Amended in Senate June 29, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1432

Introduced by Assembly Member Bonta

February 27, 2015

An act to begin delete add Section 11775.5 to the Health and Safety Code, relating to human services. end delete begin insert amend Sections 1190 and 1191 of the Harbors and Navigation Code, relating to bar pilots, and making an appropriation therefor end insert begin insert . end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1432, as amended, Bonta. begin delete Drug and alcohol abuse programs. end delete begin insert Harbors and ports: Monterey Bay and the Bays of San Francisco, San Pablo, and Suisun: pilotage rates. end insert

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Existing law provides for the regulation and licensure of pilots for Monterey Bay and the Bays of San Francisco, San Pablo, and Suisun by the Board of Pilot Commissioners for the Bays of San Francisco, San Pablo, and Suisun within the Transportation Agency. Existing law prescribes the rates of bar pilotage fees required to be charged by pilots and paid by vessels inward or outward bound through those bays. Existing law also imposes, among other things, a board operations surcharge, of up to 7.5% of all bar pilotage fees charged by bar pilots, which is paid into the State Treasury to the credit of the Board of Pilot Commissioners’ Special Fund and continuously appropriated to the board to compensate the board and the agency for their services and expenses in this regard.

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This bill would, consistent with the board’s April 2015 adoption of rate recommendations, increase the rates of those bar pilotage fees, as provided. By increasing the rates of those fees, and thereby increasing the amount of surcharges deposited in the Board of Pilot Commissioners’ Special Fund, the bill would make an appropriation.

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Existing law, until January 1, 2011, authorized the board to authorize a movement fee, to be paid as a navigation technology surcharge, in order to recover the pilots’ costs for the purchase, lease, or maintenance of navigation software, hardware, and ancillary equipment purchased after November 5, 2008, and before January 1, 2011.

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This bill would, until January 1, 2020, authorize the board to authorize that fee as a navigation surcharge in order to recover the pilots’ costs for that software, hardware, and ancillary equipment purchased after January 1, 2016.

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Existing law requires the State Department of Health Care Services to administer all statewide service programs related to alcohol and drug abuse. Existing law authorizes the department to receive federal funds to implement programs that provide services to alleviate the problems related to alcohol and other drug use.

end delete begin delete

This bill would require the State Department of Health Care Services to submit an application to the federal Centers for Medicare and Medicaid Services for a waiver to implement a demonstration project to accomplish specified goals, including furthering the delivery of high-quality and cost-efficient care for communities and consumers with substance use disorders and co-occurring disorders, and ensuring the long-term viability of the delivery system following the expansion of Medi-Cal eligibility under the federal Patient Protection and Affordable Care Act. The bill would require the department to submit an implementation plan to the Legislature prior to implementing an approved waiver.

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Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 1190 of the end insert begin insert Harbors and Navigation Code end insert
begin insert is amended to read: end insert

1190.  

(a) Every vessel spoken inward or outward bound shall
pay the following rate of bar pilotage through the Golden Gate
and into or out of the Bays of San Francisco, San Pablo, and
Suisun:

(1) Eight dollars and eleven cents ($8.11) per draft foot of the
vessel’s deepest draft and fractions of a foot pro rata, and an
additional charge of 73.01 mills per high gross registered ton as
changed pursuant to law in effect on December 31, 1999. The mill
rates established by this paragraph may be changed as follows:

(A) (i) On and after January 1, 2010, if the number of pilots
licensed by the board is 58 or 59 pilots, the mill rate in effect on
December 31, 2006, shall be decreased by an incremental amount
that is proportionate to one-half of the last audited annual average
net income per pilot for each pilot licensed by the board below 60
pilots.

(ii) On and after January 1, 2010, if the number of pilots licensed
by the board is fewer than 58 pilots, the mill rate in effect on
December 31, 2006, shall be adjusted in accordance with the
method described in clause (i) as though there are 58 pilots licensed
by the board.

(iii) The incremental mill rate adjustment authorized by this
subparagraph shall be calculated using the data reported to the
board for the number of gross registered tons handled by pilots
licensed under this division during the same 12-month period as
the audited annual average net income per pilot. The incremental
mill rate adjustment shall become effective at the beginning of the
immediately following quarter, commencing January 1, April 1,
July 1, or October 1, as directed by the board.

(iv) On and after January 1, 2010, if, during any quarter
described in this paragraph, the number of pilots licensed by the
board is equal to or greater than 60, clauses (i) to (iii), inclusive,
shall become inoperative on the first day of the immediately
following quarter.

(B) There shall be an incremental rate of additional mills per
high gross registered ton as is necessary and authorized by the
board to recover the pilots’ costs of obtaining new pilot boats and
of funding design and engineering modifications for the purposes
of extending the service life of existing pilot boats, excluding costs
for repair or maintenance. The incremental mill rate charge
authorized by this subparagraph shall be identified as a pilot boat
surcharge on the pilots’ invoices and separately accounted for in
the accounting required by Section 1136. Net proceeds from the
sale of existing pilot boats shall be used to reduce the debt on the
new pilot boats and any debt associated with the modification of
pilot boats under this subparagraph. The board may adjust a pilot
boat surcharge to reflect any associated operational savings
resulting from the modification of pilot boats under this
subparagraph, including, but not limited to, reduced repair and
maintenance expenses.

(C) In addition to the incremental rate specified in subparagraph
(B), the mill rate established by this subdivision may be adjusted
at the direction of the board if, after a hearing conducted pursuant
to Article 9 (commencing with Section 11120) of Chapter 1 of
Part 1 of Division 3 of Title 2 of the Government Code, the board
determines that there has been a catastrophic cost increase to the
pilots that would result in at least a 2-percent increase in the overall
annual cost of providing pilot services.

(2) A minimum charge for bar pilotage shall be six hundred
sixty-two dollars ($662) for each vessel piloted.

(3) The vessel’s deepest draft shall be the maximum draft
attained, on a stillwater basis, at any part of the vessel during the
course of such transit inward or outward.

(b) The rate specified in subdivision (a) shall apply only to a
pilotage that passes through the Golden Gate to or from the high
seas to or from a berth within an area bounded by the Union Pacific
Railroad Bridge to the north and Hunter’s Point to the south. The
rate for pilotage to or from the high seas to or from a point past
the Union Pacific Railroad Bridge or Hunter’s Point shall include
a movement fee in addition to the basic bar pilotage rate as
specified by the board pursuant to Section 1191.

(c) The rate established in paragraph (1) of subdivision (a) shall
be for a trip from the high seas to dock or from the dock to high
seas. The rate specified in Section 1191 shall not be charged by
pilots for docking and undocking vessels. This subdivision does
not apply to the rates charged by inland pilots for their services.

(d) The board shall determine the number of pilots to be licensed
based on the 1986 manpower study adopted by the board.

(e) Consistent with the board’s begin delete May 2002 end delete begin insert April 2015 end insert adoption
of rate recommendations, the rates imposed pursuant to paragraph
(1) of subdivision (a) that are in effect on December 31, begin delete 2002, end delete
begin insert 2015, end insert shall be increased by begin delete 4 end delete begin insert 3 end insert percent on January 1, begin delete 2003; end delete begin insert 2016; end insert
those in effect on December 31, begin delete 2003, end delete begin insert 2016, end insert shall be increased by
begin delete 4 end delete begin insert 3 end insert percent on January 1, begin delete 2004; end delete begin insert 2017; end insert those in effect on December
31, begin delete 2004, end delete begin insert 2017, end insert shall be increased by begin delete 3 end delete begin insert 2 end insert percent on January 1,
begin delete 2005; end delete begin insert 2018; end insert and those in effect on December 31, begin delete 2005, end delete begin insert 2018, end insert shall
be increased by begin delete 3 end delete begin insert 2 end insert percent on January 1, begin delete 2006. end delete begin insert 2019. end insert

(f) (1) There shall be a movement fee as is necessary and
authorized by the board to recover a pilot’s costs for the purchase,
lease, or maintenance of navigation software, hardware, and
ancillary equipment purchased after begin delete November 5, 2008, and before
January 1, 2011. end delete begin insert January 1, 2016. end insert

(2) The software, equipment, and technology covered by this
subdivision shall be used strictly and exclusively to aid in piloting
on the pilotage grounds. The movement fee authorized by this
subdivision shall be identified as a navigation technology surcharge
on a pilot’s invoices and separately accounted for in the accounting
required by Section 1136. The board shall review and adjust as
necessary the navigation technology surcharge at least quarterly.
This subdivision shall become inoperative on January 1, begin delete 2011. end delete
begin insert 2020. end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 1191 of the end insert begin insert Harbors and Navigation Code end insert begin insert is
amended to read: end insert

1191.  

(a) The board, pursuant to Chapter 6 (commencing with
Section 1200), shall recommend that the Legislature, by statute,
adopt a schedule of pilotage rates providing fair and reasonable
return to pilots engaged in ship movements or special operations
if rates for those movements or operations are not specified in
Section 1190.

(b) A vessel using pilots for ship movements or special
operations that do not constitute bar pilotage shall pay the rate
specified in the schedule of pilotage rates adopted by the
Legislature.

(c) Consistent with the board’s adoption of rate
recommendations in begin delete May 2002, end delete begin insert April 2015, end insert the minimum rates
imposed pursuant to this section that are in effect on December
31, begin delete 2002, end delete begin insert 2015, end insert shall be increased by begin delete 26 end delete begin insert 3 end insert percent on January 1,
begin delete 2003; end delete begin insert 2016; end insert those in effect on December 31, begin delete 2003, end delete begin insert 2016, end insert shall be
increased by begin delete 26 end delete begin insert 3 end insert percent on January 1, begin delete 2004; end delete begin insert 2017; end insert those in effect
on December 31, begin delete 2004, end delete begin insert 2017, end insert shall be increased by begin delete 14 end delete begin insert 2 end insert percent
on January 1, begin delete 2005; end delete begin insert 2018; end insert and those in effect on December 31,
begin delete 2005, end delete begin insert 2018, end insert shall be increased by 14 percent on January 1, begin delete 2006. end delete
begin insert 2019. end insert

begin delete

SECTION 1.  

Section 11775.5 is added to the Health and Safety
Code, to read:

11775.5.  

(a) The State Department of Health Care Services
shall submit an application to the federal Centers for Medicare and
Medicaid Services for a waiver to implement a demonstration
project to accomplish all of the following:

(1) Further the delivery of high-quality and cost-efficient care
for communities and consumers with substance use disorders and
co-occurring disorders.

(2) Ensure the long-term viability of the delivery system
following the expansion of Medi-Cal eligibility under the federal
Patient Protection and Affordable Care Act.

(3) Continue California’s momentum and successes in
innovation achieved under the 2010 “Bridge to Reform” Waiver.

(b) In developing the waiver application, the department shall
consult with interested stakeholders and the Legislature.

(c) The department shall submit an implementation plan to the
Legislature prior to implementing the demonstration project
authorized pursuant to an approved waiver.

end delete