Legislature(1999 - 2000)
02/04/1999 01:35 PM Senate L&C
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 35-EXTEND BOARD OF MARINE PILOTS
SENATOR DRUE PEARCE, sponsor of SB 35, explained the measure
extends the Board of Marine Pilots, which was created in 1970, to
the year 2004. The Oil Spill Commission was created by former
Senator Jan Faiks after the Exxon Valdez incident. That commission
made six or seven recommendations to the Marine Pilotage Act. In
1991 those recommendations were reviewed and the Act was amended in
1991 and 1994. The Board's most recent audit was clean, but
recommended that a database be created, which is underway. The
audit also recommended the Board look at currency regulations
similar to those required in the airline industry. The marine
pilots' license fee is the highest in the state because the board
is self-supporting and there are a relatively small number of
pilots in the state. Marine pilots also pay for their required
training, which is very time consuming.
CATHERINE REARDON, Director of the Division of Occupational
Licensing, Department of Commerce and Economic Development (DCED),
stated that DCED strongly supports the continuation of the Board of
Marine Pilots. SB 35 has a zero fiscal note with an acknowledgment
that the money to fund the program is in DCED's Base 2000 budget.
Number 107
SENATOR LEMAN indicated he had no fiscal note in his packet, and
asked how many pilots are members of the board, and what the
license fees are.
CHAIRMAN MACKIE informed committee members the fiscal note was just
received would be copied for members before action is taken on the
bill.
PETE CHRISTENSEN, Marine Pilot Coordinator for the Board of Marine
Pilots, added that the Board supports SB 35 as is.
SENATOR DONLEY asked how many of the marine pilots licensed in
Alaska are residents of Alaska.
MR. CHRISTENSEN replied approximately 75 percent.
CHAIRMAN MACKIE asked how many of the nonresident pilots will be
affected by the currency requirement.
MR. CHRISTENSEN said it depends on how the Board implements that
requirement. All marine pilots will go through the evaluation
system, therefore living out-of-state would not bring on different
qualification requirements.
SENATOR TIM KELLY asked what the cost of an annual license is.
MS. REARDON replied marine pilots pay a license fee of $2,000. The
fee was $4500 two years ago.
SENATOR KELLY asked if that covers the $112,000 operating cost of
the Board.
MS. REARDON replied DCED is rolling forward some surpluses and
deficits now, so that fee may take into account a surplus that
board had.
SENATOR KELLY asked if the fees are adjusted annually, depending on
the costs involved.
MS. REARDON said the fees are set by the public regulation adoption
process which occurs every two years.
SENATOR KELLY asked if the fee is $1,000 per year, and how many
pilots are licensed.
MS. REARDON said $1,000 is correct and there are about 80 pilots.
MR. CHRISTENSEN said there could be 81, but expects through
retirement the number is actually 78.
MS. REARDON added that agents are also licensed through this
program. Their fee is $800 every two years.
MR. CHRISTENSEN noted a vessel agent is someone who has the right
to procure pilotage services on behalf of the agent's principles
and act as a go-between for the vessels and pilotage services.
SENATOR DONLEY asked how many Alaska residents are licensed pilots
in other states.
MS. REARDON said she did not.
SENATOR DONLEY asked if there is a dichotomy between what other
states charge out-of-state and in-state residents.
Neither MS. REARDON nor MR. CHRISTIANSEN knew.
CHAIRMAN MACKIE stated Commercial Fisheries Entry permits are more
expensive for out-of-state residents. He asked if that has ever
been discussed at the board level.
MS. REARDON responded DCED cannot charge a different fee for non-
residents without specific statutory authority to do so. The
statute governing collection agents and hunting guide programs
requires out-of-state residents to pay double the amount in-state
residents pay. DCED is required to charge fees to cover regulatory
costs and those costs are not necessarily affected by residency.
Number 185
SENATOR DONLEY asked Ms. Reardon to provide answers to his
questions when the bill is heard in the Finance Committee.
TOM DUNDAS, President of Alaska Marine Pilots, spoke in support of
SB 35 as written. The Act has been working well, and the Alaska
Marine Pilots has been able to establish long-term contracts with
customers. Jeff Bush, the Chairman of the Board, is very good at
involving pilots and industry in the creation of regulations.
KATE TESAR, representing Alaska Coastwise Pilots, stated support
for SB 35 as written. Alaska Coastwise Pilots was involved in a
lot of contentious problems with the Board of Marine Pilots in the
early 1990's, however the contentions have been removed and the
Board is working smoothly and doing its job.
Number 244
MIKE O'HARA, President of the Southwest Alaska Pilots, stated
support for SB 35 as written. He agreed with previous speakers
that the battles among marine pilots are over.
SENATOR KELLY moved SB 35 out of committee with individual
recommendations.
SENATOR LEMAN asked if anyone would object to extending the board
for four years instead of five to stay within the policy
established for sunset bills.
SENATOR PEARCE said the auditors recommended a five year date based
on how far the board has come, and because they do not see a good
public purpose for constant extensions if no review is necessary.
However, she said the five year date was probably based on the
likelihood this bill would not pass until next year.
SENATOR LEMAN moved to change the extension date from 2004 to 2003.
There being no objection, the motion carried.
There being no discussion or objection to moving CSSB 35(L&C) from
committee with individual recommendations, CHAIRMAN MACKIE
announced the motion carried.
CHAIRMAN MACKIE adjourned the meeting at 1:52 p.m.
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