CHAPTER
6. Pilotage Ratesetting Process
CHAPTER
6.
1200.
(a) (1) The board shall adopt regulations for the adjustment of rates for pilotage services established by Sections 1190 and 1191 pursuant to the processes set forth in this chapter. (2) The board may adopt emergency regulations pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) to implement paragraph (1).
(b) The board’s authority to set rates for pilotage services pursuant to this chapter shall include the authority to adopt any singular rate adjustment or periodic rate adjustment, or both.
(c) In connection with the board’s authority to set rates pursuant to this chapter, the board may require an independent audit by a public accountant selected by the board. Any audits required by the board shall cover pilotage operations for those years that the board may specify.
1200.1.
(a) Any party directly affected by pilotage rates established by Sections 1190 or 1191 may file an application for the review and adjustment of those rates. Ten copies of the application together with all the written evidence in support shall be filed with the board at least 30 days prior to the requested effective date of the rate adjustment.(b) Within 10 days of the filing of an application pursuant to this chapter, the board shall serve a notice of the filing on all interested parties who have requested notification and make the contents of the application available on the board’s internet website.
(c) The application and any material required pursuant to this subdivision
shall be deemed served if served by electronic or any other means as may be agreed to by the parties and approved by the board.
1200.2.
(a) Within 20 days of the service of the board’s notice of the filing of an application pursuant to Section 1200.1, any party directly affected by the application may file a notice of intent to participate in the proceedings or a protest objecting to the proposed rate change.(b) A protest filed pursuant to subdivision (a) shall state with specificity the material issues in dispute and whether the issues may be addressed through written comments or require evidentiary hearings.
(c) Within 20 days after the filing of a protest, or at a later time as the board may direct, the board shall give notice to all parties of a prehearing conference to define the issues in dispute,
determine whether they can be resolved through written comments or require an evidentiary hearing, and establish a schedule for discovery and any hearings.
(d) Within 15 days following the prehearing conference, the board shall issue a scoping order identifying the issues in dispute, indicating whether evidentiary hearings are required to resolve any issues in dispute, and providing a schedule for discovery and the submission of written testimony for those hearings or for the filing of written comments. A copy of the scoping order shall be posted on the board’s internet website and served on all parties.
1200.3.
(a) Within 30 days following the service of the scoping order issued pursuant to subdivision (d) of Section 1200.2, but no later than 20 days before the initial date set for an evidentiary hearing, a party may conduct discovery as set forth in subdivision (b). Within 10 days of service of a discovery request, the responding party shall serve its response or objections to the requesting party.(b) Discovery authorized by this section is limited to written requests for data that are reasonably calculated to lead to admissible evidence relevant to one or more of the issues in dispute identified in the scoping order that are not overly burdensome or onerous and that do not require the preparation of studies or other material not then in
existence.
(c) The administrative law judge appointed pursuant to subdivision (b) of Section 1200.4 shall promptly rule on all discovery disputes.
1200.4.
(a) Any rate adjustment adopted by the board pursuant to this chapter shall be determined at a public meeting of the board subject to 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). To decide any issues in dispute that require an evidentiary hearing, the board shall hold a public hearing as set forth in this section. To decide issues in dispute that do not require an evidentiary hearing, the board shall proceed in accordance with the process set forth in Section 1200.6.(b) Within 10 days after the board orders an evidentiary hearing pursuant to Section 1200.2 or at an earlier time as the board may direct, the board shall request the
appointment of an administrative law judge by the Director of the Office of Administrative Hearings for the purpose of ruling on discovery disputes under Section 1200.3 and to act as the hearing officer at the evidentiary hearing pursuant to subdivision (d).
(c) The Office of Administrative Hearings shall be compensated by the board for its costs associated with the services of the administrative law judge provided pursuant to subdivision (b). Any expense shall be funded by revenues received by the board from the board operations surcharge set forth in Section 1159.2.
(d) Evidentiary hearings shall be held in the board offices unless otherwise directed by the board. The evidentiary hearings shall be held before a quorum of the board and presided over by an administrative law judge appointed pursuant to subdivision (b). The administrative law judge shall conduct the process of the
hearings, including, but not limited to, rulings on discovery disputes, all motions, and any objections or disputes arising during the evidentiary hearings.
(e) All direct testimony for an evidentiary hearing held pursuant to this section shall be submitted in written form in advance of the hearing as set forth in the scoping order pursuant to subdivision (d) of Section 1200.2. Evidentiary hearings shall be limited to the admission of evidence, including the prepared written testimony, the presentation of demonstrative evidence, and cross-examination on the prepared written testimony, and any other evidence set forth in the scoping order.
1200.5.
(a) The board shall consider all of the following factors in preparing its decision on a rate application: (1) The cost of providing service.
(2) The net return to pilots sufficient to attract and hold qualified pilots.
(3) The change in the cost of living.
(4) The rates charged for services in other ports.
(5) The income paid for comparable services.
(6) The methods of determining rates in other ports.
(7) The economic factors affecting local shipping.
(8) The volume of shipping traffic.
(9) The number of available pilots.
(10) The risk to pilots.
(11) The changes in navigational and safety equipment and pilot support activities.
(12) The results of any audits required pursuant to subdivision (c) of Section 1200.
(b) The weight to be given to each of the factors identified in subdivision (a) shall be left to the discretion of the board.
(c) The party seeking a rate adjustment shall have the
burden of proving by a preponderance of the evidence that a change in rates is justified.
1200.6.
(a) If a matter is determined by the board to be eligible for decision on the submission of comments without an evidentiary hearing, any party may file initial comments to address the application for a rate adjustment and the party’s proposal for a draft decision. Initial comments shall be limited to 25 pages, filed in writing 20 days after the close of discovery and served on all parties.(b) If a matter proceeds to an evidentiary hearing, any party may file any initial comments to address the issues, the evidence admitted into the record, and the party’s proposal for a draft decision. Initial comments shall be limited to 25 pages, filed in writing 20 days after the conclusion of the evidentiary hearing and served on all parties.
(c) Any party may file reply comments addressing any matter raised in the initial comments of another party. Reply comments shall be filed within 10 days of the service of initial comments. Reply comments are limited to 10 pages and shall be served on all parties.
1200.7.
(a) Within 30 days of the submission of comments pursuant to Section 1200.6, the board shall issue a proposed draft decision based on the record. A copy of the draft decision shall be posted on the board’s internet website and served on all parties.(b) Within 20 days of the service of the draft decision, any party may file initial comments on the draft decision. The comments shall be limited to claims of mistakes of fact in the draft decision or errors of law, limited to 10 pages in length, and served on all other parties.
(c) Within 10 days after the service of initial comments to the draft decision, any party may file reply comments that are limited to the issues raised in
another party’s initial comments to the draft decision and are limited to five pages in length.
1200.8.
(a) Within 20 days after the filing of the comments to the draft decision pursuant to Section 1200.6, or after the expiration of time to file comments, but no later than 11 months following the filing of an application for a rate adjustment under Section 1200.1, the board shall issue a final decision. The final decision shall include a statement of the case, a discussion of significant legal issues raised, and findings of fact and conclusions of law on the issues raised.(b) Within 20 days after issuance of a final decision, any party may file a request for rehearing which shall state in detail any mistakes in material fact or errors in law in the final decision. If the board does not act within 30 days after the filing of a request for
rehearing, the request shall be deemed denied.
(c) A final decision shall include a schedule of rates that shall be published and made publicly available by the port agent appointed pursuant to Section 1130 and posted on the board’s internet website. A copy of the final decision supported by a transcript of the proceedings of the board shall be submitted to the Secretary of the Senate and the Chief Clerk of the Assembly.
(d) Any rate adjustment approved pursuant to the process provided by this chapter shall be effective upon the adoption of any final decision issued by the board, as otherwise provided for in the final decision, if rehearing is not requested, or upon denial of any request for rehearing pursuant to subdivision (b).
1200.9.
For good cause shown, the timing and page limits provided in this chapter may be extended by an order of the board or the administrative law judge appointed pursuant to subdivision (b) of Section 1200.4.1200.10.
(a) Within 30 days of the denial of any request for rehearing, or if a rehearing is granted, then 30 days after the issuance of a final decision on rehearing an aggrieved party may file a petition for writ of review in the court of appeal for the purpose of having the lawfulness of the final decision determined. The venue for any petition for writ of review shall be in the district in which the board is located.(b) The petition for writ of review shall be served on the board, the board’s counsel, and all parties to the proceeding, who shall by right be allowed to file a response to the petition.
(c) Any final decision of the board under Section 1200.8 shall be effective pending
any petition for review pursuant to this section.
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 the evidence offered.1203.
It is the intent of the Legislature to review this chapter and, if appropriate, enact subsequent legislation to amend this chapter as of January 1, 2027.