CCLME.ORG - DIVISION 4. DEPARTMENT OF BOATING AND WATERWAYS

(continued)

(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: (continued)