Legislature(1993 - 1994)

04/15/1993 05:00 PM TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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             HOUSE TRANSPORTATION STANDING COMMITTEE                           
                         April 15, 1993                                        
                            5:00 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Richard Foster, Chair                                         
  Representative Gary Davis, Vice-Chair                                        
  Representative Al Vezey                                                      
  Representative Bill Hudson                                                   
  Representative Jerry Mackie                                                  
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative Curt Menard                                                   
  Representative Eldon Mulder                                                  
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  HB 46:    "An Act relating to frequent traveler credit for                   
            state-paid travel."                                                
                                                                               
            HEARD AND HELD - ASSIGNED TO SUBCOMMITTEE                          
                                                                               
  HB 237:   "An Act relating to Marine Pilot Licensing and                     
            Tariffs."                                                          
                                                                               
            HEARD AND HELD - ASSIGNED TO SUBCOMMITTEE                          
                                                                               
  *HB 184:  "An Act making a special appropriation to                          
            Department of Transportation and Public Facilities                 
            to determine the cost of acquiring real property                   
            within the right-of-way of the proposed extension                  
            of the Alaska Railroad from Eielson Air Force Base                 
            to the Alaska-Canada border; and providing for an                  
            effective date."                                                   
                                                                               
            NOT HEARD - HELD OVER UNTIL NEXT SCHEDULED HOUSE                   
            TRANSPORTATION COMMITTEE MEETING                                   
                                                                               
  (* first public hearing)                                                     
                                                                               
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  DANIEL BLACKMORE, Vice President                                             
  Alaska Operations                                                            
  Alaska Maritime Agencies, Inc.                                               
  1600 A Street, Suite 215                                                     
  Anchorage, Alaska   99501                                                    
  272-0714                                                                     
  Position Statement:  Opposed HB 237                                          
                                                                               
  CAPTAIN MICHAEL SPENCE, President                                            
  Alaska Coastwise Pilots Association                                          
  P.O. Box 22694                                                               
  Juneau, Alaska   99802                                                       
  586-2272                                                                     
  Position Statement:  Testified on HB 237                                     
                                                                               
  BILL SHARP                                                                   
  Marine Pilots Representative                                                 
  P.O. Box 3046                                                                
  Ketchikan, Alaska   99901                                                    
  225-7245                                                                     
  Position Statement:  Opposed HB 237                                          
                                                                               
  BERNIE SMITH                                                                 
  Tesoro Petroleum                                                             
  P.O. Box 1630-2                                                              
  Kenai, Alaska   99611                                                        
  776-8191                                                                     
  Position Statement:  Stated he would provide his testimony                   
                       to subcommittee on HB 237                               
                                                                               
  WILL ANDERSON                                                                
  Alaska Marine Pilots                                                         
  57920 Glacier View Drive                                                     
  Homer, Alaska   99603                                                        
  235-5278                                                                     
  Position Statement:  Supported HB 237                                        
                                                                               
  KARL LUCK, Director of Occupational Licensing                                
  Department of Commerce and Economic Development                              
  9th Floor State Office Building                                              
  P.O. Box 110806                                                              
  Juneau, Alaska   99811-0806                                                  
  465-2534                                                                     
  Position Statement:  Explained concern regarding the word                    
                       "independent" within HB 237                             
                                                                               
  LARRY COTTER, Lobbyist                                                       
  Alaska Steamship Association                                                 
  116 Gold Street                                                              
  Juneau, Alaska   99801                                                       
  789-2073                                                                     
  Position Statement:  Opposed HB 237                                          
                                                                               
  C.J. ZANE, Director                                                          
  Government & Community Relations                                             
  Holland America Line Westours, Inc.                                          
  880 H Street, Suite 200A                                                     
  Anchorage, Alaska   99501-3400                                               
  Position Statement:  Opposed HB 237                                          
                                                                               
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB  46                                                                
  SHORT TITLE: STATE-PAID TRAVEL MILEAGE CREDITS                               
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MARTIN                                         
                                                                               
  TITLE: "An Act relating to frequent traveler credit for                      
  state-paid travel."                                                          
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/12/93        43    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/12/93        43    (H)   STATE AFFAIRS,TRANSPORTATION,                    
                              FINANCE                                          
  03/20/93              (H)   STA AT 08:00 AM CAPITOL 102                      
  03/20/93              (H)   MINUTE(STA)                                      
  03/30/93              (H)   STA AT 08:00 AM CAPITOL 102                      
  03/30/93              (H)   MINUTE(STA)                                      
  04/03/93              (H)   MINUTE(STA)                                      
  04/05/93       972    (H)   STA RPT CS(STA) 2DP 1DNP 3NR                     
  04/05/93       972    (H)   DP: VEZEY, OLBERG                                
  04/05/93       972    (H)   DNP: ULMER                                       
  04/05/93       972    (H)   NR: B.DAVIS, G.DAVIS, KOTT                       
  04/05/93       972    (H)   -FISCAL NOTE  (ADM)  4/5/93                      
  04/05/93       972    (H)   REFERRED TO TRANSPORTATION                       
  04/06/93              (H)   TRA AT 05:00 PM CAPITOL 17                       
  04/13/93              (H)   TRA AT 05:00 PM CAPITOL 17                       
  04/13/93              (H)   MINUTE(TRA)                                      
  04/15/93              (H)   TRA AT 05:00 PM CAPITOL 17                       
                                                                               
                                                                               
  BILL:  HB 237                                                                
  SHORT TITLE: MARINE PILOT LICENSING AND TARIFFS                              
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) HUDSON, Phillips, Brice,                       
  Sitton, Sanders                                                              
                                                                               
  TITLE: "An Act relating to marine pilot licensing and                        
  tariffs."                                                                    
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  03/19/93       707    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/19/93       707    (H)   L&C,TRANSPORTATION,STA AFF,                      
                              FINANCE                                          
  03/30/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  03/30/93              (H)   MINUTE(L&C)                                      
  03/30/93              (H)   MINUTE(L&C)                                      
  04/01/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  04/01/93              (H)   MINUTE(L&C)                                      
  04/01/93              (H)   TRA AT 05:00 PM CAPITOL 17                       
  04/08/93      1107    (H)   L&C RPT  CS(L&C)  1DP 4NR                        
  04/08/93      1107    (H)   DP: HUDSON                                       
  04/08/93      1107    (H)   NR: PORTER, MACKIE, WILLIAMS,                    
                              GREEN                                            
  04/08/93      1107    (H)   -ZERO FISCAL NOTE (DCED)                         
                              4/8/93                                           
  04/08/93      1107    (H)   REFERRED TO TRANSPORTATION                       
  04/06/93              (H)   MINUTE(L&C)                                      
  04/08/93              (H)   TRA AT 05:00 PM CAPITOL 17                       
  04/15/93              (H)   TRA AT 05:00 PM CAPITOL 17                       
                                                                               
                                                                               
  BILL:  HB 184                                                                
  SHORT TITLE: APPRO: AK RAILROAD EXTENSION STUDY                              
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) JAMES,Therriault,Olberg                        
                                                                               
  TITLE: "An Act making a special appropriation to the                         
  Department of Transportation and Public Facilities to                        
  determine the cost of acquiring real property within the                     
  right-of-way of the proposed extension of the Alaska                         
  Railroad from Eielson Air Force Base to the Alaska-Canada                    
  border; and providing for an effective date."                                
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  02/25/93       456    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  02/25/93       456    (H)   TRANSPORTATION, FINANCE                          
  04/06/93              (H)   TRA AT 05:00 PM CAPITOL 17                       
  04/13/93              (H)   TRA AT 05:00 PM CAPITOL 17                       
  04/13/93              (H)   MINUTE(TRA)                                      
  04/15/93              (H)   TRA AT 05:00 PM CAPITOL 17                       
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-16, SIDE A                                                           
  Number 014                                                                   
                                                                               
  VICE-CHAIR DAVIS called the meeting to order at 5:20 p.m.,                   
  and stated that HB 184 would be held over until the next                     
  scheduled House Transportation Committee meeting due to time                 
  constraints.  Vice-Chair Davis also noted that HB 46 would                   
  be assigned to a subcommittee consisting of Representative                   
  Mulder and Representative Mackie.  Vice-Chair Davis also                     
  noted that HB 237 would also be assigned to a subcommittee                   
  consisting of Representative Hudson and Representative                       
  Mackie.                                                                      
  HB 46 STATE-PAID TRAVEL MILEAGE CREDITS                                      
                                                                               
  Number 030                                                                   
                                                                               
  VICE-CHAIR DAVIS noted that although CHAIR FOSTER                            
  appreciated the intention of HB 46, he had many specific                     
  concerns that he wanted the subcommittee to address in a                     
  committee substitute if necessary.  Chair Foster had                         
  specifically mentioned his concerns that this proposed                       
  legislation could potentially increase administrative costs.                 
                                                                               
                                                                               
  VICE-CHAIR DAVIS stated that Chair Foster had also been                      
  contacted by several groups who indicated that they donated                  
  their time in trade for the travel miles, such as the State                  
  Troopers and Corrections officers.  He said there may also                   
  be potential legal problems in relation to the collective                    
  bargaining process, and the subcommittee needed to address                   
  that in looking at a potential compromise on HB 46.                          
  HB 237 MARINE PILOT LICENSING AND TARIFFS                                    
                                                                               
  Number 074                                                                   
                                                                               
  VICE-CHAIR DAVIS requested those wanting to testify on                       
  HB 237 on the teleconference system to present their                         
  statements to the committee at this time.                                    
                                                                               
  Number 078                                                                   
                                                                               
  DANIEL BLACKMORE, VICE-PRESIDENT OF ALASKA MARITIME                          
  AGENCIES, INC., began his testimony discounting previous                     
  testimony before the Labor and Commerce Committee.  Mr.                      
  Blackmore said it was his understanding that another pilot                   
  group in Dutch Harbor was performing unsafe pilotage,                        
  specifically, in the East Channel transit, and the reason                    
  being that Alaska Marine Pilots refused to move the vessel                   
  because of their concern over the depth of the water in the                  
  channel and the draft of the vessel.                                         
                                                                               
  MR. BLACKMORE stated that he believed competition in                         
  pilotage must be able to continue throughout the state of                    
  Alaska and has been shown to actually benefit safety                         
  concerns of the state.  Because of the competition, he                       
  believes that it gives the groups more reason to perform a                   
  better service, not the poor or unsafe groups that people                    
  are trying to make them believe.  Mr. Blackmore also stated                  
  that another advantage of competitive pilotage was that                      
  actions and costs must be justified.  He stressed his                        
  support towards competition and the desire that competition                  
  between the two groups increase, which would result in                       
  continued improvement and performance.                                       
                                                                               
  VICE-CHAIR DAVIS asked if there were questions for Mr.                       
  Blackmore.  Since there were no questions, he asked MICHAEL                  
  SPENCE to present his testimony.                                             
  MICHAEL SPENCE, PRESIDENT OF THE ALASKA COASTWISE PILOTS                     
  ASSOCIATION, addressed his concerns contained in HB 237,                     
  which related to fixing tariffs, fixing the number of pilots                 
  in a region, and the measure forbidding cross-regional                       
  pilotage.  He felt these measures were intended to prevent                   
  or stifle competitive pilotage.  He discussed previous                       
  monopoly problems within the history of pilotage and that                    
  those problems led to the formation of a new organization,                   
  The Alaska Coastwise Pilot's Organization.  Mr. Spence said                  
  his organization has efficient dispatching, has optimized                    
  their manpower, and has reduced overhead costs.  He stated                   
  that the group which holds the dominant share of the market                  
  in Southeast Alaska, joined by the dominant groups in other                  
  regions, are the groups which currently seek legislation to                  
  prevent or limit competition.                                                
                                                                               
  MR. SPENCE mentioned that giving authority to the APUC                       
  (Alaska Public Utilities Commission) to set fixed tariffs                    
  may indeed move the tariff-setting process to a more                         
  organized venue for rate setting, however, at an increased                   
  costs to already burdensome fees.  He felt fixed tariff was                  
  anti-competitive since it disabled a new organization of                     
  pilots from offering a lower price to shippers.  He stated                   
  that if the APUC was involved, it should be setting a                        
  maximum rate tariff, not a fixed tariff.                                     
                                                                               
  MR. SPENCE remarked that HB 237 was not legislation which                    
  promoted safety of shipping or environment; it was a bill                    
  that promoted economic safety of already dominant pilot                      
  organizations.                                                               
                                                                               
  Number 330                                                                   
                                                                               
  BILL SHARP, representing pilot groups in the Ketchikan area,                 
  asked Vice-Chair Davis whether he had heard correctly.  He                   
  asked if HB 237 was going to be referred to a subcommittee                   
  consisting of Representative Mackie and Representative                       
  Hudson.                                                                      
                                                                               
  VICE-CHAIR DAVIS replied that was indeed the case.                           
                                                                               
  MR. SHARP indicated he echoed the concerns of the previous                   
  witness, Michael Spence.  Mr. Sharp stated that he did not                   
  want to take of the committee time and he would work with                    
  the subcommittee in the future.                                              
                                                                               
  Number 355                                                                   
                                                                               
  BERNIE SMITH, representing TESORO, spoke on the                              
  teleconference network against HB 237 and stated that he                     
  would present his comments in writing to the subcommittee.                   
  He stated Tesoro was willing to negotiate with the pilots                    
  and had done so twice recently.                                              
                                                                               
  VICE-CHAIR DAVIS stated that since there was no one else to                  
  testify via teleconference, he would move for testimony from                 
  the audience.                                                                
                                                                               
  Number 383                                                                   
                                                                               
  WILL ANDERSON, testifying in support of HB 237, noted that                   
  he would submit written testimony and work with the                          
  subcommittee during the interim on HB 237.                                   
                                                                               
  LARRY COTTER, a lobbyist representing the ALASKA STEAMSHIP                   
  COMPANY, testified against HB 237.  Mr. Cotter felt that the                 
  best way to address the current problems were for those                      
  involved to sit down together and work out the issues.  He                   
  further stated that he didn't think the current system was                   
  broken, it merely needed more tuning and thought it could be                 
  fixed.  Mr. Cotter stated he would also address his concerns                 
  before the subcommittee.                                                     
                                                                               
  Number 443                                                                   
                                                                               
  VICE-CHAIR DAVIS said he hoped that the parties on both                      
  sides of this proposed legislation would communicate between                 
  themselves and try and reach a compromise with the                           
  subcommittee.                                                                
                                                                               
  Number 449                                                                   
                                                                               
  C.J. ZANE, GOVERNMENT RELATIONS, HOLLAND AMERICA/WESTOURS,                   
  noted that he was opposed to the current version of HB 237.                  
  However, he didn't want to take up a lot of the committee's                  
  time and he would be contacting the subcommittee and                         
  maintain his interest and address his concerns to them.                      
                                                                               
  MR. ZANE asked Vice-Chair Davis what a subcommittee's                        
  responsibilities were.                                                       
                                                                               
  VICE-CHAIR DAVIS replied that they would work on all                         
  recommendations, would not take any official action, and                     
  would report their recommendations to the full committee.                    
                                                                               
  Number 498                                                                   
                                                                               
  VICE-CHAIR DAVIS ADJOURNED the House Transportation                          
  Committee meeting at 5:50 p.m.                                               

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