Amended in Senate September 4, 2015

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
P3    1method described in clause (i) as though there are 58 pilots licensed
2by the board.

3(iii) The incremental mill rate adjustment authorized by this
4subparagraph shall be calculated using the data reported to the
5board for the number of gross registered tons handled by pilots
6licensed under this division during the same 12-month period as
7the audited annual average net income per pilot. The incremental
8mill rate adjustment shall become effective at the beginning of the
9immediately following quarter, commencing January 1, April 1,
10July 1, or October 1, as directed by the board.

11(iv) On and after January 1, 2010, if, during any quarter
12described in this paragraph, the number of pilots licensed by the
13board is equal to or greater than 60, clauses (i) to (iii), inclusive,
14shall become inoperative on the first day of the immediately
15following quarter.

16(B) There shall be an incremental rate of additional mills per
17high gross registered ton as is necessary and authorized by the
18board to recover the pilots’ costs of obtaining new pilot boats and
19of funding design and engineering modifications for the purposes
20of extending the service life of existing pilot boats, excluding costs
21for repair or maintenance. The incremental mill rate charge
22authorized by this subparagraph shall be identified as a pilot boat
23surcharge on the pilots’ invoices and separately accounted for in
24the accounting required by Section 1136. Net proceeds from the
25sale of existing pilot boats shall be used to reduce the debt on the
26new pilot boats and any debt associated with the modification of
27pilot boats under this subparagraph. The board may adjust a pilot
28boat surcharge to reflect any associated operational savings
29resulting from the modification of pilot boats under this
30subparagraph, including, but not limited to, reduced repair and
31maintenance expenses.

32(C) In addition to the incremental rate specified in subparagraph
33(B), the mill rate established by this subdivision may be adjusted
34at the direction of the board if, after a hearing conducted pursuant
35to Article 9 (commencing with Section 11120) of Chapter 1 of
36Part 1 of Division 3 of Title 2 of the Government Code, the board
37determines that there has been a catastrophic cost increase to the
38pilots that would result in at least a 2-percent increase in the overall
39annual cost of providing pilot services.

P4    1(2) A minimum charge for bar pilotage shall be six hundred
2sixty-two dollars ($662) for each vessel piloted.

3(3) The vessel’s deepest draft shall be the maximum draft
4attained, on a stillwater basis, at any part of the vessel during the
5course of such transit inward or outward.

6(b) The rate specified in subdivision (a) shall apply only to a
7pilotage that passes through the Golden Gate to or from the high
8seas to or from a berth within an area bounded by the Union Pacific
9Railroad Bridge to the north and Hunter’s Point to the south. The
10rate for pilotage to or from the high seas to or from a point past
11the Union Pacific Railroad Bridge or Hunter’s Point shall include
12a movement fee in addition to the basic bar pilotage rate as
13specified by the board pursuant to Section 1191.

14(c) The rate established in paragraph (1) of subdivision (a) shall
15be for a trip from the high seas to dock or from the dock to high
16seas. The rate specified in Section 1191 shall not be charged by
17pilots for docking and undocking vessels. This subdivision does
18not apply to the rates charged by inland pilots for their services.

19(d) The board shall determine the number of pilots to be licensed
20based on the 1986 manpower study adopted by the board.

21(e) Consistent with the board’s April 2015 adoption of rate
22recommendations, the rates imposed pursuant to paragraph (1) of
23subdivision (a) that are in effect on December 31, 2015, shall be
24increased by 3 percent on January 1, 2016;begin insert andend insert those in effect on
25December 31, 2016, shall be increased by 3 percent on January 1,
26begin delete 2017; those in effect on December 31, 2017, shall be increased by
272 percent on January 1, 2018; and those in effect on December 31,
282018, shall be increased by 2 percent on January 1, 2019.end delete
begin insert 2017.end insert

29(f) (1) There shall be a movement fee as is necessary and
30authorized by the board to recover a pilot’s costs for the purchase,
31lease, or maintenance of navigation software, hardware, and
32ancillary equipment purchased after January 1, 2016.

33(2) The software, equipment, and technology covered by this
34subdivision shall be used strictly and exclusively to aid in piloting
35on the pilotage grounds. The movement fee authorized by this
36subdivision shall be identified as a navigation technology surcharge
37on a pilot’s invoices and separately accounted for in the accounting
38required by Section 1136. The board shall review and adjust as
39necessary the navigation technology surcharge at least quarterly.
40This subdivision shall become inoperative on January 1, 2020.

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SEC. 2.  

Section 1191 of the Harbors and Navigation Code is
2amended to read:

3

1191.  

(a) The board, pursuant to Chapter 6 (commencing with
4Section 1200), shall recommend that the Legislature, by statute,
5adopt a schedule of pilotage rates providing fair and reasonable
6return to pilots engaged in ship movements or special operations
7if rates for those movements or operations are not specified in
8Section 1190.

9(b) A vessel using pilots for ship movements or special
10operations that do not constitute bar pilotage shall pay the rate
11specified in the schedule of pilotage rates adopted by the
12Legislature.

13(c) Consistent with the board’s adoption of rate
14recommendations in April 2015, the minimum rates imposed
15 pursuant to this section that are in effect on December 31, 2015,
16shall be increased by 3 percent on January 1, 2016;begin insert andend insert those in
17effect on December 31, 2016, shall be increased by 3 percent on
18January 1, begin delete 2017; those in effect on December 31, 2017, shall be
19increased by 2 percent on January 1, 2018; and those in effect on
20December 31, 2018, shall be increased by 2 percent on January 1,
212019.end delete
begin insert 2017.end insert



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