HB 237: "An Act relating to marine pilot licensing and tariffs."

00HOUSE BILL NO. 237 01 "An Act relating to marine pilot licensing and tariffs." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 08.62.040(a) is amended to read: 04  (a) The board shall 05  (1) provide for the maintenance of efficient and competent pilotage 06 service on the inland and coastal water of and adjacent to the state to assure the 07 protection of shipping, the safety of human life and property, and the protection of the 08 marine environment; 09  (2) consistent with the law, adopt regulations, subject to the 10 Administrative Procedure Act (AS 44.62), establishing the qualifications of and 11 required training for pilots and providing for the examination of pilots and the issuance 12 of original or renewal pilot licenses to qualified persons; 13  (3) keep a register of licensed pilots, licensed deputy pilots, and agents; 14  (4) adopt regulations establishing

01  (A) pilotage regions in the state; 02  (B) the criteria for concurring in the amount of license, 03 application, training, investigation, and audit fees proposed by the department 04 under AS 08.01.065; 05  (C) the criteria for recognizing pilot organizations under 06 AS 08.62.175; 07  (5) make available, upon request, copies of this chapter and the 08 regulations adopted under this chapter; 09  (6) review and approve the articles, bylaws, and rules of pilot 10 organizations; 11  (7) audit a pilot organization or an individual pilot as necessary to 12 implement and enforce this chapter; 13  (8) review and approve training programs conducted by pilot 14 organizations; the board shall cooperate with the Department of Environmental 15 Conservation in the review and approval of training programs for pilots of tank 16 vessels; [AND] 17  (9) establish and publish the dates of future license examinations; and 18  (10) establish by regulation 19  (A) the maximum number of pilots to be licensed in a region 20 based on the number needed to assure the safety of human life and 21 property, and the protection of the marine environment of the state; and 22  (B) if there are more qualified applicants for licensing than 23 there are licenses available, the criteria for choosing which pilots should 24 be awarded licenses. 25 * Sec. 2. AS 08.62.040(b) is amended to read: 26  (b) The board may, by regulation, make any other provision for proper and 27 safe pilotage upon the inland and coastal water of and adjacent to the state and for the 28 efficient administration of this chapter, including establishing 29  (1) different licensing criteria for a pilotage region if justified by 30 regional differences in piloting; 31  (2) a mandatory random drug and alcohol testing program for pilots

01 licensed under this chapter; 02  (3) criteria for trainee selection and for training programs conducted by 03 pilot organizations; and 04  (4) standards under which, during a transition period when the board 05 is changing the boundaries of a pilotage region, a pilot may receive [A LICENSE 06 OR] an endorsement to a license to pilot vessels in more than one pilotage region. 07 * Sec. 3. AS 08.62.040(d) is amended to read: 08  (d) Notwithstanding the exemption from AS 45.50.562 - 45.50.596 granted to 09 pilot organizations under AS 45.50.572(a), the board may not adopt a regulation or 10 take other action resulting in anti-competitive activities that, if the board were subject 11 to AS 45.50.562 - 45.50.596, would violate AS 45.50.562 - 45.50.596. However, the 12 board shall adopt regulations and take other actions to restrict the number of 13 licenses issued in a region as required by (a) of this section. 14 * Sec. 4. AS 08.62.045(a) is amended to read: 15  (a) The Alaska Public Utilities Commission [BOARD] shall adopt by 16 regulation fixed [MAXIMUM] tariffs that may be charged by pilots for the provision 17 of specific pilotage services in a pilotage region in the state. The commission 18 [BOARD] shall identify those expenses that are included in the tariff. Expenses 19 included in the tariff must be just and reasonable and in accordance with 20 accepted maritime industry practices and standards. In adopting [MAXIMUM] 21 tariffs under this subsection, the commission [BOARD] shall take into consideration 22  (1) reasonable compensation for actual time aboard a vessel as a pilot, 23 including overtime, and for time engaged in preparing to provide pilotage services; 24 comparisons are limited to the maritime market in the United States; 25  (2) differential compensation for seasonal and weather conditions and 26 [,] risks involved in providing pilotage service in the state compared to the other 27 maritime states [, AND OVERTIME]; 28  (3) pilot expenses allowed for dispatch services [EXPENSES], 29 transportation expenses, and other associated costs directly related to the provision of 30 pilotage services; allowed pilot expenses may not include an allowance for the cost 31 of political contributions, public relations, or lobbyist expenses;

01  (4) reasonable overhead expenses that are necessary to provide year 02 round pilotage services for the region; [AND] 03  (5) the economic effect of the proposed tariff on the industry, the 04 area, and the state; 05  (6) the reasonable cost of equipment associated with the tariff; 06 equipment considered in setting the tariff must be used and useful toward marine 07 pilotage; and 08  (7) other expenses identified by the commission [BOARD]. 09 * Sec. 5. AS 08.62.045(d) is amended to read: 10  (d) A pilot organization recognized by the board or a member of the pilot 11 organization may not charge a tariff for the provision of pilotage services that differs 12 from [EXCEEDS] the [MAXIMUM] tariff set by the commission [BOARD, THAT 13 IS DIFFERENT FROM THE TARIFF ADOPTED BY THE PILOT ORGANIZATION, 14 OR THAT HAS NOT TAKEN EFFECT UNDER (c) OF THIS SECTION]. 15 * Sec. 6. AS 08.62.045 is amended by adding new subsections to read: 16  (e) A tariff adopted under this section is valid for three years and may not be 17 amended except as provided in this subsection or in (g) of this section. The 18 commission may reopen a tariff if the commission finds that the tariff is substantially 19 unfair. Once each year, the commission shall by regulation adjust the tariffs for 20 inflation, based on the consumer price index for the region. If a regional consumer 21 price index is not available, the commission shall adjust the tariff using the state 22 consumer price index and adjusting the state index by using an established differential 23 study for the region. 24  (f) The commission shall by regulation impose and establish a method to 25 determine annually the amount of a regulatory cost charge to cover the commission's 26 costs of regulating tariffs under this section. The charge shall be in the form of a tariff 27 fee assessed by region on each movement of a vessel subject to this chapter. The 28 commission shall administer and the Department of Revenue shall collect and enforce 29 the charge imposed under this subsection. 30  (g) If a pilot organization recognized by the board and a shipping company or 31 the agent of a shipping company to whom pilotage services are provided agree on the

01 tariff for a particular region, they shall present the agreement to the commission for 02 review. The commission shall hold a public hearing concerning the agreement and 03 may approve it if it finds that approval of the agreement is in the public interest. 04  (h) The commission shall adopt regulations under AS 44.62 (Administrative 05 Procedure Act) to carry out its powers and duties under this section. 06  (i) In this section, "commission" means the Alaska Public Utilities 07 Commission. 08 * Sec. 7. AS 08.62.080 is amended to read: 09  Sec. 08.62.080. LICENSE REQUIRED; RESTRICTIONS AND 10 CONDITIONS. (a) A person may not pilot a vessel subject to this chapter unless the 11 person has a valid license issued [IS LICENSED] under this chapter and is a member 12 of a pilot organization recognized by the board. 13  (b) A pilot may not be licensed in more than one pilotage region at one time. 14 However, a pilot may hold endorsements issued by the board permitting the pilot 15 to operate in more than one pilotage region at a time if, under (d) of this section, 16 the board has declared an emergency or if, under AS 08.62.040(b), the board is 17 changing the boundaries of a region [, UNLESS THE BOARD DETERMINES 18 THAT IT IS IN THE BEST INTERESTS OF THE STATE TO LICENSE PILOTS 19 FOR PARTS OF MORE THAN ONE PILOTAGE REGION]. 20  (c) A license issued under this chapter must identify the specific waterways 21 and ports [IN EACH PILOTAGE REGION] in which a licensee is authorized by the 22 board to pilot vessels. The board shall authorize a licensee to pilot vessels in specific 23 waterways or ports [A SPECIFIC WATERWAY OR PORT] in a pilotage region 24 upon the licensee satisfying the training and other qualifying requirements required by 25 the board to pilot vessels in that region [WATERWAY OR PORT]. 26 * Sec. 8. AS 08.62.080 is amended by adding a new subsection to read: 27  (d) The board may adopt regulations designating that an emergency exists that 28 requires the board to issue emergency endorsements to pilots not licensed in a 29 particular region. After adopting regulations, the board may issue an emergency 30 endorsement to a licensed pilot to permit the pilot to operate in a region in which the 31 pilot is not licensed. The emergency endorsement must state the ports or waterways

01 covered by the endorsement and the period of time for which it is valid. 02 * Sec. 9. AS 08.62.150(a) is amended to read: 03  (a) The board shall impose a disciplinary sanction on a person licensed under 04 this chapter when the board finds that the person 05  (1) is incompetent in the performance of pilotage duties; 06  (2) is chemically impaired; 07  (3) illegally possesses, uses, or sells narcotic or hallucinogenic drugs; 08  (4) makes a false statement to obtain a license; 09  (5) violates a provision of this chapter or a regulation adopted under 10 it; 11  (6) is guilty of misconduct during the course of employment; 12  (7) has had the person's United States Coast Guard pilot license 13 conditioned, suspended, or revoked; or 14  (8) charges, collects, or receives an amount for pilotage services that 15 is different from the [IN EXCESS OF THE MAXIMUM] tariff established by the 16 Alaska Public Utilities Commission under AS 08.62.045 [BOARD OR DIFFERENT 17 FROM THE TARIFF ADOPTED BY THE PILOT ORGANIZATION OF WHICH 18 THE PERSON IS A MEMBER]. 19 * Sec. 10. AS 08.62.175 is amended by adding a new subsection to read: 20  (e) A pilot organization recognized by the board may enter into an agreement 21 with a shipping company or the agent of a shipping company to whom pilotage 22 services are provided for a proposed tariff for a particular region under 23 AS 08.62.045(g). 24 * Sec. 11. AS 42.05.141 is amended by adding a new subsection to read: 25  (d) The commission shall perform the duties assigned to it under 26 AS 08.62.045. 27 * Sec. 12. Section 35, ch. 89, SLA 1991, is amended to read: 28  Sec. 35. AS 08.62.045 is repealed June 30, 2000 [1994]. 29 * Sec. 13. AS 08.62.045(b), 08.62.045(c), and 08.62.175(c)(3) are repealed. 30 * Sec. 14. AS 08.62.150(a)(8), 08.62.175(e); and AS 42.05.141(d) are repealed June 30, 31 2000.

01 * Sec. 15. Notwithstanding the amendments to AS 08.62.045 and 08.62.150(a) made by 02 this Act, tariffs for marine pilotage services in a region may continue to be charged under 03 AS 08.62.045 as it existed on the day before the effective date of this Act until the Alaska 04 Public Utilities Commission adopts regulations setting fixed tariffs for that region.