Today's Law As Amended


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AB-807 Bar pilots: pilotage rates.(2021-2022)



As Amends the Law Today
As Amends the Law on Sep 17, 2021


SECTION 1.

 Section 1170.1 of the Harbors and Navigation Code is amended to read:

1170.1.
 In determining the number of pilots needed, pursuant to Section 1170, the board 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. decreasing, and the 1986 manpower study adopted by the board. 

SEC. 2.

 Section 1190 of the Harbors and Navigation Code is amended to read:

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 Ten  dollars and eleven twenty-six  cents ($8.11) ($10.26)  per draft foot of the vessel’s deepest draft and fractions of a foot pro rata, and an additional charge of 73.01 92.43  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: ton. 
(2)  (A) (i) A  On and after January 1, 2010, if the number of pilots licensed by the board 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 board below 60 pilots.  minimum charge for bar pilotage shall be six hundred sixty-two dollars ($662) for each vessel piloted. 
(ii) (B)  On and after January 1, 2010, if the number of pilots licensed by the board 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 board. 2022, a minimum charge for bar pilotage shall be one thousand eight hundred seventy-five dollars ($1,875) for each vessel piloted. 
(iii) The incremental mill rate adjustment authorized by this subparagraph shall be calculated using the data reported to the board 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 board.
(iv) On and after January 1, 2010, if, during any quarter described in this paragraph, the number of pilots licensed by the board 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 board 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 and separately accounted for in the accounting required by Section 1136. 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 board 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 board 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 board 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) (C)  A  On and after January 1, 2023, a  minimum charge for bar pilotage shall be two thousand  six hundred sixty-two  dollars ($662) ($2,600)  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 such that  transit inward or outward.
(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 rate,  as specified by the board 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 board shall determine the number of pilots to be licensed based on the 1986 manpower study adopted by the board.
(e) Consistent with the 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.

SEC. 3.

 Section 1190.2 is added to the Harbors and Navigation Code, to read:

1190.2.
 (a) There shall be an incremental rate of additional mills per high gross registered ton as is necessary and authorized by the board 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.
(b) The incremental mill rate charge authorized by this section shall be identified as a pilot boat surcharge on the pilots’ invoices and separately accounted for in the accounting required by Section 1136.
(c) 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 section. The board may adjust a pilot boat surcharge to reflect any associated operational savings resulting from the modification of pilot boats under this subdivision, including, but not limited to, reduced repair and maintenance expenses.

SEC. 4.

 Section 1190.3 is added to the Harbors and Navigation Code, to read:

1190.3.
 (a) There shall be an additional surcharge imposed per each movement of a vessel using pilot services as is necessary and authorized by the board to recover the costs of the pilot associated with a catastrophic event. The surcharge authorized by this subdivision shall be identified as a catastrophic event surcharge on the invoice of the pilot and separately accounted for in the accounting pursuant to Section 1136.
(b) The board shall authorize a pilot to establish a catastrophic event memorandum account and to record in that account the costs of maintaining, restoring, repairing, or replacing the provision of pilotage services to customers due to a catastrophic event.
(c) Subdivision (a) only applies if the board identifies that the costs recorded in a catastrophic event memorandum account are attributable to a specifically identifiable catastrophic event. Catastrophic events include, but are not limited to, fire, earthquake, terrorism, act of war, or epidemic, if the event has been declared an emergency or a disaster by a local, state, or federal governmental authority.
(d) The costs, including capital costs, recorded in a catastrophic event memorandum account shall only be recovered through the catastrophic event surcharge following the submission of an application by an affected pilot, the board finding the reasonableness of the costs identified in a catastrophic event memorandum account, and approval by the board of a definitive and exact amount of costs authorized to recover. The board may adjust the total amount of costs to be recovered to reflect any associated savings to ongoing operations or other pilot capital costs as a result from the expense of pilot costs associated with those identified in a catastrophic event memorandum account.
(e) The board shall hold a proceeding in response to a pilot application to recover costs associated with catastrophic events, including 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.
(f) The catastrophic event surcharge shall only be billed on the first day of the fiscal quarter after final approval by the board of an application of an affected pilot, and upon a separate action by the board at a following meeting to set a reasonable time and rate of recovery recommended by the finance committee of the board. The finance committee recommendation shall take into consideration any impact that the catastrophic event may have had on pilot customers and may reduce or extend the terms of the surcharge imposition as appropriate.
(g) The moneys collected under a catastrophic event surcharge shall be used only to recover the costs approved in the pilot catastrophic event memorandum account in the manner established by the board.
(h) At the recommendation of the finance committee, the board may adjust the surcharge amount established pursuant to subdivision (a) as necessary to efficiently administer the recovery of costs of the catastrophic event memorandum account, with adjustments to take effect only on the first day of the fiscal quarter following adjustment of the surcharge.
(i) Information regarding moneys remitted to an affected pilot and moneys collected from the surcharge pursuant to subdivision (a), as well as information regarding moneys spent as catastrophic event memorandum account costs, shall be made available to the board or its finance committee in a regular format upon request by the board or its finance committee. The information shall additionally be made available to the public upon request to the board.
(j) The board shall adopt, by regulation, the process for approving the recovery of catastrophic event costs, including, but not limited to, the form and information it shall require in an application for the recovery of costs related to a catastrophic event and the format for the catastrophic event memorandum account reports acceptable to the board.

SEC. 5.

 Section 1190.4 is added to the Harbors and Navigation Code, to read:

1190.4.
 (a) There shall be a movement fee imposed as is necessary and authorized by the board to recover a pilot’s costs for the purchase of a new pilot dispatch system in 2021.
(b) The movement fee authorized by this section shall be identified as a dispatch system purchase surcharge on a pilot’s invoices and separately accounted for in the accounting required by subdivision (b) of Section 1136.
(c) The cumulative amount of the surcharge collected pursuant to this section shall not exceed two hundred seventy-five thousand dollars ($275,000).
(d) The board shall review and adjust as necessary the dispatch system purchase surcharge authorized by this section at least quarterly.
(e) This section shall remain in effect only until January 1, 2023, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2023, deletes or extends that date.

SEC. 6.

 Section 1190.5 is added to the Harbors and Navigation Code, to read:

1190.5.
 (a) In addition to any pilot boat surcharge established pursuant to Section 1190.2, there shall be a movement fee imposed as is necessary and authorized by the board to recover a pilot’s costs for the maintenance, both deferred and current, of pilot boats that are presented to the board and identified for purposes of recovery under this section on or after January 1, 2021, and before October 1, 2023.
(b) The movement fee authorized by this section shall be included in the identification of the pilot boat surcharge on the pilots’ invoices pursuant to subdivision (b) of Section 1190.2, and separately accounted for in the accounting required by Section 1136.
(c) The cumulative amount of the pilot boat maintenance surcharge collected pursuant to this section shall not exceed one million four hundred thousand dollars ($1,400,000).
(d) The board shall review and adjust as necessary the pilot boat maintenance surcharge authorized by this section at least quarterly.
(e) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.
SEC. 7.
 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to assist in the facilitation of the safe movement of vessels and expedite maritime commerce on the navigational channels of the San Francisco Bay and the Sacramento-San Joaquin River systems, and to respond in part to the impacts of the ongoing crisis with respect to the COVID-19 pandemic-related disruptions to trade that has resulted in depressed business conditions, congestion in and around the navigational channels, and other related challenges, it is necessary for this act to take effect immediately.