Amended in Senate May 11, 2016

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

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(Principal coauthor: Senator Wieckowski)

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February 27, 2015


An act to amendbegin delete Sections 1190 and 1191 of end deletebegin insert Section 1190 of, and to add and repeal Section 1190.4 of,end insert the Harbors and Navigation Code, relating to barbegin delete pilots, and making an appropriation therefor.end deletebegin insert pilots.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1432, as amended, Bonta. begin deleteHarbors and ports: end deleteMonterey Bay and the Bays of San Francisco, San Pablo, and Suisun: pilotagebegin delete rates.end deletebegin insert rates: technology surcharge.end insert

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 feesbegin insert and other surchargesend insert required to be charged by pilots and paid by vessels inward or outward bound through those bays.begin delete 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.end delete

begin delete

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.

This bill would, untilbegin delete January 1, 2020,end deletebegin insert January 1 2021,end insert authorize the board to authorize thatbegin delete feeend deletebegin insert fee, not to exceed a cumulative amount of $1,200,000, to be paidend insert as a navigationbegin delete surchargeend deletebegin insert technology surcharge,end insert in order to recover the pilots’ costs for that software, hardware, and ancillary equipmentbegin delete purchasedend deletebegin insert that is authorized by the board as reasonable and necessary on orend insert after January 1,begin delete 2016.end deletebegin insert 2017.end insert

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

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 1190 of the end insertbegin insertHarbors and Navigation Codeend insert
2
begin insert is amended to read:end insert

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
P3    1net income per pilot for each pilot licensed by the board below 60
2pilots.

3(ii) On and after January 1, 2010, if the number of pilots licensed
4by the board is fewer than 58 pilots, the mill rate in effect on
5December 31, 2006, shall be adjusted in accordance with the
6method described in clause (i) as though there are 58 pilots licensed
7by the board.

8(iii) The incremental mill rate adjustment authorized by this
9subparagraph shall be calculated using the data reported to the
10board for the number of gross registered tons handled by pilots
11licensed under this division during the same 12-month period as
12the audited annual average net income per pilot. The incremental
13mill rate adjustment shall become effective at the beginning of the
14immediately following quarter, commencing January 1, April 1,
15July 1, or October 1, as directed by the board.

16(iv) On and after January 1, 2010, if, during any quarter
17described in this paragraph, the number of pilots licensed by the
18board is equal to or greater than 60, clauses (i) to (iii), inclusive,
19shall become inoperative on the first day of the immediately
20following quarter.

21(B) There shall be an incremental rate of additional mills per
22high gross registered ton as is necessary and authorized by the
23board to recover the pilots’ costs of obtaining new pilot boats and
24of funding design and engineering modifications for the purposes
25of extending the service life of existing pilot boats, excluding costs
26for repair or maintenance. The incremental mill rate charge
27authorized by this subparagraph shall be identified as a pilot boat
28surcharge on the pilots’ invoices and separately accounted for in
29the accounting required by Section 1136. Net proceeds from the
30sale of existing pilot boats shall be used to reduce the debt on the
31new pilot boats and any debt associated with the modification of
32pilot boats under this subparagraph. The board may adjust a pilot
33boat surcharge to reflect any associated operational savings
34resulting from the modification of pilot boats under this
35subparagraph, including, but not limited to, reduced repair and
36maintenance expenses.

37(C) In addition to the incremental rate specified in subparagraph
38(B), the mill rate established by this subdivision may be adjusted
39at the direction of the board if, after a hearing conducted pursuant
40to Article 9 (commencing with Section 11120) of Chapter 1 of
P4    1Part 1 of Division 3 of Title 2 of the Government Code, the board
2determines that there has been a catastrophic cost increase to the
3pilots that would result in at least a 2-percent increase in the overall
4annual cost of providing pilot services.

5(2) A minimum charge for bar pilotage shall be six hundred
6sixty-two dollars ($662) for each vessel piloted.

7(3) The vessel’s deepest draft shall be the maximum draft
8attained, on a stillwater basis, at any part of the vessel during the
9course of such transit inward or outward.

10(b) The rate specified in subdivision (a) shall apply only to a
11pilotage that passes through the Golden Gate to or from the high
12seas to or from a berth within an area bounded by the Union Pacific
13Railroad Bridge to the north and Hunter’s Point to the south. The
14rate for pilotage to or from the high seas to or from a point past
15the Union Pacific Railroad Bridge or Hunter’s Point shall include
16a movement fee in addition to the basic bar pilotage rate as
17specified by the board pursuant to Section 1191.

18(c) The rate established in paragraph (1) of subdivision (a) shall
19be for a trip from the high seas to dock or from the dock to high
20seas. The rate specified in Section 1191 shall not be charged by
21pilots for docking and undocking vessels. This subdivision does
22not apply to the rates charged by inland pilots for their services.

23(d) The board shall determine the number of pilots to be licensed
24based on the 1986 manpower study adopted by the board.

25(e) Consistent with the board’s May 2002 adoption of rate
26recommendations, the rates imposed pursuant to paragraph (1) of
27subdivision (a) that are in effect on December 31, 2002, shall be
28increased by 4 percent on January 1, 2003; those in effect on
29December 31, 2003, shall be increased by 4 percent on January 1,
302004; those in effect on December 31, 2004, shall be increased by
313 percent on January 1, 2005; and those in effect on December 31,
322005, shall be increased by 3 percent on January 1, 2006.

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33(f) (1) There shall be a movement fee as is necessary and
34authorized by the board to recover a pilot’s costs for the purchase,
35lease, or maintenance of navigation software, hardware, and
36ancillary equipment purchased after November 5, 2008, and before
37January 1, 2011.

38(2) The software, equipment, and technology covered by this
39subdivision shall be used strictly and exclusively to aid in piloting
40on the pilotage grounds. The movement fee authorized by this
P5    1subdivision shall be identified as a navigation technology surcharge
2on a pilot’s invoices and separately accounted for in the accounting
3required by Section 1136. The board shall review and adjust as
4necessary the navigation technology surcharge at least quarterly.
5This subdivision shall become inoperative on January 1, 2011.

end delete
6begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 1190.4 is added to the end insertbegin insertHarbors and Navigation
7Code
end insert
begin insert, to read:end insert

begin insert
8

begin insert1190.4.end insert  

(a) There shall be a movement fee imposed as is
9necessary and authorized by the board to recover a pilot’s costs
10for the purchase, lease, or maintenance of navigation software,
11hardware, and ancillary equipment that is authorized by the board
12as reasonable and necessary on or after January 1, 2017.

13
(b) The software, equipment, and technology covered by this
14section shall be used strictly and exclusively to aid in piloting on
15the pilotage grounds.

16
(c) The movement fee authorized by this section shall be
17identified as a navigation technology surcharge on a pilot’s
18invoices and separately accounted for in the accounting required
19by subdivision (b) of Section 1136.

20
(d) The cumulative amount of the surcharge collected pursuant
21to this section shall not exceed one million two hundred thousand
22dollars ($1,200,000).

23
(e) The board shall review and adjust as necessary the
24navigation technology surcharge authorized by this section at least
25quarterly.

26
(f) This section shall remain in effect only until January 1, 2021,
27and as of that date is repealed, unless a later enacted statute, that
28is enacted before January 1, 2021, deletes or extends that date.

end insert
begin delete
29

SECTION 1.  

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

31

1190.  

(a) Every vessel spoken inward or outward bound shall
32pay the following rate of bar pilotage through the Golden Gate
33and into or out of the Bays of San Francisco, San Pablo, and
34Suisun:

35(1) Eight dollars and eleven cents ($8.11) per draft foot of the
36vessel’s deepest draft and fractions of a foot pro rata, and an
37additional charge of 73.01 mills per high gross registered ton as
38changed pursuant to law in effect on December 31, 1999. The mill
39rates established by this paragraph may be changed as follows:

P6    1(A) (i) On and after January 1, 2010, if the number of pilots
2licensed by the board is 58 or 59 pilots, the mill rate in effect on
3December 31, 2006, shall be decreased by an incremental amount
4that is proportionate to one-half of the last audited annual average
5net income per pilot for each pilot licensed by the board below 60
6pilots.

7(ii) On and after January 1, 2010, if the number of pilots licensed
8by the board is fewer than 58 pilots, the mill rate in effect on
9December 31, 2006, shall be adjusted in accordance with the
10method described in clause (i) as though there are 58 pilots licensed
11by the board.

12(iii) The incremental mill rate adjustment authorized by this
13subparagraph shall be calculated using the data reported to the
14board for the number of gross registered tons handled by pilots
15licensed under this division during the same 12-month period as
16the audited annual average net income per pilot. The incremental
17mill rate adjustment shall become effective at the beginning of the
18immediately following quarter, commencing January 1, April 1,
19July 1, or October 1, as directed by the board.

20(iv) On and after January 1, 2010, if, during any quarter
21described in this paragraph, the number of pilots licensed by the
22board is equal to or greater than 60, clauses (i) to (iii), inclusive,
23shall become inoperative on the first day of the immediately
24following quarter.

25(B) There shall be an incremental rate of additional mills per
26high gross registered ton as is necessary and authorized by the
27board to recover the pilots’ costs of obtaining new pilot boats and
28of funding design and engineering modifications for the purposes
29of extending the service life of existing pilot boats, excluding costs
30for repair or maintenance. The incremental mill rate charge
31authorized by this subparagraph shall be identified as a pilot boat
32surcharge on the pilots’ invoices and separately accounted for in
33the accounting required by Section 1136. Net proceeds from the
34sale of existing pilot boats shall be used to reduce the debt on the
35new pilot boats and any debt associated with the modification of
36pilot boats under this subparagraph. The board may adjust a pilot
37boat surcharge to reflect any associated operational savings
38resulting from the modification of pilot boats under this
39subparagraph, including, but not limited to, reduced repair and
40maintenance expenses.

P7    1(C) In addition to the incremental rate specified in subparagraph
2(B), the mill rate established by this subdivision may be adjusted
3at the direction of the board if, after a hearing conducted pursuant
4to Article 9 (commencing with Section 11120) of Chapter 1 of
5Part 1 of Division 3 of Title 2 of the Government Code, the board
6determines that there has been a catastrophic cost increase to the
7pilots that would result in at least a 2-percent increase in the overall
8annual cost of providing pilot services.

9(2) A minimum charge for bar pilotage shall be six hundred
10sixty-two dollars ($662) for each vessel piloted.

11(3) The vessel’s deepest draft shall be the maximum draft
12attained, on a stillwater basis, at any part of the vessel during the
13course of such transit inward or outward.

14(b) The rate specified in subdivision (a) shall apply only to a
15pilotage that passes through the Golden Gate to or from the high
16seas to or from a berth within an area bounded by the Union Pacific
17Railroad Bridge to the north and Hunter’s Point to the south. The
18rate for pilotage to or from the high seas to or from a point past
19the Union Pacific Railroad Bridge or Hunter’s Point shall include
20a movement fee in addition to the basic bar pilotage rate as
21specified by the board pursuant to Section 1191.

22(c) The rate established in paragraph (1) of subdivision (a) shall
23be for a trip from the high seas to dock or from the dock to high
24seas. The rate specified in Section 1191 shall not be charged by
25pilots for docking and undocking vessels. This subdivision does
26not apply to the rates charged by inland pilots for their services.

27(d) The board shall determine the number of pilots to be licensed
28based on the 1986 manpower study adopted by the board.

29(e) Consistent with the board’s April 2015 adoption of rate
30recommendations, the rates imposed pursuant to paragraph (1) of
31subdivision (a) that are in effect on December 31, 2015, shall be
32increased by 3 percent on January 1, 2016; and those in effect on
33December 31, 2016, shall be increased by 3 percent on January 1,
342017.

35(f) (1) There shall be a movement fee as is necessary and
36authorized by the board to recover a pilot’s costs for the purchase,
37lease, or maintenance of navigation software, hardware, and
38ancillary equipment purchased after January 1, 2016.

39(2) The software, equipment, and technology covered by this
40subdivision shall be used strictly and exclusively to aid in piloting
P8    1on the pilotage grounds. The movement fee authorized by this
2subdivision shall be identified as a navigation technology surcharge
3on a pilot’s invoices and separately accounted for in the accounting
4required by Section 1136. The board shall review and adjust as
5necessary the navigation technology surcharge at least quarterly.
6This subdivision shall become inoperative on January 1, 2020.

7

SEC. 2.  

Section 1191 of the Harbors and Navigation Code is
8amended to read:

9

1191.  

(a) The board, pursuant to Chapter 6 (commencing with
10Section 1200), shall recommend that the Legislature, by statute,
11adopt a schedule of pilotage rates providing fair and reasonable
12return to pilots engaged in ship movements or special operations
13if rates for those movements or operations are not specified in
14Section 1190.

15(b) A vessel using pilots for ship movements or special
16operations that do not constitute bar pilotage shall pay the rate
17specified in the schedule of pilotage rates adopted by the
18Legislature.

19(c) Consistent with the board’s adoption of rate
20recommendations in April 2015, the minimum rates imposed
21 pursuant to this section that are in effect on December 31, 2015,
22shall be increased by 3 percent on January 1, 2016; and those in
23effect on December 31, 2016, shall be increased by 3 percent on
24January 1, 2017.

end delete


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