Legislature(2003 - 2004)
03/10/2003 03:16 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 20-BOARD OF MARINE PILOTS Number 0516 CHAIR ANDERSON announced that the next order of business would be 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." Number 0549 SENATOR FRED DYSON, Alaska State Legislature, cosponsor of committee substitute (CS) for SB 20(FIN), presented his bill. He explained that marine pilots with local knowledge are required by law to board larger vessels when they enter Alaskan waters. Marine pilots guide the ships and advise them about anchorages, local tides, and local conditions. Every major seaport in the world has a similar arrangement. This bill continues the Board of Marine Pilots, which has been successful and trouble-free. SENATOR DYSON testified that the bill cleans up several items in the marine pilotage law. It requires drug training and screening for trainees, clarifies boundaries in the southern part of Alaskan waters, and establishes a reciprocal relationship with the Canadian Navy and the Canadian Coast Guard Maritimes. Under the bill, if Canadian ships visit the southern waters of Alaska, they can do so without a pilot, allowing a reciprocal arrangement for U.S. government vessels. He encouraged the committee to pass CSSB 20(FIN). Number 0695 SENATOR DYSON said a group that favors waivers for large yachts will be testifying today; he encouraged members to listen closely to their testimony. He said it's nearly an international standard that vessels over 300 tons carry a marine pilot on board. A 300-ton vessel is a ship. He said those who want large yachts exempted from carrying a marine pilot on board argue that it inhibits wealthy travelers from visiting Alaska. This requirement may indeed discourage people from spending large amounts of money in Alaskan waters, he said. The committee's bill packet includes a [March 6, 2003] letter from J.W. Underwood, Rear Admiral, U.S. Coast Guard, Commander, Seventeenth Coast Guard District. He said Admiral Underwood has several good reasons for continuing the present requirement for large yachts to have a marine pilot onboard. Some of those vessels will have 20,000 to 100,000 gallons of fuel, and a spill of that magnitude could cause significant damage. He noted that Southeast Alaska has difficult passages such as the entrance to Lituya Bay and Wrangell Narrows. Number 0856 SENATOR DYSON noted that the U.S. Coast Guard ("Coast Guard") has not supported an amendment to allow the exemption for these large foreign yachts. In his conversations with Coast Guard officials, Senator Dyson said he has recommended that yachts carry a vessel tracking transponder on board, that they be inspected by the Coast Guard, that criteria be established for the knowledge and expertise of the skipper, and that possibly a bond be required. SENATOR DYSON related that Admiral Underwood anticipated that in a year, even within three months, the scope of the threat from international terrorists will be clearer. For the Coast Guard, maritime security is extraordinarily important. Senator Dyson said he doesn't believe that Alaska would be a target for terrorists, but one can't be sure. In other locations, large cruise ships have been attacked. Tankers moving through Alaskan waters could be a target, and the large freighters that pick up nitrates from Nikiski and that carry tons of diesel fuel have the two ingredients needed for a very large bomb. Under the Homeland Security Act, the Coast Guard is charged with port and maritime security, and he said the agency is overwhelmed with that responsibility in Alaska. In the future, Coast Guard staff indicated they would be amenable to working out something with the legislature more favorable for the large yachts. Number 1017 SENATOR DYSON, replying to a question from Representative Crawford, said the bill applies to all commercial vessels over 300 tons [including foreign-flagged yachts]. Number 1039 REPRESENTATIVE GATTO asked two questions about the addition of the term "inside water of Southeastern Alaska", on page 2, lines 27-28. He questioned whether the term is defined and if it includes waters three miles off the outer coast. SENATOR DYSON replied that the term "inside water" is defined; it means there is land on the ocean side and that the waters are protected. Number 1080 REPRESENTATIVE GUTTENBERG referred to the recommendations from the Division of Legislative Audit report [Audit control number 08-20015-02] that addressed drug testing. One recommendation concerned the inconsistency between the four pilots' associations [that are responsible for administering the random drug-testing requirements]. He pointed out new language starting on page 1, line 14, "and for trainees and apprentices seeking a license or endorsement under this chapter;" he asked whether it corrects the inconsistency between the groups. SENATOR DYSON said yes, that was his understanding. Number 1126 RICK URION, Director, Division of Occupational Licensing, Department of Community & Economic Development, said his division supports extending the Board of Marine Pilots another four years. He said the board has addressed the problems identified in the recent legislative audit. He concluded that the board performs a valuable service, and he urged the committee to pass this version of SB 20. Number 1159 REPRESENTATIVE GUTTENBERG asked about the uniformity of drug testing [among the pilots' associations]. The Board of Marine Pilots may delegate all or a portion of the drug-testing programs. He asked how that system works. MR. URION replied that the marine pilot coordinator who staffs this board could answer questions on the drug-testing program. Mr. Urion said he was assured that this issue has been addressed. Number 1219 PAT DAVIDSON, Legislative Auditor, Division of Legislative Audit, Alaska State Legislature, answered the question by Representative Guttenberg, noting that recommendation number 3 of the audit asked that the statutes be tightened to add both trainees and apprentices to the drug-testing program. This bill solves that problem, she said. Currently, the drug-testing program has been delegated to the four pilots' associations, as allowed in statute and regulation. The Board of Marine Pilots also has the responsibility to review the bylaws of those organizations. She said Legislative Audit is satisfied that the drug-testing issues and recommendation number 3 have been addressed in CSSB 20(FIN). Number 1270 REPRESENTATIVE GUTTENBERG asked about audit recommendation number 4, waiving pilotage on large foreign-flagged pleasure crafts. He asked how this recommendation affects marine pilots and whether these yachts are currently allowed in Alaskan waters without marine pilots. MS. DAVIDSON replied that the auditors found that either yachts over a certain size were not coming into the waters, or they were coming into the waters and not requesting marine pilots. She said the 300 gross-ton limit does not easily translate into a visual assessment of a ship's size because tonnage is not particular to length. Therefore, these vessels are in Alaskan waters, and there's no quick determination of whether they require a marine pilot. This issue was also addressed in a prior audit. This audit recommended that the board seek a statutory waiver to address the problem. Senator Dyson underscored some security issues which cannot be dismissed. She added that it's important to look at what the marine pilots can add to security issues. Number 1384 KATE TESAR, Lobbyist for Alaska Yacht Services and Provisioning Company, explained that this business, owned by Amy Wachmann, assists yacht management companies and yacht owners with bookings to bring yachts into Alaska. Ms. Tesar described her 12-year background in marine pilotage. She said her client supports the legislation to extend the Board of Marine Pilots and is very satisfied with the board's performance. Her client supports the audit's recommendation number 4, which proposes a statutory waiver allowing foreign-flagged vessels of over 300 tons to operate in Alaska without marine pilots onboard. Ms. Tesar reported that her client learned through booking agencies and yacht owners that pleasure crafts are not visiting Alaska because of the current law. She asked the committee to take a mandate off the books that has not being enforced since it was passed in 1995, a mandate that only serves to obstruct commerce in Alaska. Number 1505 MS. TESAR explained that there was a major rewrite of marine pilotage law in 1991, addressing many concerns that arose after the Exxon Valdez oil spill. She said no one advocates taking pilots off oil tankers or large cruise ships. Prior to 1995, all pleasure craft, whether U.S.-flagged or foreign-flagged, were exempted from having a marine pilot on board. In 1995, the legislature mandated that a marine pilot be on board for these foreign-flagged vessels over 300 gross tons. She said no one foresaw the huge increase in the yacht cruising business in Alaska. She said there have been no major legislative changes relating to marine pilotage in the last eight years but mentioned that there have been large changes in the industry in the same time period. Ms. Tesar said she is pushing for this waiver because the economic impact on Southeast communities is huge. Number 1600 MS. TESAR said she has provided committee members with information about Washington state marine pilotage laws, which have been in place for many years and have been working well. A yacht planning to enter Washington waters applies for a waiver from the state's marine pilot coordinator. The yacht pays a fee; a determination is made based on information in the waiver application; and the yacht goes on its way. She encouraged an amendment that would do the same thing: give a waiver to yachts of 200 feet or less or a waiver based on the weight of these vessels. She said British Columbia also has a waiver system in place for foreign-flagged yachts. Ships can cruise the waters of the Pacific Northwest but are unable to come into Alaskan waters without a pilot. In Washington, authorities decide, based on the experience of the captain, whether they want a marine pilot onboard for the first day of a voyage. Some 90 percent of the foreign-registered yachts are flagged in Great Britain and have either American or British captains. There are strict international licensing laws for these captains. Number 1730 MS. TESAR said that many yachts do request marine pilots; they must call 48 hours in advance to schedule a marine pilot. Many yachts stay in Southeastern waters all summer, and family and guests fly up and back. The major clients of marine pilots are the cruise industry, for which the cruise ship schedule is known months in advance. She said this problem of scheduling was discussed in detail during the Senate finance committee hearing. Number 1774 MS. TESAR explained that last year in Juneau, there were 430 dockings of large cruise ships. There are two pilots aboard each vessel, and each vessel cruises for seven days. She said this illustrates the huge volume of traffic that marine pilots service. Ms. Tesar said she has been working the last few weeks with the Coast Guard on security issues. Currently, she said, the U.S. Customs Service ("Customs Service") and the U.S. Immigration and Naturalization Service board each of these foreign-flagged vessels the moment they come into U.S. waters. Yachts have to get a cruising permit from the Customs Service if they intend to stay in U.S. waters for any period of time. She pointed out that the federal government has an application process in place, and the Coast Guard is able to track these vessels. Number 1887 REPRESENTATIVE LYNN asked what flags these large foreign yachts sail under and the origin of the crews. MS. TESAR replied that the majority of the yachts are flagged under Great Britain. The crews come from all over the world, but about 90 percent are from Great Britain or the United States. MS. TESAR answered two questions from Representative Lynn, saying she did not know how many foreign yachts come into Alaskan waters but estimated two to three dozen a year. She said she did not know if marine pilots have security clearances. Number 1936 REPRESENTATIVE CRAWFORD questioned how a waiver for foreign- flagged yachts would impact the existing number of marine pilots. He asked if there was a waiver, would some pilots be put out of work, and if the current law were enforced, would there be a demand for more marine pilots. MS. TESAR replied that no marine pilots would lose any jobs because of this proposed waiver. The question about whether there are enough marine pilots to serve this part of the industry needs further discussion. She said people have testified at hearings that pilots have been requested but were unavailable. CHAIR ANDERSON estimated that if three dozen yachts entered Alaskan waters but had waivers from pilotage, 36 ships would not use marine pilots. Number 2007 REPRESENTATIVE LYNN asked why yachts aren't using marine pilots now. MS. TESAR replied the real reason is not the marine pilotage fee, which can run several thousand dollars a day. She said yachts are not using pilots because U.S. laws limit these vessels to 12 passengers, and so a marine pilot on board for many weeks might take a spot otherwise occupied by a family member or a guest. Yacht owners object to having a person they don't know on board for long periods of time, she noted. She said the money is probably an issue, but it's not as great a concern as privacy. REPRESENTATIVE GUTTENBERG asked how many requests for marine pilots on yachts went unfilled last year. MS. TESAR said she has asked the marine pilot coordinator [with the Board of Marine Pilots] but there is no way of knowing. Number 2080 CAPTAIN ROBERT WINTER, Marine Pilot, Southeast Alaska Pilots' Association, explained that he is a retired Coast Guard officer, and has been going to sea for over 37 years, 25 of those years in Alaska. Because Alaska has more coastline than the entire United States combined, regulation of marine pilotage in Alaska is an important responsibility. He said the Alaska State Legislature has crafted a marine pilotage act that is second to none in the country. Alaska marine pilots are on the cutting edge of training and recurrent training, assuring that they remain at the top of their profession. He said marine pilots have an interest in the integrity of the system that governs them. He said that CSSB 20(FIN) extends this proven system, and on behalf of the Southeast Alaska Pilots Association, he urged the committee to pass the bill. REPRESENTATIVE LYNN asked his opinion about the increasing number of yachts visiting Alaska. Number 2139 MR. WINTER replied first with an explanation of gross tonnage. He said gross tonnage is not a weight measure; it is a volume metric measure; one hundred cubic feet is a gross ton. He used the example of the Yorktown Clipper, which is 235 feet long and 99 gross tons. He explained that the ship is called a rule beater [because at less than 100 tons, the ship is governed by less stringent inspection standards]. He named several other vessels around 200 feet in length that are less than 99 gross tons. He opined that those ships are not little private yachts. He said that marine pilots favor removing the gross tonnage standard from the law, if the committee were to amend the bill. He said he would be able to estimate the length of a boat and make a good guess about whether it would require a pilot; now, he said, there's no way to tell. Number 2197 MR. WINTER said his job as a state-licensed pilot is to move commerce safely on the waters of Southeast Alaska. He said he's anxious about meeting a 300-foot ship without a pilot in Wrangell Narrows in the fog, and he's certain that ferry captains have the same concern. If a ship is a U.S.-enrolled vessel, such as a ferry, it has a federal pilot on board. Number 2241 MR. WINTER replied to a question from Representative Gatto about the change in latitude on page 2, line 28. Mr. Winter said he had noticed the typo and pointed it out to the bill's sponsors. The change allows a ship to sail as far north as Skagway, and it only applies to Canadian vessels. Number 2266 REPRESENTATIVE DAHLSTROM asked whether there are enough pilots available to handle the requests for yachts and about the number of unfilled requests. Number 2289 CAPTAIN DALE COLLINS, President, Southeast Alaska Pilots' Association, said to his knowledge, there have been no unfilled requests for marine pilots by yachts. He checked with his office staff and with the Alaska Coastwise Pilots Association, which recently merged with his agency. He said between the two organizations, whenever there was a call for a pilot, one or the other was able to fill the request in a timely manner. He said he suspects yachts have entered Alaskan waters but have not requested a marine pilot. Number 2352 REPRESENTATIVE GUTTENBERG asked about the two different assignments for marine pilots - whether they preferred the prescheduled, weeklong work on a cruise ship or the unscheduled assignment on a pleasure craft. MR. COLLINS replied that a preference for one or the other assignment depended on the pilot. Some pilots might prefer a yacht as a break from being on a cruise ship. He explained that usually, when a marine pilot goes on a yacht, the pilot stays in the crew quarters; there wouldn't be a stateroom available as on a cruise ship because of its much smaller size. He said he personally likes being on yachts because they go on interesting routes, visit interesting ports, and they're a nice break from the cruise ships. TAPE 03-18, SIDE B Number 2395 MR. COLLINS explained that his association is required to keep extra pilots for the 48-hour notice from cargo ships and yachts. He said his agency does not get many calls for yachts. REPRESENTATIVE GUTTENBERG asked whether the association could handle as many as three dozen calls for marine pilots for pleasure cruises. MR. COLLINS replied yes, as long as the calls for marine pilots were spread over a three-month period; if the requests all came on the 4th of July, they would probably overload the system. Tuesdays and Wednesday are peak days in Southeast Alaska when the maximum number of pilots are out and the maximum number of cruise ships are in. He said the association keeps four or five marine pilots available for cargo and for the unexpected yacht. Number 2328 REPRESENTATIVE LYNN asked why Canadian vessels are exempt from the pilotage requirement on page 2, lines 25 and 26. MR. COLLINS replied by describing the current practices of U.S. and Canadian government ships. He said that U.S. Navy ships visiting Alaskan waters are not subject to state pilotage but as a matter of good seamanship, voluntarily take a pilot. It is standard practice for U.S. ships to pick up a pilot in any port that isn't a homeport. MR. COLLINS said there is some interest in giving Canadian government ships a waiver [on page 3, lines 5-7] if Canada were to offer the same waiver for U.S. Navy ships. While some Canadian ships would not take a pilot voluntarily, he anticipated that many would take a pilot even if the statute were amended. Some smaller Canadian ships, like minesweepers, travel extensively in the Canadian inside waters and could sail successfully in Southeast, while the larger frigates, light cruisers, or destroyer would probably elect to take pilots. Marine pilots have worked on small Canadian oil tankers, fleet tankers, and frigates in the past, he said. Number 2201 AMY WACHMANN, Owner, Alaska Yacht Services and Provisioning, said she started her business two years ago; she has spent eight years in the Alaska yachting industry and has worked on yachts in the Caribbean, the Mediterranean, and the Pacific. She explained that she has noticed more yachts coming through Alaska. She said the amount of money they spend in port is tremendous, a great opportunity for Alaskan communities. MS. WACHMANN said yachts owners don't object to having pilots on board; that's the procedure wherever they travel. She said that [the problem is that] Alaska law requires the marine pilots to be on board the entire time that the yachts are traveling in Alaskan waters. If a yacht spends an entire summer visiting the different bays and communities, it's very difficult for some of these owners to accommodate a pilot for three months at a time. That is why she is advocating for a waiver process similar to those used by the State of Washington and Canada. Number 2110 GRAHAM HAYES, Yacht Captain, explained that he has 15 years of experience, with 6 summer seasons in Alaska on commercial ships and 7 years on private yachts all around the world. He urged the committee to consider an alternative to the requirement for pilotage for foreign-flagged yachts over 300 tons. Presently the yacht he's sailing is 171 feet and 680 gross tons. He said this is a good size boat, but it's much smaller than a 600-foot ship. He said it is difficult to gauge tonnage, a very limiting factor. MR. HAYES said his employer, the owner of the yacht, is not planning on sailing in Alaska, even though he would like to go there. The problem is the requirement that a pilot be on board for the entire time the yacht is in Alaskan waters. He said the yacht may sit in one spot for four days before it moves a few miles away. The cost of the pilot and accommodating the pilot are contributing factors to the yacht owner's decision. MR. HAYES continued by saying that each year the yacht spends nearly $1 million for items such as moorage, fuel, provisions, parts, and hotels -- all items that are typically spent in the area the yacht visits. There are additional operational expenditures for the private jet and the helicopters that sometimes serve a yacht. He said these yachts meet all safety and environmental requirements and often exceed the industry standards for a commercial ship. Every owner and guest clears through U.S. Customs and the U.S. Immigration and Naturalization Service. He said this excessive pilotage requirement denies the local communities the economic benefits of visiting yachts. His [employer's] yacht is foreign-flagged but American-owned, which is very common, he said. Most of the crew are U.S. citizens or British, and all speak English. Number 2012 REPRESENTATIVE GUTTENBERG asked where a yacht takes on most of its provisions. MR. HAYES said yachts take on provisions in the area they are visiting. For example, if yachts are in the Ketchikan area, they take on most of their provisions there. In one case, a yacht stopped at Elfin Cove and spent $15,000 on local artwork. He said visiting yachts are a big business for communities around the world. Number 1975 MR. HAYES answered a question from Representative Crawford about whether he had ever experienced delays in getting a marine pilot. He replied that he has not operated a yacht of the size that requires a marine pilot in Alaskan waters. When entering ports in other areas, he has picked up pilots at a station or a dock after 24-hour notice. He recommended doing pick-ups at a pilots' station rather than where the yacht is anchored. Number 1936 DEREK SMITH, Safety Manager, Fraser Yachts Worldwide, introduced himself as an associate member of the Institute of Marine Engineering, Science and Technology, an incorporated engineer, and a small ship surveyor. Fraser Yachts Worldwide manages 30 yachts, about 15 of which are over 500 gross tons. The standard of construction for yachts is covered by the Code of Practice for Safety of Large Commercial Sailing and Boating Yachts published by MCA, the United Kingdom's Maritime and Coast Guard Agency. He said the standards and qualifications for the crew are very high. Next year, the ISPS (International Ship and Port Security) Code will also be implemented on yachts over 500 gross tons and voluntarily on almost all of the other yachts in the Fraser fleet. MR. SMITH assured the committee that concerns over security may be real but the threat from a yacht is small. Most of Fraser's large yachts, when the principals are on board, will have security guards. His company carries out background checks on all the crewmembers, and said that some owners might request that the marine pilot submit to a background check. He said the money for employing marine pilots is not the issue; the problem rises more in the principal's desire for privacy. There is a problem with accommodating the pilot on board a yacht that has a maximum of 12 guests and 12 crew. If the yacht only has 24 life saving appliances, one of the crew has to get off the boat. Owners don't stick to a schedule because they can go wherever they wish. He explained that the position of a yacht is tracked by satellite and other technologies. He noted that he would like to submit written testimony. Number 1777 CHAIR ANDERSON said written testimony can be submitted to the House finance committee, the bill's next committee of referral. There being no other witnesses, he closed the public hearing. Number 1752 REPRESENTATIVE Lynn moved to report CSSB 20(FIN) out of committee with individual recommendations and the accompanying fiscal note. There being no objections, CSSB 20(FIN) was reported from the House Labor and Commerce Standing Committee.
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