Senate Bill No. 1312

Introduced by Senator Wieckowski

February 19, 2016

An act to amend Sections 1122, 1137, 1170.1, 1190, 1190.1, 1195.1, 1196.1, 1200, 1201, 1201.5, and 1202 of, to add Sections 1103, 1190.2, 1190.3, 1190.5, 1191.1, 1195.2, 1196.2, and 1204 to, to add and repeal Section 1190.4 of, and to repeal and add Section 1191 of, the Harbors and Navigation Code, relating to harbors and navigation, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

SB 1312, as introduced, Wieckowski. Bar pilotage rates.

(1) Existing law provides for the licensing and regulation of pilots for the 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 in the Transportation Agency. Existing law establishes pilotage rates and surcharges that are paid to licensed pilots by vessels piloted in those bays. Existing law establishes those pilotage rates and surcharges, and provides for changes to them based on the number of pilots licensed by the board and recommendations by the board to the Legislature. Existing law requires each licensed pilot to submit a monthly account to the board of all moneys received by the pilot for pilotage services.

This bill would revise and recast those provisions and would require that certain surcharges be separately identified on the pilots’ invoices and in their monthly account to the board. The bill would, until January 1, 2021, additionally authorize a technology surcharge, not to exceed a cumulative amount of $1,200,000, to recover pilots’ costs for navigation software, hardware, and equipment authorized by the board on or after January 1, 2017. The bill would require the board to submit a schedule of all pilotage rates and surcharges to the Office of Administrative Law for publication in the California Regulatory Notice Register and to post that schedule on the board’s Internet Web site. The bill would require an independent audit of all charges collected by pilots to be conducted annually by a public accountant selected by the board.

(2) Existing law requires the Board of Pilot Commissioners to review and evaluate pilotage expenses in making recommendations to the Legislature to adjust certain pilotage rates. Existing law establishes procedures for any party directly affected by those rates to petition the board for a public hearing. Existing law requires the board, at the conclusion of the hearings, to review and evaluate the evidence and to submit to the Secretary of the Senate and the Chief Clerk of the Assembly a copy of its findings and recommendations for a final determination.

Existing law requires each vessel to pay a board operations surcharge to compensate the board and the Transportation Agency for the services and incidental expenses of the board and agency. Existing law requires those moneys to be deposited in the Board of Pilot Commissioner’s Special Fund and continuously appropriates those moneys for the compensation and expenses of the board and its officers and employees.

This bill would instead require the hearing on a petition to be before an administrative law judge, as provided, who would act as a finder of fact. The bill would prescribe procedures for the conduct of those hearings, the review of evidence, and the filing of decisions. The bill would require the board to review and evaluate the administrative law judge’s decision and either submit the decision to the Secretary of the Senate and the Chief Clerk of the Assembly or prepare and submit a written statement of its reasons for not doing so. The bill would require the administrative law judge to be compensated by the board from revenues from the board operations surcharge. By authorizing the expenditure of continuously appropriated funds for a new purpose, the bill would make an appropriation.

(3) Existing law requires that moneys collected from a pilot trainee surcharge and a pilot continuing education surcharge be deposited into the Board of Pilot Commissioner’s Special Fund and continuously appropriates those moneys for pilot trainee and pilot continuing education programs, respectively.

This bill would create the Pilot Trainee Special Fund, require moneys collected from the pilot trainee surcharge to be deposited into that fund, and continue to continuously appropriate those moneys for pilot trainee programs. The bill would also create the Pilot Continuing Education Special Fund, require moneys collected from the pilot continuing education surcharge to be deposited into that fund, and require those moneys, upon appropriation, to be used for pilot continuing education programs.

(4) Under existing law, a pilot who is carried to sea against the pilot’s will or unnecessarily detained on board a vessel, as provided, is entitled to receive $600 per day, plus expenses, from the owner, operator, or agents of the detaining vessel.

This bill would increase that amount to $2,028 per day.

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

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

SECTION 1.  

It is the intent of the Legislature to improve the
process by which bar pilotage rates and charges are set, managed
and maintained, and published by the Board of Pilot
Commissioners. It is further the intent of the Legislature that the
provisions of this act will reflect the actual rates and charges paid
by vessels operating in Monterey Bay, and the Bays of San
Francisco, San Pablo, and Suisun. It is not the intent of the
Legislature that this act will result in the increase of any pilotage
rates or charges currently in effect.

SEC. 2.  

Section 1103 is added to the Harbors and Navigation
Code, to read:

1103.  

The Legislature finds and declares all of the following:

(a) Transparency and accountability regarding how the board
operates and makes its decisions is critical to gaining and retaining
the confidence of the public and serving the ratepayers affected
by its decisions.

(b) In order to ensure and promote the highest level of safety
in pilotage and to eliminate competition between state-licensed
pilots on the basis of the rate of charges to vessels, the state enacts
statutes that set a tariff of charges and levies that must be paid by
vessels for the provision of pilotage services by a pilot licensee.

(c) The economic benefits of ocean-going vessels’ safe
navigation to our ports are essential to our day-to-day lives and
fundamentally affect every California family and business. Because
of the importance that ocean-going vessels play in our economy,
the pilotage tariff schedule set forth in this division, its
management, and any recommendations for the amendment of
existing pilotage rates should be maintained and implemented in
a manner that is transparent and accountable to the public.

(d) The greater and more unfettered the public’s power in an
important component of our economy, the greater the public’s
interest in monitoring the exercise of that power. Accordingly, the
conduct of the public’s business by the board is of the highest
public interest.

SEC. 3.  

Section 1122 of the Harbors and Navigation Code is
amended to read:

1122.  

(a) A pilot carried to sea against the pilot’s will, or
unnecessarily detained on board a vessel when a pilot vessel is in
attendance to receive the pilot, shall receive begin delete six hundred dollars
($600) end delete begin insert two thousand twenty-eight dollars ($2,028) end insert per day while
so carried to sea or detained, plus reimbursement for any expenses
incurred by the pilot in returning to the pilot station.

(b) The owner, operator, and agents of the detaining vessel are
jointly and severally liable for paying the amount specified in
subdivision (a).

SEC. 4.  

Section 1137 of the Harbors and Navigation Code is
amended to read:

1137.  

(a) The account required pursuant to Section 1136 shall
show all of the following:

(1) The name of each vessel piloted.

(2) The name of each vessel for which pilotage has been charged
or collected.

(3) The amount charged to or collected for each vessel.

(4) Any rebates made and allowed and for what amounts.

(5) The amount of the fees and surcharges not collected pursuant
to Section 1193.

(6) The depth of each vessel’s draft and its highest gross
tonnage.

(7) Whether the vessel was inward or outward bound.

(b) The board shall record the accounts in full detail in a book
prepared for that purpose. The account book is a public record.

begin insert

(c) The board shall cause an independent audit of all charges
collected by pilots pursuant to this division to be conducted
annually by a public accountant selected by the board.

end insert

SEC. 5.  

Section 1170.1 of the Harbors and Navigation Code
is amended to read:

1170.1.  

In determining the number of pilots needed, pursuant
to Section 1170, the board shall take into consideration the findings
and declarations in Sections begin delete 1100 and 1101, end delete begin insert 1100, 1101, and 1102, end insert
the results of an audit made pursuant to, and the factors specified
in, Section 1203, the industry’s current economic trends,
fluctuations in the number of vessel calls, the size of vessels, begin delete and end delete
whether the need for pilotage is increasing or begin delete decreasing. end delete
begin insert decreasing, the 1986 manpower study adopted by the board, and
the results of the study required pursuant to Section 1196.5. end insert

SEC. 6.  

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

1190.  

(a)  begin insert (1) end insert begin insert   end insert Every vessel spoken inward or outward bound
shall pay begin delete the following end delete begin insert a end insert rate of bar pilotage through the Golden
Gate and into or out of the Bays of San Francisco, San Pablo, and
begin delete Suisun: end delete

(1) Eight dollars and eleven cents ($8.11) begin insert Suisun of ten dollars
and twenty-six cents ($10.26) end insert per draft foot of the vessel’s deepest
draft and fractions of a foot pro rata, and an additional charge of
begin delete 73.01 mills end delete begin insert ninety-two and four hundred twenty-three thousandths
mills ($0.092423) end insert per high gross registered begin delete ton as changed pursuant
to law in effect o December 31, 1999. The mill rates established
by this paragraph may be changed as follows: end delete begin insert ton. end insert

begin delete

(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.

end delete

(b) The rate specified in subdivision (a) begin insert is the bar pilotage rate
and that rate alone end insert shall apply begin delete only end delete 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 begin delete a movement fee
in addition to the basic end delete begin insert both the end insert bar pilotage rate as specified begin delete by
the board end delete begin insert in subdivision (a) and an additional movement fee as
specified end insert 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. begin delete This subdivision does
not apply to the rates charged by inland pilots for their services. end delete

begin delete

(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.

(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 November 5, 2008, and before
January 1, 2011.

(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, 2011.

end delete

SEC. 7.  

Section 1190.1 of the Harbors and Navigation Code
is amended to read:

1190.1.  

Every vessel that uses a pilot under this division while
navigating the waters of Monterey Bay shall pay the rate provided
by begin delete subdivisions (a) and (c) of end delete Section 1190.

SEC. 8.  

Section 1190.2 is added to the Harbors and Navigation
Code, to read:

1190.2.  

(a) In addition to the rate specified in Section 1190,
there may be an incremental rate of additional mills per high gross
registered ton as is necessary and authorized at the direction of the
board if, after a public meeting conducted in accordance with the
requirements of the Bagley-Keene Open Meeting Act (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 catastrophe or natural disaster
that has resulted in significant, unexpected cost increases that are
necessary to restore pilot services to customers, repair, replace, or
restore damaged pilot facilities or equipment, or to comply with
government agency orders resulting from a declared disaster.

(b) The incremental mill rate charge authorized by this section
shall be identified as a catastrophic event surcharge on the pilots’
invoices and separately accounted for in the accounting required
by subdivision (b) of Section 1136.

(c) Proceeds from the catastrophic event surcharge shall be used
only to recover the pilots’ costs related to the catastrophe or natural
disaster underlying the incremental mill rate charge, and the
surcharge shall cease to be collected upon full recovery of those
costs.

SEC. 9.  

Section 1190.3 is added to the Harbors and Navigation
Code, to read:

1190.3.  

(a) 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 board may adjust
the incremental rate to reflect any associated operational savings
resulting from the modification of pilot boats under this section,
including, but not limited to, reduced repair and maintenance
expenses.

(b) The incremental mill rate charge authorized by subdivision
(a) shall be identified as a pilot boat surcharge on the pilots’
invoices and separately accounted for in the accounting required
by subdivision (b) of Section 1136.

(c) 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 section.

SEC. 10.  

Section 1190.4 is added to the Harbors and Navigation
Code, to read:

1190.4.  

(a) There shall be a movement fee as is necessary and
authorized by the board imposed 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.

SEC. 11.  

Section 1190.5 is added to the Harbors and Navigation
Code, to read:

1190.5.  

The board shall submit to the Office of Administrative
Law for publication in the California Regulatory Notice Register
and shall post on its Internet Web site the schedule of all pilotage
rates and surcharges in effect pursuant to Sections 1190, 1190.2,
1190.3, and 1190.4 as the “BAR PILOTAGE TARIFF.”

SEC. 12.  

Section 1191 of the Harbors and Navigation Code is
repealed.

begin delete

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 May 2002, the minimum rates imposed
pursuant to this section that are in effect on December 31, 2002,
shall be increased by 26 percent on January 1, 2003; those in effect
on December 31, 2003, shall be increased by 26 percent on January
1, 2004; those in effect on December 31, 2004, shall be increased
by 14 percent on January 1, 2005; and those in effect on December
31, 2005, shall be increased by 14 percent on January 1, 2006.

end delete

SEC. 13.  

Section 1191 is added to the Harbors and Navigation
Code, to read:

1191.  

Any ship movement or special operation that does not
constitute bar pilotage shall be subject to, and shall pay, the rate
specified in the schedule of pilotage rates for bay and river pilotage
services, as adopted by the Legislature in Section 2 of Chapter 765
of the Statutes of 2002, consistent with the board’s adoption or
rate recommendations in May 2002.

SEC. 14.  

Section 1191.1 is added to the Harbors and Navigation
Code, to read:

1191.1.  

The board shall submit to the Office of Administrative
Law for publication in the California Regulatory Notice Register
and shall publish on its Internet Web site, the schedule of all
pilotage rates for ship movement or special operations that do not
constitute bar pilotage, as described in Section 1191, as the “BAY
AND RIVER PILOTAGE TARIFF.”

SEC. 15.  

Section 1195.1 of the Harbors and Navigation Code
is amended to read:

1195.1.  

(a) The moneys charged and collected each month
from the pilot trainee surcharge pursuant to Section 1195 shall be
paid to the begin delete Board of Pilot Commissioners’ end delete begin insert Pilot Trainee end insert Special
Fund begin insert established end insert pursuant to Section begin delete 1159. end delete begin insert 1195.2. end insert The moneys
shall be used only to fund the pilot trainee training program referred
to in subdivision (h) of Section 1171.5 and Section 1195.3.

(b) Information regarding moneys remitted to the begin delete Board of Pilot
Commissioners’ Special Fund pursuant to Section 1159 end delete begin insert Pilot
Trainee Special Fund end insert collected from the surcharge authorized
pursuant to Section 1195, or otherwise collected by the board for
that purpose, and information regarding moneys spent as pilot
trainee training program expenses authorized by Section 1195.3
shall be made available to the public upon request and to the board
or its finance committee.

SEC. 16.  

Section 1195.2 is added to the Harbors and Navigation
Code, to read:

1195.2.  

(a) The Pilot Trainee Special Fund is hereby created
within the State Treasury. All moneys received by the board from
the surcharge authorized by Section 1195 shall be accounted for
at the close of each month to the Controller in the form the
Controller may prescribe and, at the same time on the order of the
Controller, all these moneys shall be paid into the State Treasury
to the credit of the Pilot Trainee Special Fund.

(b) Notwithstanding Section 13340 of the Government Code,
the moneys in the fund are continuously appropriated for carrying
out the purposes specified in Section 1195.1.

(c) Except as provided by this division, moneys in the General
Fund or any other state fund shall not be transferred to the Pilot
Trainee Special Fund or otherwise used to support the board or to
pay the debts, obligations, or encumbrances of the board, its
licensees, or trainees.

SEC. 17.  

Section 1196.1 of the Harbors and Navigation Code
is amended to read:

1196.1.  

(a) The moneys charged and collected each month
from the pilot continuing education surcharge pursuant to Section
1196 shall be paid to the begin delete Board of Pilot Commissioners’ end delete begin insert Pilot
Continuing Education end insert Special Fund begin insert created end insert pursuant to Section
begin delete 1159. end delete begin insert 1196.2. end insert The moneys shall be used only to fund the pilot
continuing education program referred to in subdivision (h) of
Section 1171.5 and Section 1196.3.

(b) Information regarding moneys begin delete remitted to the Board of Pilot
Commissioners’ Special Fund pursuant to Section 1159 end delete collected
from the surcharge authorized pursuant to Section 1196, or
otherwise collected by the board for that purpose, and information
regarding moneys spent as pilot continuing education expenses
authorized by Section 1196.3 shall be made available to the public
upon request and to the board or its finance committee.

SEC. 18.  

Section 1196.2 is added to the Harbors and Navigation
Code, to read:

1196.2.  

(a) The Pilot Continuing Education Special Fund is
hereby created within the State Treasury. The fund shall receive
all proceeds from the surcharge authorized by Section 1196.
Moneys in the fund may be used by the board, upon appropriation,
for continuing education for pilots as provided in Section 1196.1.

(b) Except as provided in this division, moneys in the General
Fund or any other state fund shall not be transferred to the Pilot
Continuing Education Special Fund or otherwise used to support
the board or to pay the debts, obligations, or encumbrances of the
board, its licensees, or trainees.

SEC. 19.  

Section 1200 of the Harbors and Navigation Code is
amended to read:

1200.  

begin delete The end delete begin insert (a) end insert begin insert   end insert begin insert The board may make recommendations to the
Legislature regarding potential amendments to the end insert begin insert pilotage rates
that are specified in Sections 1190 and 1191. end insert

begin insert (b) end insert begin insert   end insert begin insert The end insert board shall, from time to time, review pilotage expenses
and establish guidelines for the evaluation and application of these
expenses regarding its recommendations for adjustments in rates.

SEC. 20.  

Section 1201 of the Harbors and Navigation Code is
amended to read:

1201.  

begin insert (a) end insert begin insert   end insert Any party directly affected by pilotage rates
established under this chapter may petition the board for a public
hearing on any of the matters set forth in Section 1200. begin delete Within end delete

begin insert (b) end insert begin insert   end insert begin insert Within end insert 10 days from the filing of the petition the board shall
call public hearings to be held not less than 30 nor more than 60
days of the date of call for the purpose of begin delete obtaining information
and data relating to the issues raised in end delete begin insert holding an evidentiary
hearing on end insert the petition. The begin insert board shall schedule this evidentiary
hearing before an administrative law judge experienced with
ratemaking from either the Office of Administrative Hearings or
the Administrative Law Judge Division of the Public Utilities
Commission. end insert

begin insert (c) end insert begin insert   end insert begin insert The end insert board shall give notice of the hearings to all interested
parties who have requested the notification. begin delete At the conclusion of
the hearing or hearings, the board shall review and evaluate all
evidence obtained and, within 120 days from the filing of the
petition, shall submit to the Secretary of the Senate and the Chief
Clerk of the Assembly a copy of its findings and recommendations
for final determination, supported by a transcript of these
proceedings of the board. end delete begin insert All interested parties shall have the right
to submit comments and evidence in response to a petition prior
to the public hearings. end insert

begin insert

(d) The evidentiary hearing shall be a quasi-judicial proceeding
held before an administrative law judge who shall act as a finder
of fact. The petitioning party shall have the burden of proving, by
a preponderance of the evidence, all of the facts upon which the
petition is based.

end insert begin insert

(e) At the conclusion of the hearing or hearings, the
administrative law judge shall issue a decision setting forth
recommendations, findings, and conclusions. The decision shall
be supported by findings of fact on all issues material to the
decision, and the findings of fact shall be based on the evidence
in the record developed by the parties before the administrative
law judge. Any recommendation to approve the petition or
modification in order to partially approve the petition shall be
accompanied by a written explanation of each part of the decision
or changes made to the petition in the decision.

end insert begin insert

(f) The decision of the administrative law judge shall be filed
with the board and served on all parties without undue delay, but
not later than 60 days after the matter has been submitted for
decision.

end insert begin insert

(g) The board shall review and evaluate the findings and
recommendations in the administrative law judge’s decision and
all of the evidence obtained and, within 30 days from the filing of
the decision, shall either submit to the Secretary of the Senate and
the Chief Clerk of the Assembly a copy of the administrative law
judge’s decision, findings, and recommendations, supported by a
transcript of those proceedings, or prepare and submit to the
Secretary of the Senate and the Chief Clerk of the Assembly a
written statement of its reasons for not submitting the decision.

end insert

SEC. 21.  

Section 1201.5 of the Harbors and Navigation Code
is amended to read:

1201.5.  

(a) The begin insert administrative law judge and end insert board shall not
begin delete receive end delete begin insert consider any end insert written evidence begin delete at a public hearing held end delete for
the purpose of considering pilotage rates unless 10 or more copies
of the evidence have been deposited with the board as public
documents by the party begin delete proposing end delete begin insert petitioning for end insert a rate adjustment
30 or more days prior to the date set for the commencement of the
hearing.

(b) The begin insert administrative law judge and end insert board shall not begin delete receive end delete
begin insert consider any end insert written evidence at the hearing from any party
responding to the begin delete request end delete begin insert petition end insert unless the evidence is deposited
with the board 10 or more days prior to the date set for the
commencement of the hearing.

SEC. 22.  

Section 1202 of the Harbors and Navigation Code is
amended to read:

1202.  

begin delete Public end delete begin insert (a) end insert begin insert   end insert begin insert Notwithstanding any other law, any meeting
of the board or hearing by an administrative law judge at which
the rates, charges, and levies subject to this division are to be
imposed, changed, or discussed shall be open and public, and a
transcript of any such meeting shall be prepared and kept by the
board. end insert

begin insert (b) end insert begin insert   end insert begin insert Public end insert hearings for the purpose of investigating
begin insert recommendations and findings related to a petition for a change
in end insert pilotage rates shall be conducted in accordance with the
Bagley-Keene Open Meeting Act (Article 9 (commencing with
Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of
the Government Code) and a full record shall be kept of all
evidence offered.

begin insert

(c) No officer, employee, or agent of the board shall participate
in the decision of any factually related petition proceeding,
including participation in or advising the administrative law judge
as to findings of fact, conclusions of law, or orders, including as
a witness or declarant regarding a petition. Nothing in this
subdivision prohibits an administrative law judge from asking for
an officer, employee, or agent of the board to appear as a witness
in open session, unless the officer, employee, or agent has a conflict
of interest or is otherwise prohibited by statute from participating
in the proceeding.

end insert begin insert

(d) Ex parte communications with the administrative law judge
adjudicating the petition or any members of the board regarding
a petition filed under this division are prohibited, including any
oral or written communications concerning procedural matters,
except for procedural communications with the administrative law
judge or the board’s executive director, if the ex parte
communications are in writing and transmitted to all other
interested parties on the same day as the original communication
with the administrative law judge or executive director. Written
ex parte communications shall be part of the final record of the
proceeding made available to the Secretary of the Senate and Chief
Clerk of the Assembly, but shall not be made available to members
of the board prior to its final action on a decision by an
administrative law judge.

end insert

SEC. 23.  

Section 1204 is added to the Harbors and Navigation
Code, to read:

1204.  

The Office of Administrative Hearings or the
Administrative Law Judge Division of the Public Utilities
Commission shall be compensated at cost by the board for costs
associated with the conduct of a hearing or other matters as required
by this chapter. Any such expense shall be funded by revenues
received by the board from the board operations surcharge, as
described in Section 1159.2. The board shall ensure that an
administrative law judge has been fully compensated pursuant to
this section.