BILL NUMBER: AB 656 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 10, 2011
AMENDED IN ASSEMBLY MARCH 31, 2011
INTRODUCED BY Assembly Member Huber
FEBRUARY 16, 2011
An act to add Division 4.5 (commencing with Section 1100) to,
and to add Chapter 7 (commencing with Section
1220) to Division 5 of, and to repeal Division 5 (commencing
with Section 1100) of, the Harbors and Navigation Code,
relating to bay pilots.
LEGISLATIVE COUNSEL'S DIGEST
AB 656, as amended, Huber. Bar pilots: Monterey Bay ,
and the Bays of San Francisco, San Pablo, and Suisun.
Existing law provides for the regulation and licensing of pilots
for Monterey Bay , and the Bays of San Francisco,
San Pablo, and Suisun, and the payment of specified pilotage rates
and charges imposed on vessels piloted in those bays. Existing law
also establishes in the Business, Transportation and Housing Agency,
a Board of Pilot Commissioners for Monterey Bay ,
and the Bays of San Francisco, San Pablo, and Suisun, and prescribes
the membership of, and functions and duties of the board.
Existing law establishes the Board of Pilot Commissioners' Special
Fund, a continuously appropriated fund, for the purposes of receiving
moneys received by the board in the implementation of the above
provisions.
This bill would, on January 1, 2013, repeal those
provisions that require the licensing of pilots in Monterey Bay, and
the Bays of San Francisco, San Pablo, and Suisan, and that require
the payment of specified pilotage rates and charges imposed on
vessels piloted in those bays. The bill would also
2014, eliminate the board and transfer the board's
functions and duties to the Secretary of Business, Transportation and
Housing , and would recast and reenact certain provisions that
regulate pilots for those bays, as provided. The bill would
rename the Board of Pilot Commissioners' Special Fund as the Bar
Pilot Special Fund.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Division 4.5 (commencing with Section 1100) is added to
the Harbors and Navigation Code, to read:
DIVISION 4.5. PILOTS FOR MONTEREY BAY AND THE BAYS OF SAN
FRANCISCO, SAN PABLO, AND SUISUN
CHAPTER 1. LEGISLATIVE POLICY AND FINDINGS
1100. The Legislature finds and declares that it is the policy of
the state to ensure the safety of persons, vessels, and property
using Monterey Bay and the Bays of San Francisco, San Pablo, and
Suisun, and the tributaries thereof, and to avoid damage to those
waters and surrounding ecosystems as a result of vessel collision or
damage, by providing competent, efficient, and regulated pilotage for
vessels required by this division to secure pilotage services.
1101. The Legislature further finds and declares all of the
following:
(a) The maritime industry is necessary for the continued economic
well-being and cultural development of all California citizens.
(b) The Bays of San Francisco, San Pablo, and Suisun provide a
vital transportation route for the maritime industry.
(c) The increase in vessel size and traffic, and the increase in
cargoes carried in bulk, particularly oil and gas and hazardous
chemicals, create substantial hazards to the life, property, and
values associated with the environment of those waters.
(d) The federal government has long adopted the policy of
providing minimum standards that ensure port and waterway safety
while encouraging state control over pilot qualifications.
(e) A program of pilot regulation is necessary in order to
ascertain and guarantee the qualifications, fitness, and reliability
of qualified personnel who can provide safe pilotage of vessels
entering and using Monterey Bay and the Bays of San Francisco, San
Pablo, and Suisun.
(f) The need to ensure safe and pollution-free waterborne commerce
requires that pilotage services be employed in the confined,
crowded, and environmentally sensitive waters of those bays.
(g) Bar pilotage in the Bays of San Francisco, San Pablo, and
Suisun has continuously been regulated by a single-purpose state
board since 1850, and that regulation should be continued.
(h) The individual physical safety and well-being of pilots is of
vital importance in providing required pilot services.
CHAPTER 2. APPLICATION
1105. This division applies to pilots for Monterey Bay and the
Bays of San Francisco, San Pablo, and Suisun.
CHAPTER 3. DEFINITIONS
1109. "Agency" means the Business, Transportation and Housing
Agency.
1110. (a) "Bays of San Francisco, San Pablo, and Suisun" means
all the waters of those bays and of the tributaries, ports, and
harbors of those bays, and includes the water areas from the south
end of San Francisco Bay and from the Ports of Sacramento and
Stockton to the Golden Gate Bridge. "Bay of San Francisco, San Pablo,
or Suisun" means any of those waters, respectively.
(b) "Monterey Bay" means all the waters of that bay and of the
tributaries, ports, and harbors of that bay.
1111. "Former board" means the Board of Pilot Commissioners for
the Bays of San Francisco, San Pablo, and Suisun, as created pursuant
to former Section 1111.
1112. "High seas" includes all the navigable waters of the
Pacific Ocean west of the Golden Gate Bridge, and all navigable
waters west of the westward boundary of the pilotage grounds for
Monterey Bay.
1114. "Pilot" means either of the following:
(a) A person who pilots vessels including an inland pilot.
(b) A person licensed as a bar pilot for the Bays of San
Francisco, San Pablo, and Suisun prior to January 1, 2013.
1114.5. "Pilotage grounds" means all waters extending eastward
from the precautionary area surrounding buoy SF to, and including,
the Bays of San Francisco, San Pablo, and Suisun, and also includes
the waters of Monterey Bay, eastward of a straight line drawn between
Point Santa Cruz Light and Point Pinos Light.
1115. "Secretary" means the Secretary of Business, Transportation
and Housing.
CHAPTER 3.5. DUTIES AND AUTHORITIES OF THE SECRETARY OF
BUSINESS, TRANSPORTATION AND HOUSING AGENCY
1120. (a) The secretary is vested with all functions and duties
relating to the administration of this division.
(b) The secretary's vested powers include the power to make and
enforce rules and regulations that are reasonably necessary to carry
out its provisions and to govern its actions. These rules and
regulations shall be adopted in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.
1120.5. The secretary may administer oaths in regard to any
matter properly before it and he or she may issue subpoenas for
witnesses in like cases. A witness disobeying the subpoena served on
him or her shall incur a penalty of five hundred dollars ($500), for
which judgment may be recovered by the secretary in a civil action.
This section shall not apply to proceedings conducted in accordance
with Chapter 5 (commencing with Section 11500) of Part 1 of Division
3 of Title 2 of the Government Code.
1121. (a) Whenever suspected safety standard violations
concerning pilot hoists, pilot ladders, or the proper rigging of
pilot hoists or pilot ladders are reported to the agency, the
secretary shall assign an investigator to personally inspect the
equipment for its compliance with the relevant safety standards
promulgated by the United States Coast Guard and the International
Maritime Organization. The investigator shall report preliminary
conclusions, including an assessment of the equipment's compliance
with the relevant safety standards, to the secretary as soon as
possible. If, in the preliminary report, the equipment is found to be
in violation, or in likely violation in the opinion of the
investigator, of the relevant safety standards, the secretary shall
immediately alert the cognizant United States Coast Guard office. The
investigator shall submit a written report to the secretary that may
include other reports, information, or statements from interested
parties. The secretary shall specify, by regulation, the information
that shall be contained in the report.
(b) This section applies to the pilotage grounds, as defined in
Section 1114.5. Whenever a vessel passes outside of the pilotage
grounds, the investigator's report shall include that fact along with
a description of the incident.
(c) The record of the investigation and the secretary's findings
and recommendations, if any, shall be a public record maintained by
the agency.
1121.5. The agency shall keep a written record of all the
secretary's proceedings and acts.
(a) The agency shall also keep a complete record of each pilot
appointed and licensed by the secretary that includes at a minimum,
his or her current mailing address, residence, the date of the
initial issuance and renewal of the license, the date of completion
for initial and any subsequent training, and a record of any reports
of meritorious activities, commendation, misconduct, safety
violations, or other incidents or information related or relevant to
the issuance and use of his or her pilot license.
(b) All pilots or inland pilots licensed by the secretary shall
provide the secretary with written notice of any change of name,
mailing address, or residence within 30 days of that change in a
manner prescribed by the secretary.
1122. (a) Except as provided in Section 1122.3, all records of
the agency relating to the personal information of a pilot, an inland
pilot, a pilot trainee, or an applicant to the pilot trainee
training program are confidential and shall not be open to public
inspection.
(b) For purposes of this section, "personal information" means
information, other than the name and mailing address, that identifies
an individual, including an individual's photograph, social security
number, address, telephone number, and medical or disability
information, but does not include other information related to
licensing such as incidents, rules or safety violations, misconduct,
training records, commendations, and license status.
1122.1. The secretary shall establish procedures for access to
confidential or restricted information from the agency's records to
protect the confidentiality of the agency's employees and licensees.
If confidential or restricted information is released to an agent of
a person authorized to obtain information, the person shall require
the agent to take all steps necessary to ensure confidentiality and
prevent the release of information to a third party. An agent shall
not obtain or use confidential or restricted records for any purpose
other than the reason the information was requested.
1122.2. The secretary or an employee of the agency who willfully
discloses confidential information from the agency record to a person
not authorized to receive it shall be liable for a civil penalty not
to exceed two thousand five hundred dollars ($2,500) for each
violation, which may be assessed and recovered in a civil action.
1122.3. Upon a request to the secretary by a federal, state, or
local law enforcement agency, the secretary shall make available to
the requesting agency any information contained in the agency's
records.
1122.4. On or before April 15, 2013, and annually thereafter, the
secretary shall submit to the Secretary of the Senate, and the Chief
Clerk of the Assembly a report describing the secretary's activities
pursuant to this division for the preceding calendar year. The
report shall include, but not be limited to, all of the following:
(a) The number of vessel movements across the bar, on the bays,
and on the rivers within the secretary's jurisdiction.
(b) The name of each licensed pilot, inland pilot, and pilot
trainee, and the status of each person. If a person has had more than
one status during the reporting year, each status and the length of
time in that status shall be indicated. For the purposes of this
section, "status" includes all of the following designations:
(1) Licensed and fit for duty.
(2) Licensed and not fit for duty.
(3) Licensed and on authorized training.
(4) Licensed and on active military duty.
(5) Licensed and on leave of absence.
(6) Licensed but license suspended.
(c) A summary of each report of misconduct or a navigational
incident involving a pilot, inland pilot, or pilot trainee, or other
matters for which a license issued by the secretary may be revoked or
suspended. For those cases that have been closed, the summary shall
include a description of findings made by the incident review
committee and of the resulting action taken by the secretary. For
those cases that are still under investigation, the summary shall
include a description of the reported incident and an estimated
completion date for the investigation. For those closed cases
involving a pilot who has been involved in a prior incident where a
finding of pilot error had been made, the report shall also include a
summary of that incident.
1123. The secretary shall not engage in an employment, activity,
or enterprise that is clearly inconsistent, incompatible, in conflict
with, or inimical to his or her duties as a state officer or make,
participate in making, or attempt to use his or her official position
to in any way influence a governmental decision in which he or she
knows or has reason to know that he or she, or any member of his or
her immediate family, has a financial interest.
1124. (a) All moneys received by the agency pursuant to this
division shall be accounted for at the close of each month to the
Controller in the form that the Controller may prescribe and, at the
same time on the order of the Controller, all these moneys shall be
paid into the State Treasury to the credit of the Bar Pilot Special
Fund, which is hereby created in that State Treasury.
(b) Notwithstanding Section 13340 of the Government Code, the
moneys deposited in the State Treasury to the credit of the Bar Pilot
Special Fund are appropriated without regard to fiscal years for the
payment of the compensation and expenses of the agency and its
officers and employees.
(c) Monies in the former Board of Pilot Commissioners' Special
Fund shall be transferred to the Bar Pilot Special Fund.
1124.1. (a) The vessel shall pay a secretary operations
surcharge, the purpose of which is to fully compensate the secretary
and the agency for the official services, staff services, and
incidental expenses of the secretary and agency. The amount of the
surcharge shall be 7.5 percent of all pilotage fees charged by pilots
and inland pilots, pursuant to Sections 1190 and 1191 unless the
secretary establishes, with the approval of the Department of
Finance, a lesser percentage, not to exceed any percentage consistent
with subdivision (d).
(b) The surcharge shall be billed and collected by the pilots and
inland pilots. The pilots and inland pilots shall pay all surcharges
collected by them to the secretary monthly or at such later time as
the secretary may direct.
(c) The secretary shall quarterly review its ongoing and
anticipated expenses and adjust the surcharge to reflect any changes
which have occurred since the last adjustment.
(d) The secretary operations surcharge shall not represent a
percentage significantly more than that required to support the
secretary and the agency related to the administration of the
secretary pursuant to subdivision (a) in addition to the maintenance
of a reasonable reserve.
CHAPTER 4. EXCLUSIVE RIGHTS AND DUTIES OF PILOTS
1125. (a) Pilots have exclusive authority, to the extent not
provided otherwise by federal law, to pilot vessels from the high
seas to Monterey Bay and the Bays of San Francisco, San Pablo, and
Suisun and the ports thereof, and from those bays and ports to the
high seas. They shall also have exclusive authority to pilot vessels
within and along the waters of those bays, except as otherwise set
forth in this division.
(b) Nothing in this division shall interfere with pilotage
regulations of Monterey Bay and of the Ports of Sacramento and
Stockton, nor prevent the regulatory authority of those ports from
utilizing the pilots covered by this division.
1126. (a) A person may also be enjoined from engaging in the
pilotage prescribed by a court of competent jurisdiction.
(b) This section does not apply to any of the following persons:
(1) The master of a vessel who has relieved the pilot to ensure
the safe operation of the vessel, but only from the point where the
pilot is relieved to the closest safe berth or anchorage, or the high
seas if closer than a safe berth or anchorage.
(2) Persons piloting vessels pursuant to the valid regulatory
authority of the Port of Sacramento or the Port of Stockton.
(3) Persons piloting vessels sailing under an enrollment.
(4) Persons piloting noncommercial vessels.
1127. (a) The Legislature finds and declares that it is the
policy of the state to ensure the safety of persons, property, and
vessels using the waters of Monterey Bay and the Bays of San
Francisco, San Pablo, and Suisun and to avoid damage to those waters
and surrounding ecosystems as a result of vessel collision or damage
by providing competent, efficient, and regulated pilotage for vessels
required by this division to secure pilotage services.
(b) This section does not supersede, modify, or otherwise alter
pilot practices that are not safety related, including, but not
limited to, the determination of rates charged for pilot services or
employer-employee relationships for individuals, agencies, or
organizations involved in providing pilotage services between any
port of Monterey Bay and the Bays of San Francisco, San Pablo, and
Suisun and any other port of the United States that is in existence
on December 31, 1995, or otherwise abridge the authority of local
port or harbor districts relating to pilotage in effect on December
31, 1995.
(c) A vessel sailing under a coastwise license or appropriately
endorsed registry and engaged in the coasting trade between a port of
Monterey Bay and the Bays of San Francisco, San Pablo, and Suisun
and another port of the United States is exempt from all pilotage
charges. A foreign vessel and a vessel bound between a foreign port
and a port of Monterey Bay and the Bays of San Francisco, San Pablo,
and Suisun, and a vessel sailing under a register between a port of
Monterey Bay and the Bays of San Francisco, San Pablo, and Suisun and
another port of the United States, shall use a pilot or inland
pilot, except as otherwise provided by law.
(d) Subdivision (c) does not apply to a vessel that is less than
750 gross tons and is manufactured and used for private recreation.
1128. A nonself-propelled vessel in tow of a tug within Monterey
Bay and the Bay of San Francisco, San Pablo, or Suisun, or between
those bays, is exempt from pilotage charges.
1130. A majority of all of the pilots shall appoint one pilot to
act as port agent to carry out applicable laws, and to otherwise
administer the affairs of the pilots.
1132. Every pilot in charge of a vessel arriving in Monterey Bay
and the Bay of San Francisco, San Pablo, or Suisun, shall safely moor
the vessel in place and position as directed by the master of the
vessel, consistent with safe navigation and not contrary to law.
1133. Every pilot in charge of a vessel leaving the Bays of San
Francisco, San Pablo, and Suisun shall pilot it from its point of
departure to a point beyond the San Francisco bar. Every pilot in
charge of a vessel leaving Monterey Bay shall pilot it from its point
of departure to a point westward of the pilotage grounds.
CHAPTER 5. PENSION PLAN
1160. There is hereby established a San Francisco Bar Pilot
Pension Plan which is continued in existence as the San Francisco
Pilot Pension Plan.
1161. All amounts generated by the pension plan shall be used
solely to pay pensions to retired pilots and inland pilots, disabled
pilots and inland pilots, the surviving spouses of pilots and inland
pilots, and to pay the expenses of the plan.
1163. (a) (1) (A) Each retired pilot and inland pilot, who has
completed 25 full years of service as a pilot or inland pilot, or
both, shall receive, as a target monthly pension, an amount that is
initially equal to 46 percent of an amount that is an average of the
highest three of the last five years of audited annual average net
income per pilot, prior to the pilot's or inland pilot's retirement,
divided by 12, which initial target monthly pension amount shall be
subject to periodic adjustment pursuant to Section 1167. Pilots or
inland pilots with other than 25 full years of service as a pilot or
inland pilot, or both, shall receive a monthly pension in an amount
that is determined by multiplying the above calculated target monthly
pension by a fraction, the numerator of which shall be the number of
full years of service that the pilot or inland pilot has rendered
and the denominator of which shall be 25 years, which initial monthly
pension amount shall be subject to periodic adjustment pursuant to
Section 1167.
(B) Each disabled pilot or inland pilot shall receive as an
initial target monthly pension an amount that is based on 46 percent
of the greater of the following, which amount shall be subject to
periodic adjustment pursuant to Section 1167:
(i) An amount that is the average of the highest three of the last
five years of audited annual average net income per pilot divided by
12 and multiplied by a fraction, the numerator of which shall be the
number of full years of service that the pilot or inland pilot has
rendered and the denominator of which shall be 25 years.
(ii) The audited annual average net income per pilot, for the last
year prior to the pilot's or inland pilot's disability, divided by
12 and multiplied by a fraction, the numerator of which shall be the
number of full years of service that the pilot or inland pilot has
rendered and the denominator of which shall be 25 years.
(C) Each pilot who retired before January 1, 1985, shall receive
as an initial target monthly pension an amount that is one hundred
seventy-eight dollars ($178) multiplied by the number of full years
of service he or she performed as a pilot licensed under this
division, which amount shall be subject to periodic adjustment
pursuant to Section 1167.
(D) Each pilot who retired on or after January 1, 1985, or each
inland pilot who retired after January 1, 1993, shall receive as an
initial target monthly pension an amount that is the greater of the
following, which amount shall be subject to periodic adjustment
pursuant to Section 1167:
(i) An amount that is calculated by multiplying one hundred
seventy-eight dollars ($178) by the number of full years of service
the pilot or inland pilot performed as a pilot or inland pilot
licensed under this division.
(ii) An amount that is 46 percent of the average of the highest
three of the last five years of audited annual average net income per
pilot, prior to the pilot's or inland pilot's retirement, divided by
12 and multiplied by a fraction, the numerator of which is the pilot'
s or inland pilot's actual number of full years of service and the
denominator of which is 25 years.
(2) A pilot or inland pilot who retires or becomes disabled shall
not begin to receive a pension until the beginning of the benefit
payment period next following the date on which the pilot or inland
pilot retires or becomes disabled.
(3) A pilot or inland pilot shall not receive any benefits
pursuant to the pension plan in any benefit payment period unless the
pilot's or inland pilot's resignation as an active pilot or inland
pilot specifying a proposed date of retirement was submitted, in
writing, to the board secretary , prior
to November if the pilot's or inland pilot's retirement is to be
effective the first day of the following January, prior to February
if the pilot's or inland pilot's retirement is to be effective the
first day of the following April, prior to May if the pilot's or
inland pilot's retirement is to be effective the first day of the
following July, or prior to August if the pilot's or inland pilot's
retirement is to be effective the first day of the following October.
The pilot's or inland pilot's resignation as an active pilot or
inland pilot shall become effective on either January 1, April 1,
July 1, or October 1, as specified in the written resignation.
(4) If a retired or disabled pilot or inland pilot who is
receiving a pension dies without a surviving spouse, the pilot's or
inland pilot's successor in interest shall receive the monthly
pension for the remainder of the benefit payment period within which
the death occurs, after which time the monthly pension shall cease.
(b) (1) The surviving spouse of a deceased pilot who is eligible
for a pension pursuant to paragraph (1) of subdivision (e) of Section
1164 and the surviving spouse of a deceased inland pilot who is
eligible for a pension pursuant to paragraph (2) of subdivision (e)
of Section 1164 shall each receive, as a monthly pension,
three-fourths of the amount that the deceased pilot or inland pilot
would have received as a monthly pension pursuant to this section had
the pilot or inland pilot lived, calculated as if the deceased pilot
or inland pilot had been disabled pursuant to subparagraph (B) of
paragraph (1) of subdivision (a).
(2) If a retired or disabled pilot or inland pilot who was
receiving a pension dies, the surviving spouse shall continue to
receive the full amount of the monthly pension to which the deceased
pilot or inland pilot was entitled for the balance of the benefit
payment period within which the death occurs, after which the
surviving spouse shall receive the amount specified in paragraph (1).
(3) If a surviving spouse receiving a pension dies, the surviving
spouse's successor in interest shall receive the monthly pension for
the remainder of the benefit payment period within which the death
occurs, after which time the monthly pension shall cease.
(c) For the purpose of the computations described in paragraph (1)
of subdivision (a), six months or more of service by a pilot or
inland pilot shall be considered a full year.
(d) Except as provided otherwise in this section and paragraph (4)
of subdivision (e) of Section 1164, monthly pension amounts payable
pursuant to this section to retired pilots and inland pilots and to
their surviving spouses are payable for the life of that retired
pilot, inland pilot, or spouse.
(e) To determine an inland pilot's full years of service under
this chapter, any periods of service that an inland pilot has
performed as a pilot shall be added to any service time performed as
an inland pilot after January 1, 1987.
(f) In calculating the benefits of a retired or disabled pilot who
was issued an original pilot's license in 1985 and who was not
thereafter issued an inland pilot's license, or in calculating the
benefits of the widow of such a pilot who is deceased, the number of
years of service used in the calculation shall be the greater of the
following:
(1) The actual number of full years of service the pilot has
rendered.
(2) Ten years.
1164. (a) Except as provided in subdivision (b), a pilot shall be
eligible for the pension provided in Section 1163 if the pilot meets
all of the following requirements:
(1) Held a license as a pilot and served at least 10 years in that
capacity or has attained 62 years of age, whichever occurs first.
(2) Retired after January 1, 1972.
(3) Is at least 60 years of age.
(b) A disabled pilot shall be eligible for the pension provided in
Section 1163 if it has been determined by the board
secretary , based upon competent medical
evidence, that the pilot is unable to perform the duties of a pilot.
As used in this chapter, "disabled" means a disability of permanent
or extended and uncertain duration, as determined by the
board secretary , on the basis of competent
medical opinion.
(c) Except as provided in subdivision (d), an inland pilot shall
be eligible for the pension provided in Section 1163 if the inland
pilot meets all of the following requirements:
(1) Held a license as an inland pilot and served at least 10 years
in that capacity after January 1, 1987, or has attained 62 years of
age, whichever occurs first.
(2) Retired after January 1, 1987.
(3) Is at least 60 years of age.
(4) Since January 1, 1987, has held himself or herself out as
providing pilotage assistance to the entire shipping industry
consistent with the inland pilot's license.
(5) For services provided after January 1, 1994, performs a
minimum of 75 assignments per calendar year unless excused from
performance of that requirement due to medical needs satisfactory to
the board secretary .
(d) A disabled inland pilot who meets the requirements of
paragraph (4) of subdivision (c) shall be eligible for the pension
provided in Section 1163 if it has been determined by the
board secretary , based upon competent medical
evidence, that the inland pilot is unable to perform the duties of an
inland pilot.
(e) (1) A surviving spouse of a deceased pilot shall be eligible
for the pension provided in subdivision (b) of Section 1163 if that
deceased pilot died after January 1, 1972, and that deceased pilot
had held a license as a pilot.
(2) A surviving spouse of a deceased inland pilot shall be
eligible for the pension provided in subdivision (b) of Section 1163
if the deceased inland pilot died after January 1, 1987, had held a
license as an inland pilot, and since January 1, 1987, had held
himself or herself out as providing pilotage assistance to the entire
shipping industry consistent with the inland pilot's license.
(3) In order for a surviving spouse to be eligible for any pension
benefits pursuant to this chapter, the surviving spouse shall have
been legally married to the deceased pilot or inland pilot for at
least one year prior to the deceased pilot's or inland pilot's death.
(4) A surviving spouse of a deceased pilot or inland pilot shall
neither be eligible for, nor receive, pension benefits pursuant to
this chapter if the surviving spouse remarries. If a surviving spouse
who is receiving a monthly pension under this chapter remarries, the
surviving spouse's successor in interest shall receive the amount of
the monthly pension for the remainder of the benefit payment period
as if the surviving spouse had died, in accordance with paragraph (3)
of subdivision (b) of Section 1163.
1165. (a) A charge shall be levied for pilotage services at a
rate necessary to provide the benefits to be paid out pursuant to the
pension plan. The additional rate shall be determined as follows:
(1) On March 1, June 1, September 1, and December 1 of each year,
the number of persons eligible to receive benefits under the plan,
their identities, the calculated amount each shall be entitled to
receive, and the total amount to be paid out to all of those persons
during each month of the next three-month period shall be determined
by the fiduciary agent or agents.
(2) After the total amount to be paid out monthly under the plan
has been determined, the rate necessary to provide that amount each
month shall be calculated by the fiduciary agent or agents. The rate
shall be based upon the volume of shipping, in gross registered tons,
handled by pilots under this division for the 12-month periods
ending the previous September 30 for benefit periods commencing the
following January 1, ending the previous December 31 for benefit
periods commencing the following April 1, ending the previous March
31 for benefit periods commencing the following July 1, and ending
the previous June 30 for benefit periods commencing the following
October 1, respectively. The rate shall be expressed as mills per
gross registered ton and shall be calculated to the nearest
one-hundredth of a mill.
(3) The estimated cost of the services of the fiduciary agent or
agents to administer the pension plan shall be calculated by the
fiduciary agent or agents for the benefit periods described in
paragraph (2), shall be expressed as mills per gross registered ton,
and shall be calculated to the nearest one-hundredth of a mill.
(b) The rate determined pursuant to paragraphs (1), (2), and (3)
of subdivision (a) shall become effective on January 1 of the
following year with respect to the September 30 calculations, on
April 1 of the following year with respect to the December 31
calculations, on July 1 of that year with respect to the March 31
calculations, and on October 1 of that year with respect to the June
30 calculations. The rates shall be in effect for the succeeding
benefit payment period.
1166. (a) The benefits actually paid out each month by the
fiduciary agent or agents designated by the board
secretary to all retired and disabled pilots and inland
pilots, to surviving spouses of deceased pilots and inland pilots,
and to successors in interest shall be equal to the revenue received
pursuant to Section 1165 during the preceding month less the expenses
of the fiduciary agent or agents incurred during that month. The
revenue, whether greater or less than the amount used in determining
the tonnage rates under this chapter to provide the aggregate target
pensions to which those persons are entitled according to Section
1163, shall be paid to each of them in proportion to the relative
target amounts to which they are entitled, after payment of the
expenses of the fiduciary agent or agents.
(b) Revenues for any month or year are the amounts to be received
pursuant to the pension plan for pilotage during that month or year.
The fiduciary agent or agents shall determine which accounting system
shall be used to make the payment, provided that, if the accrual
method is used, it shall be subject to later equitable adjustments
for unpaid receivables.
(c) Benefits pursuant to the new rate calculations shall be paid
commencing in February, May, August, and November of each year and
shall continue through, and include, the next following April, July,
October, and January, respectively, so that each benefit pension
period equals three months of payments. The period during which
benefits are paid is the benefit payment period.
CHAPTER 6. LICENSING OF PILOTS
Article 1. Issuance of License
1170. The secretary shall appoint and license the number of
pilots which is sufficient to carry out the purposes of this
division.
1170.1. In determining the number of pilots needed, pursuant to
Section 1170, the secretary shall take into consideration the
findings and declarations in Sections 1100 and 1101, the results of
an audit made pursuant to, and the factors specified in, Section
1203, the industry's current economic trends, fluctuations in the
number of vessel calls, the size of vessels, and whether the need for
pilotage is increasing or decreasing.
1170.2. Before changing the number of pilots which may be
licensed pursuant to this division, the secretary shall conduct a
hearing pursuant to Article 9 (commencing with Section 11120) of
Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code.
1170.3. (a) The secretary shall adopt, by regulation, a pilot's
conflict-of-interest code that shall include, but need not be limited
to, a provision specifying that a pilot shall not have any interest
in, or derive any income from, any tugboat in operation on Monterey
Bay and the Bays of San Francisco, San Pablo, and Suisun. This
requirement of divestiture does not apply to the ownership of barges
and vessels similar to barges.
(b) The conflict-of-interest code shall not prohibit the ownership
of stock in any corporation registered on a national securities
exchange or on the National Market System of the NASDAQ Stock Market,
pursuant to Section 78f of Title 15 of the United States Code, which
may own tugboats in operation on Monterey Bay and the Bays of San
Francisco, San Pablo, and Suisun.
1171. (a) The secretary shall have the sole authority to
determine the qualifications for obtaining a license as a pilot or
inland pilot pursuant to this division, determine who shall have such
a license, and issue the license.
(b) All persons possessing a valid state pilot's license on
January 1, 1985, are hereby licensed as if the license was granted by
the secretary.
1171.5. (a) The secretary shall adopt, by regulation, licensing
standards that equal or exceed standards for obtaining federal
endorsements and that conform with and support the state policy
specified in Sections 1100 and 1101.
(b) The secretary shall adopt reasonable rules and regulations
that require pilots to be qualified to perform all pilot duties.
(c) The secretary shall adopt, by regulation, training standards
and a training program for pilot trainees, and continuing education
standards and a continuing education program for pilots and inland
pilots. In the case of pilot trainees, the training program shall be
for a minimum of one year and a maximum of three years. In the case
of pilots and inland pilots, the secretary shall specify the type,
nature, duration, and frequency of the continuing education required
and the identity of the pilots or inland pilots who are required to
undergo continuing education in the next 12-month period. Pursuant to
Section 1182, the license of a pilot or an inland pilot may be
revoked or suspended if he or she fails to complete the continuing
education required by this subdivision during the period specified.
The secretary shall also require that an evaluation of the pilot's or
inland pilot's performance be prepared by the institution selected
by the secretary to provide pilot continuing education, and the
institution shall provide copies of the evaluation to the pilot or
inland pilot and to the secretary.
(d) The secretary shall adopt, by regulation, the qualifications,
standards, and rating criteria for admission of pilot trainees to the
training program. Notwithstanding subdivision (f), the secretary
shall administer and conduct the pilot trainee admission selection in
accordance with the regulations for admission.
(e) The secretary shall establish a pilot evaluation committee
consisting of five active pilots who each have at least 10 years'
experience as a pilot on the Bays of San Francisco, San Pablo, and
Suisun. The secretary shall select the members of the pilot
evaluation committee. A member may not serve for more than two
four-year terms, except that two of the initial members appointed to
the pilot evaluation committee shall serve terms of two years.
(f) The pilot evaluation committee shall conduct and supervise the
pilot trainee training program pursuant to the direction and
regulation of the secretary and consistent with the intent of this
division.
(g) The secretary shall issue a certificate of completion to each
pilot trainee who satisfactorily completes the training program. The
secretary shall not issue a pilot's license to any person who does
not receive a certificate of completion of the training program from
the secretary, although the secretary may refuse to issue a pilot
license to a pilot trainee who has received this certificate.
(h) The training program for pilot trainees and the continuing
education program for pilots and inland pilots shall be funded from
revenues collected for these purposes as determined by the secretary
pursuant to Sections 1195 and 1196 and deposited into the Bar Pilot
Special Fund pursuant to Section 1124.
1172. Pilots licensed by the secretary shall be carefully
examined as to their qualifications. A license as a pilot shall be
granted for a term of 12 months. The license shall be renewed
annually unless the secretary has good cause to withhold renewal
pursuant to Article 2 (commencing with Section 1180).
1173. An application for a pilot's license shall be made in
writing to the secretary, stating the information that the secretary
by rule and regulation may require.
1174. A pilot's license shall be issued in the name of the State
of California and contain a designation of the waters for which it is
intended. The license shall be signed by the secretary.
1175. A person shall not be licensed as a pilot unless all of the
following requirements are met:
(a) The person can meet the qualifications set by the secretary,
including age limitations, if any.
(b) The person is of good mental and physical health and good
moral character.
(c) The person possesses the requisite skill and experience as a
navigator and pilot, together with practical knowledge of the
currents, tide, soundings, bearings, and distances of the several
shoals, and the rocks, bars, points of landings, lights, and fog
signals of, or pertaining to, the navigation of the pilot ground for
which the person applies for a license to act as a pilot.
(d) The person can satisfy the secretary that the person has means
available for boarding and leaving vessels which the person may be
called upon to pilot.
1176. (a) The secretary shall appoint a physician or physicians
who are qualified to determine the suitability of a person to perform
his or her duties as a pilot, an inland pilot, or a pilot trainee in
accordance with subdivision (c).
(b) An applicant for a pilot trainee position or for a pilot
license, or an existing pilot trainee, a pilot, or an inland pilot
seeking renewal of his or her license shall undergo a physical
examination by a secretary-appointed physician in accordance with
standards prescribed by the secretary. Within 30 days prior to the
examination, the applicant or licensee shall submit to the physician
conducting the physical examination a complete list of all prescribed
medications being taken by or administered to the applicant or
licensee.
(c) On the basis of both the examination and an evaluation of the
effects of the prescription medications named on the submitted list,
the physician shall designate to the secretary whether or not the
pilot, inland pilot, or pilot trainee is fit to perform his or her
duties as a pilot, an inland pilot, or a pilot trainee.
(d) The license of a pilot or an inland pilot shall not be renewed
unless he or she is found fit for duty pursuant to subdivision (c).
(e) Whenever a pilot, an inland pilot, or a pilot trainee is
prescribed either a new dosage of a medication or a new medication,
or suspends the use of a prescribed medication, he or she shall,
within 10 days, submit that information to the secretary-appointed
physician having possession of the prescribed medication list
submitted pursuant to subdivision (b). Whenever the physician
receives the updated information, the physician shall determine
whether or not the medication change affects the licensee's or
trainee's fitness for duty. If the physician determines that the
medication change results in the pilot, inland pilot, or pilot
trainee being unfit for duty, the physician shall inform the
secretary.
(f) The secretary may terminate a pilot trainee or suspend or
revoke the license of a pilot or an inland pilot who fails to submit
the prescribed medication information required by this section.
1177. (a) All pilots licensed pursuant to this division shall
have and maintain proper federal endorsements allowing them to pilot
on the high seas and on all waters of the Bays of San Francisco, San
Pablo, and Suisun, excluding the San Joaquin River and the Sacramento
deep water ship channel.
(b) Notwithstanding subdivision (a), all pilots issued original
licenses pursuant to this division after January 1, 2014, shall have
and maintain proper federal endorsements allowing them to pilot on
the high seas and on all waters of the Bays of San Francisco, San
Pablo, and Suisun, including the San Joaquin River and the Sacramento
deep water ship channel.
(c) All pilots licensed pursuant to this division for Monterey Bay
shall have and maintain proper federal endorsements allowing them to
pilot on the high seas and on all the waters of Monterey Bay.
1178. Persons applying for an original license shall not receive
a license unless they have proper federal endorsements allowing them
to pilot on the high seas and all the waters of those bays pursuant
to Section 1171.
1179. Notwithstanding any other provision of this division, any
shipping company which regularly employed its employees, or expressed
its intent to the secretary to use its employees, for piloting
vessels on the Bays of San Francisco, San Pablo, and Suisun on or
before July 1, 1983, may employ and use its employees in that manner
in lieu of pilots provided under this chapter. However, this use of
employees as pilots on foreign flag vessels shall be limited to five
vessel calls per year for those shipping companies that have only
expressed their intent to use their employees in lieu of pilots. This
limitation shall not apply to those shipping companies which
regularly employed their employees for piloting vessels prior to July
1, 1983.
Article 2. Suspension or Revocation
1180. When, in the opinion of the secretary, there is reasonable
cause to believe that the public interest requires that a pilot or
inland pilot be summarily suspended pending hearing on charges of
misconduct which include any of the causes for suspension or
revocation specified in Section 1181 or when the secretary has
information which leads it to believe that a pilot or inland pilot
has become unable to comply with the standards of health or physical
condition requisite to a pilot's or inland pilot's duties, the
secretary may, without hearing, temporarily suspend the license of
the pilot or inland pilot for not exceeding 40 days pending hearing
and decision on the charges. Unless an accusation on the charge is
served on the pilot or inland pilot as provided in Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code, prior to the close of the sixth day after the
suspension becomes effective, the temporary suspension terminates at
the close of the sixth day.
1180.6. (a) The secretary, after full consideration of the
evidence, report, and recommendations relating to an incident,
misconduct, or other matter, shall take one or more of the following
actions:
(1) Serve an accusation for suspension or revocation of the pilot'
s or inland pilot's license on the pilot or inland pilot, as provided
in Chapter 5 (commencing with Section 11500) of Part 1 of Division 3
of Title 2 of the Government Code, pursuant to Sections 1181 and
1182.
(2) Enter into a written stipulation for corrective action to be
performed by the pilot or inland pilot, which may include, but is not
limited to, further training or supervised practice trips.
(3) Provide counseling for the pilot or inland pilot relating to
the duties and obligations of a pilot.
(4) Issue a warning letter of reprimand to the pilot or inland
pilot.
(5) Take any other action, as provided in the guidelines adopted
pursuant to subdivision (d).
(6) Close the investigation without further action.
(7) Conduct further investigation.
(b) The secretary shall note any action taken pursuant to this
section in a pilot's or inland pilot's record and shall establish a
suspense file to ensure that all training, practice trips, or other
corrective action required to be performed pursuant to subdivision
(a) by the pilot or inland pilot are completed as required.
(c) If the secretary determines that the pilot or inland pilot has
intentionally failed to complete training, practice trips, or other
corrective action, the secretary may take additional action as
specified in subdivision (a).
(d) The secretary shall adopt guidelines for the determination by
the incident review committee of the action to be taken pursuant to
subdivision (a).
1181. The license of a pilot or inland pilot may be revoked or
suspended before its expiration only for reasons of misconduct, which
shall include, but not be limited to, the following:
(a) Neglect, for 30 days after it becomes due, to render an
account to the secretary of all money received for pilotage.
(b) Neglect, for 30 days after it becomes due, to pay over to the
secretary the percentage of all pilotage money received, as set by
the secretary.
(c) Rendering to the secretary a false account of pilotage
received.
(d) Absence from duty for more than one month at any one time
without leave granted by the secretary, unless sickness or personal
injury causes the absence. This subdivision does not apply to inland
pilots.
(e) Refusing to exhibit the pilot or inland pilot license when
requested to do so by the master of any vessel boarded.
(f) Intoxication or being under the influence of any substance or
combination of substances that so affects the nervous system, brain,
or muscles as to impair, to an appreciable degree, the ability to
conduct the duties of a pilot or inland pilot while on duty.
(g) Negligently, ignorantly, or willfully running a vessel on
shore, or otherwise rendering it liable to damage, or otherwise
causing injury to persons or damage to property. However, this
subdivision does not apply to a vessel of less than 300 gross tons
unless a pilot or inland pilot is required by law.
(h) Willful violation of the rules and regulations adopted by the
secretary for the regulation of pilots or inland pilots.
(i) Inability to comply with the standards of health or physical
condition requisite to the duties of a pilot or inland pilot, but in
that case the burden of proving compliance with these standards is
upon the licensee, unless prior to the hearing the licensee takes and
passes those tests or examinations required by the secretary.
(j) Failure or refusal to complete training, practice trips, or
other corrective action imposed on that pilot or inland pilot by the
secretary pursuant to Section 1180.6.
1182. If, after a hearing, the secretary finds that the pilot or
inland pilot is guilty of misconduct sufficient for deprivation of
the license, the secretary shall revoke or suspend the license of the
pilot or inland pilot. The order shall be entered in the minutes and
placed in the record of the pilot maintained pursuant to Section
1121.5. The proceedings shall be conducted in accordance with Chapter
5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2
of the Government Code, and the secretary shall have all the powers
granted pursuant to that chapter.
1183. (a) Upon notification of nonrenewal of the license, a pilot
or inland pilot is entitled to a trial and hearing in the same
manner that other charges and accusations against pilots and inland
pilots are tried.
(b) In every case of nonrenewal, suspension, or revocation of the
license of a pilot or inland pilot for cause, the final decision of
the secretary is subject to judicial review in accordance with law,
and the court shall exercise its independent judgment on the
evidence.
CHAPTER 7. PILOTAGE RATES
1190. (a) Every vessel spoken inward or outward bound shall pay
the following rate of bar pilotage through the Golden Gate and into
or out of the Bays of San Francisco, San Pablo, and Suisun:
(1) Eight dollars and eleven cents ($8.11) per draft foot of the
vessel's deepest draft and fractions of a foot pro rata, and an
additional charge of 73.01 mills per high gross registered ton as
changed pursuant to law in effect on December 31, 1999. The mill
rates established by this paragraph may be changed as follows:
(A) (i) On and after January 1, 2010, if the number of pilots
licensed by the secretary is 58 or 59 pilots, the mill rate in effect
on December 31, 2006, shall be decreased by an incremental amount
that is proportionate to one-half of the last audited annual average
net income per pilot for each pilot licensed by the secretary below
60 pilots.
(ii) On and after January 1, 2010, if the number of pilots
licensed by the secretary is fewer than 58 pilots, the mill rate in
effect on December 31, 2006, shall be adjusted in accordance with the
method described in clause (i) as though there are 58 pilots
licensed by the secretary.
(iii) The incremental mill rate adjustment authorized by this
subparagraph shall be calculated using the data reported to the
secretary for the number of gross registered tons handled by pilots
licensed under this division during the same 12-month period as the
audited annual average net income per pilot. The incremental mill
rate adjustment shall become effective at the beginning of the
immediately following quarter, commencing January 1, April 1, July 1,
or October 1, as directed by the secretary.
(iv) On and after January 1, 2010, if, during any quarter
described in this paragraph, the number of pilots licensed by the
secretary is equal to or greater than 60, clauses (i) to (iii),
inclusive, shall become inoperative on the first day of the
immediately following quarter.
(B) There shall be an incremental rate of additional mills per
high gross registered ton as is necessary and authorized by the
secretary to recover the pilots' costs of obtaining new pilot boats
and of funding design and engineering modifications for the purposes
of extending the service life of existing pilot boats, excluding
costs for repair or maintenance. The incremental mill rate charge
authorized by this subparagraph shall be identified as a pilot boat
surcharge on the pilots' invoices. Net proceeds from the sale of
existing pilot boats shall be used to reduce the debt on the new
pilot boats and any debt associated with the modification of pilot
boats under this subparagraph. The secretary may adjust a pilot boat
surcharge to reflect any associated operational savings resulting
from the modification of pilot boats under this subparagraph,
including, but not limited to, reduced repair and maintenance
expenses.
(C) In addition to the incremental rate specified in subparagraph
(B), the mill rate established by this subdivision may be adjusted at
the direction of the secretary if, after a hearing conducted
pursuant to Article 9 (commencing with Section 11120) of Chapter 1 of
Part 1 of Division 3 of Title 2 of the Government Code, the
secretary determines that there has been a catastrophic cost increase
to the pilots that would result in at least a 2-percent increase in
the overall annual cost of providing pilot services.
(2) A minimum charge for bar pilotage shall be six hundred
sixty-two dollars ($662) for each vessel piloted.
(3) The vessel's deepest draft shall be the maximum draft
attained, on a stillwater basis, at any part of the vessel during the
course of the inward or outward transit.
(b) The rate specified in subdivision (a) shall apply only to a
pilotage that passes through the Golden Gate to or from the high seas
to or from a berth within an area bounded by the Union Pacific
Railroad Bridge to the north and Hunter's Point to the south. The
rate for pilotage to or from the high seas to or from a point past
the Union Pacific Railroad Bridge or Hunter's Point shall include a
movement fee in addition to the basic bar pilotage rate as specified
by the secretary pursuant to Section 1191.
(c) The rate established in paragraph (1) of subdivision (a) shall
be for a trip from the high seas to dock or from the dock to high
seas. The rate specified in Section 1191 shall not be charged by
pilots for docking and undocking vessels. This subdivision does not
apply to the rates charged by inland pilots for their services.
(d) The secretary shall determine the number of pilots to be
licensed based on the 1986 manpower study adopted by the former Board
of Pilot Commissioners for Monterey Bay, and the Bays of San
Francisco, San Pablo, and Suisun (board).
(e) Consistent with the former board's May 2002 adoption of rate
recommendations, the rates imposed pursuant to paragraph (1) of
subdivision (a) that are in effect on December 31, 2002, shall be
increased by 4 percent on January 1, 2003; those in effect on
December 31, 2003, shall be increased by 4 percent on January 1,
2004; those in effect on December 31, 2004, shall be increased by 3
percent on January 1, 2005; and those in effect on December 31, 2005,
shall be increased by 3 percent on January 1, 2006.
1190.1. Every vessel that uses a pilot under this division while
navigating the waters of Monterey Bay shall pay the rate provided by
subdivisions (a) and (e) of Section 1190.
1191. (a) The secretary, pursuant to Chapter 8 (commencing with
Section 1200), shall recommend that the Legislature, by statute,
adopt a schedule of pilotage rates providing fair and reasonable
return to pilots and inland pilots engaged in ship movements or
special operations where rates for those movements or operations are
not specified in Section 1190.
(b) Every vessel using pilots and inland pilots for ship movements
or special operations that do not constitute bar pilotage shall pay
the rate specified in the schedule of pilotage rates adopted by the
Legislature.
(c) Consistent with the former board's adoption of rate
recommendations in May 2002, the minimum rates imposed pursuant to
this section that are in effect on December 31, 2002, shall be
increased by 26 percent on January 1, 2003; those in effect on
December 31, 2003, shall be increased by 26 percent on January 1,
2004; those in effect on December 31, 2004, shall be increased by 14
percent on January 1, 2005; and those in effect on December 31, 2005,
shall be increased by 14 percent on January 1, 2006.
1192. If a vessel that is subject to the payment of pilotage
enters any port of Monterey Bay and the Bays of San Francisco, San
Pablo, or Suisun solely by reason of being in distress or requiring
care, it shall pay one-half the full pilotage rates.
1193. (a) Only the following noncommercial vessels that use
pilotage services are exempt from the pilotage fees and surcharges
established pursuant to this division, except for the secretary
operations surcharge as established and calculated pursuant to
Section 1124.1:
(1) Maritime academy training vessels, whether foreign or
domestic.
(2) Vessels owned and operated by a nonprofit museum or
foundation.
(b) The vessels specified in subdivision (a) are subject to
Section 1198.
1195. (a) In addition to other fees for pilotage, there shall be
a surcharge in an amount established by the secretary for each
movement of a vessel using pilot services for each pilot trainee who
is enrolled in the pilot trainee training program established by the
secretary.
(b) The moneys charged and collected each month from the pilot
trainee surcharge shall be paid to the secretary. The moneys shall be
used only to fund the pilot trainee training program in the manner
established by the secretary.
(c) By action of the secretary, the secretary may adjust the
amount established pursuant to subdivision (a) as necessary to
efficiently administer the pilot trainee training program.
1195.1. (a) The moneys charged and collected each month from the
pilot trainee surcharge pursuant to Section 1195 shall be paid to the
Bar Pilot Special Fund pursuant to Section 1124. The moneys shall be
used only to fund the pilot trainee training program referred to in
subdivision (h) of Section 1171.5 and Section 1195.3.
(b) Information regarding moneys remitted to the Bar Pilot Special
Fund pursuant to Section 1124 collected from the surcharge
authorized pursuant to Section 1195, or otherwise collected by the
secretary for that purpose, and information regarding moneys spent as
pilot trainee training program expenses authorized by Section 1195.3
shall be made available to the public upon request and to the
secretary.
1195.3. Expenses of the pilot trainee program shall include all
costs incurred by the secretary in the operation and administration
of the pilot trainee training program and all costs resulting from
any contracts entered into for the purchase or lease of goods and
services required by the secretary, including, but not limited to,
the costs of testing, test preparation, advertising and soliciting
for trainee applicants, trainee stipends, worker's compensation
insurance premiums, reimbursement of costs of services provided to
the secretary by other governmental entities, and for the costs for
any other goods and services necessary for effectuating the purposes
of training as determined by the secretary.
1196. (a) In addition to other fees for pilotage, there shall be
a surcharge in an amount established by the secretary for each
movement of a vessel using pilot services for the pilot and inland
pilot continuing education program established by the secretary.
(b) The moneys charged and collected each month from the pilot and
inland pilot continuing education program surcharge shall be paid to
the secretary. The moneys shall be used only to fund the pilot and
inland pilot continuing education program in the manner established
by the secretary.
(c) By action of the secretary, the secretary may adjust the
amount established pursuant to subdivision (a) as necessary to
efficiently administer the pilot and inland pilot continuing
education program.
1196.1. (a) The moneys charged and collected each month from the
pilot and inland pilot continuing education surcharge pursuant to
Section 1196 shall be paid to the Bar Pilot Special Fund pursuant to
Section 1124. The moneys shall be used only to fund the pilot and
inland pilot continuing education program referred to in subdivision
(h) of Section 1171.5 and Section 1196.3.
(b) Information regarding moneys remitted to the Bar Pilot Special
Fund pursuant to Section 1124 collected from the surcharge
authorized pursuant to Section 1196, or otherwise collected by the
secretary for that purpose, and information regarding moneys spent as
pilot and inland pilot continuing education expenses authorized by
Section 1196.3 shall be made available to the public upon request to
the secretary.
1196.3. Pilot and inland pilot continuing education expenses
shall include all costs incurred by the secretary in the operation
and administration of the pilot and inland pilot continuing education
program and all costs resulting from any contracts entered into for
the purchase or lease of goods and services required by the
secretary, including, but not limited to, the reimbursement of costs
of services provided to the secretary by other governmental entities,
and for the costs for any other goods and services necessary for
effectuating the purposes of continuing education as determined by
the secretary.
1198. (a) Except as provided in subdivision (c), the rates and
charges for pilotage services shall not include the cost of primary
marine insurance insuring a pilot, an organization of pilots, or
their officers or employees, from liability arising from negligence
or errors in judgment in connection with the provision of pilotage
service by pilots, organizations of pilots, or their officers or
employees.
(b) A pilot who holds a state license for the Bays of San
Francisco, San Pablo, and Suisun shall arrange to have available,
upon advance written notice, trip insurance, with coverage limits of
thirty-six million dollars ($36,000,000), naming as insureds the
pilot, any organization of pilots to which the pilot belongs, and
their officers and employees, and insuring the named insureds against
any civil claim, demand, suit, or action by whomsoever asserted,
arising out of, or relating to, directly or indirectly, acts or
omissions of the insureds in connection with the provision of
pilotage service, except willful misconduct.
(c) Every vessel, owner, operator, or demise or bareboat charterer
hiring a pilot with a state license for the Bays of San Francisco,
San Pablo, and Suisun shall either defend, indemnify, and hold
harmless pilots pursuant to paragraph (1), or alternatively, notify
pilots of an intent to pay for trip insurance pursuant to paragraph
(2). If a vessel or its owner, operator, or demise or bareboat
charterer does not provide written notice pursuant to paragraph (2)
of an intent to exercise the trip insurance option, then the vessel
and its owner, operator, and demise or bareboat charterer will be
deemed to have elected the obligation to defend, indemnify, and hold
harmless pilots pursuant to paragraph (1).
(1) (A) Except for a vessel electing trip insurance pursuant to
paragraph (2), a vessel subject to this subdivision, and its owner,
operator, demise or bareboat charterer, and agent shall not assert
any claim, demand, suit, or action against the pilot, any
organization of pilots to which the pilot belongs, and their officers
and employees, for damages, including any rights over, arising out
of, or connected with, directly or indirectly, any damage, loss, or
expense sustained by the vessel, its owners, agents, demise or
bareboat charterers, operators, or crew, or by any third parties,
even if the damage results, in whole, or in part, from any act,
omission, or negligence of the pilot, any organization of pilots to
which the pilot belongs, and their officers and employees.
(B) A vessel subject to this paragraph and its owner, operator,
and demise or bareboat charterer shall defend, indemnify, and hold
harmless the pilot, any organization of pilots to which the pilot
belongs, and their officers and employees, with respect to liability
arising from any claim, suit, or action, by whomsoever asserted,
resulting in whole, or in part, from any act, omission, or negligence
of the pilot, any organization of pilots to which the pilot belongs,
and their officers and employees. The obligation to indemnify under
this paragraph shall not apply to the extent that it causes the
amount recoverable from a vessel, its owner, operator, or demise or
bareboat charterer to exceed the limits of liability to which it is
entitled under any bill of lading, charter party, contract of
affreightment, or provision of law.
(C) The prohibition on claims by vessels, owners, operators,
demise or bareboat charterers, and agents imposed by subparagraph (A)
and the obligation to defend, indemnify, and hold harmless the pilot
imposed by subparagraph (B) shall not apply in cases of willful
misconduct by a pilot, any organization of pilots to which the pilot
belongs, and their officers and employees.
(D) A pilot who is the prevailing party shall be awarded attorney'
s fees and costs incurred in any action to enforce a right to
indemnification provided pursuant to this subdivision.
(2) In lieu of paragraph (1), a vessel subject to this subdivision
and its owner, operator, demise or bareboat charterer, and agent may
elect to notify the pilot, or the organization of pilots to which
the pilot belongs, of intent to pay for trip insurance, as described
in subdivision (b). If notice of this election is received, in
writing, by the pilot, or the organization of pilots to which the
pilot belongs, at least 24 hours prior to the time pilotage services
are requested, the vessel, and its owner, operator, demise or
bareboat charterer, and agent are not subject to the requirements of
paragraph (1). The pilot shall take all steps necessary to have trip
insurance coverage in place during the vessel movement for which it
is requested. The pilot shall assess to the vessel the premium for
the trip insurance at the pilot's cost, in addition to any other
applicable rates and charges for the pilotage services provided.
(d) Nothing in this section is intended to limit, alter, or
diminish the liability of a vessel, owner, operator, or demise or
bareboat charterer to any person who sustains loss or damage.
CHAPTER 8. PILOTAGE RATE RECOMMENDATIONS
1200. The secretary 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.
1201. Any party directly affected by pilotage rates established
under this chapter may petition the secretary for a public hearing on
any of the matters set forth in Section 1200. Within 10 days from
the filing of the petition the secretary shall call public hearings
to be held not less than 30 nor more than 60 days of the date of call
for the purpose of obtaining information and data relating to the
issues raised in the petition. The secretary shall give notice of the
hearings to all interested parties who have requested the
notification. At the conclusion of the hearing or hearings, the
secretary shall review and evaluate all evidence obtained and, within
120 days from the filing of the petition, shall submit to the
Secretary of the Senate and the Chief Clerk of the Assembly a copy of
its findings and recommendations for final determination, supported
by a transcript of these proceedings of the secretary.
1201.5. (a) The secretary shall not receive written evidence at a
public hearing held for the purpose of considering pilotage rates
unless 10 or more copies of the evidence have been deposited with the
secretary as public documents by the party proposing a rate
adjustment 30 or more days prior to the date set for the commencement
of the hearing.
(b) The secretary shall not receive written evidence at the
hearing from any party responding to the request unless the evidence
is deposited with the secretary 10 or more days prior to the date set
for the commencement of the hearing.
1202. Public hearings for the purpose of investigating pilotage
rates shall be conducted in accordance with the Bagley-Keene Open
Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1
of Part 1 of Division 3 of Title 2 of the Government Code) and a full
record shall be kept of all evidence offered.
1203. In preparing recommendations to the Legislature with
relationship to pilotage rates, the secretary may require an
independent audit or audits by a public accountant selected by the
secretary. The audits required by the secretary shall cover pilotage
operations for those years which the secretary may specify. In
preparing the recommendations, the secretary shall also give
consideration to other relevant factors, including, but not limited
to, the following:
(a) The costs to the pilots, individually or jointly, of providing
pilot service as required.
(b) A net return to the pilot sufficient to attract and hold
persons capable of performing this service with safety to the public
and protection to the property of persons using the service; and the
relationship of that income to any changes in cost-of-living indices.
(c) Pilotage rates charged for comparable services rendered in
other ports and harbors in the United States.
(d) The methods of determining pilotage rates in other ports and
harbors in the United States.
(e) Economic factors affecting the local shipping industry,
including prospective increases or decreases in income and labor
costs.
(f) Additional factors affecting income to pilots, such as the
volume of shipping traffic using pilotage, numbers of pilots
available to perform services, income paid for comparable services,
and other factors of related nature.
(g) Changes in, or additions to, navigational and safety equipment
necessary to insure protection of persons, ships, and waterways.
CHAPTER 6 9 . EFFECTIVE DATE
1170. 1220. This division shall
become operative on January 1, 2013 2014
.
SEC. 2. Chapter 7 (commencing with Section 1220) is added to
Division 5 of the Harbors and Navigation Code, to read:
CHAPTER 7 10 . REPEAL DATE
1220. This division shall remain in effect only until January 1,
2013 2014 , and as of that date is
repealed, unless a later enacted statute that is enacted before
January 1, 2013 2014 , deletes or
extends that date.