Title HNC — California Harb. & Nav. Code

No licensed broker or licensed salesman shall practice any fraud or deceit or make any fraudulent or grossly negligent representation with respect to any act for which a license is required under this article.

The definitions of “broker” and “salesperson,” as set forth in Section 701, do not include the following: (a) A person who directly performs any act subject to this article with reference to a yacht owned by that person or, in the case of a corporation which, through its regular …

No person engaged in the business or acting in the capacity of a licensed broker or salesman within this state shall bring or maintain any action in the courts of this state for the collection of compensation for the performance of any of the acts mentioned in this article withou…

(a) No licensed broker shall employ or compensate, directly or indirectly, any person for performing any of the acts within the scope of this article who is not a licensed broker or salesman licensed under the broker employing or compensating him or her, except that a licensed br…

Nothing contained in this article shall preclude a partnership from performing acts for which a broker’s license is required, provided every partner through whom the partnership so acts is a licensed broker.

A licensed broker who accepts funds from others in connection with any transaction subject to this article who does not, as soon as possible, place those funds into a neutral escrow depository, shall place the funds into a trust fund account maintained by the broker in some bank …

Within one month after the closing of a transaction in which title to a yacht is conveyed from a seller to a purchaser through a licensed broker, the licensee shall provide, or cause to be provided to the seller and purchaser, a closing statement in writing of the selling price t…

(a) No broker shall engage in any transaction for which a license is required under this article without first obtaining a signed written authorization to do so from the broker’s principal. An authorization to sell shall contain a description of the vessel, including the undocume…

Application for a license as a broker shall be made on forms prescribed by the department and shall be signed by the applicant. The application shall be accompanied by the broker license examination fee.

Application for a license as a salesman shall be made on forms prescribed by the department and shall be signed by the applicant and by the employing broker. The application shall be accompanied by the salesman license examination fee.

(a) A person shall be deemed qualified to submit an application for a broker’s license if, as shown on the department’s records, the person meets all of the following requirements: (1) Is at least 18 years of age. (2) Has not been cited for a violation of this article within the …

The department may require proof as it deems advisable concerning the honesty, truthfulness, and good reputation of the applicant for a broker’s or salesperson’s license or of the officers of any corporation making application before the issuance of a broker’s license. For this p…

(a) In addition to any proof of honesty, truthfulness, and good reputation required of any applicant for a broker’s license, the department shall ascertain by written examination that the applicant, and in case of a partnership or corporation applicant for a broker’s license that…

The license first issued to a broker shall be for a period of one year. Such license may be renewed for periods of two years upon filing of the required application and payment of the required fee.

The license first issued to a salesman shall be for a period of one year. Such license may be renewed for periods of two years. Applicants for renewal of such licenses shall submit a recommendation of the broker who is to be his employer certifying that the applicant is honest, t…

(a) An application on the form prescribed by the department for the renewal of a broker or salesman license shall be filed with the department prior to the last day of the period for which a previous license was issued, accompanied by the applicable renewal fee. (b) Every license…

Temporary licenses may be issued to salespersons under the following conditions: (a) The licenses shall be issued for a period not to exceed 60 days and only one license shall be issued to each applicant. (b) An application shall be filed for a temporary license and for a permane…

(a) A person who fails to renew his license within two years after its expiration may not renew it pursuant to Section 724. Such person may apply and obtain a new license, in which case all of the provisions hereof shall apply as if such person were applying for a license for the…

The department may issue a certificate of convenience to the executor or administrator of the estate of a deceased broker, or if no executor or administrator has been appointed, and until a certified copy of an order making such appointment is filed with the department, to the wi…

(a) Every license issued to a corporation entitles one officer thereof on behalf of the corporation to engage in the business of broker without the payment of any further fee and such officer shall be designated in the application of the corporation for a license. When a broker’s…

(a) Every license issued to a partnership entitles one partner thereof on behalf of the partnership to engage in the business of yacht broker without the payment of any further fee and such partner shall be designated in the application of the partnership for a license. (b) When …

(a) Any limited liability company licensed by the department as a yacht broker on July 1, 2001, in order to continue to be licensed after that date, shall apply to the department in the form of an individual, partnership, or corporation for a broker’s license on or before the exp…

(a) Before any broker’s license shall be issued or renewed by the department for any applicant, the applicant shall procure, file, and maintain with the department a good and sufficient bond in the amount of fifteen thousand dollars ($15,000) with a corporate surety duly licensed…

(a) A cash deposit given instead of the bond required by Section 730 shall be held by the department during the life of the license and for a period of four years after the expiration of the license. (b) If an action is commenced on the cash deposit of a licensed broker pursuant …

The department may deny an application or temporarily suspend or permanently revoke the license of a broker or a salesperson at any time if the licensee, while a broker or salesperson, in performing or attempting to perform any of the acts within the scope of this article, has co…

The department may deny an application or may suspend or revoke the license of a yacht broker or yacht salesperson who, within four years immediately preceding, has committed any of the following acts: (a) Has procured a license under this article for himself or herself or anothe…

(a) The division shall require an applicant for a yacht and ship broker or salesperson license, as those terms are defined in Section 701, to undergo a fingerprint-based state and national criminal history background check. (b) The division shall submit to the Department of Justi…

(a) The department shall not deny, suspend, or revoke a license granted under this article without a hearing, except the department may suspend a license without a hearing for failure of a broker to maintain a bond as specified in subdivision (d) of Section 730, or for failure of…

(a) Every broker shall maintain a definite place of business in this state as his principal office and may establish other branch offices throughout the state. Every broker maintaining more than one place of business within this state shall procure an additional license for every…

A licensed broker shall retain, for four years, copies of all listings, deposit receipts, canceled checks, trust records, and other documents executed or obtained by the broker in connection with a transaction for which a broker’s license is required. These records shall be made …

The department shall accept any electronic record or electronic or digital signature created, generated, sent, communicated, received, or stored by electronic means on or after January 1, 2000. A “digital signature” means a signature that complies with the regulations adopted by …

(a) The division shall adopt regulations setting forth the fees to be charged and collected under this article. The fees shall be sufficient to reimburse the division for the reasonable costs of implementing this article. (b) A criminal records investigation fee shall be collecte…

(a) The proceedings and hearings under this article shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, including the right of judicial review as provided for in Section 11523 of the Government…

(a) Each violation of a section or subdivision of a section of this article, excepting Section 709, is a misdemeanor punishable by a fine not exceeding one thousand dollars ($1,000), provided that a violation committed willfully and with knowledge of the provisions of the violate…

Any person who violates any provision of this article, or any regulation adopted pursuant to this article, is liable for a penalty in an amount not less than one hundred dollars ($100) and not to exceed one thousand five hundred dollars ($1,500) for each separate violation. The p…

Any action taken in the enforcement of this article shall be commenced within three years of the department’s discovery of the facts constituting the grounds for that action.

(a) Every keeper of a storage facility shall keep a written record of every vessel subject to registration with the Department of Motor Vehicles which is stored therein for compensation for a period longer than 12 hours. (b) The record shall contain the name and address of the pe…

For purposes of this article, the following provisions shall apply: (a) “Company” means any company, sole proprietorship, firm, partnership, private, municipal, or public corporation, limited liability company, association, joint stock association, or other similar organization. …

The protection against liability shall be continued in effect so long as the for-hire vessel company continues to offer its services for compensation. The policy of insurance or surety bond shall not be cancelable on less than 30 days’ written notice to the department, except in …

The division may establish rules as are necessary to enforce this article.

Any for-hire vessel company that knowingly refuses or fails to procure protection against liability, as required by Section 759.2, is guilty of a misdemeanor.

Following an administrative hearing, the division may impose a penalty of not less than fifty dollars ($50) nor more than one thousand dollars ($1,000) upon any for-hire vessel company that violates any provision of this article or that fails to obey, observe, or comply with any …

(a) Upon filing of the evidence of liability protection pursuant to Section 759.2, the division shall provide a certificate of filing to the for-hire vessel company. The certificate shall be no larger than 8 ½ by 11 inches in size. The for-hire vessel company shall post the certi…

The division shall require every for-hire vessel company to procure, and continue in effect so long as the for-hire vessel company continues to offer its services for compensation, adequate protection against liability imposed by law upon a for-hire vessel company for the payment…

Upon receiving notification of impending cancellation of liability protection pertaining to a for-hire vessel company, the department shall, effective upon the date of the cancellation, revoke the certificate provided to the company pursuant to Section 759.18 and shall notify the…

Rules and regulations adopted by the Public Utilities Commission pursuant to its prior authority over insurance of for-hire vessel companies shall remain in effect until revised or repealed by the division.

This article shall become operative on July 1, 2018.

The division shall, after a public hearing, set the amount of liability insurance, required by Section 759.2, that is reasonably necessary to provide adequate compensation for damage incurred through an accident involving a for-hire vessel company. This amount shall be subject to…

The protection required under Section 759.2 shall be evidenced by deposit with the division, covering each vessel used or to be used in for-hire vessel operations for compensation, of any of the following: (a) A policy of insurance, issued by a company licensed to write such insu…

With the consent of the division, a copy of an insurance policy, certified by the company issuing it to be a true copy of the original policy, or a photostatic copy thereof, or an abstract of the provisions of the policy, or a certificate of insurance issued by the company issuin…