DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of
the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of
the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Connick HB No. 573
Abstract: Allows for the inclusion of reasonable legal and consulting expenses for certain
members of the Pilotage Fee Commission in the establishment of pilotage fees, rates or
surcharges.
Present law creates the Pilotage Fee Commission made up of eleven members and nine alternates
appointed as follow:
(1)4 mmbers and 4 alternates appointed by the governor and designated by the board of
directors of the 4 pilot associations to represent the interests of the pilot associations.
(2)4 members and 4 alternates appointed by the governor from nominees submitted by the
N.O. Steamship Assoc., the Mississippi River Maritime Assoc., the Lake Charles
Maritime Assoc. and the International Freight Forwarders and Customs Brokers of N.O.
Inc., LABI, the La. Chemical Assoc. and La. Mid-Continent Oil and Gas Assoc. to
represent the interests of the industry.
(3)Three at-large members and one at-large alternate.
Present law gives the fee commission exclusive authority to fix and establish reasonable and just
fees and rates for:
(1)Pilotage service to ships and vessels.
(2)Pilotage service to ships in distress.
(3)Extraordinary pilotage service.
(4)A pilot being carried to sea unwillingly, which fee and rate shall include reimbursement
for his return to pilot station.
(5)The detention of a pilot.
Present law provides that pilotage fees and rates provide for all ordinary and necessary operating
and administrative costs, including but not limited to the cost of, replacement of, and reasonable
return on investment of pilot stations, administrative offices, furniture and fixtures,
communication equipment and facilities, vessels, launches and other required vehicles of transportation and the expenses of maintaining and repairing same, other transportation expenses,
the expense of maintaining necessary employees, operating materials, consumables and services,
pensions, pension plans, hospitalization, disability compensation, taxes and licenses, life
insurance, license insurance, trade promotions when requested to participate by industry or any
port, required continuing education, legal expense, accounting expense, professional dues,
administrative and professional publications, state pilot commissions, state and federal
requirements, and fair average annual compensation for a state ship pilot, in comparison to
regulated state ship pilotage in other United States ports. Further provides for all ordinary and
necessary operating and administrative expenses of the fee commission.
Proposed law provides that pilotage fees and rates provide for reasonable legal and consulting
expenses of the industry members of the fee commission. Defines "industry members" as those
in present law members appointed by the governor from nominees submitted by the N.O.
Steamship Assoc., the Mississippi River Maritime Assoc., the Lake Charles Maritime Assoc. and
the International Freight Forwarders and Customs Brokers of N.O. Inc., LABI, the La. Chemical
Assoc. and La. Mid-Continent Oil and Gas Assoc. to represent the interests of the industry.
Proposed law requires the fee commission to adopt rules and regulations as proposed by the
industry members for the purpose of establishing any necessary fee, rate, or surcharge to fund the
legal and consulting expenses.
Proposed law specifies that the rules should provide at a minimum that:
(1)Industry members are solely responsible for retaining legal representation, overseeing the
billing, and directing legal work performed on behalf of the industry members.
(2)Industry members are solely responsible for retaining consultants, including accountants
and technical experts, overseeing the billing and directing consulting work performed on
behalf of the industry members.
(3)Industry member are to base the fee, rate, or surcharge on the amount of expenses
incurred and anticipated, and any available funds to pay the expenses.
(4)Industry members are to adjust the fee, rate, or surcharge annually.
(5)Only industry stakeholder are to participate in the annual proceedings to consider
adjustments to the fee, rate, or surcharge.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 34:1122(B)(4))