship Brokers Act. (j) A "license" is any license issued under authority of the Yacht and Ship Brokers Act. (k) The "licensee" is a licensed broker or salesman. (l) A "permanent license" is a Yacht and Ship Broker's or Salesman's License originally issued for one year and renewable for one or two years, as opposed to a salesman's temporary license issued for sixty days. (m) The "Yacht and Ship Brokers Act" is Chapter 5 of Division 3, Article 2 of the Code. (n) "Consummated" means that buyer and seller shall have a signed purchase agreement, which agreement shall contain all the conditions of the sale, and said conditions have been met. (o) "Completed" means all the conditions of the purchase agreement have been met and the bill of sale has been passed from seller to buyer. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Section 701, Harbors and Navigation Code. s 7602. Advertising. (a) Advertising of any service for which a license is required under the provisions of the Yacht and Ship Brokers Act shall disclose the name of the business as shown on the required license. (b) In addition to the name of the broker on signs or in advertising, the words "licensed yacht broker," "yacht broker," "ship broker," or "boat broker," or "brokerage" in each such context may be used to indicate that the broker is a licensed yacht broker. (c) No person, firm, or corporation may use any of the designations set forth in subdivision (b) hereof unless duly licensed under the Yacht and Ship Brokers Act, or otherwise exempted by law. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Section 708, Harbors and Navigation Code. s 7603. Investigative Authority. (a) The department may, with reasonable cause to suspect that a person or business is acting in the capacity of a broker, investigate that person or business to ascertain whether a license is or is not required. (b) The department shall have authority to investigate and take lawful action deemed advisable with regard to complaints against brokers or salesmen acting only in a capacity for which they must be licensed. (c) Any person, including a partnership or corporation purchasing used yachts for resale or taking yachts in trade for resale, shall transfer actual title to any such yacht into his name, or have in his possession, subject to inspection by the department, a good and sufficient bill of sale or other fit evidence of title if such person or firm wishes to claim exemption from licensing requirements of the Yacht and Ship Brokers Act. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 703, 706, 720, 732, 733 and 734, Harbors and Navigation Code. s 7604. Trust Accounts. (a) In the absence of the broker, a licensed salesman authorized in writing by the broker, or other persons authorized by this section to make withdrawals from trust accounts, shall make deposits to trust accounts pursuant to section 714 of the Harbors and Navigation Code. Withdrawals shall not be made from a trust account maintained as provided by section 714 of the Harbors and Navigation Code except upon the signature of at least one of the following: (1) The broker; (2) A salesman, or group of salesmen jointly who are in the employ of the broker and who have been authorized in writing by the broker to make withdrawals from such trust accounts. The broker shall not authorize more than one salesman or group of salesmen at any one time to make such withdrawals; (3) Where the licensee is a corporation, any corporate officer who may be designated in writing by the corporation. (b) Every broker required to maintain such trust fund account shall keep records of all funds deposited therein, which records shall clearly indicate the date and from whom he received the money, the date deposited, the dates of withdrawals, and other pertinent information concerning the transaction. (c) Failure to maintain a trust fund account when required, and to deposit trust funds received promptly in said account, may be construed to be commingling, in violation of section 732, subsection (e) of the Harbors and Navigation Code. (d) Upon request, the above-written authorization shall be made available to the department for its inspection. (e) A check received from the offeror may be held uncashed by the broker until acceptance of the offer if (1) the check by its terms is not negotiable by the broker or if the offeror has written instructions that the check shall not be deposited nor cashed until acceptance of the offer and (2) the offeree is informed that the check is being so held before or at the time the offer is presented for acceptance. (f) In these circumstances if the offeror's check was held by the broker in accordance with subdivision (e) until acceptance of the offer, the check shall be placed into a neutral escrow depository or the trust fund account or into the hands of the offeree if offeror and offeree expressly so provide in writing not later than the next business day following acceptance of the offer unless the broker receives written authorization from the offeree to continue to hold the check. Note: Authority cited; Section 703, Harbors and Navigation Code. Reference: Sections 714 and 716, Harbors and Navigation Code. s 7605. Shared Listings. If a broker intends to or does share a listing with other brokers, he must obtain authorization in writing from his principal to do so in his authorization to sell (listing agreement). Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Section 716, Harbors and Navigation Code. s 7606. Fees. In addition to license examination fees required by Sections 717 and 718 of the Harbors and Navigation Code to accompany applications for licenses, all other appropriate fees prescribed by Section 736 shall accompany such applications. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 717, 718 and 736, Harbors and Navigation Code. s 7606.1. Time Periods for Processing Yacht and Ship Broker, Salesman, and Associated Licenses. (a) The Department shall notify the applicant, in writing, within 10 days from receipt of application, that the application is complete, or that the application is deficient, and what specific information is required. (b) The Department shall then process the completed application for license(s), as required by Sections 717, 718, 722, 723, 724, 725, 727,728, 729, and/or 735, Harbors and Navigation Code, and reach a decision to issue a license within 30 to 90 days, the median being 60 days. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 717, 718 and 724, Harbors and Navigation Code; and Section 15376(a)-(c), Government Code. s 7607. Written Examination. An applicant who fails to appear for a scheduled written examination without notifying the Department prior to the exam date shall forfeit the examination fee and be required to pay an additional exam fee prior to taking any subsequent examination. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 717, 718 and 721, Harbors and Navigation Code. s 7608. Broker Qualifications. (a) In addition to those persons specified in Section 719 of the Harbors and Navigation Code, if an individual can show that department records are incorrect, and he can, in fact, prove that he has been employed as a licensed Yacht and Ship Broker or Salesman for at least one year within the preceding five years, such applicant shall be deemed qualified to take the Yacht Broker's examination for a Yacht and Ship Broker's License. (b) In addition to applicants described in Section 719(d), every applicant for a broker's or salesman's license and every person entitled to act in the capacity of a broker on behalf of a corporation or partnership shall be at least 18 years of age. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Section 719, Harbors and Navigation Code. s 7609. License Reinstatement. Application for reinstatement of a license shall be on a form furnished by the department and must be accompanied by the appropriate fees. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 726 and 736, Harbors and Navigation Code. s 7610. License Renewal (Failure to) Penalties. (a) (Reserved) (b) Any licensee who has failed to notify the department of a change of address, business structure, or in the case of a salesman, employing broker prior to renewal of license, and who does not submit the proper fee or fees for such change along with his renewal application and whose renewed or changed license is delayed beyond the expiration date of the license all or partly because of such failure, shall be subject to the penalty for reinstatement under provisions of Section 724(b) of the Harbors and Navigation Code. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 722, 723, 724, 726 and 738, Harbors and Navigation Code. s 7611. Temporary Salesman's License. (a) For purposes of Section 719(a) of the Harbors and Navigation Code, experience while holding a temporary license as a salesman shall not be considered as partial experience necessary to qualify for a broker's license. (b) In the event a salesman having the only temporary license permitted by subsection 725(a) of the Harbors and Navigation Code does not obtain a permanent license, and two years have passed since the expiration date of such temporary license, the department may issue another temporary license, pursuant to provisions of subsection 726(a) of the Harbors and Navigation Code. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 719, 725 and 726, Harbors and Navigation$Code. s 7612. Salesman's License, Transfer of, Restrictions on Employment. (a) A temporary license to act as a salesman will be issued only to an applicant who has valid employment as such salesman with a duly licensed broker. (b) A salesman's license or temporary salesman's license shall become inoperative upon the termination of such salesman's employment by a licensed broker, or upon the suspension or revocation of the employing broker's license. However, such salesman's license may be transferred to another licensed broker upon the holder's request. Such request for transfer must be accompanied by an application, as prescribed by the department, in writing executed by the new broker and the appropriate fee. (c) No salesman shall associate himself with more than one broker concurrently. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 719, 725 and 726, Harbors and Navigation Code. s 7613. Corporation and Partnership Licenses. (a) A broker's license issued to a corporation or partnership shall disclose the name and license number of the corporation or partnership, along with the name of the officer or partner entitled to act on behalf of the corporation or partnership. Additional licenses issued to other officers or partners acting on behalf of the corporation or partnership only shall disclose the name and license number of the corporation or partnership, followed by the name of such additional officers or partners. In the event the corporation or partnership is dissolved, all licenses disclosing the name and number of the corporation or partnership become invalid. (b) In the event a licensed partner of a partnership, who is also licensed as a broker on his own behalf while acting on behalf of the partnership, violates any provision of the Yacht and Ship Brokers Act or regulations pertaining thereto, which is grounds for suspension or revocation of a license, both licenses may be suspended or revoked, and if necessary, either or both bonds attached. If such licensed partner, while acting on his own behalf commits such violation, his licenses to act on his own behalf and on behalf of the partnership are both subject to such suspension or revocation, and if necessary, his bond is subject to attachment. (c) In the event a licensed officer of a corporation, who is also licensed as a broker on his own behalf while acting on behalf of the corporation, violates any provision of the Act or regulations pertaining thereto which is grounds for suspension or revocation of a license, both licenses may be suspended or revoked, and if necessary, either or both bonds attached. If such licensed officer of a corporation, while acting on his own behalf commits such violation, his licenses to act on his own behalf and on behalf of the corporation are both subject to such suspension or revocation and his bond is subject to attachment. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 728 and 729, Harbors and Navigation Code. s 7614. Broker's Bond or Deposit. (a) The Yacht and Ship Broker's Bond Endorsement used shall be of the form prescribed and provided by the department. (b) The department may not release its interest in a cash deposit made pursuant to section 731 of the Harbors and Navigation Code until a surety bond, dated to include the period for which the cash deposit was made, is filed with the department. (c) The period required by subsection (b) will not exceed four years. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 730 and 731, Harbors and Navigation Code. s 7615. Coercive and Oppressive Methods. It shall constitute coercive and oppressive methods within the meaning of Section 732, subsection (g) of the Harbors and Navigation Code, if a licensee who is also the owner, operator, or otherwise in charge of a landing pier or mooring place: (a) Exacts or demands all or part of a broker's fee or commission from the sale by the owner or any other licensed broker or salesman of any yacht or boat moored at said landing pier or mooring place solely because said yacht or boat was or is moored at such pier or landing place; (b) Expels or denies or refuses to permit the continued use or lease of such landing pier or mooring place by an owner of a boat or yacht for the reason that said boat or yacht is listed for sale with another licensee; (c) Expels or denies or refuses to permit the continued use or lease of such landing pier or mooring place by the purchaser of a boat or yacht moored at such landing pier or mooring place because another licensee had made the sale of such boat or yacht. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 732 and 733, Harbors and Navigation Code. s 7616. Definite Place of Business. A definite place of business shall mean premises owned, rented, or leased by the broker which premises shall be locatable at a street address or road intersection and/or slip number, if applicable. A post office box and/or telephone number shall not be considered a definite place of business. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Section 735, Harbors and Navigation Code. s 7617. Branch Offices. (a) Any broker who regularly transacts business at a location other than his established principal office, or who employs other brokers or salesmen to do so shall be deemed to be maintaining a branch office at such location. (b) A temporary exhibit of less than three weeks duration at a county or state fair or an organized boat or sport show shall not be deemed a branch office. (c) If a broker uses more than one fictitious business name at the same location, a separate branch office license shall be obtained in addition to the current principal or branch office license at that location. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections708 and 735, Harbors and Navigation Code. s 7618. Identification Card. (a) A broker's identification card shall be issued only to the person named on the license, and there shall also appear on such card the name of the corporation, partnership or association which he represents. The broker to whom such identification card is issued shall place his signature thereon. (b) A salesman's identification card shall be issued only to a licensed salesman, and shall bear the name of the employing licensed broker. The salesman shall place his signature thereon. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Section 735, Harbors and Navigation Code. s 7619. Broker-Salesman Relationship Agreement. Every broker shall have a written agreement with each of his salesmen, whether licensed as a salesman or as a broker under a broker-salesman arrangement. The agreement shall be dated and signed by the parties and shall cover material aspects of the relationship between the parties. Signed copies of the agreement shall be retained by the parties thereto, and shall be available for inspection by the department or its designated representative on request. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Section 703, Harbors and Navigation Code. s 7620. Retention of Records. A licensed broker shall retain for four years copies of all listings, deposit receipts, cancelled checks, trust records, and other documents executed by him or obtained by him in connection with a transaction for which a Yacht and Ship Broker's License is required. Upon request, these records shall be made available to the Department for their inspection. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 703, 714, 715 and 716, Harbors and Navigation Code. s 7621. Government Office. When the holder of a Yacht and Ship Broker or Salesman's License is required to relinquish his license to assume an office in local, state, or federal government, he may have it reinstated at any time within six months of termination of his service in such office upon payment of the appropriate renewal fee. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Section 724, Harbors and Navigation Code. s 7622. Property Taxes. Any agreement between a buyer and seller of a yacht negotiated by a broker to prorate personal property taxes for a twelve-month period shall specify the applicable tax year and the date of the commencement of such twelve-month period, and shall clearly state the actual amounts payable by the seller and buyer. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 703 and 716, Harbors and Navigation Code. s 7623. Offers. (a) The licensee must present or cause to be presented to the owner of the vessel any offer to purchase received prior to the completion of a sale, unless expressly instructed by the owner not to present such an offer. (b) A licensee shall not present competing offers to purchase avessel to the owner in such manner as to induce the owner to accept an offer which will provide the greatest compensation to the licensee, without regard to the benefits, advantages, and/or disadvantages to the owner. Note: Authority cited: Section 703, Harbors and Navigation Code. Reference: Sections 709 and 716(c), Harbors and Navigation Code. s 7700. Definitions. Note: Authority cited: Sections 621 and 652, Harbors and Navigation Code. Reference: Sections 610, 611, 612, 615, 616, 617, 618, 620 and 622, Harbors and Navigation Code. s 7701. Applications for Certificate of Registration of a Small Boat Towing Service. Note: Authority cited: Sections 621 and 652, Harbors and Navigation Code. Reference: Sections 611, 615, 616 and 622, Harbors and Navigation Code. s 7702. Requirements for Certificate of Registration. Note: Authority cited: Sections 615, 621 and 652, Harbors and Navigation Code. Reference: Chapter 4.3 (commencing with section 610), Division 3, Harbors and Navigation Code; and Section 1760.5, Insurance Code. s 7703. Partnership Certificate of Registration. Note: Authority cited: Sections 621 and 652, Harbors and Navigation Code. Reference: Section 611, 612 and 615, Harbors and Navigation Code. s 7704. Corporation Certificate of Registration. Note: Authority cited: Sections 621 and 652, Harbors and Navigation Code. Reference: Section 611, 612 and 615, Harbors and Navigation Code. s 7705. Authorized Operators. Note: Authority cited: Sections 621 and 652, Harbors and Navigation Code. Reference: Sections 611, 612, 615 and 622, Harbors and Navigation Code. s 7706. Grounds for Refusal to Issue Certificate of Registration. s 7707. Suspension of Certificate of Registration. s 7707.1. Refusal to Issue. Note: Authority cited: Sections 621 and 652, Harbors and Navigation Code. s 7708. Provisions Affecting Use of Certificate of Registration. s 7709. Time Periods for Processing. s 7710. Arbitration Fees. s 8000. Criteria for Required Boating Safety Course. (a) The Department shall approve and maintain an approved listing of boating safety education courses. (b) Boating safety education courses approved by the Department shall be general, entry level courses. The courses shall contain at least the following elements or subjects: (1) Boating laws and regulations (2) Rules of the road and navigational lights (3) Safety and responsibility (4) Required equipment (5) Basic boat handling (6) Navigational aids (Uniform State Waterway Marking System) (7) Boating operation emergencies and accidents (8) Alcohol (9) Weather. (c) The certificate for completion and passage of the course shall include: (1) The name of the person passing the course. (2) Date of course completion. (3) The name of the organization that provided the course. (4) A statement that the course has been approved by the California Department of Boating and Waterways. (d) The fees for these approved boating education courses shall not exceed the expenses associated with providing the courses. Note: Authority cited: Section 668.1, Harbors and Navigation Code. Reference: Sections 655, 655.2, 658, 658.5 and 668.1, Harbors and Navigation Code; and section 191.5, Penal Code. s 8100. Purpose. The purpose of the selection process for private architectural, landscape architectural, engineering, environmental, land surveying and construction project management firms is to provide procedures that assure such services are engaged on the basis of demonstrated competence and qualifications for the types of services to be performed, at fair and reasonable prices to the Department of Boating and Waterways. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4525 and 4526, Government Code. s 8100.1. Definitions. The following definitions shall be used in this article. (a) "Architectural, landscape architectural, engineering, environmental, land surveying services" includes those professional services of an architectural, landscape architectural, engineering, environmental, or land surveying nature as well as incidental services that members of these professions and those in their employ may logically or justifiably perform. (b) "Construction project management" means those services provided by a licensed architect, registered engineer, or licensed general contractor which meet the requirements of Section 4529.5 of the Government Code for management and supervision of work performed on state construction projects. (c) "Contract" means any agreement entered into by the Department for architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services. (d) "Department" means the Department of Boating and Waterways. (e) "Firm" means any individual, firm, partnership, corporation, association, or other legal entity permitted by law to practice the professions of architecture, landscape architecture, engineering, environmental services, land surveying or construction project management. (f) "Multiple Contracts" means contracts that may be awarded to multiple firms. (g) "On-Call Contracts" means contracts for projects that involve more than one component, site, or activity. (h) "Single Firm Contract" means a contract that is let to the single most qualified firm. (i) "Small Business" is a firm that meets the definition of "small business" provided in Government Code Section 14837. (j) "Specific Project Contract" is a contract for a project that involves a single subject matter and may result in a single contract. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4525, 4526 and 14837 Government Code. s 8100.2. Contract Types. (a) The Department may utilize specific project contracts, single firm contracts, multiple contracts, or on-call contracts depending on the specific situation. All contract types are subject to this Article. (b) Multiple contracts may be awarded for contracts that cover different, specific geographic regions; contracts that encompass different specific, unique disciplines; or contracts for which there would be a primary contractor, with a backup contractor in the event the primary contractor is unavailable for the assignment. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4525 and 4526, Government Code. s 8100.3. Selection Criteria. The Department shall establish selection criteria that will comprise the basis for the selection of eligible firms to perform the required services. The criteria may include such factors as professional experience of the firm in performing services of similar nature; quality and relevance of recently completed or ongoing work; reliability, continuity, and location of firm to the project site; staffing capability; education and experience of key personnel to be assigned; knowledge of applicable regulations and technology associated with the services required; specialized experience of the firm in the services to be performed; participation as small business firm; and other factors the Department deems relevant to the specific task to be performed. The Department may weigh these factors according to the nature of the proposed project, the complexity and special requirements of the specific services, and the needs of the Department. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4526, 4527 and 4529.5, Government Code. s 8100.4. Request for Qualifications. (a) A statewide announcement of each proposed project shall be published in the California State Contracts Register, in accordance with the Government Code (commencing with Section 14825), and in the publications of the respective professional societies. Failure of any professional society to publish the announcement shall not invalidate any contract. (b) The announcement for each proposed project shall include, at a minimum, a brief description of the services required, location and duration of services, criteria upon which the award will be made, submittal requirements, contact person for the Department, and the final response date for receipt of statements from firms of their demonstrated competence and professional qualifications. (c) The Department shall identify potentially qualified small business firms interested in contracting with the Department, and shall provide copies of project announcements to those small business firms that have indicated an interest in receiving the announcements. Failure of the Department to send a copy of an announcement to any firm shall not invalidate any contract. Note: Authority cited: Section 4526, Government Code. References: Sections 4526, 4527 and 14825, Government Code. s 8100.5. Annual Submission of Qualifications. In compliance with Government Code section 4527, interested firms may submit their qualifications and performance data to the Department annually throughout the year. The Department may consider such qualifications and performance data when selecting a contractor in accordance with Section 8100.6. Such qualifications and performance data that are on file with the Department for longer than one year, and not subsequently renewed or refiled, shall not be considered by the Department in its selection process. Note: Authority cited: Section 4527, Government Code. Reference: Section 4527, Government Code. s 8100.6. Selection of Qualified Firms. (a) After the expiration of the final response date in the published project announcement, the Department shall review and evaluate the written statements of demonstrated competence and professional qualifications using the selection criteria in the published project announcement, and rank, in order of preference, the firms determined as most highly qualified to perform the required services. (b) The Department shall conduct discussions with at least the three most eligible firms, or a lesser number if fewer than three eligible firms have responded, about anticipated concepts and the benefit of alternative methods for furnishing the required services. From the firms with which discussions are held, the Department shall select, in order of preference, not less than three firms, or lesser number if fewer than three eligible firms responded, deemed to be the most highly qualified to perform the required services. Note: Authority cited: Section 4526, Government Code. Reference: Sections 4526 and 4527, Government Code. s 8100.7. Negotiation. (a) From among the firms selected in Section 8100.6, as most highly qualified to perform the services required, the Department shall attempt to negotiate a satisfactory contract with the best qualified firm at a compensation which the Department determines is fair and reasonable. (b) If the Department is unable to negotiate a satisfactory contract with the best qualified firm at a compensation which the Department determines is fair and reasonable, negotiations with that firm shall be terminated and negotiations undertaken with the second best qualified firm. If unable to negotiate a satisfactory contract with the second best qualified firm at a compensation which the Department determines is fair and reasonable, negotiations with that firm shall be terminated and negotiations undertaken with the third best qualified firm. If unable to negotiate a satisfactory contract with the third best qualified firm at a compensation which the Department determines is fair and reasonable, negotiations with that firm shall be terminated. (c) Where the Department is unable to negotiate a satisfactory contract in accordance with subsections (a) and (b), the Department shall continue the negotiations process with the remaining qualified firms, if any, in order of preference, until a satisfactory contract is reached. If unable to negotiate a satisfactory contract with any of the qualified firms, the Department shall abandon the negotiation process for the required services. Note: Authority cited: Section 4526, Government Code. References: Sections 4527 and 4528, Government Code. s 8100.8. Estimated Value of Services. (a) Before entering into discussion with any firm selected pursuant to Section 8100.6, Department staff shall prepare an estimate of the value of the proposed contract, based upon accepted rates for comparable services. The estimate will serve as a guide in determining fair and reasonable compensation in the negotiation of a satisfactory contract in accordance with the provisions of Section 8100.7, and shall not be disclosed until award of the contract or abandonment of the negotiation process for the services to which it relates. (b) At any time the Department determines the estimate prepared in accordance with (a) to be unrealistic for any reason, the Department shall reevaluate the estimate and, if necessary, modify the estimate. Note: Authority cited: Section 4526, Government Code. References: Sections 4526 and 4528, Government Code. s 8100.9. Amendments. Where the Department determines that a change in the contract is necessary during the performance of the services, the parties may, by mutual consent, in writing, agree to modifications, additions or deletions in the general terms, conditions and specifications for the services involved, with a reasonable adjustment in the firm's compensation. Note: Authority cited: Section 4526, Government Code. References: Sections 4527 and 4528, Government Code. s 8100.10. Contracting in Phases. Where the Department determines it is necessary or desirable for a project to be performed in separate phases, the Department may negotiate a partial compensation for the initial phase of the services required; provided, however, the Department first determines that the firm selected is best qualified to perform the entire project. The contract shall include a provision that the Department may, at its option, utilize the firm to perform other phases of the services at a compensation which the Department determines is fair and reasonable, to be later negotiated and included in a mutual written agreement. In the event that the Department exercises its option under the contract to utilize the firm to perform other phases of the project, the procedures of Sections 8100.7 and 8100.8, regarding estimates of value of services and negotiation shall be followed. Note: Authority cited: Section 4526, Government Code. References: Sections 4526 and 4528, Government Code. s 8100.11. Department's Power to Require Bids. If the Department determines that the services are technical in nature and involve little professional judgment and that requiring bids would be in the public interest, a contract may be awarded on the basis of competitive bids and not the procedures of this Article. Note: Authority cited: Section 4526, Government Code. References: Section 4529, Government Code. s 8100.12. Unlawful Considerations. Each contract shall include a provision by which the firm warrants that the contract was not obtained or secured through rebates, kickbacks or other unlawful considerations either promised or paid to any Department employee. Failure to adhere to this warranty may be cause for contract termination and recovery of damages under the rights and remedies due the Department under the default provision of the contract. Note: Authority cited: Section 4526, Government Code. References: Section 4526, Government Code. s 8100.13. Prohibited Relationships. No Department employee who participates in the evaluation or selection process leading to award of a contract shall have a relationship with any of the firms seeking that contract, if that relationship is subject to the prohibition of Government Code Section 87100. Note: Authority cited: Sections 4526 and 4527, Government Code. References: Sections 4526, 4527, 87100 and 87102, Government Code. Note: Authority cited: Section 21082, Public Resources Code; and Section 63.9, Harbors and Navigation Code. Reference: Sections 21000, 21174, Public Resources Code; and Sections 71.4 and 72.5, Harbors and Navigation Code. s 8600. General Provisions. The Political Reform Act, Government Code Sections 81000, et seq., requires state and local government agencies to adopt and promulgate Conflict of Interest Codes. The Fair Political Practices Commission has adopted a regulation, Title 2 California Code of Regulations Section 18730, which contains the terms of a standard Conflict of Interest Code, which can be incorporated by reference, and which may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act after public notice and hearings. Therefore, the terms of Title 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission, along with the attached Appendix in which officials and employees are designated and disclosure categories are set forth, are hereby incorporated by reference and constitute the Conflict of Interest Code of the Department of Boating and Waterways. Pursuant to Title 2 of the California Code of Regulations Section 18730, designated employees shall file statements of economic interests with their agencies. Upon receipt of the statements of the Director and Commissioners, the agency shall make and retain a copy and forward the original of these statements to the Fair Political Practices Commission. Note: Authority cited: Sections 87300 and 87304, Government Code. Reference: Section 87300, et seq., Government Code. Appendix Designated Disclosure Employees/Division Category Executive Office Department Director......................................... 1 Deputy Director............................................. 1 Staff Counsel............................................... 2 Legislation, Public Information & Regulations Senior Boating Administrator/Division Chief................. 2 Associate Governmental Program Analyst...................... 2 Boating Facilities Division CEA/Division Chief.......................................... 2 Supervising Civil Engineer.................................. 2 Senior Engineering Geologist................................ 2 Oceanographer............................................... 2 Staff Services Manager...................................... 2 Aquatic Pest Control Program Manager........................ 2 Aquatic Pest Control Assistant Program Manager.............. 2 Senior Civil Engineer....................................... 2 Associate Civil Engineer.................................... 2 Civil Engineering Associate................................. 2 Assistant Civil Engineer.................................... 2 Junior Civil Engineer....................................... 2 Boating Facilities Manager II............................... 2 Project Managers............................................ 2 Associate Landscape Architect............................... 2 Associate Governmental Program Analyst...................... 2 Staff Services Analyst...................................... 2 Environmental Scientist..................................... 2 Administrative Services Division Staff Services Manager/Division Chief....................... 2 Business Services Officer................................... 2 Staff Information Systems Analyst (Supervisor).............. 2 Associate Information Systems Analyst (Specialist).......... 2 Assistant Information Systems Analyst....................... 2 Boating Operations Division Staff Services Manager/Division Chief....................... 2 Staff Services Manager...................................... 2 Associate Governmental Program Analyst...................... 2 Staff Services Analyst...................................... 2 Program Managers............................................ 2 Department Wide Consultants [FNa1].......................................... 1 Members of the Boating and Waterways Commission............. 2 [FNa1]Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadcast disclosure category in the code subject to the following limitation: The director may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that is limited in scope and thus is not required to comply fully with the disclosure requirements described in this section. Such determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The director's determination is a public record and shall be retained for public inspection in the same manner and location as this conflict of interest code. Disclosure Categories 1. Every person in Category 1 must disclose all investments, interests in real property, income and his or her status as a director, officer, partner, trustee, employee or holder of any position of management in any business entity. 2. Every person in Category 2 must disclose investments, interests in real property, income and his or her status as a director, officer, partner, trustee, employee or holder of any position of management in a business entity, if the business entity, source of income or real property is: (a) subject to or foreseeably may be subject to any laws of the State of California relating to the control of recreational boating, or subject to any rules or regulations promulgated by the Department of Boating and Waterways; (b) one which has contracted, or in the future foreseeably may contract with the Department to provide services, supplies, materials, machinery, instrumentation, or equipment to the Department; (c) associated with the manufacture, distribution, sale, repair, or advertisement of recreational boating, marine equipment and supplies or other related products; (d) regularly engaged in the business of environmental impact reports or environmental impact statements; or (e) an interest in real property in or contiguous to recreational boating facilities.