California Boating Law

CALIFORNIA BOATING LAW

Article 4. Vessels and Vessel Operators 75. Departmental programs and duties. The department has such powers and duties relating to vessels and vessel operators as are imposed upon the department by Chapter 5 (commencing with Section 650) of Division 3. Article 5. Recreational Marinas 76. Private recreational marina loans. It is the intent of the Legislature that Harbors and Watercraft Revolving Fund moneys be used to implement the intent of Section 71.5 by providing loans directly to private recreational marina owners for the design, acquisition, development, expansion, and improvement of boating facilities. It is the further intent of the Legislature that borrowers receiving loans not charge unreasonably high boat berthing fees at their harbor facilities, but that those borrowers be entitled to charge rates that provide for servicing of borrowed indebtedness obtained to develop those facilities, provide for other expenses incurred in operating the facilities, establish reasonable reserves for repairs, maintenance, and replacement of those facilities, and provide a reasonable return on the borrower’s invested capital. 76.1. Private marina owner defined. ‘‘Private marina owner’’ means a profit- oriented business enterprise which owns and operates, or intends to develop and operate, a small boat recreational facility providing boat berthing on a wet or dry storage basis and other improvements commonly found in a facility of that type on privately or publicly owned waters within this state. 76.2. Recreational marina defined. ‘‘Recreational marina’’ means a marina owned by a private marina owner which is used by the public primarily for recreational purposes. 76.3. Department loan provisions. (a) The department may make loans to private marina owners to develop a recreational marina. Loan funds from the department may be utilized for both of the following: (1) Construction costs for berthing facilities, dredging, parking, public access facilities, restrooms, vessel pumpout facilities, oil recycling facilities, utilities, land- scaping, receptacles for the purpose of separating, reusing, or recycling all solid waste materials, and other incidental boating-related amenities. (2) Acquisition, collateral appraisals, permit fees, planning, engineering, and design expenses directly related to the items specified in paragraph (1). (b) The department shall not make a loan to a recreational marina that restricts access or bars the public other than that which is consistent with general commercial business practices. (c) Any private marina owner who purchases facilities previously developed with a department loan is eligible to apply for a new construction loan from the department. (d) (1) The department may also make a loan to a recreational marina for the purpose of refinancing an existing loan, subject to the following conditions: (A) Not more than 70 percent of the proceeds from the loan shall be used to refinance an existing loan. (B) Not less than 30 percent of the loan proceeds shall be used for construction activity authorized under this section. (C) The loan applicant shall meet all other requirements under law for loan qualification and any other applicable term or condition of law. (2) This subdivision does not prohibit a person from applying for a loan under subdivision (a). 76.4. Loan applications. (a) An application for a loan under Section 76.3 shall be filed with the department and shall:

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