Legislature(2007 - 2008)CAPITOL 17

02/14/2007 03:00 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 108 BOARD OF MARINE PILOTS TELECONFERENCED
Moved CSHB 108(L&C) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 49 GIFT CARDS TELECONFERENCED
Moved CSHB 49(L&C) Out of Committee
HB 108-BOARD OF MARINE PILOTS                                                                                                 
                                                                                                                                
CHAIR OLSON announced  that the first order of  business would be                                                               
HOUSE BILL  NO. 108, "An  Act extending the termination  date for                                                               
the  Board  of Marine  Pilots;  and  providing for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
3:07:53 PM                                                                                                                    
                                                                                                                                
CAPTAIN   ROBERT   WINTER,   Pilot,   Southeast   Alaska   Pilots                                                               
Association,  said  that  he  is  in  support  of  HB  108.    He                                                               
encouraged  the committee  to pass  the bill  as it  is currently                                                               
written.                                                                                                                        
                                                                                                                                
3:08:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  made a motion  to adopt CSHB  108, Version                                                               
25-LS0445\C, as the working document.   There being no objection,                                                               
Version C was before the Committee.                                                                                             
                                                                                                                                
3:08:55 PM                                                                                                                    
                                                                                                                                
RICK  URION, Director,  Division of  Corporations, Business,  and                                                               
Professional  Licensing, Juneau  Office, Department  of Commerce,                                                               
Community, & Economic  Development (DCCED), stated that  he is in                                                               
favor of  HB 108.   During the  auditing process,  many questions                                                               
were  brought   up.     He  opined   that  these   were  answered                                                               
"satisfactorily."                                                                                                               
                                                                                                                                
CHAIR OLSON and Representative Neuman  pointed out that Version C                                                               
extends the sunset date to 2013.                                                                                                
                                                                                                                                
MR. URION  stated that he  has "reservations about  extending the                                                               
dates."   He  explained that  from  time to  time, statutes  need                                                               
minor revisions, which are difficult  to address without a sunset                                                               
review.  If  this date is extended, it will  be more difficult to                                                               
address the aforementioned  issues as they come up.   In response                                                               
to a question from Chair Olson,  he explained that the eight year                                                               
sunset  date  was  recently  implemented.   Prior  to  this,  all                                                               
extensions were four years.                                                                                                     
                                                                                                                                
3:11:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  referring  to the  [sponsor  statement],                                                               
pointed out that the extension  is recommended by the Division of                                                               
Legislative Audit.                                                                                                              
                                                                                                                                
MR. URION  opined that  the extension "makes  less work"  for the                                                               
Division.                                                                                                                       
                                                                                                                                
3:11:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  asked how many  times the Board  of Marine                                                               
Pilots ("Board")  has been extended.   Additionally, she inquired                                                               
as  to  how  many  of  these extensions  have  dealt  with  other                                                               
concerns as well as the extension.                                                                                              
                                                                                                                                
MR. URION  replied that he is  not sure how many  times the board                                                               
has been extended.   The sunset review has been  in effect for 30                                                               
years.   In  response  to additional  questions,  he stated  that                                                               
boards often have  unforeseen issues that need to  be dealt with.                                                               
When these issues come up, the  legislature is asked to amend the                                                               
law; however the  Board of Marine Pilots has no  problems at this                                                               
time.                                                                                                                           
                                                                                                                                
3:13:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN asked  if  the regulatory  changes can  be                                                               
brought to the Administrative Regulation Review Committee.                                                                      
                                                                                                                                
MR. URION  replied that  the changes  would be  statutory, rather                                                               
than regulatory.   He explained that regulations can  not be made                                                               
without permissive statutory language.                                                                                          
                                                                                                                                
MR. URION, in response to  a question from Representative Neuman,                                                               
explained that board members serve limited terms which are                                                                      
"staggered."  Additionally, the members  serve at the will of the                                                               
Governor.                                                                                                                       
                                                                                                                                
3:14:48 PM                                                                                                                    
                                                                                                                                
AL   CLOUGH,  Deputy   Commissioner,   Department  of   Commerce,                                                               
Community,  & Economic  Development (DCCED);  Chairman, Board  of                                                               
Marine Pilots  ("Board"), stated that the  Board supports Version                                                               
C.  He  explained that the statute which governs  the Board "went                                                               
through an extensive rewrite" around  10 years ago.  The majority                                                               
of  changes  are regulatory;  however  there  are also  statutory                                                               
issues that require attention.                                                                                                  
                                                                                                                                
3:16:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO commented that  this seems pretty "straight-                                                               
forward."  He inquired as to the future of statutory changes.                                                                   
                                                                                                                                
MR.  CLOUGH  surmised  that  larger  ships  or  changing  traffic                                                               
patterns  may result  in statutory  changes.   The board  may not                                                               
have regulatory  authority to deal  with the various  issues that                                                               
may come up.   In response to additional  questions, he explained                                                               
that  homeland security  is becoming  more  of an  issue for  the                                                               
Board, and is  taken seriously.  He does not  anticipate that the                                                               
Board will  request a statutory  change to deal with  the pilots'                                                               
method of getting on or off ships.   However, he is unable to say                                                               
for sure.  The U.S. Coast  Guard is considering these issues, and                                                               
the  Board is  involved in  discussions regarding  ship and  port                                                               
security.                                                                                                                       
                                                                                                                                
3:19:11 PM                                                                                                                    
                                                                                                                                
MR.  CLOUGH,  in  response  to  a  question  from  Representative                                                               
Neuman, stated  that in regard  to the extension, he  is speaking                                                               
on behalf  of the Board.   The Board  has not debated  this issue                                                               
"in  any great  detail."   He  stated that  his personal  opinion                                                               
"would be  the longer, the  better," although he  understands the                                                               
intent  behind a  shorter date.    In response  to an  additional                                                               
question, he  explained that the  Board maintains the  ability to                                                               
come  before  the  legislature  or  the  Administration  to  make                                                               
requests for legislation.                                                                                                       
                                                                                                                                
3:21:42 PM                                                                                                                    
                                                                                                                                
PAT  DAVIDSON, Legislative  Auditor, Legislative  Audit Division,                                                               
Alaska  State  Legislature,  explained  that  sunset  audits  are                                                               
required by statute and must  be made available to the committees                                                               
considering the  extensions.  She  explained that two  years ago,                                                               
the statute regarding  extensions was changed from  "a period not                                                               
to exceed  four years" to "a  period not to exceed  eight years."                                                               
The four  year audits were  too expansive, and resulted  in "very                                                               
few statutory  change recommendations."   The Boards  are health,                                                               
safety, and welfare boards, and  would be a "high enough priority                                                               
for the  legislature" to make  any necessary changes.   In regard                                                               
to the Board  of Marine Pilots, she said,  there were operational                                                               
concerns,   such   as  drug   testing.      She  explained   that                                                               
"administrative   tightening"   was   needed.      In   addition,                                                               
investigative backup  for the marine  pilot coordinator  was also                                                               
needed.    The Board  uses  a  peer review  as  a  way to  ensure                                                               
continued competency.   Interviews  and surveys of  marine pilots                                                               
have shown  that this is  not viewed as  "particularly effective"                                                               
as  a  method of  showing  continued  competence.   The  Division                                                               
recommends that  this be reevaluated.   In addition, rate-setting                                                               
is a  concern.  Most occupational  boards do not deal  with this.                                                               
The  Board has  an equal  number  of marine  pilots and  industry                                                               
representatives.  However,  due to the ethics  act, marine pilots                                                               
may recuse  themselves, while  industry members  may not.   Thus,                                                               
the balance is not maintained.   This concern resulted in the six                                                               
year recommendation.  In response  to a question, she agreed that                                                               
she is comfortable with the six year recommendation.                                                                            
                                                                                                                                
REPRESENTATIVE GATTO  asked if a  marine pilot has ever  failed a                                                               
drug test, and if so, inquired as to the penalty.                                                                               
                                                                                                                                
MS. DAVIDSON  replied that during  the course of the  most recent                                                               
audit, there were no drug test  failures.  She explained that the                                                               
Division is concerned with the  method used to select individuals                                                               
for  testing,  adding  that this  concern  is  administrative  in                                                               
nature.  While  the Coast Guard is "on top"  of drug testing, the                                                               
Board is not "on top" of the testing program.                                                                                   
                                                                                                                                
3:27:51 PM                                                                                                                    
                                                                                                                                
PAUL FUHS,  Lobbyist for Southwest Alaska  Pilots, explained that                                                               
the Southwest  Pilots bring liquefied  natural gas  (LNG) tankers                                                               
into Valdez,  and handle cruise  ships, as  well as a  variety of                                                               
other  vessels.   Previously, there  were "huge  battles" between                                                               
the  industry  and  marine  pilots.    The  state  requires  that                                                               
companies  retain  pilots, which  results  in  "an unusual  labor                                                               
relations situation."   The  board has  two pilots,  two industry                                                               
members, and  three public members.   He explained that  if there                                                               
is  a disagreement  regarding tariffs,  the  pilots and  industry                                                               
members "cancel each other out," and  the decision is made by the                                                               
public members.  He then explained  this process.  He opined that                                                               
this  works well  as long  as  the public  members appointed  are                                                               
"truly public members."                                                                                                         
                                                                                                                                
MR. FUHS  encouraged the  committee to  consider a  "longer term"                                                               
extension, as this  provides stability.  He added  that a shorter                                                               
term may result  in attempts to "sneak" items in  while the issue                                                               
is being  considered by the  legislature.  There is  a heightened                                                               
consideration  of terrorism.   All  of the  pilot boards  and the                                                               
majority of  the industry are  members of the Marine  Exchange of                                                               
Alaska,  and vessels  are tracked  on a  continuous basis.   This                                                               
information is reported to the U.S.  Coast Guard.  In addition, a                                                               
marine  distress signaling  system  in  place.   In  regard to  a                                                               
question from  Chair Olson, he  explained that if a  marine pilot                                                               
makes a mistake, he or she  can be fired immediately.  He pointed                                                               
out  that  marine  pilots  must  attend  a  three  or  four  year                                                               
training, must  keep up  with all  changes, and  are tested  on a                                                               
regular basis.                                                                                                                  
                                                                                                                                
3:32:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  moved to  report  CSHB  108, Version  25-                                                               
LS0445\C  out of  committee with  individual recommendations  and                                                               
the accompanying  fiscal notes.   There being no  objection, CSHB
108(L&C) was reported from the  House Labor and Commerce Standing                                                               
Committee.                                                                                                                      
                                                                                                                                

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