BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 2042
                                                                Page  1


        ASSEMBLY THIRD READING
        AB 2042 (Huber)
        As Introduced  February 23, 2012
        Majority vote 

         TRANSPORTATION      14-0        APPROPRIATIONS      16-0        
         
         ----------------------------------------------------------------- 
        |Ayes:|Bonnie Lowenthal,         |Ayes:|Fuentes, Blumenfield,     |
        |     |Jeffries, Achadjian,      |     |Bradford, Charles         |
        |     |Blumenfield, Bonilla,     |     |Calderon, Campos, Davis,  |
        |     |Buchanan, Eng, Furutani,  |     |Donnelly, Gatto, Hall,    |
        |     |Galgiani, Logue, Miller,  |     |Hill, Lara, Mitchell,     |
        |     |Norby, Portantino,        |     |Nielsen, Norby, Solorio,  |
        |     |Solorio                   |     |Wagner                    |
        |     |                          |     |                          |
         ----------------------------------------------------------------- 
         SUMMARY  :  Sunsets the Board of Pilot Commissioners for Monterey Bay, 
        and the Bays of San Francisco, San Pablo, and Suisun (Board) on 
        January 1, 2022.  Specifically,  this bill  :  

        1)Makes various findings and declarations pertaining to the safe 
          pilotage of vessels for Monterey Bay and the Bays of San 
          Francisco, San Pablo, and Suisun.  

        2)Eliminates the Board on January 1, 2022.  

        3)Recasts and reenacts provisions related to the licensing and 
          regulation of the San Francisco bar pilots without the Board on 
          January 1, 2022.  

        4)Transfers the duties and responsibilities of the Board, after 
          January 1, 2022, to the Secretary of the Business, Transportation 
          and Housing Agency (Secretary).  

        5)Renames the Board's Special Fund as the Bar Pilot Special Fund.  
         
        EXISTING LAW  :  

        1)Establishes the Joint Sunset Review Committee (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.  








                                                                AB 2042
                                                                Page  2



        2)Requires each eligible agency scheduled for repeal to submit a 
          report to the JSRC 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, 
          the Board and prescribes its membership, functions, and duties; 
          established the Board in 1850 to provide state oversight for the 
          regulation and licensing of the San Francisco bar pilots.  

        4)Establishes the Board's Special Fund, a continuously appropriated 
          fund, for the purposes of receiving moneys received by the Board 
          in the implementation of carrying out the licensing and regulation 
          of the bar pilots and its training programs.  

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee, 
        negligible costs to transfer the Board's duties to the Secretary, 
        which will include fee authority to allow the Secretary to cover the 
        costs of administering the Board's programs.   

         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 ongoing oversight of a 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 
        (LHC) 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 LHC concluded that "the state's 
        boards, commissions and similar bodies are proliferating without 
        adequate evaluation of need, effectiveness and efficiency."  

        The San Francisco Bay bar pilots have been providing navigation 








                                                                AB 2042
                                                                Page  3


        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 these 
        bar 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 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.  

        According to author, 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 California Bureau of State Audits (BSA) 
        conducted a comprehensive review of the Board's performance and 
        finances.  The author indicates that after BSA criticized the 
        Board's administrative and regulatory functioning, it responded 
        promptly to the report and began reforming many of its operations.  

        Separately, the JSRC provided a review of the Board and submitted a 
        report at their hearing on February 15, 2012.  In the course of 
        their sunset review, the JSRC staff determined that the Board 
        "continues to be a necessary regulatory agency for the 
        state-licensed bar pilots, and has suggestions to increase its cost 
        effectiveness and transparency."  

        This bill establishes a sunset date for the Board on January 1, 
        2022, that will trigger the next JSRC sunset review before that 
        date.  This action is consistent with current law that requires each 
        eligible agency scheduled for repeal to submit a report to JSRC and 
        requires JSRC to evaluate the eligible agency prior to the sunset 
        date.  

        Related bills:  AB 656 (Huber) of 2011, was a similar bill as passed 
        by the Assembly Transportation Committee.  However, that bill was 
        amended in the Senate on August 16, 2011, removing all provisions 
        related to the Board.  
         

        Analysis Prepared by  :    Ed Imai / TRANS. / (916) 319-2093  FN: 
        0003375










                                                                AB 2042
                                                                Page  4