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THE LOG | June 11 - June 24, 2021 | 5
THELOG.COM
LEGAL ADVICE
ask a maritime attorney By David Weil
California’s Boating and Fishing News
Founded in 1971 NO. 1156
What do I need to know about starting a chartering business?
JUNE 11 – JUNE 24, 2021
W R ITE TO: P.O. Box 1337 Newport Beach, CA 92659 (949) 660-6150 (800) 873-7327 Fax (949) 660-6172
E DITO R I A L /CR E ATI V E (949) 660-6150 Staff Editor Jordan B. Darling (949) 503-7654 jdarling@goboating.com Staff Writer Lindsey Glasgow (949) 503-7690 lindsey@thelog.com Graphic Artist Julie Hogan Production Artist Meredith Ewell Contributors J.R. Johnson, Catherine French, David Weil Publisher Duncan McIntosh, Jr. duncan@thelog.com Vice President and General Manager Debbie Brock dbrock@duncanmcintoshco.com Operations Manager/ Sea Magazine Editor Jenny Scroggins seaeditor@goboating.com
QUESTION:
I own a 50-foot sailing yacht and I would like to start a charter business. Our home port is Marina Del Rey, California and we would offer the boat for harbor cruises and for overnight trips to Catalina. What legal issues should I be concerned about before I get started? ANSWER: A new charter business will need to address a lot of issues. Marina restrictions, passenger parking, liquor licenses, and a hundred other details must be considered. But the important legal issues can probably be divided into four main categories: The boat, the operator, city permits, and insurance. Your first legal issue concerns the construction of the boat. The United States is one of many nations that pro-
tects its domestic transportation industries through “cabotage” laws. These laws require the transportation of passengers or cargo between U.S. ports to be performed aboard “U.S. flagged” vessels (vessels registered under the laws of the United States), and U.S. built vessels. Many sailing yachts in the 50-foot range in this country are foreign-built. A foreign-built vessel may not legally carry passengers for hire in this country unless the owner obtains a waiver of the restriction, or the operation is structured in a way that avoids the restriction through
a “bareboat” charter (discussed below). Information regarding a waiver of the U.S. construction requirement is available on the internet website of the United States Maritime Administration https://www.maritime.dot. gov/ports/domestic-shipping/ small-vessel-waiver-program If your boat is U.S. built or has a waiver, and it is 100 gross tons or less, you may carry up to six paying passengers (the limit is increased to 12 passengers for vessels over 100 gross tons) without the need for Coast Guard inspection. These are often referred to as “six-pack” or “twelve-pack” charters. A Coast Guard Certificate of Inspection will allow the carriage of more passengers, but compliance with the Coast Guard’s inspection standards are very expensive and conversion of an existing boat to an inspected boat is usually cost-prohibitive. Coast
Guard inspection for passenger service also usually requires the assistance of an experienced marine architect and it should not be confused with the courtesy inspections conducted by the Coast Guard Auxiliary. The next issue involves the operator of the vessel. The master of any vessel that carries passengers for hire must be licensed by the Coast Guard as a Captain, for the class of service in which the boat is operating. Further, since our reader is interested in operating overnight charters, the Coast Guard may require an additional licensed crew person to be aboard if the vessel will be underway for extended periods. Contact the Coast Guard’s local Marine Safety Office for information specific to your proposed operation. Next, you will need to comPlease see ATTORNEY, PAGE 13
A DV E R TI S I NG S A L E S (949) 660-6150 Fax: (949) 660-6172 Susanne Kirkham-Diaz (California) (949) 503-7693 susanne@goboating.com Daniel Voet (California) (949) 503-7679 dvoet@goboating.com Felice Lineberry (Northwest) (949) 503-7692 felice@goboating.com
CL A S S I FI E D A DV E R TI S I N G (800) 887-1615 Jon Sorenson jon@thelog.com
S U B S CR I P TI O N S E RV I CE S (800) 887-1615 circulation@seamag.com
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David Weil is licensed to practice law in the state of California and as such, some of the information provided in this column may not be applicable in a jurisdiction outside of California. Please note also that no two legal situations are alike, and it is impossible to provide accurate legal advice without knowing all the facts of a particular situation. Therefore, the information provided in this column should not be regarded as individual legal advice, and readers should not act upon this information without seeking the opinion of an attorney in their home state.
Dog Aboard Is your pet as avid a boater as you? Send The Log pictures of your four-legged first mate. Email your photo, contact information and a description about your pet and boat to thelogeditor@thelog. com
COME SAIL AWAY WITH MAX
Lemon Beagle Max enjoys being on the water and is always ready to sail away with the tide, what a water dog. “Max, my seven-year-old Lemon Beagle is always ready to sail away,” said Jeff Sherman in an online submission.
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A DOG NAMED TUG Chocolate Lab Tug, chills out in style aboard his paw-rents whaler in Alamitos Bay. “Tug chilling on the Whaler in Alamitos Bay!” said the submission from the Utterback family.
