BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1888
                                                                  Page  1

          Date of Hearing:   April 19, 2010

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                      AB 1888 (Ma) - As Amended:  April 5, 2010
           
          SUBJECT  :  Bar Pilot:  pilotage vessel exemptions

           SUMMARY  :  Allows noncommercial vessels that are maritime academy  
          training vessels and vessels owned and operated by nonprofit  
          museums or foundations to receive pilotage services at no  
          charge; exempts mega yachts from pilotage requirements.   
          Specifically,  this bill  :  

          1)Exempts from pilotage fees and surcharges noncommercial  
            vessels that are maritime academy training vessels and vessels  
            owned and operated by nonprofit museums or foundations.  

          2)Increases the size of recreational vessels, such as large  
            yachts, from 300 gross tons to 750 gross tons for which bar  
            pilot services are not required.  

          3)Revises the accounting information required monthly of the bar  
            pilots to include the amount of fees and surcharges not  
            collected from training and nonprofit vessels.  

           EXISTING LAW  :  

          1)Establishes Board of Pilot Commissioners (Board) for the Bays  
            of San Francisco, San Pablo Suisun, and Monterey to license  
            and regulate maritime pilots who guide vessels entering or  
            leaving those bays.  The seven members of the Board are  
            appointed by the Governor with the consent of the Senate.  

          2)Prescribes pilotage fee rates that vessel operators are  
            required to pay for pilotage services in or out of the Bays of  
            San Francisco, San Pablo, Suisun, and Monterey; establishes a  
            minimum charge for pilotage services at $662

          3)Imposes surcharges on pilotage fees to support the Board, pay  
            for navigational technology, provide pilot trainee and license  
            pilot continuing education programs, maintain the pilot boats,  
            and pay pilot pensions.
            
          4)Requires every pilot to provide a monthly accounting to the  








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            Board of pilotage moneys received including the following  
            information:  

              a)    The name of each vessel piloted;  

              b)    The name of each vessel for which pilotage has been  
                charged or collected;  

              c)    The amount charged to or collected for each vessel;  

              d)    Any rebates made and allowed and for what amounts;  

              e)    The depth of each vessel's draft and its highest gross  
                tonnage; and,  

              f)    Whether the vessel was inward or outward bound.  

          5)Makes legislative findings and declarations that "the  
            individual physical safety and well-being of pilots is of  
            vital importance in providing required pilot services."  

          6)Requires, under federal law, that all foreign commercial  
            vessels in excess of 300 gross tons entering or leaving a  
            United States port use the services of maritime pilots.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  Pilotage of international trade vessels in the United  
          States is regulated by individual states, each of which  
          maintains a pilotage system that is suited to the particular  
          needs and circumstances of its own waters.  Every vessel,  
          foreign or domestic, engaged in international trade moving in  
          the waters of a state is required to take on a pilot licensed by  
          that state.  

          In California, when a vessel approaches the "SF" buoy 12 miles  
          west of the Golden Gate Bridge, a bar pilot boards the ship and  
          takes navigational control.  It becomes the bar pilot's  
          responsibility to guide the ship to its berth.  The bar pilots  
          provide service to all types of vessels, from large recreational  
          yachts over 300 gross tons to 100-foot tugs to 1000-foot  
          supertankers.  Inland pilots (only one remaining) are not  
          licensed to operate outside of the Golden Gate Bridge in the  
          open ocean area but pilot the inland bays and river channels.  









                                                                  AB 1888
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           Current Charges  :  A vessel operator pays a California bar pilot  
          $8.11 per draft foot of the vessel's deepest draft plus a charge  
          of 80.55 mills per high gross registered ton.  However,  
          according to the bill's sponsor, the San Francisco Bar Pilots  
          (Bar Pilots), this fee has not been charged to the museum ship  
          operated by the non-profit National Liberty Ship Memorial based  
          in San Francisco and the training ship of the California  
          Maritime Academy.  Although waiving the fee has been the  
          practice for many years, the Bar Pilots were recently advised  
          that free pilotage conflicts with existing law and that they  
          have no discretion but to charge whenever pilotage services are  
          provided.  Additionally, neither of these ships has paid any of  
          the multiple surcharges that accompany the pilotage fee, such as  
          surcharges collected to pay for continuing education,  
          navigational aids, and pension.  According to the Bar Pilots,  
          pilots piloted these two ships only three or four times last  
          year.

          The Pacific Merchant Shipping Association (PMSA) opposes  
          provisions waiving the surcharges for these two ships,  
          contending that this is an "issue of fairness because surcharges  
          are usually meant to pay for the cost of an item that either has  
          a public purpose (for example, support of the Board in lieu of  
          direct licensing fees, or trainee training), or for an aspect of  
          pilotage service that may be of a uniform benefit (such as the  
          surcharge for pilot boats or pilot continuing education).  These  
          vessels should at least pay these minimal surcharge amounts in  
          order to support the licensing, safety and public purposes as  
          outlined in statute."  PMSA does not, however, oppose waiving  
          the pilotage fee for these ships.  

           Mega yacht exemption  :  Currently, recreational yachts less than  
          300 gross tons are not required to use bar pilot services.  This  
          bill would increase the minimum recreational yacht size for  
          which pilotage services would not be required from 300 gross  
          tons to 750 gross tons.  

          In justifying this exemption, the Bar Pilots indicate that these  
          yachts, "despite their size, tend to draw only about 10-12 feet  
          of water.  They are not at risk of running aground."  Further,  
          and perhaps more significantly, the Bar Pilots contend that it  
          is dangerous for a bar pilot to board the yacht when the boats  
          are at sea because,  "[u]nlike most commercial ships that have a  
          rather vertical side, the large mega yachts have flared sides  
          that make it difficult for pilot boats to come alongside for  








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          boarding."  Last year, the Bar Pilots piloted 9 yachts between  
          300 gross tons and 750 gross tons for a total of 36 boardings.

           Related Bills  :  SB 300 (Yee) Chapter 497, Statutes of 2009,  
          established a surcharge for payment of navigational aids for bar  
          pilots and revised the pilotage rate based upon the current  
          number of bar pilots.  

          SB 1627 (Wiggins) Chapter 567, Statutes of 2008, established  
          legislative oversight over and administrative responsibility for  
          the Board.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          San Francisco Bar Pilots (sponsor)

           Opposition 
           
          None on file
           

          Analysis Prepared by  :   Ed Imai / TRANS. / (916) 319-2093