BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
300 (Yee)
Hearing Date: 05/18/2009 Amended: 05/04/2009
Consultant: Mark McKenzie Policy Vote: GO 11-1
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BILL SUMMARY: SB 300 would impose a new "navigation technology
surcharge" on vessels piloted through the Golden Gate until
January 1, 2011 to recover the pilots' costs for navigation
hardware, software, and ancillary equipment purchased after
November 5, 2008.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
One-time fee (revenue) ($99) ($99) Special*
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* Board of Pilot Commissioners' Special Fund. Staff notes that
since this fund is continuously appropriated, this bill would
make an appropriation by increasing revenue deposited into the
fund and authorizing expenditure for a new purpose.
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STAFF COMMENTS: Existing law requires inward or outward bound
vessels to pay a specified rate of bar pilotage through the
Golden Gate. The Board of Pilot Commissioners (Board) regulates
pilotage and licenses, regulates, and manages the maritime
pilots who guide these vessels. Existing law prescribes
pilotage rates and authorizes the Board to adjust those rates
under specified circumstances. Specifically, current law
requires an adjustment to rates when the number of pilots falls
below 60 or rises above 60. In addition to the pilotage rates,
vessels pay a "board operation surcharge" on pilotage fees, a
"pilot trainee surcharge," and a "pilot and inland pilot
continuing education surcharge" to be deposited into the Board
of Pilot Commissioners' Special Fund. This fund is continuously
appropriated to pay expenses and compensation of the board, its
officers and employees, and pilot training programs.
SB 300 would authorize the imposition of an additional surcharge
until January 1, 2011, as authorized by the Board, to recover
pilots' costs for the purchase, lease, or maintenance of
navigation software, hardware, and ancillary equipment purchased
after November 5, 2008. This new surcharge would be reviewed
and adjusted by the Board at least quarterly. This bill would
also delete the provision authorizing adjustment to pilotage
rates based on the number of pilots. The current rate adjuster
was included in legislation that codified the Board's most
recent recommendations to raise pilotage rates, and has been
effective since 2007.
The Board is currently considering a regulation to require all
pilots to possess navigation technology equipment, and be
trained in its operation. The San Francisco Bar Pilots
Association has proactively purchased some equipment and
initiated training for the pilots. The Bar Pilots Association
indicates that the surcharge authorized by this bill would need
to raise approximately $197,000 to cover the costs for
navigation technology equipment and training, including
expenditures since November 2008.