BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1888|
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                                    CONSENT


          Bill No:  AB 1888
          Author:   Ma (D)
          Amended:  6/14/10 in Senate
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  9-0, 6/22/10
          AYES:  Wright, Harman, Calderon, Denham, Florez, Negrete  
            McLeod, Padilla, Price, Yee
          NO VOTE RECORDED:  Oropeza, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  74-0, 5/6/10 (Consent) - See last page for  
            vote


           SUBJECT  :    Harbors and ports:  Monterey Bay and the Bays  
          of San 
                      Francisco, San Pablo, and Suisun: pilotage  
          rates

           SOURCE  :     San Francisco Bar Pilots Association


           DIGEST  :    This bill makes various changes to the Harbors &  
          Navigation Code relating to the Board of Pilot  
          Commissioners and pilotage for the Bays of Monterey, San  
          Francisco, San Pablo and Suisun.

           ANALYSIS  :    Existing law establishes in state government  
          the Board of Pilot Commissioners (Board), with jurisdiction  
          over Monterey Bay and the Bays of San Francisco, San Pablo,  
                                                           CONTINUED





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          and Suisun.  Existing law directs the Board to regulate  
          pilotage and provides for the licensing, regulation, and  
          management of pilots in these Bays.  The Board consists of  
          seven members appointed by the Governor, with the consent  
          of the Senate, as follows:  (1) two members must be  
          licensed pilots; (2) two members must represent the  
          industry and be substantial users of Monterey Bay and any  
          of the waters of the Bays of San Francisco, San Pablo, or  
          Suisun; and, (3) three must be "public" members.  

          Existing law prescribes pilotage rates for vessels and  
          requires vessels spoken inward or outward bound to pay a  
          specified rate of bar pilotage through the Golden Gate and  
          into or out of the Bays of San Francisco, San Pablo and  
          Suisun and vessels navigating the waters of Monterey Bay  
          are also required to pay a specified rate.

          Existing law provides that the 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.  Currently,  
          those rates may be adjusted at the direction of the Board  
          in the event of specified changes in the number of pilots  
          or catastrophic cost increases.  Specifically, current law  
          requires an adjustment to rates when the number of pilots  
          falls below 60 or rises above 60. 

          Existing law also imposes a Board operation surcharge of  
          pilotage fees, as specified, to be deposited in the Board  
          of Pilot Commissioners' Special Fund and used to support  
          the Board, and imposes an additional charge for pension  
          benefits payable to a fiduciary agent, as specified.  The  
          Fund is continuously appropriated for the payment of the  
          compensation and expenses of the Board, its officers and  
          employees.  Additionally, existing law provides for a pilot  
          trainee surcharge and a pilot and inland pilot training  
          program surcharge that pays for these respective training  
          programs.

          Existing law exempts from those pilotage fees and  
          surcharges referenced above noncommercial vessels that are  
          maritime academy training vessels and vessels owned and  
          exhibited by nonprofit museums or foundations.








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          Existing law exempts from pilotage fees a vessel sailing  
          under a coastwise license or appropriately endorsed  
          registry and engaged in the coasting trade, as described,  
          unless a pilot or inland pilot is actually used.  A foreign  
          vessel, a vessel bound to or from a foreign port, or a  
          vessel sailing under a register is required to use a pilot  
          or inland pilot.  These provisions do not apply to a vessel  
          that is less than 300 gross tons and is manufactured and  
          used for private recreation.

          Existing law requires pilots to submit to the Board every  
          month a verified account of all moneys or other  
          compensation received by the pilot or inland pilot as a  
          result of pilotage services, or by any other person for the  
          pilot or inland pilot, or on the pilot's or inland pilot's  
          account, on the forms furnished by the board.

          This bill:

          1. Staggers the terms for members of the Board who are  
             licensed pilots and industry representatives, as  
             specified.
           
          2. Exempts from pilotage fees and surcharges noncommercial  
             vessels that are maritime academy training vessels and  
             vessels owned and operated by nonprofit museums or  
             foundations.
           
          3. Increases the minimum size of vessel that requires  
             pilotage from 300 gross tons to 750 gross tons.
           
          4. Requires bar pilots to include the amount of fees and  
             surcharges not collected from training and nonprofit  
             vessels in their monthly accounting reports. 

           Comments
           
          According to the sponsor of this bill, the San Francisco  
          Bar Pilots Association, bar pilots have historically waived  
          fees for museum ships as well as for maritime academy  
          ships.  Last year the bar pilots were informed that this  
          practice was in violation of existing law that states all  
          ships must pay.  The bar pilots have requested an amendment  
          to existing law that will permit the free service to  







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          continue.  According to the bar pilots, pilots piloted such  
          vessels only three or four times last year.

          Additionally, as noted above, existing law exempts from  
          mandatory pilotage fees recreational vehicles (yachts) of  
          300 gross registered tons or less. Bar pilots contend that  
          it is often unsafe to board yachts because of their hull  
          designs and therefore have requested an amendment to the  
          Harbors & Navigation Code which would exempt from mandatory  
          pilotage recreational vehicles of 750 registered tons or  
          less.  Unlike larger commercial vessels, larger pleasure  
          craft draw only about 10-12 feet of water, making them  
          unlikely to run aground and, therefore, free of need for  
          pilotage.  Bar pilots also claim that large recreational  
          craft tend to have flared sides, rather than vertical sides  
          like most commercial vessels, making the recreational craft  
          dangerous to board in the open sea.  Last year, the bar  
          pilots piloted nine yachts between 300 gross tons and 750  
          gross tons for a total of 36 boardings.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  8/2/10)

          San Francisco Bar Pilots Association (source)
          Pacific Merchant Shipping Association


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Blumenfield,  
            Bradford, Brownley, Buchanan, Caballero, Charles  
            Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De  
            Leon, DeVore, Emmerson, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,  
            Garrick, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue,  
            Bonnie Lowenthal, Ma, Miller, Monning, Nava, Nestande,  
            Niello, Nielsen, Norby, V. Manuel Perez, Portantino,  
            Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio,  
            Audra Strickland, Swanson, Torlakson, Torres, Torrico,  
            Tran, Villines, Yamada, John A. Perez
          NO VOTE RECORDED:  Bass, Block, De La Torre, Gilmore,  







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            Mendoza, Vacancy


          TSM:do  8/3/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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