HB 2983 — Establishing a new marine pilotage tariff setting process.

H-4553.4SUBSTITUTEH-4405.2HOUSE HOUSE BILL 2983State of Washington65th Legislature2018 Regular SessionBy House Transportation (originally sponsored by Representative Clibborn)READClibbornAN FIRST TIME 02/06/18.AN ACT Relating to the establishment of a new marine pilotage tariff setting process;

amending RCW 53.08.390, 88.16.035, 88.16.070, 88.16.120, and 88.16.130;

and providing an effective date.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:NEW SECTION.  Sec. 1.  A new section is added to chapter 88.16 RCW to read as follows:(1) The utilities and transportation commission shall under sections 76 through 1211 of this act periodically, but not more frequently than annually, establish the pilotage tariffs for pilotage services provided under this chapter:

However, under no circumstances shall the state be obligated to fund or pay for any portion of retirement payments for pilots or retired pilots.(2) By December 1, 2018, the utilities and transportation commission shall submit to the transportation committees of the legislature any additional statutory changes necessary to implement this act.(3) By July 1, 2020, the utilities and transportation commission shall provide a report to the governor and the transportation committees of the legislature regarding matters pertaining to establishing tariffs under this section that includes a comparison of the process and outcomes in relation to the recommendations made in the January 2018 joint transportation committee Washington state pilotage final report and recommendations.Sec. 2.  RCW 53.08.39088.16.035 and 20102009 c 8496 s 160031 are each amended to read as follows:Afollows:(1) countywideThe portboard districtof located in part or in whole within the Grays Harbor pilotage district,commissioners asshall:(a) definedAdopt byrules, RCWpursuant 88.16.050(2),to maychapter commence34.05 pilotageRCW, servicenecessary withfor the followingenforcement powers and subjectadministration toof thethis conditionschapter;(b)(i) containedIssue intraining thislicenses section.(1)and Personspilot employedlicenses to performpilot theapplicants pilotagemeeting servicethe ofqualifications aprovided portfor districtin must be licensed under chapter 88.16 RCW to88.16.090 provideand pilotage.(2)such Beforeadditional establishingqualifications pilotageas service,may abe portdetermined districtby shall give at least sixty days' written notice to the chairboard;(ii) ofEstablish thea boardcomprehensive oftraining pilotageprogram commissioners to provideassist pilotage.(3)in A port district providing pilotage service under this section requiring additional pilots may petition the boardtraining of pilotage commissioners to qualify and licenseevaluation asof a pilot aapplicants personbefore whofinal haslicensing; passed the examination and is on the waiting list for the training program for the district.

If there are no persons on the waiting list, the board shall solicit applicants and offer the examination.(4) In addition to the power to employ or contract with pilots, a port district providing pilotage services under this section has such other powers as are reasonably necessary to accomplish the purpose of this section including, but not limited to, providing through ownership or contract pilots launches, dispatcher services, or ancillary tug services required for operations or safety.(5)(a) A port district providing pilotage services under this section ((may recommend to the board of pilotage commissioners)) shall periodically establish pilotage tariffs for pilotage services provided under this chapter.

The rules of service, rates, and tariffs ((governing its pilotage services for consideration and adoption pursuant to RCW 88.16.035.

The rules, rates, and tariffs recommended)) to be adopted by the port district must have been approved in open meetings of the port district ((ten)) thirty or more days after published notice in a newspaper of general circulation and ((after mailing a copy of the notice to the chair of the board of pilotage commissioners)) following a public hearing.

The port district shall release its pilotage budget, including the five year capital spending plan, prior year pilotage financial statement, and the proposed pilotage tariff, no later than thirty days prior to a public hearing.

The port district shall receive public comments for thirty days before the port district commission may adopt and approve the pilotage tariff.

The port district must file the pilotage tariff with the utilities and transportation commission and the board of pilotage commissioners no later than thirty days following the approval of the pilotage tariff by the port district commission.(b) The port district must include a pension charge in its tariff until such time as the pilot retirement agreement expenses for Grays Harbor pilotage district pilots employed prior to October 1, 2001, are no longer owed.

The port district shall determine the pension charge owed as pilot retirement agreement expenses.

The pension charge must be sufficient to cover costs associated with the pilot retirement agreement expenses for Grays Harbor pilots employed prior to October 1, 2001.

The revenue collected from the pension charge must be deposited into an account maintained by the port district solely for the pilot retirement agreement expenses of the Grays Harbor pilots employed prior to October 1, 2001.

Under no circumstances shall the port district be obligated to fund or pay for any portion of the retirement agreement expenses for Grays Harbor pilots employed prior to October 1, 2001.(6) A pilot providing pilotage services under this section must comply with all requirements of the pilotage act, chapter 88.16 RCW, and all rules adopted thereunder.Sec. 3.  RCW 88.16.035 and 2009 c 496 s 1 are each amended to read as follows:(1) The board of pilotage commissioners shall:(a) Adopt rules, pursuant to chapter 34.05 RCW, necessary for the enforcement and administration of this chapter;(b)(i) Issue training licenses and pilot licenses to pilot applicants meeting the qualifications provided for in RCW 88.16.090 and such additional qualifications as may be determined by the board;(ii) Establish a comprehensive training program to assist in the training and evaluation of pilot applicants before final licensing;

However, under no circumstances shall the state be obligated to fund or pay for any portion of retirement payments for pilots or retired pilots)) Provide assistance to the utilities and transportation commission, as requested by the utilities and transportation commission, in its performance of pilotage tariff setting functions under sections 76 through 1211 of this act;(f) File annually with the governor and the chairs of the transportation committees of the senate and house of representatives a report which includes, but is not limited to, the following:

and do such other things as are reasonable, necessary, and expedient to insure proper and safe pilotage upon the waters covered by this chapter and facilitate the efficient administration of this chapter.(2) The board may pay stipends to pilot trainees under subsection (1)(b) of this section.Sec. 4.  RCWsection.Sec. 3.  RCW 88.16.070 and 2017 c 88 s 1 are each amended to read as follows:Every vessel not exempt under this section that operates in the waters of the Puget Sound pilotage district or Grays Harbor pilotage district is subject to compulsory pilotage under this chapter.(1) A United States vessel on a voyage in which it is operating exclusively on its coastwise endorsement, its fishery endorsement (including catching and processing its own catch outside United States waters and economic zone for delivery in the United States), and/or its recreational (or pleasure) endorsement, and all United States and Canadian vessels engaged exclusively in the coasting trade on the west coast of the continental United States (including Alaska) and/or British Columbia shall be exempt from the provisions of this chapter unless a pilot licensed under this chapter be actually employed, in which case the pilotage rates provided for in this chapter or established under sections 76 through 1211 of this act shall apply.(2) The board may, upon the written petition of any interested party, and upon notice and opportunity for hearing, grant an exemption from the provisions of this chapter to any vessel that the board finds is (a) a small passenger vessel that is not more than one thousand three hundred gross tons (international), does not exceed two hundred feet in overall length, is manned by United States-licensed deck and engine officers appropriate to the size of the vessel with merchant mariner credentials issued by the United States coast guard or Canadian deck and engine officers with Canadian-issued certificates of competency appropriate to the size of the vessel, and is operated exclusively in the waters of the Puget Sound pilotage district and lower British Columbia, or (b) a yacht that is not more than one thousand three hundred gross tons (international) and does not exceed two hundred feet in overall length.

The board shall report annually to the legislature on such exemptions.(3) Every vessel not exempt under subsection (1) or (2) of this section shall, while navigating the Puget Sound and Grays Harbor pilotage districts, employ a pilot licensed under the provisions of this chapter and shall be liable for and pay pilotage rates in accordance with the pilotage rates herein established or which may hereafter be established under the provisions of this chapter or under sections 76 through 1211 of this act:

The board shall investigate any accident on the waters covered by this chapter involving a Canadian pilot and shall include the results in its annual report.Sec. 5.  RCWreport.Sec. 4.  RCW 88.16.120 and 1987 c 485 s 4 are each amended to read as follows:No pilot shall charge, collect or receive and no person, firm, corporation or association shall pay for pilotage or other services performed hereunder any greater, less or different amount, directly or indirectly, than the rates or charges herein established or ((which may be hereafter fixed)) subsequently established by the utilities and transportation commission under sections 76 through 1211 of this act and by the board ((pursuant to)) under this chapter.

Any pilot, person, firm, corporation or association violating the provisions of this section shall be guilty of a misdemeanor and shall be punished pursuant to RCW 88.16.150 as now or hereafter amended, said prosecution to be conducted by the attorney general or the prosecuting attorney of any county wherein the offense or any part thereof was committed.Sec. 6.  RCWcommitted.Sec. 5.  RCW 88.16.130 and 2013 c 23 s 533 are each amended to read as follows:Any person not holding a license as pilot under the provisions of this chapter who pilots any vessel subject to the provisions of this chapter on waters covered by this chapter shall pay to the board the pilotage rates ((payable((payable)) under the provisions of this chapter)) established by the utilities and transportation commission under sections 76 through 1211 of this act.act and any applicable fees established by the board under ((the provisions of)) this chapter.

Any master or owner of a vessel required to employ a pilot licensed under the provisions of this chapter who refuses to do so when such a pilot is available shall be punished pursuant to RCW 88.16.150 as now or hereafter amended and shall be imprisoned in the county jail of the county wherein he or she is so convicted until said fine and the costs of his or her prosecution are paid.NEW SECTION.  Sec. 7.  TheSECTION.  Sec. 6.  The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.(1) "Board" means the board of pilotage commissioners.(2) "Commission" means the utilities and transportation commission.(3) "Person with a substantial interest" means:

andor (c) any other person or business that can show that the requested tariff changes would be likely to have a substantial economic impact on its operations.NEW SECTION.  Sec. 8.  (1)SECTION.  Sec. 7.  (1) The commission shall establish in tariffs the rates for pilotage services provided under chapter 88.16 RCW.(2) The commission shall maintain a list of persons who have indicated to the commission a desire to be notified of any potential change in pilotage tariffs and in any proposed rules regarding the setting of pilotage tariffs.(3) The commission shall ensure that the tariffs provide rates that are fair, just, reasonable, and sufficient, considering the infrastructure and equipment assets, the nature of business operations, safety equipment and training, and investments necessary to maintain efficient, safe, and competent pilotage service and operations.(4) In setting tariffs, the commission may fix extra compensation for extra services to vessels in distress, for awaiting vessels, for all vessels in direct transit to or from a Canadian port where Puget Sound pilotage is required for a portion of the voyage, or for being carried to sea on vessels against the will of the pilot, and for such other services as may be determined by the board.

In setting tariffs, the commission must include a tariff surcharge to fund the stipend the board of pilotage commissioners is authorized to pay to pilot trainees and to use in its pilot training program under RCW 88.16.035.

The commission must also include in the tariff the collection of revenue to fund the self-insurance liability premium expenditures of the board of pilotage commissioners through June 30, 2023, to the extent payment contribution from the tariff is required of the board of pilotage commissioners by the legislature.

and(c) Adopt rules or issue orders to implement the provisions of this act.NEW SECTION.  Sec. 9.  (1)SECTION.  Sec. 8.  (1) Any person with a substantial interest may file with the commission a revised tariff with an effective date no earlier than thirty days from the date of filing.(2) The proposed tariff must be accompanied by:(a) The names and contact information of the person or persons requesting the tariff revision;(b) A description of why the existing tariffs are not fair, just, reasonable, and sufficient, along with financial information to demonstrate a need for the tariff revision and information addressing the criteria for approval of tariff revisions set forth in section 8(3)7(3) of this act;

and(d) Any other information required by the commission by rule or by order.(3) After receipt of a proper petition, the commission shall give notice of the petition to interested persons that have stated a desire to be notified pursuant to section 8(2)7(2) of this act.

During that time, the commission may set the matter for a hearing pursuant to chapter 34.05 RCW or set the matter for consideration at a subsequent open public meeting.(5) The burden of proof to show that the tariff rates are not fair, just, reasonable, and sufficient is upon the person with a substantial interest that files the revised tariff.NEW SECTION.  Sec. 10.  TheSECTION.  Sec. 9.  The commission shall encourage alternative forms of dispute resolution to resolve disputes between an association or group of pilots and any other person regarding matters covered by this chapter.NEW SECTION.  Sec. 11.  TheSECTION.  Sec. 10.  The tariffs established by the board prior to the effective date of this section shall remain in effect and be deemed pilotage tariffs set by the commission until such time as they are changed by the commission pursuant to this chapter.NEW SECTION.  Sec. 12.  TheSECTION.  Sec. 11.  The commission may include as part of the tariff for pilotage services provided under chapter 88.16 RCW reasonable costs for the setting of tariff rates under this chapter.

The costs of the commission included as part of the tariff must be appropriated from the marine pilotage tariff setting account in section 1312 of this act.NEW SECTION.  Sec. 13.  TheSECTION.  Sec. 12.  The marine pilotage tariff setting account is created in the state treasury.

Expenditures from the account may be used for the purposes of the commission for pilotage tariff setting, as prescribed under this chapter.Sec. 14.  RCWchapter.Sec. 13.  RCW 43.84.092 and 2017 3rd sp.s.

Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, the state university permanent fund, and the state reclamation revolving account shall be allocated to their respective beneficiary accounts.(b) Any state agency that has independent authority over accounts or funds not statutorily required to be held in the state treasury that deposits funds into a fund or account in the state treasury pursuant to an agreement with the office of the state treasurer shall receive its proportionate share of earnings based upon each account's or fund's average daily balance for the period.(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.NEW SECTION.  Sec. 15.  SectionsSECTION.  Sec. 14.  Sections 76 through 1312 of this act constitute a new chapter in Title 81 RCW.NEW SECTION.  Sec. 16.  ToSECTION.  Sec. 15.  To ensure that this act is implemented in a timely manner, the utilities and transportation commission may adopt rules under section 87 of this act prior to July 1, 2019.NEW SECTION.  Sec. 17.  ExceptSECTION.  Sec. 16.  Except for section 1615 of this act, this act takes effect July 1, 2019.--- END ---