Legislature(1995 - 1996)

04/27/1995 09:25 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                         APRIL 27, 1995                                        
                            9:25 a.m.                                          
  TAPES                                                                        
                                                                               
  SFC-95, #46, Side 1 (000-575)                                                
  SFC-95, #46, Side 2 (575-end)                                                
  SFC-95, #48, Side 1 (000-575)                                                
  SFC-95, #48, Side 2 (575-291)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator Rick Halford,  Co-chairman, convened the meeting  at                 
  approximately 9:25 a.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In  addition  to  Co-chairmen Halford  and  Frank,  Senators                 
  Phillips, Sharp, and  Rieger were present.   Senators Donley                 
  and Zharoff arrived shortly after the meeting began.                         
                                                                               
  Also Attending:  Senate  President Drue  Pearce;  Joe  Kyle,                 
  Alaska    Steamship    Association;   Jeff    Bush,   Deputy                 
  Commissioner, Dept.  of Commerce  and Economic  Development;                 
  Gayle Horetski Assistant Attorney General, Dept. of Law; Dan                 
  Twohig,  Coordinator,  Board  of  Marine  Pilots,  Dept.  of                 
  Commerce and Economic  Development; Dale Collins,  Southeast                 
  Alaska Pilots  Association;  Kate  Tesar,  Alaska  Coastwise                 
  Pilots; Paul Fuhs, Southwest Alaska Pilots  Association; and                 
  Ginny Faye, Prince William Sound, RCAC.                                      
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
       SB 148 STATE EMP DEFINED CONTRIB RETIREMENT PROG                        
                                                                               
       A  new draft CSSB 148,  version "O," dated 4/27/95, was                 
  ADOPTED   as a working  document.  It was  subsequently held                 
  in committee   for 24-hour review.                                           
                                                                               
       SB 130 MARINE PILOTS                                                    
                                                                               
       Testimony was  given by  Senate President Drue  Pearce,                 
  Joe Kyle,      Jeff Bush, Dan Twohig and Dale Collins.   The                 
  bill was then  held in committee for continued discussion at                 
                 the afternoon meeting.                                        
                                                                               
                                                                               
  SENATE BILL NO. 148                                                          
                                                                               
       An Act  relating to  a defined  contribution retirement                 
       plan for state employees.                                               
                                                                               
                                                                               
  Senator Rieger MOVED to adopt a draft CSSB 148, "O" version,                 
  dated 4/27/95,  as a  working document.   No  objection been                 
  raised, it  was  ADOPTED.   The Senator  explained that  the                 
  original bill would   establish a defined  contribution plan                 
  for state workers in place of   the present defined benefits                 
  plan.  The primary difference  between the two approaches is                 
  that  a defined benefit  plan is based on  a guess of future                 
  costs.   It involves an actuarial  study which estimates how                 
  much  money needs to be  saved each year  to fund the future                 
  guess as well as a 25-year approach for paying an obligation                 
  which is  enacted immediately.   The  result of  the state's                 
  defined benefits plan  is a $240 million  unfunded liability                 
  in the public  employee retirement  system.  Senator  Rieger                 
  noted that  there is  a similar  unfunded  liability in  the                 
  teacher  retirement  system.   A  defined  contribution plan                 
  eliminates unfunded liabilities.  In a  defined contribution                 
  plan, the amount of money set  aside by the employer belongs                 
  to  the  employer.   Earnings  on  the money  accrue  to the                 
  employee, and the employee has the full benefit of the money                 
  upon retirement.   The new  draft replaces present  employer                 
  and employee contributions  to a  defined benefit plan  with                 
  new  employer   and  employee  contributions  to  a  defined                 
  contribution plan.  The employee contribution is %5, and the                 
  employer  contributes  6%, for  a  total  of 11%.    The two                 
  components  are   in  addition  to   employee  and  employer                 
  contributions under the  existing SBS  system, which is  not                 
  changed by the proposed bill.  Those two contributions total                 
  12.26%.   There  is  thus a  23.26%  contribution  per  year                 
  feeding  the  employee's  retirement  fund.    The  bill  is                 
  designed to remain  under the IRS  maximum of 25%.   It also                 
  provides  for  self-directed  retirement.   The  new  Public                 
  Employees Retirement  System would allow  self direction  by                 
  employees with a transition  provision allowing employers to                 
  select retirement investments.                                               
                                                                               
  The  Retirement Incentive Program is included in the bill as                 
  well.  Senator  Rieger explained  that  with the  savings in                 
  employer contributions  to the new  Tier III, as  opposed to                 
  contributions to  the present  Tier I  or II,  the RIP  will                 
  result in cost savings.                                                      
                                                                               
  Co-chairman Halford directed that the newly adopted draft be                 
  held in committee for 24-hour review.                                        
                                                                               
                                                                               
  SENATE BILL NO. 130                                                          
                                                                               
       An  Act  relating to  marine  pilots and  the  Board of                 
       Marine    Pilots; extending the termination date of the                 
       Board of Marine Pilots; and  providing for an effective                 
       date.                                                                   
                                                                               
  Senate President  Drue Pearce explained that,  following the                 
                                                                               
                                                                               
  Exxon Valdez oil  spill, one of  the recommendations of  the                 
  Oil   Spill  Commission  was   that  pilotage  statutes  and                 
  regulations be completely rewritten.   In 1991, considerable                 
  energy was devoted to that effort.  SB 130 extends the board                 
  of marine pilots, now in its  sunset year, and makes changes                 
  that  eliminate problems  associated with the  1991 rewrite.                 
  Senator Pearce referenced a letter of  support from the Dept                 
  of Commerce and  Economic Development  and advised that  the                 
  fiscal   note  covers  a   self-sustaining  board.    Pilots                 
  presently pay a $3.0 annual license fee.                                     
                                                                               
  A  new apprenticeship  program,  introduced  by the  Knowles                 
  administration,  will  provide   an  opportunity  for   more                 
  Alaskans to break into piloting.  It will enable individuals                 
  in Western Alaska who qualify for the program to be trained.                 
  This is  particularly  important for  the  Pribilof  Islands                 
  where pilotage is compulsory.  There are no  resident marine                 
  pilots in the area, and a pilot must be flown to the region.                 
                                                                               
                                                                               
  Senator Rieger asked Senator Pearce to comment on an article                 
  by the Federal Trade Commission regarding monopoly in marine                 
  pilotage. Senator Pearce responded that the system in Alaska                 
  is  much less  a  monopoly than  elsewhere  in the  country.                 
  Mississippi pilots must be a family member to break into the                 
  industry.  There  are  other  areas  of  the  country  where                 
  pilotage  is  a  monopoly.    Alaska has  competing  pilots.                 
  Agreements    between    industry   groups    and   piloting                 
  organizations are "free  wheeling" with regard to  terms and                 
  conditions.  American  flag carriers, such as  Sealand, have                 
  their own pilotage  arrangement. Alaska does not  have fixed                 
  tariffs.  They were eliminated in  1991. There is nothing to                 
  keep a  separate association  from forming  in the  one area                 
  that has only one  association, other than the  economies of                 
  scale  associated   with  organized  dispatch   of  existing                 
  members.                                                                     
                                                                               
  Joe  Kyle,   Alaska  Steamship   Association,  came   before                 
  committee, representing customers of  state-licensed pilots.                 
  He said that customers do not support the bill.  While it is                 
  supported by  pilots and the  Dept of Commerce  and Economic                 
  Development, the Dept  of Law has the  same understanding as                 
  the ASA with  regard to opposition to  the bill.  SB  130 is                 
  not supported because it affords no tariff protection.   The                 
  ASA is required to use the services  of state pilots.  There                 
  are few within  the state, and  their number is  decreasing.                 
  At  the same  time,  in certain  parts  of Alaska,  shipping                 
  volume is increasing.  Pilot organizations will  not be able                 
  to meet the needs of existing contracts with the foreseeable                 
  shortage of  pilots.  Arguments  against  tariff  protection                 
  advocate that there  is already a competitive  pilot system,                 
  and it is not necessary for the state to set rates.  The ASA                 
  wants tariff protection included in the bill. Provisions for                 
  piloting  mediation  seem  to  pose   the  least  amount  of                 
                                                                               
                                                                               
  difficulty  for  industry and  the state.    If that  is not                 
  attainable, Mr.  Kyle  expressed support  for the  situation                 
  prior to 1991  when a maximum tariff was  in place.  Failing                 
  that, Mr. Kyle voiced support for cross regionalization.                     
                                                                               
  Considerable  discussion  followed  regarding limitation  of                 
  Alaskan pilots to  one or two  regions.  Mr. Kyle  suggested                 
  that cross  regionalization would  help reduce the  upcoming                 
  pilot shortage.  He  addressed the  safety issue  associated                 
  with cross regionalization  by advising  that during his  20                 
  years as a Coast  Guard Officer, he was heavily  involved in                 
  federal  pilotage.   The  United  States Coast  Guard pilots                 
  vessels  from  the coast  of  Maine  to Point  Barrow.   The                 
  criteria  is  that  Coast  Guard  regulations must  be  met.                 
  Today, federal  pilots take  ships from  Ketchikan to  Point                 
  Barrow without the  assistance of  state pilots.   Mr.  Kyle                 
  suggested that  there is no  safety issue involved  in cross                 
  regionalization as long as pilots  who cross regionalize are                 
  required to pass  both a Coast Guard and state certification                 
  process.  That resolves the safety  issue.  He stressed that                 
  there  is  no  empirical data  anywhere  that  suggests that                 
  federal piloting is less safe than state piloting.                           
                                                                               
  Jeff  Bush,  Deputy  Commissioner,   Dept  of  Commerce  and                 
  Economic Development, testified that the department supports                 
  the bill as  written.  The  department is neutral on  issues                 
  presented by Mr.  Kyle.   Mr. Bush said  the state does  not                 
  wish to be  the arbitrator or mediator on those  issues.  If                 
  the process of arbitration  or mediation is kept out  of the                 
  hands of the  state and  placed in the  private sector,  the                 
  department does  not oppose  changes that  would incorporate                 
  arbitration or mediation.                                                    
                                                                               
  Speaking to cross regionalization, Mr Bush voiced department                 
  opposition, citing  safety as the  issue.  Logic infers that                 
  it  is safer  for a  pilot  to be  licensed to  practice and                 
  demonstrate experience in  a smaller area.   He acknowledged                 
  that  the  issue  also relates  to  availability  of pilots.                 
  Alaska  has an extensive  coastline, and it  is difficult to                 
  get to many areas, such as the Pribilofs,  where a pilot may                 
  be   required.      If  there   is   a   system   for  cross                 
  regionalization,  pilot  associations  may deny  service  to                 
  harder to reach areas due to economics.  Mr. Bush noted that                 
  the  bill  allows   the  board   to  permit  limited   cross                 
  regionalization  if  there is  a  shortage  of  pilots in  a                 
  particular  region.  Senator Pearce  said that in 1991 cross                 
  regionalization was  looked at carefully because  the cruise                 
  ship industry wanted to put  pilots aboard in Southeast  and                 
  keep them aboard across  the Gulf of Alaska and  into Prince                 
  William  Sound.   The  tanker  association was  against that                 
  arrangement  because the cruise  ship industry  is seasonal.                 
  There  was  fear  of  a  lack  of currency  on  the  bridge,                 
  particularly in  Prince William Sound.   The state  gave the                 
  board  the  ability to  cross  regionalize on  an individual                 
                                                                               
                                                                               
  basis.   Senator Pearce  concurred in  comments by Mr.  Bush                 
  regarding safety.                                                            
                                                                               
  Co-chair  Halford   asked  if  there was  a  requirement for                 
  pilots to serve  hard-to-reach areas such as  the Pribilofs.                 
  Senator  Pearce suggested  that cross  regionalization would                 
  cause prices to substantially increase.   Where there is low                 
  volume, there will be a higher cost.  Pilotage was discussed                 
  with  regard to difficulty in piloting and the remoteness of                 
  some  areas.   In  emergency  situations, where  there  is a                 
  pilotage shortage, the  board can send pilots  from one area                 
  to another.                                                                  
                                                                               
  Senator Rieger asked if  a tariff was imposed by  the board.                 
  Mr. Bush responded  that tariffs are  not set by the  board.                 
  The maximum tariff was repealed in the summer of 1994.  This                 
  bill does not establish a maximum tariff. He explained that,                 
  under  the current system, if an association in a particular                 
  region is contacted, the association  must dispatch a pilot.                 
  There  is nothing in the  bill that sets  the rate the pilot                 
  will charge.  That  is negotiable between the pilot  and the                 
  association.  Negotiations  will have to take  place between                 
  areas and  associations in order  to get the  most desirable                 
  price.  Cross regionalization eliminates the requirement the                 
  association demanded.  There was further discussion of cross                 
  regionalization.                                                             
                                                                               
  Mr. Bush noted  that apprenticeship is included in the bill.                 
  Senator Zharoff  commented on the difficulty associated with                 
  becoming  licensed  as  a  marine   pilot,  even  though  an                 
  individual  may know  an  area  extremely  well.   Mr.  Bush                 
  acknowledged that the apprenticeship program does not  solve                 
  the  problem,  now.   However, it  offers  a means  by which                 
  Alaskans with local  knowledge can, in a  particular region,                 
  become licensed marine  pilots without having to  go through                 
  the  formalities that  are otherwise  required.   It  is not                 
  something to be taken lightly.  It requires a lengthy period                 
  of apprenticeship to become a pilot.                                         
                                                                               
  Mr. Bush restated his position on cross regionalization.  He                 
  noted  that  other  areas  of  the  country  support  "port-                 
  specific" pilot  licensing.   A pilot  has a  license for  a                 
  particular area, and  once out of  that area, another  pilot                 
  comes aboard.   It has been  determined that, from a  safety                 
  perspective, it is better  to have experience in as  small a                 
  region as possible.   That is  not feasible in Alaska  where                 
  there are only  four pilot regions.  Mr.  Bush said he would                 
  support "port-specific" licensing if there were an unlimited                 
  number  of  pilots in  Alaska.    He emphasized  that  it is                 
  impossible for a pilot to be  an expert in all areas of  any                 
  one region.   Expanding the area  of coverage does not  take                 
  safety into account.                                                         
                                                                               
  Dan Twohig, Marine  Pilot Coordinator, Dept of  Commerce and                 
                                                                               
                                                                               
  Economic   Development,   responded  to   Senator  Zharoff's                 
  concerns regarding the apprenticeship program.  He explained                 
  that in Southeast  Alaska, pilot organizations argue  that a                 
  minimum of three  to five years  is required to get  through                 
  the  program.  In the Western region  (region 3), no one has                 
  ever been licensed,  so the time to qualify is  unknown.  In                 
  general,  pilots  sell  two  things:     1)  intimate  local                 
  knowledge and  2) ship handling  skills.   A person  usually                 
  comes  into the training  process with one  of those assets.                 
  Alaska  has  47,000 miles  of  navigable coastline,    It is                 
  inconceivable to think that a person can have intimate local                 
  knowledge of more  than one region at  one time.  It  is not                 
  unreasonable to believe that one can gain local knowledge if                 
  he  or she  goes to one  place many  times.  In  a situation                 
  where a pilot  organization is working a  particular region,                 
  it  would  probably not  be  inclined to  take  someone from                 
  another region and train him or her to partake in the profit                 
  of  the second region  as well.  That  would not make sense.                 
  There are currently  68 marine  pilots in the  state.   They                 
  cover  all  four  regions.   Half  the  pilots  are  Alaskan                 
  residents.  Mr.  Twohig said that state  compulsory pilotage                 
  law requires state-licensed pilots  on foreign flag  vessels                 
  as well as U.S.  vessels under register--those that sail  to                 
  foreign ports.  Federal pilots can go anywhere on "enrolled"                 
  vessels (U.S. vessels  and U.S.  cruise ships).   The  state                 
  pilot law is designed  to protect lives and property  in the                 
  marine environment.   A state  pilot is the  one person  the                 
  state can count on to look out for the state's interest.  If                 
  piloting involves a  ship from a Far  Eastern country, where                 
  nobody speaks English, there is at least one person on board                 
  with the necessary local knowledge  and ship handling skills                 
  to talk to other ships, understand what the other pilots are                 
  doing, and make  appropriate decisions to keep  things safe.                 
  That is the  basis of the  program.  There was  considerable                 
  further   discussion   relating   to   training   and    the                 
  apprenticeship program.                                                      
                                                                               
  Co-chairman  Halford  voiced  his  understanding  that   the                 
  administration opposes cross regionalization.  Yet, it  also                 
  opposes  single-port licensing.    Mr.  Bush responded  that                 
  single-port licensing  is impossible with a group of only 68                 
  to 88  pilots.   If single-port  licensing were  utilized in                 
  addition to regionalizing, and a pilot licensed in Southeast                 
  could also be permitted  to go to Prince William  Sound, the                 
  issue  may  be different.    The  department  is opposed  to                 
  single-port    licensing.    Mr.   Twohig    stressed   that                 
  regionalization is necessary  because the state is  so large                 
  that there must be a group of people to count on  to service                 
  outports.  Since pilot associations  do the needed training,                 
  there must be pilot  organizations.  It is of  great benefit                 
  to take someone out of  a village and train him or her to be                 
  a pilot.   That training,  however, is for  the region,  not                 
  just one small  area.  Pilots must be able to serve from one                 
  outport to another  within the region, so that  commerce can                 
                                                                               
                                                                               
  flow within one region to another.   Mr. Twohig advised that                 
  the  current  proposal  for an  apprentice  program  is bare                 
  bones.  It will take a year to implement the regulations  to                 
  make  it   work  in  the  state's  best   interest.    Pilot                 
  organizations,  especially  in  the  Western  region,   have                 
  trouble finding people that have  the sea-time experience to                 
  meet  entry  level  requirements  presently  in law.    This                 
  apprenticeship program will allow a local person to get into                 
  the  program although he or she may not have the needed time                 
  as a master  on a vessel over  1600 gross tons  because that                 
  shipping is not  available to him  or her since it  involves                 
  foreign flag shipping.  Entry into  the program is there for                 
  people  who   have   not   had   the   required   employment                 
  opportunities to enter the program under existing law.  When                 
  the  regulations  are  completed, pilot  organizations  will                 
  utilize an application process to select trainees.  Mr. Bush                 
  interjected that there is a five-year experience requirement                 
  in  a  board  approved  deputy  marine  pilot apprenticeship                 
  program.  That program  would have to be provided  through a                 
  pilot organization.                                                          
                                                                               
  Senator Pearce  reiterated that  the Knowles  administration                 
  proposed inclusion of an apprenticeship program in the bill.                 
  It cannot   preclude entry from qualified  people from other                 
  parts of the  country.  Under  the interstate commerce  act,                 
  Alaska  cannot  close  entry to  qualified  people  from the                 
  "Lower 48."   The board  will have to  strive to develop  an                 
  apprenticeship program that  allows more Alaskans living  in                 
  rural areas into training and pilot organizations instead of                 
  setting up  a  program whereby  Alaska  will be  overrun  by                 
  outside pilots.                                                              
                                                                               
  Mr. Bush suggested that if  port-specific licensing could be                 
  created whereby every pilot had to be port specific and live                 
  200 days a year in that particular port, the state would not                 
  oppose the effort.  However, from a practical point of view,                 
  it is not possible. The impracticality of changing pilots in                 
  Southeast  for  every port  would  be incredible.   Further,                 
  guaranteeing that a  pilot would live  in some of the  small                 
  villages  where  pilotage  services   are  required  is  not                 
  realistic.    The  current system  is  a  compromise between                 
  necessary  economic  regulation   for  safety  purposes  and                 
  allowing a large enough region so  people can make a living.                 
                                                                               
                                                                               
  Mr. Twohig  explained that a  tariff is a base  number for a                 
  ship  movement.    Variables  are  associated with  what  it                 
  actually costs to move a ship.  There is a tonnage multiple,                 
  travel  and  standby  time,  and  travel expenses.  He  then                 
  explained that  under the maximum  tariff set by  the board,                 
  the  maximum  for  Ketchikan  was  $821, travel  inside  and                 
  outside Glacier Bay  was $2345, and  charges for Cook  Inlet                 
  and Prince William Sound  were $645 to $1500.   Base maximum                 
  numbers  are  figured  on a  tonnage  multiple.  The highest                 
                                                                               
                                                                               
  charge was for  Glacier Bay.   It is an  all-day trip.   The                 
  most difficult is Wrangell Narrows.   Rates are proportional                 
  to the time involved  in the pilotage.  The  rates described                 
  are  maximums,  not   the  rates   actually  set  by   pilot                 
  organizations with shippers.                                                 
                                                                               
  Dale  Collins,     Southeast   Alaska  Pilots   Association,                 
  testified that he sits on the Board of Marine Pilots, and is                 
  an advocate  of amending  the 20-year old  state statute  on                 
  marine pilotage.  He said he was born in Kodiak, Alaska, and                 
  raised in Kodiak and Ketchikan.   He has lived in Alaska his                 
  whole life.   He  is one  of five  or ten  pilots that  were                 
  actually raised in  state.  There  are many reasons why  the                 
  number of local  pilots is so  few.  The federal  government                 
  requires licenses  that require  ocean-going sea  time   not                 
  really available to  Alaskans.  State law  usually parallels                 
  federal  law, so that one of  the requirements, both federal                 
  and  state, is  that a  state  pilot be  federally licensed.                 
  State law also  requires local  knowledge and ship  handling                 
  ability.  Mr. Collins voice  support for regionalization and                 
  opposition  to  cross   regionalization  and   port-specific                 
  licenses.  He said that were it not absolutely necessary for                 
  a  pilot to  belong  to an  organization,  to fulfill  state                 
  requirements,  he would  not  belong to  one.   However,  an                 
  individual pilot cannot be available 24  hours a day.  Thus,                 
  he is part  of an association  that provides what the  state                 
  requires  of a pilot: 24-hour availability, 365 days a year.                 
  That  is  difficult  for a  small  group  of  people to  do.                 
  Organizations  are   thus  asking  legislators  to  buy  the                 
  regional concept.   He said  he supports the concept because                 
  the state needs pilots who will be available 24 hours a day,                 
  365 days a year.   Mr. Collins described how  piloting works                 
  and what  it means to him.  He  advocated a fixed tariff and                 
  told  members  that competition  is resulting  in a  lack of                 
  pilots.                                                                      
                                                                               
  End    Tape #46, Side 2                                                      
  Begin  Tape #48, Side 1                                                      
                                                                               
  Senator Rieger inquired regarding  maximum tariffs when they                 
  were in effect.   Mr. Collins  explained that they were  50%                 
  over the fixed  rate.   In region 1  (Southeast Alaska)  the                 
  tariff  for cargo  ships has  come  up 35%.    Prior to  the                 
  maximum tariff, the same rate existed  for 11 years.  Cruise                 
  ships  have  gone from  8%  to 20%  over the  last  4 years.                 
  Competition has  meant higher prices,  suspicion, fear,  and                 
  fewer pilots being  trained.   He said he  does not  support                 
  competition in the piloting business.   Senator Rieger asked                 
  if    maximum  tariffs  reflect  cross subsidization.    Mr.                 
  Collins suggested  that use of  the word anomalies  would be                 
  more  accurate than subsidization.   Wrangell Narrows, which                 
  Mr.  Collins  described  as 21  miles  of  shear terror,  is                 
  essentially a blasted out ditch with 63 aids  to navigation.                 
  The risks  are high and the pay is  low.  Glacier Bay, until                 
                                                                               
                                                                               
  the vessel  gets into  ice, is  wide open.   While  piloting                 
  there takes a  long time, it is a nice trip and costs $1200.                 
  There are many  considerations in  setting rates which  have                 
  just increased 50-100%.                                                      
                                                                               
  Co-chair   Halford  cited  existing  law  which  allows  for                 
  pilotage in more  than one region, if  it is found to  be in                 
  the best interest of the state.   Mr. Collins responded that                 
  the board found only one area for which that was true.   Co-                 
  chairman Halford noted that testimony indicates no one wants                 
  cross regionalization.  However, the  board has authority to                 
  allow it.  He then asked why the legislature should create a                 
  statute prohibiting it.  Mr. Collins acknowledged  there are                 
  counter statements  in the law which work at cross purposes.                 
  One statute says that one could  be cross regionalized.  The                 
  other says, "not unless  it is in the  best interest of  the                 
  state."  The  board has been unable to determine  what is in                 
  the best  interest of  the state, without  getting into  the                 
  economic conditions of  the times.   The department and  the                 
  Board of  Marine Pilots want  to clean up  the language.   A                 
  decision has  thus been made.  If  it is in error,  it is on                 
  the side of safety.                                                          
                                                                               
  Mr. Collins referenced  creation of region 3  which includes                 
  transport  via  large box  ships (Sealand).   Pilots  in the                 
  region are used to the fish boats and ships of less tonnage.                 
  Southwest  region 2 pilots  historically did this  work.  At                 
  the request of  ship owners,  region 2 pilots  were left  in                 
  place  for almost two  years to train pilots  in region 3 to                 
  handle  that  type   of  ship.    That   arrangement  worked                 
  successfully.     That  is  the  only  case   where    cross                 
  regionalization happened.  If a  shortage of pilots occurred                 
  in Southeast,  Mr. Collins  questioned whether  it would  be                 
  good to bring in pilots from Western Alaska or elsewhere.                    
                                                                               
  Co-chairman Halford read the following language:                             
                                                                               
        A  pilot may  not be  licensed in  more than  one                      
       piloting     region   at   a  time,   unless   the                      
       commissioner  determines      that  an  actual  or                      
       imminent shortage of licensed pilots   exists in a                      
       pilotage region.                                                        
                                                                               
  He  then  noted   that  if   the  commissioner  makes   that                 
  determination, the  board may,  after consultation  with the                 
  pilot organizations, "do something about  it."  He suggested                 
  that  there  is   a  two-tier  process.     Even  after  the                 
  commissioner has made  a determination,  the board does  not                 
  have  to take action.  Existing law  leaves it to the board.                 
  Changes in the proposed  bill appear to be one  step further                 
  away from any  potential for cross regionalization,  even in                 
  emergency situations.                                                        
                                                                               
  Co-chairman  Halford  directed  that  SB   130  be  held  in                 
                                                                               
                                                                               
  committee for continued discussion at the afternoon meeting.                 
                                                                               
  RECESS                                                                       
                                                                               
  Meeting  was  recessed  at   approximately  11:15  a.m.  for                 
  attendance at the Senate Floor Session.                                      
                                                                               

Document Name Date/Time Subjects