N.Y. Navigation Law § 88: Pilotage at Sandy Hook, Sands Point or Execution Rocks; rates

§ 88. Pilotage at Sandy Hook, Sands Point or Execution Rocks; rates.

1. Every foreign vessel and every American vessel under register

entering or departing from the Port of New York by the way of Sandy Hook

or by the way of Sands Point or Execution Rocks, shall take a Sandy Hook

pilot licensed under the authority of this article or of the laws of the

state of New Jersey or a person heretofore licensed as a Hell Gate

pilot. Notwithstanding the provisions of this subdivision, recreational

vessels as defined in section 2101 (34) of title 46 of the United States

Code of less than two hundred feet in length may be exempted from the

compulsory state pilotage requirement at the discretion of the board of

commissioners of pilots. Whenever the services of such a pilot are

refused, the master, owners or consignees, shall pay pilotage as if one

had been employed. Such pilotage shall be paid to the pilot first

speaking or offering his services as pilot to such vessel. The pilotage

authorized to be collected whenever a pilot shall be refused by a vessel

shall be sued for and recovered in the name of the pilot tendering such

service. Such pilotage, when recovered, shall belong to and may be

retained by such pilot for his own benefit and use. Recreational vessels

as defined in section 2101 (34) of title 46 of the United States Code

may be exempted from the compulsory state pilotage requirement pursuant

to this subdivision at the discretion of the board of commissioners of

pilots.

2. It shall be unlawful for any person not licensed as a Sandy Hook

pilot under this article, or under the laws of the state of New Jersey

or a person heretofore licensed as a Hell Gate pilot, to pilot or offer

to pilot any foreign vessel or vessel from a foreign port or any vessel

sailing under register to or from the port of New York, by the way of

Sandy Hook or by the way of Sands Point or Execution Rocks, and it shall

likewise be unlawful for any master or person on board a tug or tow-boat

to tow such a vessel to or from the port of New York by the way of Sandy

Hook or by the way of Sands Point or Execution Rocks unless such vessel

shall have on board a Sandy Hook pilot licensed under this article or

under the laws of the state of New Jersey.

3. Violation of subdivision two of this section shall be a misdemeanor

punishable by a fine not exceeding one hundred dollars or by

imprisonment not exceeding sixty days. Any person employing such an

unlicensed person to act as pilot shall forfeit and pay the sum of one

hundred dollars to the board of commissioners of pilots.

4. (a) Every foreign vessel and every American vessel under register

entering or departing from the port of New York by the way of Sandy Hook

or by the way of Sands Point or Execution Rocks shall be subject to

pilotage fees, at the rates hereinafter specified, at the time of her

entrance or departure. If such pilot at the request of the master, owner

or consignee of any inbound vessel or at the request of the agent

entering such vessel at the port of New York anchors or moors such

vessel at any place inside of Sandy Hook or inside of Sands Point or

Execution Rocks, or if such vessel be detained at quarantine, the same

pilotage fees shall be payable and the pilot entitled to his discharge.

(b) The following scale of charges shall be applicable:

(1) Upon the effective date of this paragraph and thereafter:

(i) The following rate table shall be used to calculate pilotage fees

by multiplying total pilotage units per vessel by the designated factor,

then adding or subtracting the designated adjustment:

PILOTAGE UNITS FACTOR ADJUSTMENT

0 to 24.99 0 +455

25 to 49.99 0 +568

50 to 99.99 0 +710

100 to 299.99 7.65 -55

300 to 474.99 6.89 +173

475 and over 0.91 +3014

The pilotage fee charged shall be the fee calculated pursuant to the

rate table in this section plus seven and one-half (7.5%) percent of the

calculated fee.

(ii) On and after the date of receipt, by the board of commissioners

of pilots of a joint request from the united New York Sandy Hook pilots'

benevolent association and the united New Jersey Sandy Hook pilots'

benevolent association, pilotage fees shall be calculated pursuant to

this subparagraph. Such request shall be provided to the board of

commissioners of pilots within ten days of approval by the membership of

the united New York Sandy Hook pilots' benevolent association and the

united New Jersey Sandy Hook pilots' benevolent association of

amendments to the articles of association consistent with this

subparagraph on or before December thirty-first, two thousand six.

1. (A) (i) The following rate table shall be used to calculate base

pilotage tariffs:

PILOTAGE UNITS (P.U.) TARIFF

0 to 24.99 $900

25 to 49.99 $1060

50 to 99.99 $1309

100 to 499.99 $(13.19 x P.U.)

500 to 1649.99 $((P.U. - 500) x 1.77) + 6595

1650 and up $((P.U. - 1650) x 5.00) + 8726

(ii) Effective January first, two thousand twenty-seven, the following

rate table shall be used to calculate base pilotage tariffs:

0 to 24.99 $927

25 to 49.99 $1092

50 to 99.99 $1348

100 to 499.99 $(13.59 x P.U.)

500 to 1649.99 $((P.U. - 500) x 1.82) + 6793

1650 and up $((P.U. - 1650) x 5.15) + 8988

(iii) Effective January first, two thousand twenty-eight, the

following rate table shall be used to calculate base pilotage tariffs:

0 to 24.99 $946

25 to 49.99 $1114

50 to 99.99 $1386

100 to 499.99 $(14.41 x P.U.)

500 to 1649.99 $((P.U. - 500) x 1.92) + 7201

1650 and up $((P.U. - 1650) x 5.40) + 9438

(iv) Effective January first, two thousand twenty-nine, the following

rate table shall be used to calculate base pilotage tariffs:

0 to 24.99 $965

25 to 49.99 $1136

50 to 99.99 $1427

100 to 499.99 $(15.27 x P.U.)

500 to 1649.99 $((P.U. - 500) x 2.02) + 7633

1650 and up $((P.U. - 1650) x 5.65) + 9910

(v) Effective January first, two thousand thirty, the following rate

table shall be used to calculate base pilotage tariffs:

0 to 24.99 $984

25 to 49.99 $1159

50 to 99.99 $1470

100 to 499.99 $(16.19 x P.U.)

500 to 1649.99 $((P.U. - 500) x 2.12) + 8091

1650 and up $((P.U. - 1650) x 5.90) + 10406

(vi) Effective January first, two thousand thirty-one, the following

rate table shall be used to calculate base pilotage tariffs:

0 to 24.99 $1004

25 to 49.99 $1182

50 to 99.99 $1514

100 to 499.99 $(17.16 x P.U.)

500 to 1649.99 $((P.U. - 500) x 2.32) + 8576

1650 and up $((P.U. - 1650) x 6.15) + 10926

(vii) Effective January first, two thousand thirty-two, the following

rate table shall be used to calculate base pilotage tariffs:

0 to 24.99 $1024

25 to 49.99 $1206

50 to 99.99 $1559

100 to 499.99 $(18.19 x P.U.)

500 to 1649.99 $((P.U. - 500) x 2.42) + 9091

1650 and up $((P.U. - 1650) x 6.40) + 11472

(B) i. In addition to the base pilotage tariffs set forth in item (A)

of this subclause, there is hereby established a surcharge on every

foreign vessel and every American vessel under register entering or

departing from the port of New York by the way of Sandy Hook or by the

way of Sands Point or Execution Rocks. Such surcharge, as determined

quarterly by the Sandy Hook pilot's surcharge board, shall be imposed

for the exclusive purpose of the funding, on a sound actuarial basis,

the retirement benefits for Sandy Hook pilots', described below, and a

contribution per active Sandy Hook pilot equivalent to twelve percent of

each Sandy Hook pilot's earnings from service as a Sandy Hook pilot

based upon the base pilotage tariffs set forth in item (A) of this

subclause to fund a future pension, in whole or in part, or any other

replacement plan approved by the Sandy Hook pilots' surcharge board and

established from time to time for the benefit of Sandy Hook pilots as a

qualified plan under the Internal Revenue Code of 1986, as amended, as

more specifically described in subclause six of this clause. The amount

of the surcharge set forth herein shall not exceed the greater of

thirty-five percent of the sum of the base pilotage tariffs set forth in

item (A) of this subclause and the surcharge set forth in this

subparagraph; or seven million nine hundred thousand dollars

($7,900,000) in any calendar year.

ii. The Sandy Hook pilots' surcharge board shall consist of four

members. Such board shall be composed of the president of the board of

commissioners of pilots of the state of New York, or his designee from

the board of commissioners, the president of the united New York Sandy

Hook pilots benevolent association, or his designee who must be a member

of such association, the president of the board of commissioners of

pilots of the state of New Jersey, or his designee from the board of

commissioners, and the president of the United New Jersey Sandy Hook

pilots benevolent association, or his designee who must be a member of

such association. The president of the board of commissioners of pilots

of the state of New Jersey and the president of the United New Jersey

Sandy Hook pilots benevolent association may decline to be part of said

Board, whereupon the position shall be filled by a member of the board

of commissioners of pilots of New York so appointed by the president,

and/or a member of the United New York Sandy Hook pilots' benevolent

association so appointed by the president of the association. The fifth

member, if necessary, shall be appointed by a majority of the

aforementioned four members from a list submitted by the American

arbitration association from its lists of commercial arbitrators. If,

after submission of such list, a majority of the abovementioned four

members fail to agree upon a single arbitrator as the "fifth member",

then the American arbitration association shall be authorized to select

and submit the name of the "fifth member" for appointment. Such "fifth

member" shall be appointed within ten days of a deadlocked vote of the

Sandy Hook pilot surcharge board. Such aforementioned members shall vote

at meetings called upon written notice mailed seven calendar days in

advance of the meeting, to determine the rate of surcharge, assisted as

necessary by qualified actuaries or accountants, authorized hereby in

subitem i of this item during each calendar quarter in time sufficient

for such surcharge to be in effect on the following January first, April

first, July first, and October first of each year and as authorized in

paragraph (e) of this subdivision during each calendar year in time

sufficient for such surcharge to be in effect on the following July

first of each year. When the Sandy Hook pilot surcharge board is

operating as authorized in paragraph (e) of this subdivision, an

additional member, appointed by the governor to represent the interests

of the shipping industry shall serve on the board. Such additional

member, upon appointment by the governor, shall serve in such capacity

at the pleasure of the governor and until a replacement is appointed by

the governor. Written notice of meetings may be waived if done so with

unanimous consent of all board members. Members of the Sandy Hook pilot

surcharge board shall be subject to section seventeen of the public

officers law.

iii. The amount of the surcharge described in subitem i of this item

on the date pilotage rates are computed pursuant to subitem ii of this

item shall be:

PILOTAGE UNITS TARIFF

0 to 24.99 $150.60

25 to 49.99 $179.00

50 to 99.99 $220.50

100 to 299.99 $((2.37x P.U.)-15

300 to 474.99 $((2.14x P.U.)+53)

475 and up $((0.29x P.U.)+935)

(C) The scale of charges set forth in this clause is deemed a pilotage

fee and shall be subject to the provisions of section ninety-five of

this article.

(D) Every foreign vessel and every American vessel under register

entering or departing from the Port of New York by the way of Sandy Hook

or by the way of Sands Point or Execution Rocks making more than ten

port calls per month shall receive a discount of fifty percent of the

charges set forth in items (A) and (B) of this subclause for each port

call in excess of ten. This discount is to be calculated for each

calendar month.

2. (A) All retirement assets shall be used exclusively to pay a yearly

target retirement benefit to (aa) Sandy Hook pilots active on the date

pilotage rates are computed pursuant to this clause and thereafter, upon

retirement on or after the age of sixty, or sick retirement; (bb)

retired pilots or pilots receiving sick retirement benefits on the date

of adoption; and (cc) to surviving spouses of pilots, as provided for

below.

(B) No individual other than those specified in item (A) of this

subclause shall be eligible for benefits pursuant to the surcharge

described in subitem i of item (B) of subclause one of this clause

without the approval of the Sandy Hook pilots' surcharge board.

(C) The funds generated by the surcharge imposed by subitem i of item

(B) of subclause one of this clause and item (A) of subclause one of

this clause shall be administered by the joint board of trustees, or any

successors thereto, of the united New York Sandy Hook pilots' benevolent

association and the united New Jersey Sandy Hook pilots' benevolent

association, or any successors thereto.

(D) The surcharges pursuant to subitem i of item (B) of subclause one

of this clause and item (A) of subclause one of this clause, shall be

collected by the agent of the Sandy Hook pilots. Funds generated for

these purposes shall be audited annually by the Surcharge Board to

ensure proper funding for the purposes set forth in subitem i of item

(B) of subclause one of this clause.

3. (A) Each Sandy Hook pilot active on the date pilotage rates are

computed pursuant to this clause who retires or becomes eligible for

sick retirement benefits shall receive, a target yearly benefit computed

as a single life annuity, initially equal to fifty percent (50%) of the

amount which is equal to the highest earnings from service as a full

branch Sandy Hook pilot based upon the base pilotage tariffs set forth

in item (A) of subclause one of this clause during the last three full

calendar years of service as an active Pilot prior to retirement,

reduced as provided in subclause six of this clause and adjusted as

provided in subclause seven of this clause.

(B) Each retired Sandy Hook pilot and each Sandy Hook pilot receiving

sick retirement benefits on or after the date pilotage rates are

computed pursuant to this clause shall receive a target yearly benefit

computed as a single life annuity, initially equal to fifty percent of

the amount which is equal to the highest earnings from service of a full

branch Sandy Hook pilot during calendar year nineteen hundred

ninety-four as an active pilot, reduced by the amount determined for

such year by the joint board of trustees to be set aside for each active

Sandy Hook pilot's retirement, and adjusted as provided in subclause

seven of this clause.

(C) Each Sandy Hook pilot who first entered service as a Sandy Hook

pilot after the date pilotage rates are computed pursuant to this

clause, shall participate in such qualified retirement program as

adopted by each such pilot and funded by such portion of the surcharge

allocated thereto by the surcharge board to provide a contribution of an

amount equivalent to twelve percent of the earnings from service as an

active Sandy Hook pilot based upon the base pilotage tariffs set forth

in item (A) of subclause one of this clause. Such amount shall be

transferred directly by the agent to such pilot's retirement account, it

being understood that such pilot's entire retirement benefit will be

provided solely by the account balance of such retirement account on the

date of retirement. In addition, such surcharge shall be used to

purchase life and disability insurance coverage from an insurance

company selected by the joint board of trustees. Such disability

insurance shall provide a disability benefit computed as a single life

annuity, equal to fifty percent (50%) of the amount which is equal to

such pilot's earnings from service as an active Sandy Hook pilot based

upon the base pilotage tariffs set forth in item (A) of subclause one of

this clause during the last full calendar year of service as an active

Sandy Hook pilot prior to disability, until the age of sixty. In the

event such disability insurance is unavailable, each such pilot eligible

for sick retirement benefits shall receive, a target yearly benefit

computed as a single life annuity equal to the sum of ten percent of the

amount which is equal to the earnings from service as an active Sandy

Hook pilot based upon the base pilotage tariffs set forth in item (A) of

subclause one of this clause during the last full calendar year of

service as an active Sandy Hook pilot prior to disability and one and

sixth-tenth percent (1.6%) for each year of service after the first year

to a maximum of fifty percent of the amount which is equal to the

earnings from service as an active Sandy Hook pilot based upon the base

pilotage tariffs set forth in item (A) of subclause one of this clause

during the last full calendar year of service as an active Sandy Hook

pilot prior to disability, until the age of sixty.

4. (A) A Sandy Hook pilot eligible for benefits set forth in item (A)

of subclause three of this clause who retires, shall not be entitled to

commence receiving benefits until the commencement of the benefit

payment period next following the date on which such pilot retired or

became eligible for sick retirement benefits. For accounting purposes,

the benefit payment periods shall consist of a full calendar quarter

commencing on January first, April first, July first, and October first

of each year, but the first payments of benefits shall be made during

the months of March, June, September, and December.

(B) No retired Sandy Hook pilot shall commence receiving benefits

until a properly completed resignation as an active pilot specifying a

proposed date of retirement has been submitted in writing to the

appropriate board of trustees, or successor thereto, prior to November

first, if retirement is to become effective on the first day of the

following January; prior to February first, if retirement is to become

effective on the first day of the following April; prior to May first,

if retirement is to become effective on the first day of the following

July; and, prior to August first, if retirement is to become effective

on the first day of the following October.

(C) For the purpose of the computations described in item (A) of

subclause three of this clause service by a pilot of more than six

months of such pilot's last calendar year as an active pilot shall be

considered a full calendar year.

(D) If a retired Sandy Hook pilot or a Sandy Hook pilot receiving sick

retirement benefits dies without a surviving spouse, the balance of the

target yearly pension benefit for the remainder of the benefit payment

period shall be paid to the deceased pilot's estate or designated

beneficiary after which all rights to benefits shall terminate.

5. (A) The surviving spouse of a Sandy Hook pilot described in item

(A) of subclause three of this clause who dies while in active service

shall receive a target yearly pension benefit equal to fifty percent of

the amount which such deceased pilot would have received under item (A)

of subclause three of this clause had retirement immediately preceded

the date of death, reduced as provided in subclause six of this clause

and adjusted as provided in subclause seven of this clause.

(B) With respect to Sandy Hook pilots described in items (A) and (B)

of subclause three of this clause, the surviving spouse of a deceased

retired Sandy Hook pilot or a deceased Sandy Hook pilot receiving sick

retirement benefits on the date of death, shall receive a target yearly

benefit equal to the deceased pilot's benefit for the remainder of the

benefit payment period in which death occurred, and thereafter fifty

percent (50%) of the amount received by the deceased pilot on the date

of death, adjusted as provided in subclause seven of this clause.

(C) Upon the death of the surviving spouse of a deceased Sandy Hook

pilot who was receiving benefits, the balance of the target yearly

pension benefit for the remainder of the benefit payment period shall be

paid to the deceased surviving spouse's estate or designated beneficiary

after which all rights to benefits shall terminate.

6. The united New York Sandy Hook pilots' benevolent association and

the united New Jersey Sandy Hook pilots' benevolent association, or any

successors thereto, or the pilots individually shall adopt such other

money purchase qualified plans under the Internal Revenue Code of 1986,

as amended, as approved by the Sandy Hook pilots' surcharge board, the

present value of the aggregate contributions thereto provided through

funding under subitem i of item (B) of subclause one of this clause,

adjusted annually on January first of each year to reflect the average

thirty year treasury bond rate for the prior calendar year plus fifty

basis points and then restated as a single life annuity, shall offset

(but not below zero) upon retiring from service as an active Sandy Hook

pilot on or after the age of sixty, or upon attaining the normal

retirement age of sixty years for those pilots receiving a sick

retirement benefit, the target yearly pension benefits payable under the

plan from time to time to each beneficiary.

7. The joint board of trustees or any committee appointed thereby

shall adjust the benefits described in items (A) and (B) of subclause

three of this clause by not more than one-half of the cumulative

adjustment in the "Consumer Price Index - All Urban Consumers - (CPI-U)

N.Y. - Northern N.J. - Long Island, NY-NJ-CT - All Items" on the earlier

of each third anniversary of the date pilotage rates are computed

pursuant to this subparagraph or the date on which such consumer price

index increases by an increment of more than twelve percent (12%) from

the level in effect on the date (aa) pilotage rates are computed

pursuant to this subclause, or (bb) of any subsequent adjustment to such

rates. These adjustments shall take place for a period of fifteen years

from the date pilotage rates are computed pursuant to this subclause

with respect to pilots described in item (B) of subclause three of this

clause and for a period of fifteen years from the date of retirement

with respect to pilots described in item (A) of subclause three of this

clause. Adjustments granted to retired pilots or their surviving spouses

retired less than the full three year interval between adjustments shall

have such adjustments pro-rated to the number of months they have been

retired prior to such adjustment. The determination by the joint board

of trustees or any committee appointed thereby of the amount of such

adjustment shall be final.

8. In the event that in any calendar year the surcharge described in

subitem i of item (B) of subclause one of this clause is subject to the

limitation set forth in such subitem i the benefits payable under items

(A), (B) and (C) of subclause three of this clause, items (A), (B) and

(C) of subclause five of this clause and subclause six of this clause

and the portion of the surcharge allocable thereto, shall be reduced

pro-rata. However, in the event of such pro-rata reduction, the joint

board of trustees shall arrange to fund out of the base pilotage tariffs

set forth in item (A) of subclause one of this clause the twelve percent

contribution level contemplated in subitem i of item (B) of subclause

one of this clause. The joint board of trustees shall determine the

amount of such reductions and the amount of such funding out of base

pilotage tariffs, which determinations shall be final.

9. The joint board of trustees may, from time to time, adopt such

regulations as are deemed appropriate to implement the provisions of

this clause.

(2) "Pilotage Units" as used in this subdivision shall be determined

by multiplying the overall length of the vessel by the extreme breadth

by the depth to the uppermost continuous deck and dividing the total by

ten thousand, as expressed by the following formula:

Overall Length x Extreme Breadth x Depth

to Uppermost Continuous Deck

________________________________________

10,000

equals Pilotage Units

(c) Definitions. "Overall length" is the distance between the forward

and after extremities of the vessel.

"Extreme breadth" is the maximum breadth to the outside of the shell

plating of the vessel.

"Depth" is the vertical distance at amidships from the top of the keel

plate to the uppermost continuous deck, fore and aft, and which extends

to the sides of the vessel. The continuity of a deck shall not be

considered to be affected by the existence of openings, including but

not limited to tonnage openings, engine spaces or a step in the deck.

All measurements shall be in feet and inches (U.S.).

The board of commissioners of pilots shall be the sole arbiter with

respect to a question concerning these definitions. The decision by the

board shall be final.

(d) The measurements of overall length, extreme breadth, and depth, as

previously defined, shall be made available to the pilot by the master

or his agent for the purpose of computation of pilotage fees. Failure to

provide the measurements so required shall subject the vessel to the

maximum pilotage charge.

(e) There is hereby created a segregated fund to be known as the

capital expense fund. Such segregated fund shall be initially funded by

the increase in the base pilotage tariff as set forth in item (A) of

subclause one of clause (ii) of subparagraph one of paragraph (b) of

this subdivision by not more than seventy-five dollars per ship. Such

surcharge, upon annual review and approval of the Sandy Hook pilots

surcharge board, shall be imposed and used for the purposes of funding,

after the payment of reasonable and necessary expenses, capital

expenditures including: the payment of outstanding debt related to the

reengining of the pilot boat Sandy Hook; the payment of outstanding debt

related to the rebuilding of the bulkhead and pier at the Sandy Hook

Pilot base at Staten Island, New York; the payment of outstanding debt

related to and the extraordinary repairs to the pilot boat New York; to

secure four new pilot launches; and to fund all extraordinary capital

expenses (those beyond normal operating expenses) approved by the

surcharge board along with portable DGPS pilot units, if deemed

appropriate by the surcharge board.

Such surcharge may fund similar future expenditures upon annual review

and approval of the Sandy Hook pilot surcharge board. The surcharge

board may set the rate not to exceed three hundred dollars per ship. The

surcharge board is hereby authorized to reduce or suspend payment of the

surcharge set forth herein to take into account any monies dedicated or

awarded to the pilot capital needs from sources other than the tariff

and surcharges set forth in this article.