BILL NUMBER: SB 1435	CHAPTERED  07/22/08

	CHAPTER  178
	FILED WITH SECRETARY OF STATE  JULY 22, 2008
	APPROVED BY GOVERNOR  JULY 22, 2008
	PASSED THE SENATE  JULY 2, 2008
	PASSED THE ASSEMBLY  JUNE 26, 2008
	AMENDED IN ASSEMBLY  JUNE 9, 2008

INTRODUCED BY   Senator Ducheny

                        FEBRUARY 21, 2008

   An act to amend Section 76.3 of the Harbors and Navigation Code,
relating to harbors and ports.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1435, Ducheny. Marinas and harbors: funding.
   Existing law authorizes the Department of Boating and Waterways to
make loans to private marina owners for construction costs, not
including planning, design, and other similar expenses, to develop a
recreational marina.
   This bill would instead allow loan funds also to be utilized for
collateral appraisals, permit fees, planning, engineering, and design
expenses directly related to developing a recreational marina.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 76.3 of the Harbors and Navigation Code is
amended to read:
   76.3.  (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, landscaping, receptacles for the
purpose of separating, reusing, or recycling all solid waste
materials, and other incidental boating-related amenities.
   (2) Collateral appraisals, permit fees, planning, engineering, and
design expenses directly related to the items specified in paragraph
(1).
   (b) No loan made by the department to a private marina owner shall
exceed 75 percent of the funds annually budgeted for purposes of
this article.
   (c) 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.
   (d) 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.
   (e) (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 provide documentation to the
department proving to the satisfaction of the department that the
existing loan prohibits the addition of a loan in second position.
   (D) 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).