BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                              UNFINISHED BUSINESS


          Bill No:  SB 300
          Author:   Yee (D), et al
          Amended:  8/20/09
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  11-1, 4/28/09
          AYES:  Wright, Harman, Calderon, Denham, Florez, Negrete  
            McLeod, Oropeza, Padilla, Wiggins, Wyland, Yee
          NOES:  Benoit
          NO VOTE RECORDED:  Vacancy

           SENATE APPROPRIATIONS COMMITTEE :  9-4, 5/18/09
          AYES:  Kehoe, Corbett, Denham, DeSaulnier, Hancock, Leno,  
            Oropeza, Wolk, Yee
          NOES:  Cox, Runner, Walters, Wyland

           SENATE FLOOR  :  21-12, 5/28/09
          AYES:  Alquist, Cedillo, Corbett, DeSaulnier, Denham,  
            Florez, Hancock, Kehoe, Leno, Liu, Lowenthal, Maldonado,  
            Negrete McLeod, Padilla, Pavley, Romero, Simitian,  
            Steinberg, Wiggins, Wyland, Yee
          NOES:  Aanestad, Ashburn, Benoit, Cogdill, Correa, Cox,  
            Dutton, Hollingsworth, Huff, Runner, Strickland, Walters
          NO VOTE RECORDED:  Calderon, Ducheny, Harman, Oropeza,  
            Wolk, Wright, Vacancy

           ASSEMBLY FLOOR  :  61-14, 9/1/09 - See last page for vote


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





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           SOURCE  :     San Francisco Bar Pilots


           DIGEST  :    This bill imposes 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.

           Assembly Amendments  (1) add provisions that require the  
          Board of Pilot Commissioners to establish regulations for  
          continuing education standards and a continuing education  
          program for pilots and inland pilots, and (2) make various  
          clarifying and technical changes.

           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,  
          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:  two members must be licensed  
          pilots; 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 three  
          must be "public" members.

          Existing law requires the Board to appoint and license the  
          number of pilots needed to carry out provisions of the  
          Harbors and Navigation Code and requires the Board to  
          consider various factors in making this determination.   
          Existing law specifies that the Board has the sole  
          authority to determine the qualifications and requirements  
          for obtaining a pilot license and it also authorizes the  
          Board to suspend or revoke licenses for misconduct and it  
          specifies procedures for such action.  Existing law  
          establishes various rights and duties of these pilots.

          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  







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          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 offices 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.

          This bill:

          1. Imposes a new, one-year navigation technology surcharge  
             on vessels piloted through the Golden Gate Bridge until  
             January 1, 2011, to recover the bar pilots' acquisition,  
             lease, or maintenance costs for navigation hardware and  
             software, and ancillary equipment purchased after  
             November 5, 2008.

          2. Revises the rate adjuster, which requires an adjustment  
             to pilotage rates when the number of pilots falls below  
             or rises above 60.  Whenever the number of bar pilots  
             number fewer than 58, establishes that the rate be  
             calculated that reflects the number of bar pilots at 58.  


          3. Makes inoperative the rate adjuster when the number of  
             bar pilots reach or exceed 60. 








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          4. Requires the Board to establish regulations for  
             continuing education standards and a continuing  
             education program for pilots and inland pilots.

          5. Revises the information required of bar pilots and  
             inland pilots in their submittals of monthly account  
             reports by deleting the name of the vessel's master and  
             the location of where the vessel is located.

          6. Makes other minor, conforming, and technical changes.

           Comments

           Bar pilots are responsible for steering and arriving vessel  
          through the Golden Gate of San Francisco Bay, the Bay  
          waters and adjoining navigable waters, which include San  
          Pablo Bay, Suisun Bay, the Sacramento River and its  
          tributaries.  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  
          pilot's responsibility to guide the ship to its berth.  The  
          bar pilots provide service to all types of vessels, from  
          100-foot tugs to 1,000-foot supertankers.

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

          According to the Assembly Appropriations Committee,  
          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.

           SUPPORT  :   (Verified  9/2/09)

          San Francisco Bar Pilots (source)
          AMNAV Maritime Services
          California Coastkeepers Alliance
          California Labor Federation, AFL-CIO
          Internationla Organization of Masters Mates, and Pilots
          Sailors Union of the Pacific
          San Francisco Baykeepers

           ARGUMENTS IN SUPPORT  :    Writing in support of this bill,  







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          the Bar Pilots indicate that the "average individual pilot  
          passed through the Golden Gate more times in 2008 than in  
          2006; moved more tonnage in 2008 than in 2006; but made  
          less money even though he/she worked longer hours and  
          provided greater benefit to PMSA members at less cost to  
          those PMSA members.  The fact is that PMSA's gross tonnage  
          was just 4/10ths of one percent lower in 2008 than in 2006,  
          but the amounts PMSA paid to the San Francisco Bar Pilots  
          was down by 5% and the pilot's net income was slashed by  
          more than eight percent.  As the number of pilots continues  
          to diminish, we anticipate the disparity between the users  
          and the pilots will grow even wider.  The enactment of this  
          bill will fix this unfortunate economic condition by  
          returning the pilotage rate to its 2006 level."  (It should  
          be noted that this bill returns the pilotage rate to its  
          2007/2008 level.)


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


          TSM:do  9/2/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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