Legislature(2003 - 2004)
03/18/2003 01:47 PM House FIN
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* first hearing in first committee of referral
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CS FOR SENATE BILL NO. 20(FIN)
An Act relating to the Board of Marine Pilots and to
marine pilotage; extending the termination date of the
Board of Marine Pilots; and providing for an effective
date.
ZACH WARWICK, STAFF, SENATOR GENE THERRIAULT, stated that
under AS 08.03.010(10), the Board of Marine Pilots (BMP)
will terminate on June 30, 2003. A report released by the
Legislative Budget and Audit (LBA) Committee recommended
that the Legislature extend the board's termination date to
June 30, 2007, and that HB 32 would do that.
Mr. Warwick continued, the regulation and licensing of
qualified marine pilots benefits the public's safety and
welfare. The steady increase in the tourist passenger ships
in recent years has made BMP's role increasingly more
important. The board provides reasonable assurance that the
individuals licensed to pilot passenger and cargo ships in
Alaskan waters are qualified to do so.
CAPTAIN DALE COLLINS, PRESIDENT, SOUTHEAST ALASKA PILOT
ASSOCIATION, KETCHIKAN, spoke in favor of SB 20. He stated
that he had been a pilot in Southeast Alaska for 25 years.
He noted that his association has a responsibility to
provide pilot service to foreign flagships of 300 gross tons
or more in the Dixon entrance to Southeast Alaska. The
original pilots act was created in 1970 through the
legislature and has been working well ever since. He urged
passage of the bill.
Representative Foster referenced correspondence from House
Speaker Brian Porter and asked what had happened with the
exemption request for the private motor yachts. Captain
Collins responded that there is interest in providing for
those private motor yachts and that they are exempt up to
300 gross tons. He pointed out that concerns have been
raised regarding homeland security and that no language has
yet been added to address a sunset to the bill.
KATE TESAR, LOBBYIST, ALASKA YACHT SERVICES AND
PROVISIONING, JUNEAU, commented that she represents a small
local Juneau business, which works with yacht management
companies throughout the United States, booking large
pleasure craft coming to Alaska. She stated that they fully
support the Board of Marine Pilots and support the extension
of that board. Ms. Tesar addressed recommendation #4 made
by the LBA Committee, which calls for the State to implement
a waiver system for some large pleasure craft.
Ms. Tesar explained that some owners are considering other
destinations rather than Alaska because of a law that
mandates a marine pilot be aboard certain size yachts the
entire time they are in Alaska. In some cases, the cruise
time last a number of weeks. Many of the owners position
their boats in Alaska during the summer months and then fly
their guests and family back and forth. She noted the
change to the statute, which would allow vessels up to 200
feet to operate in the Alaskan waters without a pilot. She
advised that such a system has been operating in the State
of Washington for many years. She referred to an
application in member's files from the State of Washington.
(Copy on File).
Ms. Tesar indicated that the rewrites of the marine pilot
laws had been in response to the Exxon Valdez incident.
Following that, a rewrite was done in 1995. Prior to 1995,
all pleasure craft were exempt from marine piloting. In
1995, a decision was made to mandate pilots for foreign
plate vessels over 300 tons. She recalled, at that time,
there was a large private research vessel in Alaska raising
concerns regarding such activities. It was at that time
that the law was changed to mandate a marine pilot be on
board of larger vessels. She added that in 1999, there was
an extension of the board and that none of the issues
regarding marine pilotage had been addressed.
Ms. Tesar advised that the issue is an economic development
concern. These pleasure craft bring new money into shore
side communities. It is estimated that the yachts spend
about 30% over the cost of the trip in the port communities.
Because of the Gulf circumstances, this summer the United
States will be a destination of choice for many of boats.
Ms. Tesar referenced the letters of support in member's
files from the various communities and their mayors.
(Copies on File). She urged that capturing new revenue in
these communities be a major consideration.
Co-Chair Williams asked if there were any exempt yachts
being used. Ms. Tesar responded that all commercially
designated vessels are mandated to have pilots on board,
previously designated as pleasure craft only. She explained
that foreign-hulled pleasure craft up to 300 tons are exempt
and that all American vessels are already exempt from marine
pilotage. The only ones that must have pilots on board are
the foreign plate vessels over 300 tons.
Co-Chair Harris asked why the American flagged ships were
exempt from the pilotage requirement. Ms. Tesar did not
know for sure but speculated that it might have to do with
impeding commerce between states and nations. She suggested
that the Board of Marine Pilots answer that question. Co-
Chair Harris commented that his biggest concern regarding
the ships was one of "safety".
Representative Stoltze mentioned the Coast Guard waiver for
the Canadian vessels.
JEFF WHITE, MANAGER, SEADROME MARINE COMPLEX, GOLDBELT
CORPORATION, JUNEAU, testified in support of the proposed
change to the marine pilotage law concerning foreign flagged
yachts. He has observed that vessels become frustrated with
current regulations, and then leave for "friendlier ports".
This past year, 25% of Goldbelt's moorage business came from
yachts and transient vessels. Most travel from the East
Coast to visit Alaska, while others are on their maiden
voyage after leaving the boat builders in the Puget Sound
area. The limited availability of pilots is also
problematic for many vessels including yachts with the
every-changing schedules.
Mr. White suggested that the independent yacht visitors have
a comparably greater positive economic impact by spending
much time in Alaska, spreading their purchasing power over
numerous businesses and communities. Mr. White urged
consideration of the exemption to allow the market to reach
its potential in Alaska.
PETER CHRISTENSEN, MARINE PILOT COORDINATOR, BOARD OF MARINE
PILOTS, encouraged the passage of SB 20. He responded to
previous questions regarding the United States yachts,
indicating that the co-pilotage law code defines the
responsibilities for marine pilotage between the states and
the federal government. Federal government has the control
over the U.S. vessels & yachts and the State has the control
over the foreign flagged vessels.
Co-Chair Harris asked if a ship were over a certain length,
would they then require a pilot. Mr. Christensen suggested
that length could be better criterion than gross tonnage.
Representative Foster interjected that the tonnage had to be
over 300 tons to require a pilot.
Co-Chair Harris questioned why the length of the ship would
be a factor. Mr. Christensen responded that current statute
indicates gross tonnage, which is an old method of measuring
ships. It is a method that has many loopholes. He
acknowledged that length would be a better way to measure.
The Coast Guard establishes its regulations based on the
number of passengers on board. He concluded that if the
statute should change, it would be more helpful that it move
to something more specific such as the length measurement.
Co-Chair Harris asked if 100 feet would be a break-off
point. Mr. Christensen stated that the Board does not have
a position on that.
Co-Chair Harris asked if there were situations in which
pleasure craft could be allowed to operate in Alaska waters
without a pilot and if there were any safety devices
required to make it more amenable. Mr. Christensen
commented that there could be legal forms regarding the
captain's experience and/or that the ship could put up an
assurity bond. There are a variety of ways to mitigate
these issues.
Co-Chair Harris reiterated that his concerns are about the
safety and security of the waterways and the vessel while
maintaining their privacy.
Representative Stoltze interjected that sunsets are a good
way to handle those types of concern.
Co-Chair Williams noted that CS SB 20 (FIN) would be HELD in
Committee for further consideration.
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