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SECTION 88
Pilotage at Sandy Hook, Sands Point or Execution Rocks; rates
Navigation (NAV) CHAPTER 37, ARTICLE 6
§ 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. Notwithstanding the provisions of this subdivision, recreational
vessels as defined in section 2101 (34) of title 46 of the United States
Code of less than two hundred feet in length may be exempted from the
compulsory state pilotage requirement at the discretion of the board of
commissioners of pilots. 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. Recreational vessels
as defined in section 2101 (34) of title 46 of the United States Code
may be exempted from the compulsory state pilotage requirement pursuant
to this subdivision at the discretion of the board of commissioners of
pilots.

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.