RULES AND REGULATIONS
Title 13--COMMERCE AND TRADE
NAVIGATION COMMISSION FOR THE DELAWARE RIVER AND ITS NAVIGABLE TRIBUTARIES
[13 PA. CODE CH. 205]
Fees
[26 Pa.B. 483] The Navigation Commission for the Delaware River and its Navigable Tributaries (Commission) amends § 205.15 (relating to initial license and license renewal fee) as set forth in Annex A.
The amendment raises from $50 to $200 the fee for initial issuance of a river pilot's license and for the annual renewal of a pilot's license.
Background
The regulation at § 205.15, which sets forth a fee of 50¢, was superseded by section 604-A of The Administrative Code of 1929 (71 P. S. § 240.4A), which in 1981 established the current $50 fee.
As the following table shows, the Commission's revenues, which are overwhelmingly dependent on licensure and renewal fees, have proven to be inadequate to meet the Commission's expenses:
Fiscal Year Revenues Expenditures FY 1991-92 $2,005 $6,746 FY 1992-93 $2,235 $7,078 FY 1993-94 $2,020 $2,944 FY 1994-95 $2,020 (est.) $6,000 (est.) Section 37(a) of the act of March 29, 1803 (P. L. 542) added by section 8 of the act of June 23, 1993 (P. L. 114, No. 27) (55 P. S. § 103(a)) (Act 27 of 1993), restored the Commission's power to fix fees by regulation, subject to a maximum fee of $250, and provided that the fees, fines and civil penalties collected during each license renewal period shall meet or exceed the Commission's expenditures for that period.
The Commission budgets on a fiscal year basis; a license renewal occurs each fiscal year. The Commission anticipates that its sole source of revenues for FY 1995-96 (July 1, 1995--June 30, 1996) is the license renewal fee that the Commission will collect from the 38 pilots with active licenses when they renew their licenses in May 1996. Historically, the Commission has realized negligible revenues from fines and civil penalties. Furthermore, the earliest that the Commission can expect to receive fee revenues from newly licensed pilots is 1998, when one or more of the six trainees selected by the Commission this year for its apprentice pilot program will be eligible for initial licensure.
At the current rate, the Commission's renewal fee would generate $1,900 in revenues (38 active pilots times $50) for FY 1995-96. The Administrative Office of the Bureau of Professional and Occupational Affairs (BPOA), an administrative unit of the Department of State (Department) comprising the Commission and 26 other licensing boards, projects that the Commission's expenses for FY 1995-96 will be approximately $7,000, which is broken down as follows:
BPOA Administration $ 200 Legal Office 4,200 Commissioner's Office 700 Law Enforcement 1,200 Direct Board Expense 50 Test Administration 0 Hearings 0 Department of State 650 Board Office 0 Total $7,000 The new $200 fee for initial issuance and annual renewal of a license will generate revenues of $7,600 (38 active pilots times $200) for FY 1995-96. The fee will enable the Commission to meet its projected revenue requirements of $7,000 while leaving a surplus of $600 as a cushion against unanticipated expenses or revenue shortfalls.
Responses to Comments Received During Proposed Rulemaking
The Commission entertained public comment for 30 days following publication of the notice of proposed rulemaking at 24 Pa.B. 4369 (August 27, 1994). No comments were received from the general public.
The Commission also solicited comments from each of the 38 active licensed pilots; three pilots responded, two favoring the amendment and one opposing it. On April 11, 1995, the president of the Pilots' Association for the Bay and River Delaware, a trade association which represents Pennsylvania licensed pilots, advised the Commission that the vast majority of the Association's members consider the amendment to be in their best interests.
The amendment in proposed form was reviewed by the Independent Regulatory Review Commission (IRRC), the Senate Committee on Consumer Protection and Professional Licensure (Senate Committee) and the House Committee on Professional Licensure (House Committee) under the Regulatory Review Act (71 P. S. §§ 745.1--745.15). IRRC and the Senate Committee submitted comments on the proposed amendment. The House Committee acknowledged receipt of the proposed amendment but offered no comments.
Following is a discussion of the questions raised by the commentators:
1. The lone pilot who registered an objection to the amendment complained about the 300% increase in the Commission's fees, admonishing the Commission for not gradually increasing the fee over the years as its expenses rose.
The Commission, too, would have preferred a gradual increase instead of the sharp increase reflected in the amendment. However, as noted in this Preamble, the Commission was not given the authority to raise its fees until the passage of Act 27 of 1993.
2. One of the pilots who submitted a comment in support of the amendment asked whether any surplus that was generated by the higher fees would be used for purposes other than the support of the Commission's operations.
With the passage of Act 27 of 1993, the Commission became the last of the BPOA's 27 licensing boards to be placed under a statutory duty to periodically review its budget to ensure that there are sufficient revenues to meet or exceed expenses. The purpose of these periodic reconciliations of revenues and expenses is to make each licensing board financially self-sufficient; as a consequence, surplus of revenues over expenses that the Commission may generate in one fiscal year will be carried over to offset the Commission's expenses in the next fiscal year.
3. IRRC, as well as the pilot who opposed the amendment, expressed concern about the Commission's legal and law enforcement costs, which comprise about 77% of the Commission's estimated expenditures for FY 1995-96. Noting that a substantial component of the Commission's legal and law enforcement costs relate to the investigation of complaints, IRRC asked the Commission to provide information as to the number of complaints it has investigated and whether any of the complaints resulted in the imposition of fines or civil penalties against pilots. IRRC surmised that as complaint activity increases, the Commission's revenues from fines and civil penalties should increase as well.
From 1983 to 1995, the Commission received 33 complaints against pilots. Of these, 28 were closed after an investigation determined that no disciplinary charges were warranted; one complaint resulted in a negotiated consent agreement with a pilot and the imposition of a $500 fine; and four complaints remain under investigation. Clearly, fines and civil penalties are not significant or predictable sources of revenue for the Commission.
4. IRRC, noting that another aspect of the Commission's legal expenses relates to its rulemaking activities and its review of draft legislation, asked the Commission to provide information on projected rulemaking initiatives and legislative proposals.
For the past several years, the Commission has been working on general revisions to four of its six chapters of regulations. The revisions affect Chapters 201 (relating to general provisions), 202 (relating to administration), 203 (relating to construction permits) and 205 (relating to pilots and pilotage) and involve 34 sections. In May 1991, the Commission submitted proposed rulemaking for the general revisions to the Office of General Counsel; in December 1992, a revised proposal, approved by the Office of General Counsel, was sent to the Office of Attorney General for review and approval. The Commission withdrew its proposal in early 1993 pending the outcome of legislative action on Senate Bill 503, which became Act 27 of 1993. The Commission has further revised its proposal to conform to changes in the Commission's enabling statutes brought about by Act 27 of 1993. The Commission is now in the process of resubmitting its proposal for proposed rulemaking. The Commission also will likely consider general revisions to its two other chapters of regulations--Chapters 207 and 209 (relating to navigation; and wharves and docks). The Commission's regulatory efforts, when completed, will constitute the first updating of the Commission's regulations since their adoption in 1977.
Given the sweep and scope of Act 27 of 1993, the Commission does not consider it likely that additional major legislation affecting the Commission will be introduced in the General Assembly in the near term. However, at the Federal level, the Commission will continue to monitor the promulgation of Coast Guard regulations that impact State-licensed pilots.
5. The Senate Committee suggested that accounting procedures be carefully reviewed to ensure that the Commission's licensees do not bear an unfair share of the costs of the Department and the BPOA.
The Department and the BPOA provide administrative and operational support to all 27 licensing boards in the BPOA. Each board's share of the Department's and the BPOA's generalized costs are based on the board's number of active licensees. With only 38 of the BPOA's approximately 670,000 active licensees, the Commission's share of these costs is small indeed.
In early 1994, the Department began implementing new procedures, recommended by a 1993 audit of the Central Services Comptrollers Office, that would improve the methodologies by which the Department's costs are allocated to the BPOA and, in turn, to the licensing boards.
Fiscal Impact
The amendment requires each applicant for initial issuance of a pilot's license, or for annual renewal of a pilot's license, to pay a fee of $200, an increase of $150 over the current fee. Thirty-eight active pilots are expected to renew their licenses during FY 1995-96, generating new revenues of $5,700 (38 × $150).
Paperwork Requirements
The amendment requires the Commission to alter its initial license application and license renewal application to reflect the new fee. The amendment does not create additional paperwork for the private sector.
Statutory Authority
Act 27 of 1993 provides in pertinent part as follows: ''All pilots, upon being issued an original license or upon renewal thereof, shall pay to the Navigation Commission a fee to be fixed by the Navigation Commission by regulation but not to exceed two hundred fifty dollars, which shall be subject to review in accordance with the act of June 25, 1982 (P. L. 33, No. 181), known as the Regulatory Review Act. If the projected revenues to be generated by fees, fines and civil penalties imposed under the act are not sufficient to match expenditures over the renewal period, the Navigation Commission shall increase fees by regulation, subject to review under the Regulatory Review Act, so that the projected revenues will meet or exceed projected expenditures.''
Regulatory Review
On August 16, 1994, as required by section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), the Commission submitted a copy of the notice of proposed rulemaking published at 24 Pa.B. 4369 to IRRC and the House and Senate Committees for review and comment.
In adopting the amendment in final form, the Commission considered comments submitted by IRRC, the Senate Committee, three licensed pilots and the trade association representing licensed pilots.
The amendment in final form was submitted to IRRC and the House and Senate Committees on October 27, 1995. Under section 5(c) of the Regulatory Review Act, the amendment was approved by the Senate Committee on November 14, 1995, approved by the House Committee on November 15, 1995, and approved by IRRC on November 16, 1995.
Findings
The Commission finds that:
(1) Public notice of the Commission's intention to amend Chapter 205, by this order has been given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations thereunder at 1 Pa. Code §§ 7.1 and 7.2.
(2) The amendment of the Commission's regulations provided for in this order is necessary and appropriate for the administration and enforcement of the navigation laws.
Order
The Commission orders that:
(a) The regulations of the Commission, 13 Pa. Code Chapter 205, are amended by amending § 205.15 to read as set forth in Annex A.
(b) The Commission shall submit copies of this order and Annex A to the Office of General Counsel and the Office of Attorney General for approval as required by law.
(c) The Commission shall certify this order and Annex A and shall deposit them with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin as required by law.
(d) The amendment shall take effect upon publication in the Pennsylvania Bulletin.
YVETTE KANE,
Secretary of the Commonwealth(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 25 Pa.B. 5667 (December 12, 1995).)
Fiscal Note: 16A-661. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 13. COMMERCE AND TRADE
PART III. NAVIGATION COMMISSION FOR THE DELAWARE RIVER AND ITS NAVIGABLE TRIBUTARIES
CHAPTER 205. PILOTS AND PILOTAGE § 205.15. Initial license and license renewal fee.
The fee for initial issuance of a license and for annual renewal of a license is $200.
[Pa.B. Doc. No. 96-137. Filed for public inspection February 2, 1996, 9:00 a.m.]
No part of the information on this site may be reproduced for profit or sold for profit.This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.
