02/12/2013 01:30 PM House FINANCE

HOUSE BILL NO. 22                                                                                                             
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Marine Pilots; and providing for an effective date."                                                                       
                                                                                                                                
2:33:15 PM                                                                                                                    
                                                                                                                                
ANNA  LATHAM, STAFF,  REPRESENTATIVE  KURT OLSON,  discussed                                                                    
that HB  22 would extend  the termination date of  the Board                                                                    
of Marine Pilots (BMP) to June  30, 2019. She stated that in                                                                    
accordance with  AS Titles 24  and 44  the board was  set to                                                                    
expire on  June 30, 2013.  She relayed that  the Legislative                                                                    
Budget  and Audit  Committee had  determined that  the board                                                                    
should  be extended  because its  activities demonstrated  a                                                                    
public  need and  it operated  in an  efficient manner.  She                                                                    
stated  that  regulating   and  licensing  qualified  marine                                                                    
pilots  benefited  the  public's   safety  and  welfare  and                                                                    
protected the  marine environment. She explained  that HB 22                                                                    
had been pre-filed with an  estimated extension date of June                                                                    
30,  2018.  She furthered  that  after  reviewing the  audit                                                                    
Representative  Olson  had  requested  a  CS  to  align  the                                                                    
termination date with the date suggested in the audit.                                                                          
                                                                                                                                
Vice-Chair  Neuman MOVED  to ADOPT  the  Labor and  Commerce                                                                    
Committee CS. There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
Representative   Thompson   referred   to  a   Division   of                                                                    
Legislative  Audit  document (copy  on  file)  and read  its                                                                    
recommendation: "While  the board has  successfully resolved                                                                    
many of  the issues  identified in  the prior  sunset audit,                                                                    
current  analysis  of   BMP  operational  activities  showed                                                                    
administrative   deficiencies   regarding   public   meeting                                                                    
notifications,  licensing  documentation, and  oversight  of                                                                    
the  pilot  associations'  drug and  alcohol  programs."  He                                                                    
wondered  whether measures  had  been taken  to rectify  the                                                                    
issues.                                                                                                                         
                                                                                                                                
Ms.  Latham  replied  that  at  the time  of  the  audit  in                                                                    
November 2011 the marine pilot  coordinator who oversees the                                                                    
mentioned  issues had  been in  his position  for under  one                                                                    
year; he  had been  unaware of the  operational deficiencies                                                                    
noted in  the audit. Subsequently, the  board was developing                                                                    
a  desk  manual  and  written  procedure  to  codify  needed                                                                    
primary  functions. She  detailed that  the coordinator  was                                                                    
developing  appropriate  documentation   and  checklists  to                                                                    
ensure that an adequate oversight process was in place.                                                                         
                                                                                                                                
2:37:02 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  asked about  the  length  of the  board's                                                                    
prior sunset extension. Ms. Latham  responded that the board                                                                    
had been extended in 2007.                                                                                                      
                                                                                                                                
Co-Chair Stoltze asked  Mr. Habegar for any  comments on the                                                                    
audit conclusions.  Mr. Habegar  answered that  the previous                                                                    
marine  pilot coordinator  had  departed  from the  position                                                                    
with  little notice;  it had  put the  board in  a bind  and                                                                    
subsequently  items  had  been   noted  in  the  audit  that                                                                    
occurred while the new coordinator  had been in training. He                                                                    
believed the  recommendation was  appropriate. As  a result,                                                                    
the  board was  implementing  administrative backstops.  For                                                                    
example, one  of the issues involved  providing ample public                                                                    
notice for board meetings.                                                                                                      
                                                                                                                                
Co-Chair  Stoltze asked  whether was  any challenge  getting                                                                    
board members  together. Mr. Habegar  replied that  the only                                                                    
challenge had  to do with  meeting during the height  of the                                                                    
summer  maritime  season  when special  issues  arose  (e.g.                                                                    
investigative    issues   requiring    board   input).    He                                                                    
communicated  that  teleconferencing   normally  solved  the                                                                    
issue.                                                                                                                          
                                                                                                                                
Co-Chair  Stoltze wondered  if  Alaska's  entry into  Arctic                                                                    
waters  and the  role  of  marine pilots  had  been a  board                                                                    
discussion point.  Mr. Habegar  affirmed that the  board had                                                                    
discussed  Arctic access,  but  he had  not  seen any  final                                                                    
conclusions.                                                                                                                    
                                                                                                                                
2:40:13 PM                                                                                                                    
                                                                                                                                
Representative Munoz asked for  an explanation of yacht fees                                                                    
that  appeared  in  the  revenues  and  expenditures  budget                                                                    
breakdown  from  2007  to 2012.  Mr.  Habegar  replied  that                                                                    
foreign pleasure crafts of a  certain tonnage or length were                                                                    
statutorily  required   to  have  a  pilot.   A  waiver  was                                                                    
possible,  but  certain  fees  payable  to  the  state  were                                                                    
required.                                                                                                                       
                                                                                                                                
Representative   Munoz  asked   if  the   yacht  fees   were                                                                    
applicable  to  vessels  of  a  certain  size.  Mr.  Habegar                                                                    
believed the  requirement applied to foreign  pleasure craft                                                                    
vessels between 75 feet and 150 feet.                                                                                           
                                                                                                                                
Representative  Munoz asked  for verification  that the  fee                                                                    
structure  was   biennial.  Mr.  Habegar  answered   in  the                                                                    
affirmative. He  noted that all of  the state's professional                                                                    
licensing programs were biennial.                                                                                               
                                                                                                                                
Representative Munoz  asked for the fee  amount. Mr. Habegar                                                                    
replied that the biennial pilot  fee was $2,500 and the ship                                                                    
agent fee was $800.                                                                                                             
                                                                                                                                
Representative Gara  asked what percentage of  marine pilots                                                                    
were Alaskans.  Mr. Habegar responded  that he  would follow                                                                    
up on the question.                                                                                                             
                                                                                                                                
Representative   Gara  observed   that  the   board  oversaw                                                                    
trainings and approved training  programs for marine pilots.                                                                    
He wondered if the board  had considered doing anything that                                                                    
would  increase the  number of  Alaskan pilots.  Mr. Habegar                                                                    
was not aware of any  board action that would require Alaska                                                                    
hire of pilots.                                                                                                                 
                                                                                                                                
Representative Gara  noted that  Alaska hire  would probably                                                                    
be illegal. He  surmised the training function  would be the                                                                    
only avenue  to explore  that could  increase the  number of                                                                    
Alaskan pilots;  he asked  for the  department to  follow up                                                                    
with the board on the  issue. He requested the percentage of                                                                    
Alaskan and non-Alaskan marine pilots.  He would like to see                                                                    
the  positions filled  with more  Alaskans,  given that  the                                                                    
jobs were good and high paying.                                                                                                 
                                                                                                                                
Co-Chair  Stoltze remarked  that it  would also  be good  to                                                                    
know  how many  marine pilots  were Alaskans  who had  moved                                                                    
out-of-state.                                                                                                                   
                                                                                                                                
2:44:49 PM                                                                                                                    
                                                                                                                                
DAVID  ARTZT, CAPTAIN,  ALASKA MARINE  PILOTS, DUTCH  HARBOR                                                                    
(via  teleconference), described  his  marine pilot  service                                                                    
region. He was happy to answer any questions.                                                                                   
                                                                                                                                
Co-Chair  Stoltze asked  about  Alaska's  entry into  Arctic                                                                    
waters and  the role of  marine pilots in safety  issues. He                                                                    
wondered  about federal  government  requirement. Mr.  Artzt                                                                    
replied  that  currently  statutes  required  state-licensed                                                                    
pilots   onboard  specific   vessels   within  the   state's                                                                    
boundaries (typically within three  miles of the coastline).                                                                    
Federal waters  were overseen  by the  U.S. Coast  Guard. He                                                                    
stated that any activity  within state water boundaries fell                                                                    
under current regulations requiring pilots on vessels.                                                                          
                                                                                                                                
2:47:17 PM                                                                                                                    
                                                                                                                                
Representative Edgmon referred to  the Northern Waters Task-                                                                    
Force that  had provided its  report to the  legislature the                                                                    
prior  year.  He  noted  that marine  pilots  had  not  been                                                                    
included  in the  final report;  however,  members had  been                                                                    
supportive of  marine pilots' involvement in  areas like the                                                                    
Arctic.                                                                                                                         
                                                                                                                                
PAUL  FUHS, LOBBYIST,  SOUTHWEST  ALASKA PILOTS  ASSOCIATION                                                                    
(via teleconference), voiced support for the bill.                                                                              
                                                                                                                                
Co-Chair Stoltze CLOSED public  testimony. He asked if there                                                                    
were any amendments.                                                                                                            
                                                                                                                                
Representative Costello  pointed out that the  first line on                                                                    
page 2 of the DCCED fiscal  note should be corrected to read                                                                    
June  30, 2019  instead of  2018. The  fiscal note  included                                                                    
receipt services in the annual  amount of $151,200 for FY 14                                                                    
through FY 19 and one full-time position.                                                                                       
                                                                                                                                
2:50:49 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Neuman  MOVED  to REPORT  CSHB  22(L&C)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB 22(L&C) was REPORTED out  of committee with a "do pass"                                                                    
recommendation and with one new  fiscal impact note from the                                                                    
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
Co-Chair Stoltze  discussed the  schedule for  the following                                                                    
day.