BILL NUMBER: AB 1432	CHAPTERED
	BILL TEXT

	CHAPTER  119
	FILED WITH SECRETARY OF STATE  AUGUST 17, 2016
	APPROVED BY GOVERNOR  AUGUST 17, 2016
	PASSED THE SENATE  MAY 26, 2016
	PASSED THE ASSEMBLY  AUGUST 1, 2016
	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

INTRODUCED BY   Assembly Member Bonta
   (Principal coauthor: Senator Wieckowski)

                        FEBRUARY 27, 2015

   An act to amend Section 1190 of, and to add and repeal Section
1190.4 of, the Harbors and Navigation Code, relating to bar pilots.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1432, Bonta. Monterey Bay and the Bays of San Francisco, San
Pablo, and Suisun: pilotage rates: technology surcharge.
   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 and other surcharges
required to be charged by pilots and paid by vessels inward or
outward bound through those bays.
   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, 2021, authorize the board to
authorize that fee, not to exceed a cumulative amount of $1,200,000,
to be paid as a navigation technology surcharge, in order to recover
the pilots' costs for that software, hardware, and ancillary
equipment that is authorized by the board as reasonable and necessary
on or after January 1, 2017.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1190 of the Harbors and Navigation Code is
amended to read:
   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 May 2002 adoption of rate
recommendations, the rates imposed pursuant to paragraph (1) of
subdivision (a) that are in effect on December 31, 2002, shall be
increased by 4 percent on January 1, 2003; those in effect on
December 31, 2003, shall be increased by 4 percent on January 1,
2004; those in effect on December 31, 2004, shall be increased by 3
percent on January 1, 2005; and those in effect on December 31, 2005,
shall be increased by 3 percent on January 1, 2006.
  SEC. 2.  Section 1190.4 is added to the Harbors and Navigation
Code, to read:
   1190.4.  (a) There shall be a movement fee imposed 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 that is authorized by the board as reasonable
and necessary on or after January 1, 2017.
   (b) The software, equipment, and technology covered by this
section shall be used strictly and exclusively to aid in piloting on
the pilotage grounds.
   (c) The movement fee authorized by this section shall be
identified as a navigation technology surcharge on a pilot's invoices
and separately accounted for in the accounting required by
subdivision (b) of Section 1136.
   (d) The cumulative amount of the surcharge collected pursuant to
this section shall not exceed one million two hundred thousand
dollars ($1,200,000).
   (e) The board shall review and adjust as necessary the navigation
technology surcharge authorized by this section at least quarterly.
   (f) This section shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2021, deletes or extends
that date.