Could Louisiana's Pilotage Fee Commission add a fee solely to fund its operations?

Plain-English summary

The Pilotage Fee Commission asked whether it could impose a charge to pay its operating expenses and whether its enabling act had passed the required legislative vote. In this 2006 opinion, the Attorney General said the commission could fix reasonable fees only for the pilotage services listed in its enabling statutes. Those service fees covered ordinary operating and administrative costs. The commission had no authority to charge for some other service solely to generate operating money.

The AG identified listed services including ordinary pilotage, ships in distress, extraordinary service, a pilot carried unwillingly to sea and pilot detention. It also noted that the statute allowed necessary expenses and payment from self-generated funds or other available funds such as grants or donations. On enactment, it concluded the bill had received more than a two-thirds vote when the House concurred in Senate amendments. It added that an earlier opinion treated comparable pilotage fees paid between private parties as outside the constitutional state-fee vote rule, while recognizing that earlier opinion concerned a different commission.

Currency note

This opinion was issued in 2006. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Could the commission charge any fee it wanted to support its office?

No. The AG limited its authority to reasonable fees and rates for the services specified in its enabling law.

Could authorized pilotage fees cover salaries and administrative costs?

Yes. The opinion said these fees provided for ordinary and necessary operating and administrative expenses, and identified salaries, equipment and office space as commission costs.

Did the AG find the commission's 2004 enabling act lacked the necessary votes?

No. It noted that the House's initial vote was below two-thirds, but concluded that the later House concurrence vote on Senate changes exceeded that threshold.

Did the opinion say every fee between private parties was exempt from the constitutional vote rule?

No. It cited an earlier opinion about a different pilotage commission and said it understood this commission's fees to be similarly paid between private entities.

Background and statutory framework

The AG read the commission's service-fee authority under La. R. S. 34:1121 and La. R. S. 34:1122 with the expense provision in La. R.S. 34:1125. It then reviewed the passage of Act 902 of 2004 against the constitutional supermajority rule for state-imposed fees. Its central limit was that operational funding could be included in authorized service fees, not raised through a new fee for an unlisted service.

Citations

• La. R. S. 34:1121 (commission purpose).
• La. R. S. 34:1122 (pilotage fee and rate authority).
• La. R.S. 34:1125 (necessary commission expenses).
• Attorney General Opinion No. 97-216 (comparison on fees paid between private parties).

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/05-0442

Original opinion text

January 30, 2006
Opinion Number 05-0442

Mr. Alfred S. Lippman, Chairman 46-A Fees & Costs PILOTAGE FEE COMMISSION 87-A Pilots - River
P.O. Box 2526
La. R.S. 34:1121, et seq.
Pilotage Fee Commission has authority to establish fees for
Morgan City, LA 70381-2526
services outlined in its enabling statutes.

Dear Mr. Lippman:

The Pilotage Fee Commission questions whether it has the authority to establish a levy, charge, assessment or fee for the purpose of funding the Commission’s operational expenses. In short, we believe that the Commission does in fact have authority to fix and establish reasonable fees but only for the purposes set forth in its enabling legislation.

The Commission was created by Act 902 of the 2004 Regular Session. Its purpose is to establish pilotage fees.1 Specifically, the Commission has 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 and (5) the detention of a pilot.2

These fees and rates provide for all ordinary and necessary operating and administrative costs.3 Thus, the Commission has the authority to fix and establish fees for the services specified in the statutes. It is our opinion that it does not have authority to establish a fee for any other service than those outlined in the statutes. These fees provide for all operating expenses.

The statutes specifically provide that the Commission may incur necessary expenses in the discharge of its duties and that the costs of salaries, equipment, office space, and administrative expenses are to be paid from self-generated funds or other funds made available to the Commission, i.e. grants or donations.4

1
La. R. S. 34:1121
2
La. R. S. 34:1122
3
Id.
4
La. R.S. 34:1125

Page 2

Opinion Number 05-0442
Mr. Alfred S. Lippman, Chairman
PILOTAGE FEE COMMISSION
Page -2-

The Commission also questions whether Act 902, which originated as HB 1708, was properly enacted. Article 7, Section 2.1 of the Louisiana Constitution requires that any new fee or civil fine or an increase in an existing fee or civil fine that is imposed or assessed by the state or any state board must be enacted by a 2/3 vote of the elected members of each house of the legislature. HB 1708 initially passed in the house by a vote of 65-33 (less than 2/3). The senate floor vote was 37-0 (more than 2/3). There were a number of senate committee and floor amendments. The bill went back to the house for a concurring vote. The vote was 104-0 (more than 2/3). Thus, the bill was enacted by more than a 2/3 vote. Additionally, we previously opined that the fees charged by the fee commission for the pilots of the Port of Lake Charles are not actually imposed by the state. Rather, they are paid between private entities and therefore are not subject to Article 7, Section 2.1.5 We recognize this opinion involved a different commission but it is our understanding that the fees assessed by the current commission are likewise paid between private entities.

With kindest regards,

Yours very truly,

CHARLES C. FOTI, JR.
Attorney General

BY: _________
TINA VICARI GRANT
Assistant Attorney General

CCF, jr./TVG/dam

5
Attorney General Opinion No. 97-216.

Page 3

Opinion Number 05-0442
Syllabus

46-A Fees & Costs
87-A Pilots - River
La. R.S. 34:1121, et seq.

Pilotage Fee Commission has authority to establish fees for services outlined in its enabling statutes.

Mr. Alfred S. Lippman, Chairman
PILOTAGE FEE COMMISSION
P.O. Box 2526
Morgan City, LA 70381-2526

Date Received:

Date Released: January 30, 2006

Tina Vicari Grant
Assistant Attorney General