01/28/2013 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB26 | |
| HB22 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 26 | TELECONFERENCED | |
| *+ | HB 22 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
January 28, 2013
3:22 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Lora Reinbold, Vice Chair
Representative Mike Chenault
Representative Bob Herron
Representative Charisse Millett
Representative Dan Saddler
Representative Andrew Josephson
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 26
"An Act extending the termination date of the Board of Public
Accountancy; and providing for an effective date."
- MOVED HB 26 OUT OF COMMITTEE
HOUSE BILL NO. 22
"An Act extending the termination date of the Board of Marine
Pilots; and providing for an effective date."
- MOVED CSHB 22(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 26
SHORT TITLE: EXTEND BOARD OF PUBLIC ACCOUNTANCY
SPONSOR(s): REPRESENTATIVE(s) HAWKER, THOMPSON
01/16/13 (H) PREFILE RELEASED 1/7/13
01/16/13 (H) READ THE FIRST TIME - REFERRALS
01/16/13 (H) L&C, FIN
01/28/13 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 22
SHORT TITLE: BOARD OF MARINE PILOTS
SPONSOR(s): REPRESENTATIVE(s) OLSON
01/16/13 (H) PREFILE RELEASED 1/7/13
01/16/13 (H) READ THE FIRST TIME - REFERRALS
01/16/13 (H) L&C, FIN
01/28/13 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE MIKE HAWKER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as prime sponsor of HB 26.
KRIS CURTIS, Legislative Auditor
Division of Legislative Finance
Legislative Agencies & Offices
Juneau, Alaska
POSITION STATEMENT: Testified during the discussion of HB 26.
DON HABEGER, Director
Corporations, Business, and Professional Licensing (CBPL)
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the discussion of
HB 26.
ANNA LATHAM, Staff
Representative Kurt Olson, Chair
House Labor & Commerce Standing Committee
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified on behalf of Representative Kurt
Olson, Chair, House Labor & Commerce Committee, sponsor of HB
22.
LINDA DAY, Audit Manager
Legislative Audit Division
Legislative Agencies & Offices
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the discussion of
HB 22.
PAUL FUHS, Lobbyist
Southwest Pilots Association
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of HB 22.
DAVID ARTZ, Captain; Marine Pilot member,
Board of Marine Pilots (BMP)
Department of Commerce, Community & Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of HB 22.
ACTION NARRATIVE
3:22:24 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:22 p.m. Representatives
Saddler, Josephson, Herron, Millett, Reinbold and Olson were
present at the call to order. Representative Chenault arrived
as the meeting was in progress.
HB 26-EXTEND BOARD OF PUBLIC ACCOUNTANCY
3:23:11 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 26, "An Act extending the termination date of the
Board of Public Accountancy; and providing for an effective
date."
3:23:20 PM
REPRESENTATIVE MIKE HAWKER, Alaska State Legislature, stated
that HB 26 is one of the ministerial duties of the legislature,
which is reauthorization of boards and commissions in compliance
with the recommendations made by the legislative auditors. He
related the bill would extend the termination date of the Board
of Public Accountancy (BPA) until June 30, 2021, in accordance
with the recommendations of the legislative auditors. The
auditors concluded that the BPA serves the public interests by
effectively licensing certified public accountants. The board
also monitors the profession and ensures that only qualified
individuals practice as certified public accountants (CPAs).
REPRESENTATIVE HAWKER said the auditor's one recommendation had
nothing to do with the board and instead pertained to an ongoing
administrative issue within the Division of Corporations,
Business and Professional Licensing (CBPL) in the Department of
Commerce, Community & Economic Development (DCCED). He related
the CBPL division administers all professional boards and
licenses, but the division stills needs to address deficiencies
with its investigative case management system. He pointed out
the CBPL agrees with this decision and is continuing to work to
implement the system. He noted previously another audit
recommendation was made for improvements to the CBPL, which the
division has resolved. He acknowledged the extension is until
June 30, 2021, which spans a long period, but pointed out that
audits cost money. He did not see the state dissolving the BPA,
since the regulation of accountants will always be necessary.
The BPA has demonstrated its maturity, manages the CPAs, works
with the legislature, and government as clearly intended. He
asked members to pass out the bill.
3:27:05 PM
REPRESENTATIVE HERRON asked for a status on the corrective
measures.
REPRESENTATIVE HAWKER asked the division to respond, but added
he thought the management has undergone personnel changes and
has developed an administrative plan.
3:28:22 PM
KRIS CURTIS, Legislative Auditor, Division of Legislative
Finance, Legislative Agencies & Offices, said the auditors are
just beginning to conduct five sunset audits and auditors have
not revisited the agency to determine whether the finding has
been addressed; however someone from the division might be able
to answer the status.
3:29:14 PM
DON HABEGER, Director, Corporations, Business, and Professional
Licensing (CBPL), Department of Commerce, Community & Economic
Development (DCCED), responded that the division has taken a
number of steps to correct the deficiency. He related in 2011
the legislative auditors audited the division. At the time, the
division had recently purchased and installed an investigative
database. One audit finding was that the database conversion
did not convert adequately and data was missing. Thus, the
division needed to go back and retool. The division discovered
other issues and formed a task force that identified 11 issues
to improve the database software and hardware. The division
requested and received supplemental funding from the legislature
in FY 12 to implement these tasks. He reported the division
marshaled task force two and is about halfway finished
implementing the 11 tasks. He anticipated it will take to the
end of FY 13 to complete.
3:31:22 PM
CHAIR OLSON asked if he was comfortable with the extension date.
MR. HABEGER answered that at this time he is comfortable. He
said the vendor seems to be responding appropriately.
3:31:59 PM
REPRESENTATIVE SADDLER related some boards have had issues with
the investigative expenses and asked him whether this is also an
issue with the BPA.
MR. HABEGER answered no, not with investigations. He agreed
with Representative Hawker's view that the BPA is a mature
board. He said he has observed the BPA at meetings and "they
don't take any guff from their licensees." He concluded the BPA
is quite an impressive group in how it deals with its issues.
3:32:50 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 26.
3:33:14 PM
REPRESENTATIVE REINBOLD moved to report HB 26 out of committee
with individual recommendations and the accompanying fiscal
note. There being no objection, HB 26 was reported from the
House Labor and Commerce Standing Committee.
3:33:43 PM
The committee took an at-ease from 3:33 p.m. to 3:36 p.m.
HB 22-BOARD OF MARINE PILOTS
3:36:04 PM
CHAIR OLSON announced that the final order of business would be
HOUSE BILL NO. 22, "An Act extending the termination date of the
Board of Marine Pilots; and providing for an effective date."
3:36:07 PM
ANNA LATHAM, Staff, Representative Kurt Olson, Chair, House
Labor & Commerce Standing Committee, Alaska State Legislature,
stated HB 22 will extend the terminate date of the Board of
Marine Pilots. This bill would extend the termination date of
the Board of Marine Pilots (BMP) until June 30, 2018. In
accordance with the provisions of AS 24 and AS 44, Legislative
Budget & Audit Committee (LB&A) reviewed the activities of the
Board of Marine Pilots (BMP) to determine whether there was a
demonstrated public need for the board's continued existence and
to see if it had been operating in an efficient manner. It was
the opinion of the LB&A that the BMP should be extended.
Regulating and licensing qualified marine pilots benefits the
public safety and welfare and protects the marine environment.
3:37:30 PM
REPRESENTATIVE REINBOLD made a motion to adopt the proposed
committee substitute (CS) for HB 22, labeled 28-LS0139/U,
Martin, 1/24/13, as the working document.
CHAIR OLSON [treated it as though he objected for the purpose of
discussion.]
MS. LATHAM referred to the changes in the proposed committee
substitute for HB 22. The bill was prefiled and after reviewing
the audit the termination date was changed to reflect the date
suggested in the legislative audit.
CHAIR OLSON remarked he took his best guess when submitting the
bill for prefile.
3:38:12 PM
REPRESENTATIVE HERRON referred to the audit and said he noticed
more positive responses came from within the industry than from
marine pilots. He asked for an explanation and wondered if any
disconnect exists between the pilots and the board.
3:39:06 PM
LINDA DAY, Audit Manager, Legislative Audit Division,
Legislative Agencies & Offices, stated the response to the
survey was good. She related that 62 percent of 86 pilots
responded to the survey and 12 of 24 industry stakeholders also
responded. She reported the response rate was slightly lower
for stakeholders, which may be due to the timing of the survey
since the division conducted the survey in the summer.
3:40:04 PM
REPRESENTATIVE SADDLER asked whether the board has experienced
any difficulties with investigative expenses.
MS. CURTIS deferred to Ms. Day, but noted the Board of Marine
Pilots has a coordinator position who conducts any
investigations rather than the BMP using the division's
investigative unit.
MS. DAY, after clarifying that the question referred to the
investigative process and cost of investigations, answered no.
The auditors found investigations were occurring and the process
was reasonable.
3:41:25 PM
REPRESENTATIVE JOSEPHSON asked whether substantive questions
about marine pilots can be addressed today.
3:41:55 PM
PAUL FUHS, Lobbyist, Southwest Alaska Pilots Association,
related that HB 22, [Version U], would extend the board [until
June 30, 2019]. He related about ten years ago some
difficulties existed between the Board of Marine Pilots (BMP)
and the industry. He said a major compromise was struck and
providing the background might help the committee better
understand how the BMP operates. He explained marine pilots are
required, which creates questions on setting rates. The system
subsequently established uses a private sector approach, and
allows the pilots to post the tariff, and for industry to have
opportunity to challenge the rate before the BMP if stakeholders
believe the rates are too high. Thus, if the marine pilots
cannot justify their tariff rate, the BMP can reject it and ask
the pilots to re-negotiate a new rate. He pointed out the audit
describes how the system works, including highlighting that a
"no strike clause" exists. He offered his belief the system
works well. He identified the BMP's makeup as consisting of two
marine pilots, two industry members, and three public members.
The marine pilots and industry provide the necessary expertise,
but in instances in which the marine pilots and industry become
deadlocked, the public members have the ability to make the
decision. He advised that marine pilot license fees pay for the
program, which consists solely of program receipts without any
general fund monies.
3:44:50 PM
REPRESENTATIVE JOSEPHSON asked what recommendation Mr. Fuhs has
during instances when the marine pilot coordinator position
becomes vacant. He related a scenario in which the coordinator
position is vacant for six months and no one is there to
coordinate public noticing and testing.
MR. FUHS said he was unsure. He said the situation has never
arisen, but pointed out the division has other supervisors. He
surmised that Mr. Habeger would place someone in the marine
pilot coordinator position temporarily who could make public
announcements and that the division would recruit timely.
3:46:06 PM
REPRESENTATIVE JOSEPHSON recalled during the Exxon Valdez oil
spill that [alcohol and drug] testing was required, which he
thought was federal law. He inquired as to whether any drug and
alcohol testing occurs for tanker and sea captains.
MR. FUHS said he was not certain of the specific laws, but
marine pilots are subjected to an extremely rigorous random drug
and alcohol testing. He stated that the U.S. Coast Guard has
increased requirements for mariners, in general, but
particularly for marine pilots who navigate the Valdez Narrows.
He offered his belief that if a marine pilot had been on board
the Exxon Valdez [in 1989] that an accident would not have
happened. He reported there has never been a subsequent
incident.
3:47:23 PM
REPRESENTATIVE JOSEPHSON recalled under the enabling act it is
optional for the BMP to conduct [drug and alcohol] testing, but
[the auditor] goes on to say the tests should be mandatory. He
said the auditor expressed some concern about this oversight.
He asked whether this concern is valid or if the concern is
overstated.
MR. FUHS responded in the previous audit, five years ago, some
additional concerns were raised by auditors, but the [BMP]
completely resolved the issues, and the most current audit has
found the BMP in compliance, except for some minor scheduling
issues. He characterized the BMP as being in substantial
compliance.
3:48:09 PM
DAVID ARTZ, Captain; Marine Pilot, Board of Marine Pilots (BMP),
Department of Commerce, Community & Economic Development
(DCCED), said he is a marine pilot and operates in Region 3 -
Western Alaska, based in Dutch Harbor. He responded, with
respect to drug and alcohol testing, that Mr. Fuhs is correct
that state pilots are subject to mandatory random drug testing
throughout the whole year. Additionally, the marine pilots
routinely and regularly submit to testing. In terms of oil
tankers operating in and out of Prince William Sound, additional
requirements fall under federal and local requirements for ship
masters and marine pilots, who must submit to alcohol testing
prior to the departure of vessels within Prince William Sound.
He reiterated that this requirement is an additional requirement
[since the 1989 Exxon Valdez oil spill].
3:50:24 PM
REPRESENTATIVE JOSEPHSON recalled Representative Herron's
question that some tension was identified in the surveys of
marine pilots and stakeholders. For example, 29 of 53 pilots
gave the BMP a poor on objectivity. He asked for clarification
on the undercurrents.
MR. ARTZ remarked that is a tough question to answer. He said
at a recent BMP's meeting the chairman addressed this specific
issue. He offered his belief that the pendulum swings back and
forth depending on the makeup of the board and the specific
chairman. He characterized the board process as being a fair
system, consisting of six members plus a designee of the
commission. He suggested it depends on whether the board is
holding a rate hearing or addressing something else. He
reported the influence swings between the marine pilots and the
industry. He characterized it as a working system and the
pilots operating in Western Alaska, for the most part, think the
system is currently working well in terms of the primary purpose
of safe navigation of vessels under the pilot's control,
protection of life, and protection of the marine environment.
He concluded that he did not think the relationship was
adversarial or specific tensions existed, but is a means of
keeping a balance.
3:52:28 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 22.
3:52:50 PM
REPRESENTATIVE JOSEPHSON asked the auditors to speak to
potential vacancies and staffing issues.
MS. CURTIS reiterated the question, which is whether the agency
has done anything to address periodic vacancies of the marine
pilot coordinator position. The auditors identified the issue
in a prior sunset audit. She reported the agency has
established procedures in response to the concern and the
procedures are reasonable.
3:53:55 PM
CHAIR OLSON removed his objection to the bill.
3:54:03 PM
REPRESENTATIVE REINBOLD moved to report the proposed committee
substitute (CS) for HB 22, labeled 28-LS0139/U, Martin, 1/24/13,
out of committee with individual recommendations and the
accompanying fiscal note. There being no objection, CSHB22(L&C)
was reported from the House Labor & Commerce Standing Committee.
REPRESENTATIVE JOSEPHSON stated he would support the motion and
said:
I think marine pilots do pretty heroic work. I'm glad
they're there. I'll never forget where I was at the
end of March 1989. I remember the intersection in
Anchorage when I heard over the radio what had
happened in Prince William Sound and I hope I never
have to hear or see anything like that again.
CHAIR OLSON remarked that a marine pilot was not piloting the
vessel at the time of the 1989 incident.
3:55:07 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:55 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB26 Supporting Documents-Summary Leg. Audit #08-20077-12.pdf |
HL&C 1/28/2013 3:15:00 PM |
HB 26 |
| HB26 ver A.pdf |
HL&C 1/28/2013 3:15:00 PM |
HB 26 |
| HB26 Sponsor Statement.pdf |
HL&C 1/28/2013 3:15:00 PM |
HB 26 |
| HB26 Supporting Documents-Leg. Audit #08-20077-12.pdf |
HL&C 1/28/2013 3:15:00 PM |
HB 26 |
| HB22 ver A.pdf |
HL&C 1/28/2013 3:15:00 PM |
HB 22 |
| HB22 Supporting Documents-Basis of Marine Pilotage Requirements.PDF |
HL&C 1/28/2013 3:15:00 PM |
HB 22 |
| HB22 Draft Proposed CS ver U.pdf |
HL&C 1/28/2013 3:15:00 PM |
HB 22 |
| HB22 Sponsor Statement.pdf |
HL&C 1/28/2013 3:15:00 PM |
HB 22 |
| HB22 Supporting Documents-Audit 08-20076-13.pdf |
HL&C 1/28/2013 3:15:00 PM |
HB 22 |
| HB22 Supporting Documents-Audit Summary.pdf |
HL&C 1/28/2013 3:15:00 PM |
HB 22 |
| HB22-Fiscal Note-DCCED-CBPL-01-25-13.pdf |
HL&C 1/28/2013 3:15:00 PM |
HB 22 |
| HB26-Fiscal Note-DCCED-CBPL-1-25-13.pdf |
HL&C 1/28/2013 3:15:00 PM |
HB 26 |
| HB22 Supporting Documents-Letter-SEAK Pilots Assoc 1-25-2013.pdf |
HL&C 1/28/2013 3:15:00 PM |
HB 22 |