Section § 1150

Explanation

This law section establishes a Board of Pilot Commissioners within the Transportation Agency to oversee pilotage services for the Bays of San Francisco, San Pablo, and Suisun. The Board has seven members appointed by the Governor with Senate approval: two licensed pilots, two industry representatives, and three public members with no significant ties to pilot services or related businesses. The Governor can refuse nominees suggested by a maritime trade association and request new ones. Board members serve staggered four-year terms and cannot serve more than two terms. A quorum requires four members, and all decisions need their votes. The Secretary of Transportation is a non-voting member with other member privileges.

(a)CA Harbors and Navigation Code § 1150(a) There is in the Transportation Agency a Board of Pilot Commissioners for the Bays of San Francisco, San Pablo, and Suisun, consisting of seven members appointed by the Governor, with the consent of the Senate, as follows:
(1)CA Harbors and Navigation Code § 1150(a)(1) Two members shall be pilots licensed pursuant to this division.
(2)CA Harbors and Navigation Code § 1150(a)(2) Two members shall represent the industry and shall be persons currently engaged as owners, officers, directors, employees, or representatives of a firm or association of firms that is a substantial user of pilotage service in the Bay of San Francisco, San Pablo, Suisun, or Monterey, one of whom shall be engaged in the field of tanker company operations, and one of whom shall be engaged in dry cargo operations. The board of directors of a regional maritime trade association controlled by West Coast vessel operators that specifically represents the owners and operators of vessels or barges engaged in transportation by water of cargo or passengers from or to the Pacific area of the United States shall nominate, rank, and submit to the Governor the names of three persons for each category of industry member to be appointed.
(3)CA Harbors and Navigation Code § 1150(a)(3) Three members shall be public members. Any person may serve as a public member unless otherwise prohibited by law, except that during his or her term of office or within the two years preceding his or her appointment, a public member appointed shall not have (A) any financial or proprietary interest in the ownership, operation, or management of tugs, cargo, or passenger vessels, (B) sailed under the authority of a federal or state pilot license in waters under the jurisdiction of the board, (C) been employed by a company that is a substantial user of pilot services, or (D) been a consultant or other person providing professional services who had received more than 20 percent in the aggregate of his or her income from a company that is a substantial user of pilot services or an association of companies that are substantial users of pilot services. Ownership of less than one-tenth of 1 percent of the stock of a publicly traded corporation is not a financial or proprietary interest in the ownership of tugs, cargo, or passenger vessels.
(4)CA Harbors and Navigation Code § 1150(a)(4) Notwithstanding any other provision of law, this chapter does not prohibit the Governor from notifying the nominating authority identified in paragraph (2) that persons nominated are unacceptable for appointment. Following that notification, the nominating authority shall submit a new list of nominees to the Governor, naming three persons, none of whom were previously nominated, from which the Governor may make the appointment. This process shall be continued until a person nominated by the nominating authority and satisfactory to the Governor has been appointed.
(b)CA Harbors and Navigation Code § 1150(b) Members appointed pursuant to subdivision (a) shall be appointed with staggered terms as follows:
(1)CA Harbors and Navigation Code § 1150(b)(1) Each of the members appointed pursuant to paragraphs (1) and (2) of subdivision (a) shall be appointed for a four-year term, except that the first member appointed after December 31, 2012, to an initial term pursuant to paragraph (1) of subdivision (a) shall be appointed to a term expiring on December 31, 2014, and the first member appointed after December 31, 2012, to an initial term pursuant to paragraph (2) of subdivision (a) shall be appointed to a term expiring on December 31, 2014.
(2)CA Harbors and Navigation Code § 1150(b)(2) Members appointed pursuant to paragraph (3) of subdivision (a) shall be appointed with staggered four-year terms with the initial four-year terms expiring on December 31 of the years 1988, 1990, and 1991, respectively.
(3)CA Harbors and Navigation Code § 1150(b)(3) A person shall not be appointed for more than two terms.
(4)CA Harbors and Navigation Code § 1150(b)(4) Vacancies on the board for both expired and unexpired terms shall be filled by the appointing power in the manner prescribed by subdivision (a).
(c)CA Harbors and Navigation Code § 1150(c) A quorum of the board members consists of four members. All actions of the board shall require the vote of four members, a quorum being present.
(d)CA Harbors and Navigation Code § 1150(d) The Secretary of Transportation shall serve as an ex officio member of the board who, without vote, may exercise all other privileges of a member of the board.

Section § 1151

Explanation
This section states that each board member must be a U.S. citizen living in California. Members appointed under certain conditions must live in specific counties such as San Francisco, Alameda, and others. They hold their position at the discretion of the appointing authority, but for no more than four years.
Each member of the board shall be a citizen of the United States and a resident of California. Each member appointed pursuant to paragraphs (1) and (3) of subdivision (a) of Section 1150 shall be a resident of one of the following counties: San Francisco, Alameda, Contra Costa, Marin, Mendocino, Monterey, Sacramento, San Mateo, Santa Clara, Santa Cruz, Solano, San Joaquin, Napa, Sonoma, or Yolo. The member shall hold office during the pleasure of the power appointing the member, not to exceed four years from the date of the member’s commission.

Section § 1152

Explanation

This section outlines the compensation and expense reimbursement for members of a specific board. Public members of the board can be paid up to $600 each month for their services, but this amount can change as decided by the board.

Additionally, board members and employees will be reimbursed for necessary travel and any other verified expenses they incur while performing their duties.

(a)CA Harbors and Navigation Code § 1152(a) The public members of the board shall receive, as compensation for their services, the amount that the board may, from time to time, determine, which shall not exceed six hundred dollars ($600) each per month.
(b)CA Harbors and Navigation Code § 1152(b) The appointed members and employees of the board shall also be allowed necessary traveling and other verified expenses incurred by them in the performance of their duties.

Section § 1153

Explanation

This section states that the board must elect a president and have offices in San Francisco or Alameda County. The board is required to meet monthly but can arrange additional meetings as needed.

Additionally, their meetings must follow the transparency rules set out in the Bagley-Keene Open Meeting Act, which ensures their processes are open to the public.

(a)CA Harbors and Navigation Code § 1153(a) The board shall organize itself by electing a president, and shall provide offices in San Francisco or Alameda County, in which it shall meet once a month, and it may adjourn its regular meetings from time to time.
(b)CA Harbors and Navigation Code § 1153(b) Meetings of the board are 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).

Section § 1154

Explanation

This law states that a certain board has the main responsibility for managing the duties related to this part of the law, except those duties given to the Secretary of Business, Transportation and Housing. The board can create and enforce rules needed to carry out the law's objectives, following specific government procedures for adopting those rules.

(a)CA Harbors and Navigation Code § 1154(a) The board is vested with all functions and duties relating to the administration of this division, except those functions and duties vested in the Secretary of Business, Transportation and Housing.
(b)CA Harbors and Navigation Code § 1154(b) The board’s vested powers include the power to make and enforce rules and regulations that are reasonably necessary to carry out its provisions and to govern its actions. These rules and regulations shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

Section § 1155

Explanation

The head of the board can swear in people during official matters and can also require people to testify by using subpoenas. If someone ignores a subpoena, they might have to pay a $500 fine, and the board can sue them to get this money. However, this rule does not apply to certain government proceedings outlined elsewhere.

The president of the board may administer oaths in regard to any matter properly before it and he or she may issue subpoenas for witnesses in like cases. A witness disobeying the subpoena served on him or her shall incur a penalty of five hundred dollars ($500), for which judgment may be recovered by the board in a civil action. This section shall not apply to proceedings conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.

Section § 1156

Explanation

This section outlines the roles and responsibilities of the board and its executive director. The board can hire an executive director and other necessary employees. The executive director, exempt from civil service laws, manages board operations including personnel administration, financial matters as the board's treasurer, licensing, and dealing with license-related actions. They also handle investigations, cooperate with environmental and shipping industries, and suggest improvements to pilot training. The Secretary of Business, Transportation and Housing appoints an assistant director to work under the executive director. The board can hire and compensate employees and commission investigators as needed, per civil service laws, except for the executive and assistant directors, who are exempt. Investigators must meet established standards and have knowledge of investigations and maritime issues.

(a)CA Harbors and Navigation Code § 1156(a) The board may appoint, fix the compensation of, and from time to time adjust the compensation of, an executive director who is exempt from the civil service laws, and other employees as may be necessary. The executive director may perform all duties, exercise all powers, discharge all responsibilities, and administer and enforce all laws, rules, and regulations under the jurisdiction of the board, with the approval of the board, including, but not limited to, all of the following:
(1)CA Harbors and Navigation Code § 1156(a)(1) The administration of personnel employed by the board in accordance with the civil service laws.
(2)CA Harbors and Navigation Code § 1156(a)(2) To serve as treasurer of the board and keep, maintain, and provide the board with all statements of accounts, records of receipts, and disbursements of the board in accordance with the law.
(3)CA Harbors and Navigation Code § 1156(a)(3) The issuance and countersigning of licenses that shall also be signed by the president of the board.
(4)CA Harbors and Navigation Code § 1156(a)(4) The administration of matters and the maintenance of files pertaining to action taken against licenses issued by the board.
(5)CA Harbors and Navigation Code § 1156(a)(5) The administration of investigations of, and reporting on, a navigational incident or other matter for which a license issued by the board may be revoked or suspended.
(6)CA Harbors and Navigation Code § 1156(a)(6) To work with board members, staff, and other interested stakeholders to recommend improvements in the pilot training program.
(7)CA Harbors and Navigation Code § 1156(a)(7) Under the direction of the board, to coordinate with other state and federal agencies charged with protecting the environment and with the oil and hazardous chemical shipping industry.
(8)CA Harbors and Navigation Code § 1156(a)(8) Any other function, task, or duty as may reasonably be assigned by the president of the board, including, but not limited to, performing research and obtaining documents and other evidence for board activities, including rate hearings.
(b)CA Harbors and Navigation Code § 1156(b) The Secretary of Business, Transportation and Housing shall appoint one assistant director to serve in a career executive assignment at the pleasure of the secretary. The assistant director shall have the duties as assigned by the executive director, and shall be responsible to the executive director for the performance of his or her duties.
(c)CA Harbors and Navigation Code § 1156(c) The board may employ personnel necessary to carry out the purposes of this chapter. All personnel shall be appointed pursuant to the State Civil Service Act (Part 1 (commencing with Section 18000) of Division 5 of Title 2 of the Government Code), except for the executive director and the assistant director, who shall be exempt from state civil service. The board may fix the compensation of, and from time to time adjust the compensation of, any employees as may be necessary.
(d)CA Harbors and Navigation Code § 1156(d) All personnel of the board shall be appointed, directed, and controlled by the board, the executive director, or the board’s authorized deputies or agents to whom it may delegate its powers.
(e)CA Harbors and Navigation Code § 1156(e) The board may contract and employ commission investigators. The board shall adopt regulations for the minimum standards for a commission investigator that shall include, but are not limited to, a basic knowledge of investigative techniques and maritime issues.

Section § 1156.5

Explanation

The executive director works for the board and can be removed by them at any time. They have a five-year term.

If the executive director is absent, disabled, or there's a vacancy, the Secretary of Business, Transportation and Housing or someone they choose will step in to temporarily fill the role.

(a)CA Harbors and Navigation Code § 1156.5(a) The executive director shall serve at the pleasure of the board and shall be under the direct supervision of the board. The term of office to which the executive director is appointed is five years.
(b)CA Harbors and Navigation Code § 1156.5(b) The Secretary of Business, Transportation and Housing, or his or her designee, shall act as the executive director during the absence from the state or other temporary absence, disability, or unavailability of the executive director, or during a vacancy in that position.

Section § 1156.6

Explanation

When there are reports of potential safety violations involving pilot hoists or ladders, the board's executive director must look into it. They can inspect the equipment personally or have an investigator do it, checking for compliance with US Coast Guard and International Maritime rules. If a violation is suspected, the Coast Guard office must be notified immediately. The findings and recommendations will be reported to the board, which will include necessary information under regulations.

This law specifically applies to designated pilotage areas. If an incident happens outside these areas, it needs to be mentioned in the report. All investigation records and board findings must be kept as public records.

(a)CA Harbors and Navigation Code § 1156.6(a) If suspected safety standard violations concerning pilot hoists, pilot ladders, or the proper rigging of pilot hoists or pilot ladders are reported to the board, the executive director shall investigate the report. The executive director may personally inspect or assign a commission investigator to personally inspect the equipment for its compliance with the relevant safety standards promulgated by the United States Coast Guard and the International Maritime Organization. If, in the preliminary investigation, the equipment is found to be in violation, or in likely violation in the opinion of the executive director, of the relevant safety standards, the executive director shall immediately alert the appropriate United States Coast Guard office. The executive director shall report his or her findings and recommendations, if any, to the board. The board shall receive the executive director’s findings, which may include other reports, information, or statements from interested parties. The board shall specify, by regulation, the information that shall be contained in the report.
(b)CA Harbors and Navigation Code § 1156.6(b) This section applies to the pilotage grounds, as defined in Section 1114.5. If a vessel passes outside of the pilotage grounds, the executive director’s report shall include that fact along with a description of the incident.
(c)CA Harbors and Navigation Code § 1156.6(c) The record of the investigation and the board’s findings and recommendations, if any, shall be a public record maintained by the board.

Section § 1156.7

Explanation

This law says that if the executive director of the board informs the United States Coast Guard about a possible safety rule violation on a vessel, and thinks the issue won't be fixed before the vessel reaches its next stop, they should ask the Coast Guard to notify the relevant authorities at an upcoming port. Also, anyone else can share the executive director's findings publicly, as these reports are considered public records.

If the executive director of the board alerts the United States Coast Guard to a violation or likely violation of safety standards pursuant to Section 1156.6 and has reason to believe that the violation or likely violation will not be corrected prior to the vessel reaching its next port of call, the executive director shall request the United States Coast Guard to report the suspected safety standard violation to the port state control officer or a pilot organization in an expected future port of call. This section does not preclude any other party from disseminating any report of the findings and recommendations of the executive director of the board pursuant to Section 1156.6, and all of those reports and findings shall be considered public records.

Section § 1157

Explanation

This law requires the board to maintain a written record of all its proceedings, including details of each pilot it licenses. The record for each pilot must include their current contact information, license issuance and renewal dates, training completion dates, and any reports related to their professional conduct or incidents involving their license.

Pilots must inform the board in writing about any changes to their name, mailing address, or residence within 30 days.

The board shall keep a written record of all the board’s proceedings and acts.
(a)CA Harbors and Navigation Code § 1157(a) The board shall also keep a complete record of each pilot appointed and licensed by the board that includes, at a minimum, his or her current mailing address, residence, the date of the initial issuance and renewal of the license, the date of completion for initial and any subsequent training, and a record of any reports of meritorious activities, commendation, misconduct, safety violations, or other incidents or information related or relevant to the issuance and use of his or her pilot license.
(b)CA Harbors and Navigation Code § 1157(b) All pilots licensed by the board shall provide the board with written notice of any change of name, mailing address, or residence within 30 days of that change in a manner prescribed by the board.

Section § 1157.1

Explanation

This law section ensures that personal information of pilots, pilot trainees, or applicants to the pilot trainee program is confidential and not available for public inspection, with some exceptions noted elsewhere. It specifies that 'personal information' includes items like photographs, social security numbers, and medical details, but not information related to licensing incidents or training records.

(a)CA Harbors and Navigation Code § 1157.1(a) Except as provided in Section 1157.4, all records of the board relating to the personal information of a pilot, a pilot trainee, or an applicant to the pilot trainee training program are confidential and shall not be open to public inspection.
(b)CA Harbors and Navigation Code § 1157.1(b) For purposes of this section, “personal information” means information, other than the name and mailing address, that identifies an individual, including an individual’s photograph, social security number, address, telephone number, and medical or disability information, but does not include other information related to licensing such as incidents, rules or safety violations, misconduct, training records, commendations, and license status.

Section § 1157.2

Explanation

This law requires a board to create rules on how confidential information can be accessed to protect the privacy of employees and licensees. If someone authorized gets this information through an agent, they must make sure the agent keeps it confidential and doesn't share it with anyone else. Also, the agent can only use this information for the purpose it was requested.

The board shall establish procedures for access to confidential or restricted information from its records to protect the confidentiality of its employees and licensees. If confidential or restricted information is released to an agent of a person authorized to obtain information, the person shall require the agent to take all steps necessary to ensure confidentiality and prevent the release of information to a third party. An agent shall not obtain or use confidential or restricted records for any purpose other than the reason the information was requested.

Section § 1157.3

Explanation

If someone on the board, like a board member, executive director, assistant director, or employee, deliberately shares confidential information with someone who shouldn't have it, they can be fined up to $2,500 for each time they break this rule. This fine can be enforced and collected through a civil lawsuit.

A member of the board, the executive director, the assistant director, or an employee of the board who willfully discloses confidential information from the board record to a person not authorized to receive it shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which may be assessed and recovered in a civil action.

Section § 1157.4

Explanation

If a federal, state, or local law enforcement agency asks for information, the executive director of the board must provide access to any details in the board’s records.

Upon a request to the board by a federal, state, or local law enforcement agency, the executive director shall make available to the requesting agency any information contained in the board’s records.

Section § 1157.5

Explanation

This law requires the board to submit an annual report by April 15th to certain government officials. The report must detail the previous year's activities, including the number of vessel movements in their jurisdiction.

It also needs to list all licensed pilots and trainees, noting any changes in their work status, like if they're on duty, in training, on leave, or have a suspended license.

Additionally, the report should summarize incidents of misconduct or navigational errors by pilots, outlining outcomes and any actions taken, particularly highlighting repeat offenders and past errors.

On or before April 15, 2010, and annually thereafter, the board shall submit to the Secretary of the Senate, the Chief Clerk of the Assembly, and the Secretary of Business, Transportation and Housing a report describing the board’s activities for the preceding calendar year. The report shall include, but not be limited to, all of the following:
(a)CA Harbors and Navigation Code § 1157.5(a) The number of vessel movements across the bar, on the bays, and on the rivers within the board’s jurisdiction.
(b)CA Harbors and Navigation Code § 1157.5(b) The name of each licensed pilot and pilot trainee, and the status of each person. If a person has had more than one status during the reporting year, each status and the length of time in that status shall be indicated. For the purposes of this section, “status” includes all of the following designations:
(1)CA Harbors and Navigation Code § 1157.5(b)(1) Licensed and fit for duty.
(2)CA Harbors and Navigation Code § 1157.5(b)(2) Licensed and not fit for duty.
(3)CA Harbors and Navigation Code § 1157.5(b)(3) Licensed and on authorized training.
(4)CA Harbors and Navigation Code § 1157.5(b)(4) Licensed and on active military duty.
(5)CA Harbors and Navigation Code § 1157.5(b)(5) Licensed and on leave of absence.
(6)CA Harbors and Navigation Code § 1157.5(b)(6) Licensed but license suspended.
(c)CA Harbors and Navigation Code § 1157.5(c) A summary of each report of misconduct or a navigational incident involving a pilot or pilot trainee, or other matters for which a license issued by the board may be revoked or suspended. For those cases that have been closed, the summary shall include a description of findings made by the incident review committee and of the resulting action taken by the board. For those cases that are still under investigation, the summary shall include a description of the reported incident and an estimated completion date for the investigation. For those closed cases involving a pilot who has been involved in a prior incident and a finding of pilot error had been made, the report shall also include a summary of that incident.

Section § 1157.6

Explanation

This law section mandates that after the first new pilotage tariff is set, a committee must be formed to evaluate the new rate-setting process. The committee will collect feedback from stakeholders and create a report for the board's review. Once the board approves this report, it will be sent to the Legislature, the Governor, and the Secretary of Transportation. This report must be finalized by December 31, 2027. The provisions of this section will expire on January 1, 2032.

(a)CA Harbors and Navigation Code § 1157.6(a) After the adoption of the first pilotage tariff pursuant to Chapter 6 (commencing with Section 1250), the board shall convene a committee to review the effectiveness of the revised ratesetting process and to gather stakeholder feedback for the purpose of developing a report for the board’s consideration. Upon adoption of the report by the board based on the findings of the committee, the board shall present and submit the report to the Legislature in compliance with Section 9795 of the Government Code, to the Governor, and to the Secretary of Transportation. The report shall be adopted by the board no later than December 31, 2027.
(b)CA Harbors and Navigation Code § 1157.6(b) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2032.

Section § 1158

Explanation

This law states that public members, the executive director, assistant director, and employees of a board must avoid activities that conflict with their official state duties. They cannot use their positions to influence government decisions if they or their family could benefit financially. It aims to prevent conflicts of interest and ensure impartiality in government roles.

The public members, the executive director, the assistant director, and employees of the board shall not engage in an employment, activity, or enterprise that is clearly inconsistent, incompatible, in conflict with, or inimical to his or her duties as a state officer or employee or make, participate in making, or attempt to use his or her official position to in any way influence a governmental decision in which he or she knows or has reason to know that he or she, or any member of his or her immediate family, has a financial interest.

Section § 1158.1

Explanation

The executive director can't work as a board member, a pilot, or in any other job within the maritime industry while holding office.

The executive director shall not, during the term of his or her office, serve as a member of the board or as a pilot, or otherwise be concurrently employed in the maritime industry.

Section § 1159

Explanation

This law section explains how the Board of Pilot Commissioners manages its funds. Each month, any money collected by the board is reported and then sent to the State Treasury, where it is credited to a special fund for the board. Additionally, this fund can be used at any time, regardless of the fiscal year, to cover the board's costs, including salaries and expenses for its members and staff.

(a)CA Harbors and Navigation Code § 1159(a) All moneys received by the board pursuant to the provisions of any law shall be accounted for at the close of each month to the Controller in the form that the Controller may prescribe and, at the same time on the order of the Controller, all these moneys shall be paid into the State Treasury to the credit of the Board of Pilot Commissioners’ Special Fund.
(b)CA Harbors and Navigation Code § 1159(b) Notwithstanding Section 13340 of the Government Code, the moneys deposited in the State Treasury to the credit of the Board of Pilot Commissioners’ Special Fund are appropriated without regard to fiscal years for the payment of the compensation and expenses of the board and its officers and employees.

Section § 1159.1

Explanation

This law establishes the Pilot Boat Surcharge Account within the Board of Pilot Commissioners' Special Fund. The money in this account is automatically set aside each year to cover specific expenses without needing yearly approval. It's used to pay for new pilot boats and to make design improvements on existing boats to extend their life, but not for regular maintenance costs.

Up to 5% of the funds can be used for the board's administrative costs, like managing the pilot boat program and conducting audits. Any interest earned from the money in the account goes back into the account, helping to cover pilots’ related claims.

(a)CA Harbors and Navigation Code § 1159.1(a) The Pilot Boat Surcharge Account is hereby established in the Board of Pilot Commissioners’ Special Fund. Notwithstanding Section 13340 of the Government Code, moneys in the account are hereby continuously appropriated to the board without regard to fiscal years for allocation by the board for both of the following:
(1)CA Harbors and Navigation Code § 1159.1(a)(1) To fund the pilot boat costs of obtaining new pilot boats and of funding design and engineering modifications for the purpose of extending the service life of existing pilot boats, excluding costs for repair or maintenance, as specified in subdivision (a) of Section 1194.
(2)Copy CA Harbors and Navigation Code § 1159.1(a)(2)
(A)Copy CA Harbors and Navigation Code § 1159.1(a)(2)(A) To cover the administrative costs of the board with respect to administration of the account, including any audits of the usage of the account.
(B)CA Harbors and Navigation Code § 1159.1(a)(2)(A)(B) No more than 5 percent of all moneys collected may be used by the board to offset administrative costs and expenses related to managing the pilot boat program, including auditing expenses.
(b)CA Harbors and Navigation Code § 1159.1(b) Interest earned on the moneys in the Pilot Boat Surcharge Account shall be allocated to the Pilot Boat Surcharge Account and shall be expended to recover the pilots’ claims submitted pursuant to Section 1194.1.

Section § 1159.2

Explanation

This law says that vessels must pay a surcharge of 7.5% on pilotage fees to cover the costs of services provided by the board and the Transportation Agency. This percentage can be adjusted with approval from the Department of Finance. Pilots are responsible for billing, collecting, and paying these surcharges monthly to the board.

The board reviews expenses every quarter and can adjust the surcharge as needed. The surcharge amount should only be as high as necessary to cover these costs, including a reasonable reserve.

(a)CA Harbors and Navigation Code § 1159.2(a) The vessel shall pay a board operations surcharge, the purpose of which is to fully compensate the board and the Transportation Agency for the official services, staff services, and incidental expenses of the board and agency. The amount of the surcharge shall be 7.5 percent of all pilotage fees charged by pilots pursuant to Sections 1190 and 1191 unless the board establishes, with the approval of the Department of Finance, a lesser percentage, not to exceed any percentage consistent with subdivision (d).
(b)CA Harbors and Navigation Code § 1159.2(b) The surcharge shall be billed and collected by the pilots. The pilots shall pay all surcharges collected by them to the board monthly or at a later time that the board may direct.
(c)CA Harbors and Navigation Code § 1159.2(c) The board shall quarterly review its ongoing and anticipated expenses and adjust the surcharge to reflect any changes that have occurred since the last adjustment.
(d)CA Harbors and Navigation Code § 1159.2(d) The board operations surcharge shall not represent a percentage significantly more than that required to support the board and any costs of the Transportation Agency related to the administration of the board pursuant to subdivision (a) in addition to the maintenance of a reasonable reserve.