PILOTAGE COMMISSIONERS

[Filed July 25, 2019, 8:01 a.m.]

Preproposal statement of inquiry was filed as WSR 19-11-115.

Title of Rule and Other Identifying Information: WAC 363-116-301 New revenue collection.

Hearing Location(s): On September 19, 2019, at 10:00 a.m., at 2901 Third [3rd] Avenue, 1st Floor, Agate Conference Room, Seattle, WA 98121.

Date of Intended Adoption: September 19, 2019.

Submit Written Comments to: Sheri J. Tonn, Chair, 2901 Third [3rd] Avenue, Suite 500, email BeverJ@wsdot.wa.gov, fax 206-515-3906, by September 16, 2019.

Assistance for Persons with Disabilities: Contact Jolene Hamel, phone 206-515-3904, fax 206-515-3906, email HamelJ@wsdot.wa.gov, by September 16, 2019.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The purpose of this filing is to comply with legislative intent, through the passage of ESHB 1160, which stipulates certain conditions in order for the board of pilotage commissioners (BPC) to receive state appropriation from the pilotage account solely for self-insurance liability premium expenditures. This revised rule defines these two stipulated conditions.

Reasons Supporting Proposal: Revising the mechanisms already in place to collect the revenue needed to pay the self-insurance liability premium expenditures is necessary in order for BPC to show compliance with legislative intent thus prompting the state to transfer the funds from the pilotage account. Without the fund sources allocated by ESHB 1160, the agency would be in financial crisis, putting BPC's mission to ensure against the loss of lives, loss of or damage to property and vessels, and to protect the marine environment by maintaining efficient and competent pilotage services, in jeopardy.

Statutory Authority for Adoption: Chapter 88.16 RCW.

Rule is necessary because of state court decision, Katharine Sweeney vs. BPC, Cause Number 11-2-36792-4SEA in King County Superior Court and Joint Motion to Dismiss the Appeal in Cause No. 72664-1 in the Washington County [Court] of Appeals.

Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: BPC's self-insurance liability premium is comprised of monetary contributions from BPC, Puget Sound pilots, and those vessels taking pilots in the Puget Sound pilotage district. This revised rule enforces the collection of revenue from all participants.

Name of Proponent: BPC, governmental.

Name of Agency Personnel Responsible for Drafting and Implementation: Jaimie C. Bever, Seattle, Washington, 206-515-3887; and Enforcement: Board of Pilotage Commissioners, Seattle, Washington, 206-515-3904.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328. RCW 34-05-328 does not apply to the adoption of these rules. BPC is not a listed agency in RCW 34.05.328 (5)(a)(i).

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under chapter 88.16 RCW.

Explanation of exemptions: This was a legislative mandate. The application of the proposed language is clear in the description of the proposal and its anticipated effects as well as the proposed revised WAC language.

AMENDATORY SECTION(Amending WSR 17-20-009, filed 9/22/17, effective 10/23/17)

WAC 363-116-301New revenue collection.

With respect to the passage of Engrossed ((Senate Bill No. 5096))Substitute House Bill No. 1160, Section 108, the board of pilotage commissioners is appropriated ((one million one hundred thousand))three million one hundred twenty-five thousand dollars from the ((multimodal transportation))pilotage account state appropriation solely for self-insurance liability premium expenditures. This appropriation is contingent upon ((three))two stipulated conditions:

(1) The Puget Sound pilots shall pay to the board, from its tariffs, one hundred fifty thousand dollars annually on July 1, ((2017))2019, and July 1, ((2018))2020. These amounts shall be deposited by the board into the pilotage account and used solely for the expenditure of self-insurance premiums; and

(2) ((The board shall maintain the Puget Sound pilotage district pilotage tariff at the rate which became effective on January 1, 2017; and

(3))) A self-insurance premium surcharge of sixteen dollars shall be added to each Puget Sound pilotage assignment on all vessels requiring pilotage in the Puget Sound pilotage district. The Puget Sound pilots shall remit the total amount of such surcharges generated to the board by the tenth of each month. The surcharge shall be in effect from July 1, ((2017))2019, through June 30, ((2019))2021. These amounts shall be in addition to those fees to be paid to the board pursuant to subsection (1) of this section and shall be deposited by the board into the pilotage account solely for the expenditure of self-insurance premiums.

These ((three))two directives are in effect beginning May ((18, 2017))16, 2019, through June 30, ((2019))2021.