A03226 Summary:

BILL NOA03226
 
SAME ASNo same as
 
SPONSORCanestrari
 
COSPNSR
 
MLTSPNSR
 
Amd S89-a, Nav L
 
Creates the Hudson River pilots surcharge board; provides that the board shall determine the rate of surcharge to be applied and benefits provided to Hudson River pilots.
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A03226 Actions:

BILL NOA03226
 
01/24/2011referred to transportation
01/04/2012referred to transportation
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A03226 Floor Votes:

There are no votes for this bill in this legislative session.
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A03226 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3226
 
                               2011-2012 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 24, 2011
                                       ___________
 
        Introduced  by  M.  of  A.  CANESTRARI  -- read once and referred to the
          Committee on Transportation
 
        AN ACT to amend the navigation law, in relation to  the  creation  of  a
          Hudson River pilots surcharge board
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 

     1    Section 1. Paragraph (b) of subdivision 4 of section 89-a of the navi-
     2  gation law is amended by adding two new subparagraphs  1-b  and  1-c  to
     3  read as follows:
     4    (1-b)  There  is  hereby created a Hudson River pilots surcharge board
     5  which shall determine the rate of the surcharge provided in subparagraph
     6  one-c of this paragraph. The surcharge board shall determine eligibility
     7  for benefits pursuant to subdivisions five and seven of this section.
     8    The Hudson River pilots surcharge board shall consist of  two  members
     9  as follows: the president of the board of commissioners of pilots of the
    10  state  of New York, or his or her designee from the board of commission-
    11  ers, and the president of the Hudson River pilots association, or his or

    12  her designee who must be a member of such association. In the event  the
    13  two  members  cannot  reach  a  decision  on the surcharge rate, a third
    14  member shall be appointed by the two members from a  list  submitted  by
    15  the  American Arbitration Association from its lists of commercial arbi-
    16  trators. If, after submission of such a list, the  two  members  of  the
    17  board  fail  to agree upon a single arbitrator as the third member, then
    18  the American Arbitration Association shall be authorized to  select  and
    19  submit  the  name of the third member for appointment. Such third member
    20  shall be appointed within ten days of a deadlocked vote  of  the  Hudson
    21  River  pilot surcharge board. Such members shall vote at meetings called

    22  upon written notice mailed seven calendar days in advance of  the  meet-
    23  ing, to determine the rate of surcharge, assisted as necessary by quali-
    24  fied  actuaries or accountants, authorized in clause (i) of subparagraph
    25  one-c of this paragraph during each calendar quarter in time  sufficient
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06074-01-1

        A. 3226                             2
 
     1  for such surcharge to be in effect on the following January first, April
     2  first,  July  first,  and October first of each year.  Written notice of

     3  meetings may be waived if done so with unanimous consent  of  all  board
     4  members.  Members  of  the  Hudson  River pilot surcharge board shall be
     5  subject to section seventeen of the public officers law.
     6    (1-c) (i) In addition to the base pilotage charge set forth in subpar-
     7  agraph one of this paragraph, there is hereby established a surcharge on
     8  every foreign vessel and every American vessel under register navigating
     9  that portion of  the  Hudson  River  specified  in  this  section.  Such
    10  surcharge,  as determined quarterly by the Hudson River pilots surcharge
    11  board, shall be imposed for the exclusive purpose of the funding,  on  a
    12  sound  actuarial basis, the retirement benefits for Hudson River pilots,

    13  described in clause (ii) of this subparagraph.
    14    (ii) The amount of the surcharge  described  in  clause  (i)  of  this
    15  subparagraph on the date pilotage rates are computed shall not exceed:
 
    16  PILOTAGE UNITS       SURCHARGE
    17  0 to 50              $222.44
    18  51 to 100            $268.00
    19  over 100             $2.68 per pilot unit
 
    20  during the first twelve months after the effective date of this
    21  subparagraph.
    22    The amount of the surcharge described in clause (i) of this subparagraph
    23  on the date pilotage rates are computed shall not exceed:
 
    24  PILOTAGE UNITS       SURCHARGE
    25  0 to 50              $371.01

    26  51 to 100            $447.00
    27  over 100             $4.47 per pilot unit
 
    28  during  the  period  beginning with the thirteenth month and ending with
    29  the twenty-fourth month after the effective date of this subparagraph.
    30    The amount of the surcharge described in clause (i) of  this  subpara-
    31  graph on the date pilotage rates are computed shall not exceed:
 
    32  PILOTAGE UNITS       SURCHARGE
    33  0 to 50              $499.66
    34  51 to 100            $602.00
    35  over 100             $6.02 per pilot unit
 
    36  during the period beginning with the twenty-fourth month and ending with
    37  the thirty-sixth month after the effective date of this subparagraph.

    38    (iii)  Following  the  thirty-sixth  month after the effective date of
    39  this subparagraph, the amount of the  surcharge  as  determined  by  the
    40  surcharge  board  shall not exceed the greater of thirty-five percent of
    41  the sum of the base pilotage charges set forth in  subparagraph  one  of
    42  this  paragraph for Section 2, Upper River; Yonkers, to all ports beyond
    43  Hyde Park through Albany or Troy, as amended; or nine  hundred  thousand
    44  dollars in any calendar year.
    45    (iv)  The  scale of charges set forth in this subparagraph is deemed a
    46  pilotage fee and shall be subject to the provisions of  section  ninety-
    47  five of this article.
    48    (v)  (A)  The  proceeds  of the surcharge provided for in this section

    49  shall be deposited in an account maintained by the Hudson  River  pilots
    50  association for the benefit of Hudson River pilots eligible for benefits

        A. 3226                             3
 
     1  as  provided  in  this section, from which account all such benefits and
     2  the reasonable expenses for administration thereof shall  be  paid.  The
     3  monies  on deposit in such account shall be referred to hereafter as the
     4  "retirement assets". The retirement assets shall be used to pay a yearly
     5  target  retirement benefit to (I) Hudson River pilots active on the date
     6  pilotage rates are computed pursuant to this subparagraph and  thereaft-
     7  er,  upon retirement on or after the age of sixty, or disability retire-

     8  ment; (II) retired Hudson River pilots or Hudson River pilots  receiving
     9  disability  retirement  benefits  on  the date of adoption; and (III) to
    10  surviving spouses of pilots, retired pilots or pilots receiving disabil-
    11  ity retirement as provided for below.
    12    (B) Hudson River pilots who are also Sandy Hook  pilots  eligible  for
    13  benefits  under item (B) of subclause one of clause (ii) of subparagraph
    14  one of paragraph (b) of subdivision four of section eighty-eight of this
    15  article shall be excluded  from  receiving  any  benefits  specified  in
    16  subdivision five of this section.
    17    (C)  No individual other than those specified in subclause (A) of this
    18  clause  shall  be  eligible  for  benefits  pursuant  to  the  surcharge

    19  described in clause (i) of this subparagraph without the approval of the
    20  Hudson River pilots surcharge board.
    21    (D) The funds generated by the surcharge imposed by clause (i) of this
    22  subparagraph  shall  be  administered  by the executive committee of the
    23  Hudson River pilots association, or any successors thereto.
    24    (E) The surcharges pursuant to clause (i) of this  subparagraph  shall
    25  be  collected  by  the agent of the Hudson River pilots. Funds generated
    26  for these purposes shall be audited annually by the surcharge  board  to
    27  ensure  proper  funding for the purposes set forth in clause (i) of this
    28  subparagraph.
    29    § 2. Section 89-a of the navigation law is amended by adding seven new
    30  subdivisions 5, 6, 7, 8, 9, 10 and 11 to read as follows:

    31    5. (a)(1) Each Hudson River pilot active on the  date  pilotage  rates
    32  are  computed  pursuant  to  this  section who retires after twenty-five
    33  years of service and after reaching  sixty  years  of  age,  or  becomes
    34  eligible  for  disability  retirement  benefits,  shall receive a target
    35  yearly benefit computed as a single life  annuity,  initially  equal  to
    36  fifty  percent  of the amount which is equal to the highest annual earn-
    37  ings from service as a full branch Hudson River  pilot  based  upon  the
    38  pilotage  charges  set  forth  in  subparagraph  one of paragraph (b) of
    39  subdivision four of this section during the  last  three  full  calendar
    40  years  of  service  as  an  active  pilot prior to retirement reduced as

    41  provided in subdivision nine of this section and adjusted as provided in
    42  subdivision eight of this section.
    43    (2) A Hudson River  pilot  active  on  the  date  pilotage  rates  are
    44  computed  pursuant  to  this section who retires or becomes eligible for
    45  disability retirement benefits after reaching sixty-five  years  of  age
    46  and  after thirty years of service as a Hudson River pilot shall receive
    47  a target yearly benefit computed as a  single  life  annuity,  initially
    48  equal to sixty percent of the amount which is equal to the highest annu-
    49  al  earnings from service as a full branch Hudson River pilot based upon
    50  the pilotage charges set forth in subparagraph one of paragraph  (b)  of

    51  subdivision  four  of  this  section during the last three full calendar
    52  years of service as an active pilot prior  to  retirement  reduced    as
    53  provided in subdivision nine of this section and adjusted as provided in
    54  subdivision eight of this section.
    55    (b)(1)  Each  retired  Hudson  River pilot and each Hudson River pilot
    56  receiving disability retirement benefits on or after the  date  pilotage

        A. 3226                             4
 
     1  rates are computed pursuant to this section shall receive a target year-
     2  ly  benefit  computed as a single life annuity, initially equal to fifty
     3  percent of the highest annual earnings from service  as  a  full  branch
     4  Hudson  River  pilot  based  upon the base pilotage charges set forth in

     5  subparagraph one of paragraph (b) of subdivision four  of  this  section
     6  during  the last three full calendar years of service as an active pilot
     7  prior to retirement reduced as provided  in  subdivision  nine  of  this
     8  section and adjusted as provided in subdivision eight of this section.
     9    (2)  Each  retired  Hudson  River  pilot  and  each Hudson River pilot
    10  receiving disability retirement benefits who retired or became  eligible
    11  for  disability  retirement  benefits after reaching sixty-five years of
    12  age and after thirty years of service as a  Hudson  River  pilot  on  or
    13  after  the  date  pilotage  rates  are computed pursuant to this section
    14  shall receive a target yearly benefit computed as a single life annuity,

    15  initially equal to sixty percent of the  highest  annual  earnings  from
    16  service as a full branch Hudson River pilot based upon the base pilotage
    17  charges  set  forth  in subparagraph one of paragraph (b) of subdivision
    18  four of this section during  the  last  three  full  calendar  years  of
    19  service  as  an  active pilot prior to retirement reduced as provided in
    20  subdivision nine of this section and adjusted as provided in subdivision
    21  eight of this section.
    22    (c) The benefits described in paragraph (b) of this subdivision  shall
    23  only  be  available  to retired Hudson River pilots who retired prior to
    24  the year nineteen hundred ninety during the first  twelve  months  after
    25  the  effective  date  of this paragraph. The benefits described in para-

    26  graph (b) of this subdivision shall be available to all  retired  Hudson
    27  River  pilots who retired prior to the year two thousand after the first
    28  twelve months from the effective date of this paragraph.   The  benefits
    29  described in paragraph (b) of this subdivision shall be available to all
    30  retired  Hudson  River  pilots and pilots on disability retirement after
    31  the first twenty-four months from the effective date of this paragraph.
    32    6. (a) A Hudson River pilot eligible for benefits set forth in  subdi-
    33  vision  five  of  this  section,  who  retires, shall not be entitled to
    34  commence receiving  benefits  until  the  commencement  of  the  benefit
    35  payment  period  next  following the date on which such pilot retired or

    36  became eligible  for  disability  retirement  benefits.  For  accounting
    37  purposes,  the  benefit payment periods shall consist of a full calendar
    38  quarter commencing on January first, April first, July first, and  Octo-
    39  ber first of each year, but the first payments of benefits shall be made
    40  during the months of March, June, September, and December.
    41    (b)  No  active  Hudson  River pilot shall commence receiving benefits
    42  until a properly completed resignation as an active pilot  specifying  a
    43  proposed  date of retirement has been submitted in writing to the Hudson
    44  River pilots executive committee, or successor thereto, prior to  Novem-
    45  ber  first, if retirement is to become effective on the first day of the

    46  following January; prior to February first, if retirement is  to  become
    47  effective  on  the first day of the following April; prior to May first,
    48  if retirement is to become effective on the first day of  the  following
    49  July;  and,  prior to August first, if retirement is to become effective
    50  on the first day of the following October.
    51    (c) For the purpose of the computations described in subdivision  five
    52  of  this  section,  service  by  a pilot of more than six months of such
    53  pilot's last calendar year as an active pilot shall be considered a full
    54  calendar year.
    55    (d) If a retired Hudson River pilot or a Hudson River pilot  receiving
    56  disability  retirement  benefits  dies  without  a surviving spouse, the


        A. 3226                             5
 
     1  balance of the target yearly pension benefit for the  remainder  of  the
     2  benefit  payment  period shall be paid to the deceased pilot's estate or
     3  designated beneficiary after which  all  rights  to  benefits  shall  be
     4  terminated.
     5    7.  (a)  The  surviving  spouse  of  a Hudson River pilot described in
     6  subdivision five of this section who dies while in active service  shall
     7  receive  a  target  yearly pension benefit equal to fifty percent of the
     8  amount which such deceased pilot would have received  under  subdivision
     9  five  of  this  section  had retirement immediately preceded the date of
    10  death, reduced as provided in  subdivision  nine  of  this  section  and

    11  adjusted as provided in subdivision eight of this section.
    12    (b)  With respect to Hudson River pilots described in subdivision five
    13  of this section, the surviving spouse of a deceased retired Hudson River
    14  pilot or a deceased Hudson River pilot receiving  disability  retirement
    15  benefits  on  the  date  of death, shall receive a target yearly benefit
    16  equal to the deceased pilot's benefit for the remainder of  the  benefit
    17  payment  period in which death occurred, and thereafter fifty percent of
    18  the amount received by the deceased pilot on the date of death,  reduced
    19  as provided in subdivision nine of this section and adjusted as provided
    20  in subdivision eight of this section.
    21    (c)  Upon the death of the surviving spouse of a deceased Hudson River

    22  pilot who was receiving benefits,  the  balance  of  the  target  yearly
    23  pension benefit for the remainder of the benefit payment period shall be
    24  paid to the deceased surviving spouse's estate or designated beneficiary
    25  after which all rights to benefits shall terminate.
    26    8.  The Hudson River pilots surcharge board or any committee appointed
    27  thereby shall adjust the benefits described in subdivision five of  this
    28  section  by  not  more than one-half of the cumulative adjustment in the
    29  "Consumer  Price   Index-All   Urban   Consumers-(CPI-U)   N.Y.-Northern
    30  N.J.-Long Island, NY-NJ-CT-All Items" on the earlier of each third anni-
    31  versary  of  the effective date of this subdivision or the date on which

    32  such consumer price index increases by an increment of more than  twelve
    33  percent  from  the level in effect on the date (a) this subdivision took
    34  effect, or (b) of any subsequent adjustment to such rates. These adjust-
    35  ments shall take place for a period of fifteen years from the  effective
    36  date  of  this subdivision with respect to pilots described in paragraph
    37  (b) of subdivision five of this section and  for  a  period  of  fifteen
    38  years  from  the  date of retirement with respect to pilots described in
    39  paragraph (a) of subdivision five of this section.  Adjustments  granted
    40  to  retired pilots or their surviving spouses retired less than the full
    41  three year interval between  adjustments  shall  have  such  adjustments

    42  pro-rated  to  the number of months they have been retired prior to such
    43  adjustment. The determination by the surcharge board, or  any  committee
    44  appointed thereby, of the amount of such adjustment shall be final.
    45    9.  In  the event that in any calendar year the surcharge described in
    46  subparagraph one-c of paragraph (b) of subdivision four of this  section
    47  is  subject  to  the limitation set forth in such subparagraph one-c the
    48  benefits payable under paragraphs (a) and (b)  of  subdivision  five  of
    49  this  section  and  subdivision seven of this section and the portion of
    50  the surcharge allocable thereto, shall be reduced on a  pro-rata  basis.
    51  The  Hudson  River pilots' surcharge board shall determine the amount of

    52  such reductions which determinations shall be final.
    53    10. Pilots eligible for benefits as provided  in  this  section  shall
    54  have ninety days to choose to enroll in the retirement benefit described
    55  in  subdivision five of this section commencing from the date that indi-
    56  vidual becomes eligible to receive such benefits.  Pilots  eligible  for

        A. 3226                             6
 
     1  benefits  as provided in this section who retire from active service and
     2  choose to enroll in the retirement benefit described in subdivision five
     3  of this section shall not be eligible to receive  any  other  retirement
     4  benefit  from  the  Hudson  River  pilots  association.  The decision to

     5  enroll, or decline to enroll, in the  benefit  provided  in  subdivision
     6  five  of  this  section  shall be irrevocable after ninety days from the
     7  date that individual shall become eligible to receive such benefit.
     8    11. A "Hudson River pilot" for the purposes of this section is defined
     9  as an individual holding a license to act as Hudson River pilot for  the
    10  waters of the Hudson River north of a line running from the foot of Main
    11  Street  in  Yonkers  to Alpine, New Jersey and south of the dam at Troy,
    12  issued by the board of commissioners of pilots of the state of New York.
    13  A "retired Hudson River pilot" for the purposes of  this  section  is  a
    14  pilot who retired from active service in the Hudson River pilots associ-

    15  ation.  A "Hudson River pilot on disability retirement" for the purposes
    16  of this section is defined as a pilot who became disabled by accident or
    17  sickness, and was certified as disabled by a  physician  chosen  by  the
    18  Hudson River pilots association, after a minimum of twenty-five years of
    19  service in the Hudson River pilots association.
    20    §  3.  This  act shall take effect on the ninetieth day after it shall
    21  have become a law.
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