Amended in Senate July 16, 2015

Amended in Senate June 29, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1432


Introduced by Assembly Member Bonta

February 27, 2015


An act to amend Sections 1190 and 1191 of the Harbors and Navigation Code, relating to bar pilots, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 1432, as amended, Bonta. Harbors and ports: Monterey Bay and the Bays of San Francisco, San Pablo, and Suisun: pilotage rates.

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.

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.

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.

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.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

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

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SECTION 1.  

Section 1190 of the Harbors and Navigation Code
2 is amended to read:

3

1190.  

(a) Every vessel spoken inward or outward bound shall
4pay the following rate of bar pilotage through the Golden Gate
5and into or out of the Bays of San Francisco, San Pablo, and
6Suisun:

7(1) Eight dollars and eleven cents ($8.11) per draft foot of the
8vessel’s deepest draft and fractions of a foot pro rata, and an
9additional charge of 73.01 mills per high gross registered ton as
10changed pursuant to law in effect on December 31, 1999. The mill
11rates established by this paragraph may be changed as follows:

12(A) (i) On and after January 1, 2010, if the number of pilots
13licensed by the board is 58 or 59 pilots, the mill rate in effect on
14December 31, 2006, shall be decreased by an incremental amount
15that is proportionate to one-half of the last audited annual average
16net income per pilot for each pilot licensed by the board below 60
17pilots.

18(ii) On and after January 1, 2010, if the number of pilots licensed
19by the board is fewer than 58 pilots, the mill rate in effect on
20December 31, 2006, shall be adjusted in accordance with the
21method described in clause (i) as though there are 58 pilots licensed
22by the board.

P3    1(iii) The incremental mill rate adjustment authorized by this
2subparagraph shall be calculated using the data reported to the
3board for the number of gross registered tons handled by pilots
4licensed under this division during the same 12-month period as
5the audited annual average net income per pilot. The incremental
6mill rate adjustment shall become effective at the beginning of the
7immediately following quarter, commencing January 1, April 1,
8July 1, or October 1, as directed by the board.

9(iv) On and after January 1, 2010, if, during any quarter
10described in this paragraph, the number of pilots licensed by the
11board is equal to or greater than 60, clauses (i) to (iii), inclusive,
12shall become inoperative on the first day of the immediately
13following quarter.

14(B) There shall be an incremental rate of additional mills per
15high gross registered ton as is necessary and authorized by the
16board to recover the pilots’ costs of obtaining new pilot boats and
17of funding design and engineering modifications for the purposes
18of extending the service life of existing pilot boats, excluding costs
19for repair or maintenance. The incremental mill rate charge
20authorized by this subparagraph shall be identified as a pilot boat
21surcharge on the pilots’ invoices and separately accounted for in
22the accounting required by Section 1136. Net proceeds from the
23sale of existing pilot boats shall be used to reduce the debt on the
24new pilot boats and any debt associated with the modification of
25pilot boats under this subparagraph. The board may adjust a pilot
26boat surcharge to reflect any associated operational savings
27resulting from the modification of pilot boats under this
28subparagraph, including, but not limited to, reduced repair and
29maintenance expenses.

30(C) In addition to the incremental rate specified in subparagraph
31(B), the mill rate established by this subdivision may be adjusted
32at the direction of the board if, after a hearing conducted pursuant
33to Article 9 (commencing with Section 11120) of Chapter 1 of
34Part 1 of Division 3 of Title 2 of the Government Code, the board
35determines that there has been a catastrophic cost increase to the
36pilots that would result in at least a 2-percent increase in the overall
37annual cost of providing pilot services.

38(2) A minimum charge for bar pilotage shall be six hundred
39sixty-two dollars ($662) for each vessel piloted.

P4    1(3) The vessel’s deepest draft shall be the maximum draft
2attained, on a stillwater basis, at any part of the vessel during the
3course of such transit inward or outward.

4(b) The rate specified in subdivision (a) shall apply only to a
5pilotage that passes through the Golden Gate to or from the high
6seas to or from a berth within an area bounded by the Union Pacific
7Railroad Bridge to the north and Hunter’s Point to the south. The
8rate for pilotage to or from the high seas to or from a point past
9the Union Pacific Railroad Bridge or Hunter’s Point shall include
10a movement fee in addition to the basic bar pilotage rate as
11specified by the board pursuant to Section 1191.

12(c) The rate established in paragraph (1) of subdivision (a) shall
13be for a trip from the high seas to dock or from the dock to high
14seas. The rate specified in Section 1191 shall not be charged by
15pilots for docking and undocking vessels. This subdivision does
16not apply to the rates charged by inland pilots for their services.

17(d) The board shall determine the number of pilots to be licensed
18based on the 1986 manpower study adopted by the board.

19(e) Consistent with the board’s April 2015 adoption of rate
20recommendations, the rates imposed pursuant to paragraph (1) of
21subdivision (a) that are in effect on December 31, 2015, shall be
22increased by 3 percent on January 1, 2016; those in effect on
23December 31, 2016, shall be increased by 3 percent on January 1,
242017; those in effect on December 31, 2017, shall be increased by
252 percent on January 1, 2018; and those in effect on December 31,
262018, shall be increased by 2 percent on January 1, 2019.

27(f) (1) There shall be a movement fee as is necessary and
28authorized by the board to recover a pilot’s costs for the purchase,
29lease, or maintenance of navigation software, hardware, and
30ancillary equipment purchased after January 1, 2016.

31(2) The software, equipment, and technology covered by this
32subdivision shall be used strictly and exclusively to aid in piloting
33on the pilotage grounds. The movement fee authorized by this
34subdivision shall be identified as a navigation technology surcharge
35on a pilot’s invoices and separately accounted for in the accounting
36required by Section 1136. The board shall review and adjust as
37necessary the navigation technology surcharge at least quarterly.
38This subdivision shall become inoperative on January 1, 2020.

39

SEC. 2.  

Section 1191 of the Harbors and Navigation Code is
40amended to read:

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1191.  

(a) The board, pursuant to Chapter 6 (commencing with
2Section 1200), shall recommend that the Legislature, by statute,
3adopt a schedule of pilotage rates providing fair and reasonable
4return to pilots engaged in ship movements or special operations
5if rates for those movements or operations are not specified in
6Section 1190.

7(b) A vessel using pilots for ship movements or special
8operations that do not constitute bar pilotage shall pay the rate
9specified in the schedule of pilotage rates adopted by the
10Legislature.

11(c) Consistent with the board’s adoption of rate
12recommendations in April 2015, the minimum rates imposed
13 pursuant to this section that are in effect on December 31, 2015,
14shall be increased by 3 percent on January 1, 2016; those in effect
15on December 31, 2016, shall be increased by 3 percent on January
161, 2017; those in effect on December 31, 2017, shall be increased
17by 2 percent on January 1, 2018; and those in effect on December
1831, 2018, shall be increased bybegin delete 14end deletebegin insert 2end insert percent on January 1, 2019.



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