BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 656
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          Date of Hearing:   May 2, 2011

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                     AB 656 (Huber) - As Amended:  March 31, 2011
           
          SUBJECT  :  Joint Sunset Review Committee: San Francisco Bar 
          Pilots

           SUMMARY  :  Makes eligible for the review by the Joint Sunset 
          Review Committee (JSRC) the Board of Pilot Commissioners 
          (Board).  Specifically,  this bill  :  

          1)Eliminates or sunsets the Board on January 1, 2013.  

          2)Recasts and reenacts provisions related to the licensing and 
            regulation of the San Francisco bar pilots without the Board 
            on January 1, 2013.  
           
          EXISTING LAW :  

          1)Establishes the JSRC to identify and eliminate waste, 
            duplication, and inefficiency in government agencies and to 
            conduct a comprehensive analysis of every "eligible agency," 
            as defined, to determine if the agency is still necessary and 
            cost effective.  This bill would define an "eligible agency" 
            as an entity of state government, however denominated, for 
            which a date for repeal has been established by statute on or 
            after January 1, 2011.  

          2)Requires each eligible agency scheduled for repeal to submit a 
            report to the committee containing specified information.  
            Requires the JSRC to take public testimony and evaluate the 
            eligible agency prior to the date the agency is scheduled to 
            be repealed, and would require that an eligible agency be 
            eliminated unless the Legislature enacts a law to extend, 
            consolidate, or reorganize the agency.  

          3)Establishes in the Business, Transportation and Housing 
            Agency, a Board of Pilot Commissioners (Board) 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.  Establishes the Board in 1850 to provide state 
            oversight for the regulation and licensing of the San 
            Francisco bar pilots.  








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           FISCAL EFFECT  :  Unknown

           COMMENTS  :  The author indicates that the Legislature creates new 
          boards, commissions, agencies and departments to solve a 
          problem, but far too often there is no on-going oversight of the 
          newly created bureaucracy to ensure it actually solved the 
          problem it was created to solve.  The author believes that this 
          systematic dysfunction can be fixed by conducting comprehensive, 
          regular review of state government to ensure taxpayer dollars 
          are being used wisely.  

          The author points out that in 1989, the Little Hoover Commission 
          issued a report, entitled Boards and Commissions:  California's 
          Hidden Government, which found that, "California's multi-level, 
          complex governmental structure today includes more than 400 
          boards, commissions, authorities, associations, councils and 
          committees.  These plural bodies operate to a large degree 
          autonomously and outside of the normal checks and balances of 
          representative government."  The Commission concluded that "the 
          state's boards, commissions and similar bodies are proliferating 
          without adequate evaluation of need, effectiveness and 
          efficiency."  

          The author further states that since the Little Hoover report 
          many more boards, commissions and other entities have been added 
          to the California government structure.  Some estimate that 
          there are about 1,000 government entities.  Recently, the 
          California Performance Review commented on 339 state boards and 
          commissions and they also found, as Little Hoover did 20 years 
          ago, that a comprehensive listing of the entities that make up 
          state government does not exist.  Despite several studies 
          suggesting reform is necessary, the Legislature has failed to 
          act.  Current law, the author argues, needs an enforcement 
          mechanism to ensure that oversight work is part of the annual 
          legislative action.  

          The San Francisco Bay bar pilots have been providing navigation 
          services for the San Francisco Bay Area since 1850.  During this 
          period, the bar pilots have ensured the safe and efficient 
          movement of the largest vessels that traverse the San Francisco 
          Bay, adjacent bays and tributaries, and Monterey Bay.  The Board 
          licenses pilots who guide certain vessels into, out of, and 
          through San Francisco, San Pablo, Suisun, and Monterey bays and 
          the ports of West Sacramento and Stockton. The Board also 








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          investigates navigational incidents, misconduct, and other 
          matters involving pilots and maintains a training program for 
          new pilots. The Board receives its funding through surcharges to 
          the payments for a bar pilot's services.  

          The author points out that the Board has been in continuous 
          existence for over a century and a half, but was not subject to 
          external review until 2009, when the Bureau of State Audits 
          (BSA) conducted a comprehensive review of the Board's 
          performance and finances.  The Board was found to lack many 
          internal controls, causing it to violate not only its own rules, 
          but those in state law.  The Board seems to have embraced the 
          BSA's recommendations, and subsequent reports from BSA note that 
          they are making progress on reforms.  

          This bill's intentions, according to the author, would require 
          the Board to undergo a comprehensive review by the JSRC to 
          ensure that it is complying with the BSA recommendations and to 
          address any issues that have occurred since the BSA's audit.  
          Further, the bill would require the Board to undergo a sunset 
          review by the JSRC prior to January 1, 2013.  

          Writing is support of this bill, the Pacific Marine Shipping 
          Association indicates that "As you know, the Board of Pilot 
          Commissioners is a single-purpose state board that has been in 
          existence since 1850.  The Board regulates, licenses, and sets 
          the bar pilotage rates for one region of pilots in Monterey Bay 
          and the Bays of San Francisco, San Pablo, and Suisun.  This 
          regulatory structure does not exist for any other pilots 
          servicing California's ports, including the Port of Long Beach, 
          the Port of Los Angeles, and Port of San Diego.  As such, we 
          support further examination if state regulation for one region 
          is necessary."  

          The San Francisco Bar Pilots indicates that they will oppose 
          this bill unless it is amended to simply insert a sunset date on 
          the Board that would trigger the sunset review by the JSRC.  
          They contend that unless the bill is amended properly, there 
          could be inadvertent impacts on the licensing of the bar pilots. 
           


           Author's amendments  :  The author intends to amend this bill to 
          identify how the licensing and regulation of bar pilots will be 
          administered in the absence of the Board.   








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           Related bills :  AB 28 (Huber) 2011, subject to the review by the 
          JSRC, would eliminate the Reciprocity Commission and replace it 
          with the California Department of Motor Vehicles.  That bill is 
          scheduled to be heard in the Assembly Transportation Committee 
          today.  

          AB 1659 (Huber) Chapter 666, Statutes of 2010, establishes a new 
          JSRC with responsibility to review and evaluate state agencies 
          based on specific criteria and information provided by them.

          AB 2130 (Huber) Chapter 670, Statutes of 2010, makes eligible 
          for the review by the JSRC and imposes a sunset date of January 
          1, 2013 on the State Race Track Leasing Commission, the Capitol 
          Area Committee, the Continuing Care Advisory Committee, and the 
          California Recreational Trails Committee.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Pacific Marine Shipping Association

           Opposition 
           
          San Francisco Bay Bar Pilots Association (oppose unless amended)
           

          Analysis Prepared by  :   Ed Imai / TRANS. / (916) 319-2093