CSHB 237(L&C): "An Act relating to marine pilot licensing and tariffs."

00CS FOR HOUSE BILL NO. 237(L&C) 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 independent, impartial, and 12 unbiased [THE] examination of pilots and applicants for pilot licenses, and 13 providing for the issuance of original or renewal pilot licenses to qualified persons; 14  (3) keep a register of licensed pilots, licensed deputy pilots, and agents;

01  (4) adopt regulations establishing 02  (A) pilotage regions in the state; 03  (B) the criteria for concurring in the amount of license, 04 application, training, investigation, and audit fees proposed by the department 05 under AS 08.01.065; 06  (C) the criteria for recognizing pilot organizations under 07 AS 08.62.175; 08  (5) make available, upon request, copies of this chapter and the 09 regulations adopted under this chapter; 10  (6) review and approve the articles, bylaws, and rules of pilot 11 organizations; 12  (7) audit a pilot organization or an individual pilot as necessary to 13 implement and enforce this chapter; 14  (8) review and approve training programs conducted by pilot 15 organizations; the board shall cooperate with the Department of Environmental 16 Conservation in the review and approval of training programs for pilots of tank 17 vessels; [AND] 18  (9) establish and publish the dates of future license examinations; and 19  (10) establish by regulation the criteria that will be used by the 20 board to issue pilot licenses in a region where the number of qualified applicants 21 for licensing, when added to the number of pilots already licensed for the region, 22 exceeds the number of pilots determined to be needed for that region under 23 AS 08.62.047. 24 * Sec. 2. AS 08.62.040(b) is amended to read: 25  (b) The board may, by regulation, make any other provision for proper and 26 safe pilotage upon the inland and coastal water of and adjacent to the state and for the 27 efficient administration of this chapter, including establishing 28  (1) different licensing criteria for a pilotage region if justified by 29 regional differences in piloting; 30  (2) a mandatory random drug and alcohol testing program for pilots 31 licensed under this chapter;

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

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

01 may approve it if it finds that approval of the agreement is in the public interest. 02  (h) The commission shall adopt regulations under AS 44.62 (Administrative 03 Procedure Act) to carry out its powers and duties under this section. 04  (i) In this section, "commission" means the Alaska Public Utilities 05 Commission. 06 * Sec. 7. AS 08.62 is amended by adding a new section to read: 07  Sec. 08.62.047. REGIONAL MAXIMUMS FOR PILOTS. The Alaska Public 08 Utilities Commission shall establish by regulation the maximum number of pilots that 09 may be licensed by the board in each pilotage region based on the number needed to 10 ensure the safety of human life and property, facilitate the efficient movement of 11 commerce, and ensure the protection of the marine environment of the state. 12 * Sec. 8. AS 08.62.080 is amended to read: 13  Sec. 08.62.080. LICENSE REQUIRED; RESTRICTIONS AND 14 CONDITIONS. (a) A person may not pilot a vessel subject to this chapter unless the 15 person has a valid license issued [IS LICENSED] under this chapter and is a member 16 of a pilot organization recognized by the board. 17  (b) A pilot may not be licensed in more than one pilotage region at one time. 18 However, a pilot may hold endorsements issued by the board permitting the pilot 19 to operate in more than one pilotage region at a time if, under (d) of this section, 20 the board has declared an emergency or if, under AS 08.62.040(b), the board is 21 changing the boundaries of a region [, UNLESS THE BOARD DETERMINES 22 THAT IT IS IN THE BEST INTERESTS OF THE STATE TO LICENSE PILOTS 23 FOR PARTS OF MORE THAN ONE PILOTAGE REGION]. 24  (c) A license issued under this chapter must identify the specific waterways 25 and ports [IN EACH PILOTAGE REGION] in which a licensee is authorized by the 26 board to pilot vessels. The board shall authorize a licensee to pilot vessels in specific 27 waterways or ports [A SPECIFIC WATERWAY OR PORT] in a pilotage region 28 upon the licensee satisfying the training and other qualifying requirements required by 29 the board to pilot vessels in that region [WATERWAY OR PORT]. 30 * Sec. 9. AS 08.62.080 is amended by adding a new subsection to read: 31  (d) The board may adopt regulations designating that an emergency exists that

01 requires the board to issue emergency endorsements to pilots not licensed in a 02 particular region. After adopting regulations, the board may issue an emergency 03 endorsement to a licensed pilot to permit the pilot to operate in a region in which the 04 pilot is not licensed. The emergency endorsement must state the ports or waterways 05 covered by the endorsement and the period of time for which it is valid. 06 * Sec. 10. AS 08.62.150(a) is amended to read: 07  (a) The board shall impose a disciplinary sanction on a person licensed under 08 this chapter when the board finds that the person 09  (1) is incompetent in the performance of pilotage duties; 10  (2) is chemically impaired; 11  (3) illegally possesses, uses, or sells narcotic or hallucinogenic drugs; 12  (4) makes a false statement to obtain a license; 13  (5) violates a provision of this chapter or a regulation adopted under 14 it; 15  (6) is guilty of misconduct during the course of employment; 16  (7) has had the person's United States Coast Guard pilot license 17 conditioned, suspended, or revoked; or 18  (8) charges, collects, or receives an amount for pilotage services that 19 is different from the [IN EXCESS OF THE MAXIMUM] tariff established by the 20 Alaska Public Utilities Commission under AS 08.62.045 [BOARD OR DIFFERENT 21 FROM THE TARIFF ADOPTED BY THE PILOT ORGANIZATION OF WHICH 22 THE PERSON IS A MEMBER]. 23 * Sec. 11. AS 08.62.175 is amended by adding a new subsection to read: 24  (e) A pilot organization recognized by the board may enter into an agreement 25 with a shipping company or the agent of a shipping company to whom pilotage 26 services are provided for a proposed tariff for a particular region under 27 AS 08.62.045(g). 28 * Sec. 12. AS 42.05.141 is amended by adding a new subsection to read: 29  (d) The commission shall perform the duties assigned to it under 30 AS 08.62.045. 31 * Sec. 13. Section 35, ch. 89, SLA 1991, is amended to read:

01  Sec. 35. AS 08.62.045 is repealed June 30, 2000 [1994]. 02 * Sec. 14. AS 08.62.045(b), 08.62.045(c), and 08.62.175(c)(3) are repealed. 03 * Sec. 15. AS 08.62.150(a)(8), 08.62.175(e); and AS 42.05.141(d) are repealed June 30, 04 2000. 05 * Sec. 16. Notwithstanding the amendments to AS 08.62.045 and 08.62.150(a) made by 06 this Act, tariffs for marine pilotage services in a region may continue to be charged under 07 AS 08.62.045 as it existed on the day before the effective date of this Act until the Alaska 08 Public Utilities Commission adopts regulations setting fixed tariffs for that region.