New York Navigation Law Section 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. 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.

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 $733

25 to 49.99 $861

50 to 99.99 $1063

100 to 499.99 $(10.72 x P.U.)

500 and up $((P.U. - 500) x 1.44) + 5360

(ii) Effective January first, two thousand eighteen, the following rate table shall be used to calculate base pilotage tariffs:

0 to 24.99 $740

25 to 49.99 $870

50 to 99.99 $1074

100 to 499.99 $(10.83 x P.U.)

500 to 1649.99 $((P.U. - 500) x 1.45) + 5414

1650 and up $((P.U. - 1650) x 3.47) + 7155

(iii) Effective January first, two thousand nineteen, the following rate table shall be used to calculate base pilotage tariffs:

0 to 24.99 $747

25 to 49.99 $879

50 to 99.99 $1085

100 to 499.99 $(10.94 x P.U.)

500 to 1649.99 $((P.U. - 500) x 1.46) + 5468

1650 and up $((P.U. - 1650) x 3.50) + 7227

(iv) Effective January first, two thousand twenty, the following rate table shall be used to calculate base pilotage tariffs:

0 to 24.99 $762

25 to 49.99 $897

50 to 99.99 $1107

100 to 499.99 $(11.16 x P.U.)

500 to 1649.99 $((P.U. - 500) x 1.49) + 5577

1650 and up $((P.U. - 1650) x 3.57) + 7372

(v) Effective January first, two thousand twenty-one, the following rate table shall be used to calculate base pilotage tariffs:

0 to 24.99 $777

25 to 49.99 $915

50 to 99.99 $1129

100 to 499.99 $(11.38 x P.U.)

500 to 1649.99 $((P.U. - 500) x 1.52) + 5689

1650 and up $((P.U. - 1650) x 3.64) + 7519

(vi) Effective January first, two thousand twenty-two, the following rate table shall be used to calculate base pilotage tariffs:

0 to 24.99 $800

25 to 49.99 $942

50 to 99.99 $1163

100 to 499.99 $(11.72 x P.U.)

500 to 1649.99 $((P.U. - 500) x 1.57) + 5860

1650 and up $((P.U. - 1650) x 3.74) + 7745

(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.


Last modified: February 3, 2019