BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 300
                                                                  Page  1

          Date of Hearing:   July 15, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                      SB 300 (Yee) - As Amended:  July 13, 2009 

          Policy Committee:                               
          TransportationVote:9-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill establishes a surcharge for payment of navigational  
          aids for bar pilots and revises the pilotage rate.   
          Specifically, this bill:  

          1)Imposes a navigation technology surcharge on vessels piloted  
            through the Golden Gate, effective January 1, 2010, to January  
            1, 2011, to recover the bar pilots' acquisition, lease, or  
            maintenance costs for navigation hardware, software and  
            related equipment purchased after November 5, 2008.  

          2)Revises the pilotage rate adjuster, which requires an  
            adjustment to pilotage rates when the number of pilots falls  
            below 60 or rises above 60.  Establishes that the rate be  
            calculated reflect 58 bar pilots.  

          3)Makes other minor, technical changes.  

           FISCAL EFFECT  

          One-time surcharge revenue of an unknown amount sufficient to  
          cover bar pilots' costs for navigation hardware and software,  
          and related equipment purchased after November 5, 2008.  (Board  
          of Pilot Commissioners' Special Fund.)

           COMMENTS  

           1)Rationale  .  In November 2007, pilot error caused the Cosco  
            Busan to collide with the Bay Bridge and discharge oil into  
            the San Francisco Bay.  The author argues that this accident  
            makes evident the need of bar pilots navigating the Golden  








                                                                  SB 300
                                                                  Page  2

            Gate and the waters within it to have navigation software and  
            hardware, such as laptop computers with independent global  
            positioning devices (GPS) devices.  Many pilots have purchased  
            such devices and have received or are receiving training in  
            their use.  The author contends it is just to require the  
            beneficiaries of the use of these devices-the vessels that  
            rely on the services of bar pilots to pass through the Golden  
            Gate-to pay for the costs of those devices.   

           2)Background.   Bar pilots are responsible for steering an  
            arriving vessel through the Golden Gate Bridge of San  
            Francisco Bay, the bay waters, and adjoining navigable waters,  
            which include San Pablo Bay, Suisun Bay, the Sacramento and  
            San Joaquin Rivers, and its tributaries.  Pilotage services  
            are also provided for Monterey Bay.  When a vessel comes with  
            12 miles of the Golden Gate Bridge, a bar pilot boards the  
            vessel and takes navigational control until the vessel docks  
            at berth.  The bar pilots provide service to all types of  
            vessels, from 100-foot tugs to 1000-foot supertankers.  Inland  
            pilots operate in the inland bays and river channels but are  
            not licensed to operate outside of the Golden Gate.  

            Existing law establishes the Board of Pilot Commissioners,  
            with jurisdiction over Monterey Bay and the bays of San  
            Francisco, San Pablo, and Suisun.  The board regulates  
            pilotage and provides for the licensing, regulation, and  
            management of pilots operating within its jurisdiction.  The  
            board consists of seven members appointed by the governor. 

            Bar pilots collect pilotage fees, which are set in statute,  
            from the vessels they navigate.  A vessel operator passing  
            through the Golden Gate pays a bar pilot $8.11 per draft foot  
            of the vessel's deepest draft, plus 80.55 mills per gross ton.  
             The mill rate is subject to adjustment based on whether the  
            total number of bar pilots operating in the San Francisco area  
            is above or below 60. Bar pilots licensed by the board pay the  
            board a percentage of the pilotage fees they collect.  These  
            moneys pay the board's licensing and regulatory expenses.   

           3)Supporters  include several maritime labor organizations.   
            There is no registered opposition to the current version of  
            this bill.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081