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CSSB 130(FIN): "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."

00CS FOR SENATE BILL NO. 130(FIN) 01 "An Act relating to marine pilots and the Board of Marine Pilots; extending the 02 termination date of the Board of Marine Pilots; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 08.03.010(c)(13) is amended to read: 06  (13) Board of Marine Pilots (AS 08.62.010) -- June 30, 1999 [1994]; 07 * Sec. 2. AS 08.62.010 is amended to read: 08  Sec. 08.62.010. CREATION AND MEMBERSHIP OF BOARD. There is 09 created the Board of Marine Pilots. It consists of two pilots licensed under this 10 chapter who have been actively engaged in piloting on vessels subject to this chapter, 11 two registered agents or managers of vessels subject to this chapter who are actively 12 engaged in the procurement of pilotage services, two public members in accordance 13 with AS 08.01.025, and the commissioner or the commissioner's designee. Not more 14 than one pilot and one registered agent or manager may [SHALL] be from any one

01 pilotage region established by the board. Not more than one registered agent or 02 manager may be employed by, be a contractor for, or hold a financial interest in 03 the same marine industry business entity, including commonly owned, affiliated, 04 or subsidiary business entities [JUDICIAL DISTRICT]. All members of the board 05 shall be residents of the state. 06 * Sec. 3. AS 08.62.040(a) is amended to read: 07  (a) The board shall 08  (1) provide for the maintenance of efficient and competent pilotage 09 service on the inland and coastal water of and adjacent to the state to assure the 10 protection of shipping, the safety of human life and property, and the protection of the 11 marine environment; 12  (2) consistent with the law, adopt regulations, subject to AS 44.62 ( 13 [THE] Administrative Procedure Act [(AS 44.62]), establishing the qualifications of 14 and required training for pilots and providing for the examination of pilots and the 15 issuance of original or renewal pilot licenses to qualified persons; 16  (3) keep a register of licensed pilots, licensed deputy pilots, and agents; 17  (4) adopt regulations establishing 18  (A) pilotage regions in the state; 19  (B) the criteria for concurring in the amount of license, 20 application, training, investigation, and audit fees proposed by the department 21 under AS 08.01.065; 22  (C) the criteria for recognizing pilot organizations under 23 AS 08.62.175; 24  (5) make available, upon request, copies of this chapter and the 25 regulations adopted under this chapter; 26  (6) review and approve the articles, bylaws, and rules of pilot 27 organizations; 28  (7) audit a pilot organization or an individual pilot as necessary to 29 implement and enforce this chapter; 30  (8) review and approve training programs conducted by pilot 31 organizations; the board shall cooperate with the Department of Environmental

01 Conservation in the review and approval of training programs for pilots of tank 02 vessels; [AND] 03  (9) establish and publish the dates of future license examinations; and 04  (10) approve or disapprove rates for pilotage services as provided 05 under AS 08.62.046. 06 * Sec. 4. AS 08.62.040(b) is amended to read: 07  (b) The board may, by regulation, make any other provision for proper and 08 safe pilotage upon the inland and coastal water of and adjacent to the state and for the 09 efficient administration of this chapter, including establishing 10  (1) different licensing criteria for a pilotage region if justified by 11 regional differences in piloting; 12  (2) a mandatory [RANDOM] drug and alcohol testing program, 13 including random tests, post-incident tests, and tests based upon reasonable cause, 14 for pilots licensed under this chapter; the board may delegate responsibility for 15 administration of all or a portion of a testing program to pilot organizations; 16  (3) criteria for trainee selection and for training programs conducted by 17 pilot organizations; [AND] 18  (4) standards under which a pilot may receive a license or an 19 endorsement to a license to pilot vessels in more than one pilotage region under 20 AS 08.62.080(b); and 21  (5) procedures for the review of proposed rates by the board under 22 AS 08.62.046. 23 * Sec. 5. AS 08.62.040 is amended by adding a new subsection to read: 24  (e) The board may delegate duties to the marine pilot coordinator as necessary 25 to assist the board in administering and enforcing this chapter. 26 * Sec. 6. AS 08.62 is amended by adding a new section to read: 27  Sec. 08.62.046. RATES FOR PILOTAGE SERVICES. (a) A pilot 28 organization recognized by the board shall adopt and publish rates for the provision 29 of pilotage services. The pilot organization shall adopt rates for pilotage services as 30 provided under this section. Notwithstanding this section, a pilot organization may 31 enter into agreements with the master, owner, operator, or agent of a master, owner,

01 or operator, of a vessel for the provision of pilotage services at rates of compensation 02 that are different from the rates adopted under this section. Unless a pilot organization 03 has an agreement with the master, owner, operator, or agent of a master, owner, or 04 operator, of a vessel that sets rates for the provision of a pilotage service, the pilot 05 organization may not charge a rate for the provision of the pilotage service to the 06 vessel that is different from the rate adopted or established under this section. 07  (b) If a pilot organization intends to adopt a new or revised rate for the 08 provision of a pilotage service, the pilot organization shall, before October 15, send 09 a notice of intent to adopt a rate for provision of the pilotage service to the board and 10 to all registered agents and publish the notice on at least three days during a period of 11 14 consecutive days in a newspaper of general circulation in the state. The notice of 12 intent to adopt a rate must include a copy of the proposed rate and the name and 13 mailing address of the pilot organization that intends to adopt the rate. If no objection 14 to the proposed rate is filed with the board under (c) of this section, the rate takes 15 effect on January 1 of the year following the year in which the notice of the intent to 16 adopt the rate was filed with the board. 17  (c) The master, owner, operator, or agent of the master, owner, or operator, of 18 a vessel required to employ a pilot under this chapter may object to the proposed rate 19 for a specific pilotage service by filing a written notice of objection, containing the 20 grounds for the objection and relevant evidence demonstrating that the rate is not 21 reasonable, with the board within 60 days after the final date of publication of the 22 proposed rate in a newspaper of general circulation. The pilot organization that 23 proposed the rate has until 15 days after the close of the period for filing objections 24 to the proposed rate to provide its written response to the notice of objection and 25 relevant evidence demonstrating that the rate is reasonable. If the pilot organization 26 does not respond to the notice of objection by the close of the 15-day period for 27 response to the objection, the board may not take action on the proposed rate and the 28 proposed rate does not take effect. If the pilot organization does respond to the notice 29 of objection before the close of the response period, the board shall hold a hearing to 30 determine whether the proposed rate is reasonable. If the board finds that the proposed 31 rate is reasonable, the rate is approved and takes effect retroactive to January 1 of the

01 calendar year in which the rate would have taken effect under (b) of this section if no 02 objection had been filed. If the board finds that the proposed rate is not reasonable, 03 the proposed rate is disapproved and does not take effect. In determining what 04 constitutes a reasonable rate, the board shall consider the following factors: 05  (1) current and historical rates charged for comparable pilotage 06 services; 07  (2) the actual time aboard the vessel, time engaged in preparing to 08 provide the pilotage services, seasonal and weather conditions, and risks; 09  (3) the reasonable expenses incurred in providing the pilotage services 10 such as dispatch, transportation, overhead, and other associated expenses; 11  (4) the financial effect of pilotage expenses on the owner of the vessel, 12 except that this factor shall only be considered if the owner provides all financial 13 information that the board determines is necessary to determine the financial effect; 14  (5) the number of vessels and volume of pilotage services at issue in 15 the dispute and the number of members of the pilot organization; 16  (6) the effect of the determination on the income of affected pilots 17 relative to prior years, taking into account changes in vessel tonnage and vessel traffic 18 in the pilotage region from year-to-year; 19  (7) prior determinations under this subsection; and 20  (8) other factors the board considers relevant. 21  (d) Pending the review and approval of the proposed rate for a specific 22 pilotage service by the board under (c) of this section, the current rate then in effect 23 for that pilotage service remains in effect until the board approves the proposed rate. 24 If the proposed rate approved by the board is greater than the current rate, then the 25 master, owner, or operator of the vessel or the vessel is liable for the payment of the 26 additional amount owed for the provision of pilotage services during the pendency of 27 the review by the board due to retroactive application of the approved rate under (c) 28 of this section. If the proposed rate is less than the current rate, then the pilot 29 organization is liable to the master, owner, or operator of the vessel or the vessel for 30 reimbursement of the amount overpaid for the provision of pilotage services during the 31 pendency of the review by the board due to the retroactive application of the approved

01 rate under (c) of this section. 02  (e) If the board finds under (c) of this section that a proposed rate is not 03 reasonable, the pilot organization may propose a new rate for that pilotage service 04 within 60 days after the decision of the board is issued by sending a notice of intent 05 to adopt a rate for provision of the pilotage service to the board and to all registered 06 agents and publishing the notice on at least three days during a period of 14 07 consecutive days in a newspaper of general circulation in the state. The notice of 08 intent to adopt a rate must include a copy of the proposed rate and the name and 09 mailing address of the pilot organization that intends to adopt the rate. If a timely 10 objection to the proposed rate is not filed with the board under (c) of this section, the 11 rate takes effect retroactive to January 1 of the same calendar year in which the initial 12 rate proposed under (b) of this section would have taken effect if no objection had 13 been filed. If a timely objection is filed, the provisions of (c) and (d) of this 14 subsection apply to the proposed rate. 15  (f) The board shall provide a schedule of current rates adopted and interim 16 rates established under this section to agents registered under AS 08.62.187. 17 * Sec. 7. AS 08.62.050 is amended by adding a new subsection to read: 18  (c) In addition to other duties as may be assigned by the board, the marine 19 pilot coordinator may review applications for examination and licensure to ascertain 20 whether the applicant satisfies the applicable requirements. 21 * Sec. 8. AS 08.62.080(b) is amended to read: 22  (b) A pilot may not be licensed in more than one pilotage region at one time 23 [,] unless the commissioner [BOARD] determines that an actual or imminent 24 shortage of licensed pilots exists in a [IT IS IN THE BEST INTERESTS OF THE 25 STATE TO LICENSE PILOTS FOR PARTS OF MORE THAN ONE] pilotage region. 26 If the commissioner makes the determination described in this subsection, the 27 board may, after consultation with the recognized pilot organizations and 28 registered agents in the affected pilotage region, issue temporary licenses for the 29 affected pilotage region to pilots who already hold a license for another pilotage 30 region. The board shall ensure that sufficient pilots are available to provide 31 pilotage services in the affected pilotage region to all vessels required to employ

01 a pilot under this chapter. A temporary license issued under this subsection is 02 valid for a period of not more than one year. 03 * Sec. 9. AS 08.62.080 is amended by adding a new subsection to read: 04  (d) In addition to the prohibition against being licensed in more than one pilot 05 region at one time under (b) of this section, a pilot licensed under this chapter may not 06 hold a marine pilot license issued in another state or country. 07 * Sec. 10. AS 08.62.090(b) is amended to read: 08  (b) The application shall provide the information and be made on a form 09 prescribed by the department [BOARD]. 10 * Sec. 11. AS 08.62.093(b) is amended to read: 11  (b) A person who applies for a deputy marine pilot license under this chapter 12 shall provide proof satisfactory to the board of the following experience: 13  (1) one year of service as a master on ocean or coastwise vessels while 14 holding a United States Coast Guard license as master of ocean steam or motor 15 vessels of any gross tons; 16  (2) two years of service as a master on United States Coast Guard 17 inspected vessels of not less than 1,000 gross tons or tug and tow of not less than 18 1,600 combined gross tons while holding at least a United States Coast Guard [A] 19 license as master of steam or motor vessels of not more [LESS] than 1,600 gross 20 tons; 21  (3) two years of service as a chief officer on ocean or coastwise vessels 22 of not less than 1,600 gross tons while holding a United States Coast Guard license 23 as master of ocean steam or motor vessels of any gross tons; 24  (4) two years of service as commanding officer of United States 25 commissioned vessels of not less than 1,600 gross tons and hold a United States 26 Coast Guard [WHILE HOLDING A] license as master of ocean steam or motor 27 vessels of any gross tons; [OR] 28  (5) three years of experience as a member of a professional pilot's 29 organization, during which the person actively engaged in piloting while holding at 30 least a United States Coast Guard license as a master of steam or motor vessels 31 [FREIGHT OR TOWING VESSEL] of not more than 1,600 gross tons; or

01  (6) four years of experience gained in a board approved deputy 02 marine pilot apprenticeship program in the pilotage region for which the deputy 03 marine pilot license is sought and hold at least a United States Coast Guard 04 license as master of steam or motor vessels of not more than 1,600 gross tons. 05 * Sec. 12. AS 08.62.093(d) is amended to read: 06  (d) A person licensed as a deputy marine pilot under this section may, except 07 as otherwise provided by the board, pilot vessels of 25,000 [20,000] gross tons or less 08 in a marine pilotage region for which the license is issued. 09 * Sec. 13. AS 08.62.097(b) is amended to read: 10  (b) A person who supervises the training of persons who are seeking a deputy 11 marine pilot license under this chapter shall 12  (1) hold a marine pilot license issued under AS 08.62.100; however, 13 if the board finds that there are no marine pilots licensed in a pilotage region who 14 are available to supervise training under this section, the board may authorize a 15 person who is licensed in that pilotage region as a deputy marine pilot to 16 supervise the training of persons who are seeking a deputy marine pilot license 17 in that pilotage region; 18  (2) receive prior authorization from the board to supervise the training 19 of those persons; 20  (3) maintain a written log and evaluation on a form provided by the 21 board of the training and progress of the person being supervised. 22 * Sec. 14. AS 08.62.120(a) is amended to read: 23  (a) In order to renew a marine pilot license, a person who is licensed under 24 AS 08.62.100 shall 25  (1) submit an application for renewal of the license on a form provided 26 by the department [BOARD]; 27  (2) submit proof of continued qualification under AS 08.62.100 to 28 receive a marine pilot license; 29  (3) provide evidence of satisfactory completion of a physical 30 examination by a licensed physician within 60 days before the date of renewal of the 31 license;

01  (4) submit proof satisfactory to the board that the person has 02  (A) engaged in piloting vessels subject to this chapter in the 03 marine pilotage region for which the license is to be renewed during at least 04 120 days [60 DAYS OF EACH CALENDAR YEAR] in the licensing period 05 immediately preceding the licensing period for which renewal is sought; or 06  (B) completed the minimum number of familiarization trips 07 required by the board for renewal of a marine pilot license for a marine 08 pilotage region for which the license is to be renewed. 09 * Sec. 15. AS 08.62.150(a) is amended to read: 10  (a) The board shall impose a disciplinary sanction on a person licensed under 11 this chapter when the board finds that the person 12  (1) is incompetent in the performance of pilotage duties; 13  (2) is chemically impaired; 14  (3) illegally possesses, uses, or sells narcotic or hallucinogenic drugs; 15  (4) makes a false statement to obtain a license; 16  (5) violates a provision of this chapter or a regulation adopted under 17 this chapter [IT]; 18  (6) is guilty of misconduct during the course of employment; 19  (7) has had the person's United States Coast Guard pilot license 20 conditioned, suspended, or revoked; or 21  (8) charges, collects, or receives an amount for pilotage services that 22 is different from the rate adopted or established under AS 08.62.046 or the rate 23 agreed to under AS 08.62.175(e) [IN EXCESS OF THE MAXIMUM TARIFF 24 ESTABLISHED BY THE BOARD OR DIFFERENT FROM THE TARIFF 25 ADOPTED] by the pilot organization of which the person is a member. 26 * Sec. 16. AS 08.62.155(b) is amended to read: 27  (b) The board [DEPARTMENT] may impose a civil fine not to exceed $5,000 28 on a marine pilot organization recognized by the board [,] if the organization violates 29 this chapter or a regulation adopted under this chapter. The board may also suspend 30 or revoke the recognition of a pilot organization that fails to comply with its 31 articles, bylaws, and rules, so as to no longer satisfy the minimum standards for

01 recognition by the board. 02 * Sec. 17. AS 08.62.165(a) is amended to read: 03  (a) A pilot licensed under this chapter is not liable for damages in excess of 04 $250,000 per incident for damages or loss occurring as a result of the error, omission, 05 fault, or neglect of the pilot in performing pilotage services, except that the limitation 06 does not apply in a case where 07  (1) the pilot is either grossly negligent or guilty of wilful misconduct; 08 or 09  (2) the error, omission, fault, or neglect of the pilot constitutes an act 10 for which the board shall impose a disciplinary sanction under AS 08.62.150(a)(2) or 11 (3) [AS 08.62.150(a)(1), (2), (3), (5), (6), OR (7)]. 12 * Sec. 18. AS 08.62.175(c) is amended to read: 13  (c) A pilot organization recognized by the board shall 14  (1) promote a safe and reliable system of marine pilotage for the region 15 in which the organization is recognized; 16  (2) provide for the dispatch of pilots who are members of the 17 organization; 18  (3) adopt and revise rates [TARIFFS] for the provision of pilotage 19 services not covered by an agreement under (e) of this section [BY THE 20 MEMBERS OF THE ORGANIZATION]; 21  (4) subject to the membership application and approval provisions 22 contained in the articles and bylaws of the organization, be open to membership 23 by all persons licensed under this chapter to pilot vessels in the pilotage region in 24 which the organization is recognized; 25  (5) operate or participate in a training program for pilots and deputy 26 pilots that is approved by the board; a training program for deputy pilots may 27 include a deputy marine pilot apprenticeship program approved by the board; 28  (6) cooperate with and assist the board in implementing this chapter; 29  (7) by February 1 of each year, submit a report to the board that 30 includes information on the status of training and apprenticeship programs, the 31 number of members of the pilot organization who are state residents, and other

01 information requested by the board. 02 * Sec. 19. AS 08.62.175 is amended by adding a new subsection to read: 03  (e) A pilot organization recognized by the board may enter into agreements 04 with the master, owner, operator, or agent of a master, owner, or operator, of a vessel 05 concerning the terms and conditions under which the pilot organization will provide 06 pilotage services. 07  (f) A pilot organization recognized by the board shall dispatch a person who 08 is licensed under this chapter and who is a member of the organization to provide 09 pilotage services upon the request of a representative of a vessel required to employ 10 a pilot under AS 08.62.160. 11 * Sec. 20. AS 08.62.180 is amended to read: 12  Sec. 08.62.180. EXEMPTIONS. This chapter does not apply to 13  (1) vessels subject to federal pilot requirements under 46 U.S.C. 8502 14 except as provided in AS 08.62.185; 15  (2) fishing vessels, including fish processing and fish tender vessels, 16 registered in the United States or in British Columbia, Canada; 17  (3) vessels propelled by machinery and not more than 65 feet in length 18 over deck, except tugboats and towboats propelled by steam; 19  (4) vessels of United States registry of less than 300 gross tons and 20 towboats of United States registry and vessels owned by the State of Alaska, engaged 21 exclusively 22  (A) on the rivers of Alaska; [,] or 23  (B) in the coastwise trade on the west or north coast of the 24 United States including Alaska and [,] Hawaii, and including British 25 Columbia, Yukon Territory, and Northwest Territories, Canada; 26  (5) vessels of Canada, built in Canada and manned by Canadian 27 citizens [INCLUDING CANADIAN CRUISE SHIPS], engaged in frequent trade 28 between 29  (A) British Columbia and Southeastern Alaska south of 58 30 degrees, 10 minutes North latitude, if reciprocal exemptions are granted by 31 Canada to vessels owned by the State of Alaska and those of United States

01 registry; or 02  (B) northern Alaska north of 68 degrees, 7 minutes North 03 latitude and Yukon Territory or Northwest Territories; [AND] 04  (6) pleasure craft of United States registry; and 05  (7) pleasure craft of foreign registry of less than 300 gross tons as 06 measured under 46 C.F.R. 69.51 - 69.75. 07 * Sec. 21. TRANSITION; APPOINTMENTS. (a) Notwithstanding AS 08.62.010, as 08 amended by sec. 2 of this Act, the current members of the Board of Marine Pilots shall 09 continue to serve for the term to which they were appointed. 10 (b) As the terms of the current marine pilot members and current agent or manager 11 members of the Board of Marine Pilots expire, the governor shall appoint marine pilot 12 members and agent or manager members to the board in accordance with the qualifications 13 set out in AS 08.62.010, amended by sec. 2 of this Act. 14 (c) In this section, the current members of the board are those persons serving on the 15 Board of Marine Pilots on the day before the effective date of this Act. 16 * Sec. 22. TRANSITION; RATES. (a) Pending the adoption of rates under AS 08.62.046, 17 added by sec. 6 of this Act, the rates for the provision of pilotage services are equal to the 18 maximum tariffs established by 12 AAC 56.210, 12 AAC 56.220, 12 AAC 56.230, and 12 19 AAC 56.240, as those regulations read on the day before AS 08.62.045 was repealed. 20 (b) Pending the adoption of rates under AS 08.62.046, added by sec. 6 of this Act, 21 if a rate for a specific pilotage service is not established by (a) of this section, the Board of 22 Marine Pilots may establish the rate for that pilotage service by emergency regulation under 23 AS 44.62. 24 (c) The establishment of rates under (a) and (b) of this section does not create a 25 presumption that the rates are either reasonable or unreasonable under AS 08.62.046, as added 26 by sec. 6 of this Act. 27 (d) For the purposes of AS 08.62.046(d), added by sec. 6 of this Act, the rates 28 established by (a) and (b) of this section are the current rates. 29 (e) Notwithstanding other provisions of this section, a pilot organization that has an 30 agreement with the master, owner, operator, or agent of a master, owner, or operator, of a 31 vessel may charge rates established by the agreement for the provision of pilotage services that

01 are different from the rates established by this section. 02 (f) Unless a pilot organization has (1) an agreement with the master, owner, operator, 03 or agent of a master, owner, or operator, of a vessel that sets rates for the provision of a 04 pilotage service; or (2) adopted rates under AS 08.62.046, as added by sec. 6 of this Act, that 05 have taken effect, the pilot organization may not charge a rate for the provision of the pilotage 06 service that is different from the rate established under (a) or (b) of this section. 07 (g) Each pilot organization recognized by the Board of Marine Pilots shall propose 08 for adoption on January 1, 1996, rates for the provision of all pilotage services offered by the 09 pilot organization. 10 * Sec. 23. AS 08.62.093(e) is repealed. 11 * Sec. 24. This Act takes effect immediately under AS 01.10.070(c).