Legislature(2019 - 2020)ADAMS ROOM 519
05/07/2019 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB29 | |
| HB75 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 29 | TELECONFERENCED | |
| += | HB 75 | TELECONFERENCED | |
SENATE BILL NO. 29
"An Act extending the termination date of the Board of
Marine Pilots; and providing for an effective date."
1:30:52 PM
DAVID SCOTT, STAFF, SENATOR BERT STEDMAN, had finished his
presentation during an earlier meeting [May 7, 2019 9:00
A.M.].
KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF
LEGISLATIVE AUDIT, reviewed the audit findings for the
Board of Marine Pilots. The audit recommended the maximum
eight-year extension. She referenced the audit report [A
Sunset Review of the Department of Commerce, Community, and
Economic Development, Board of Marine Pilots (board) April
20, 2018 Audit Control Number 08-20112-18] dated April 20,
2018 (copy on file). She read sections from the audit
report:
The audit concludes the board is serving the public's
interest by effectively licensing marine pilots and
deputy marine pilots and approving trainees and
apprentices. Board meetings were conducted in
compliance with laws, investigations were processed
timely, and the board actively changed regulations to
improve the industry and better protect the public.
Ms. Curtis turned to licensing activity displayed on a
table titled Exhibit 2 on page 12 of the audit. She
reported that the total number of licenses as of January
31, 2018 was 103. She moved to a table titled "Exhibit 4
on page 14 of the audit showing the Schedule of Revenues
and Expenditures, FY 14 through March 31, 2018. She
indicated that the board had a surplus balance of over $229
thousand. She added that the board fees were listed on page
13.
Ms. Curtis continued with the recommendations on page 15 of
the report. She read the following:
Recommendation 1:
The Board of Marine Pilots (board) should ensure all
applicable documents are aboard foreign pleasure
crafts in accordance with regulatory requirements.
Specifically, 12 AAC 56.115 requires an operator of a
pleasure craft applying for a pilotage exemption to
ensure the pleasure craft has aboard documents such as
nautical charts, current tidal tables, and other
guides. Auditors found five of the seven applications
indicated that required documents were not on the
vessel.
According to the MPC, the operators can obtain these
documents at port or electronically while at sea. It
has been standard procedure for the board to approve
the exemptions with the understanding that the
applicant will follow through and obtain the required
documents later. The board did not consider the need
for or importance of verifying that the documents were
actually obtained. Additionally, the exemption does
not include a stipulation that the applicant obtain
the required documents prior to entering the
applicable area. Issuing foreign pleasure craft
exemptions without verifying required documents are
aboard the vessel increases the risk to public safety.
Ms. Curtis moved to Recommendation 2 on page 16 and read
the following:
Th e board should ensure the Southeast Alaska Pilots'
Association improves procedures for tracking drug test
notifications.
In a sample of nine drug test donors from the
Southeast Alaska Pilots' Association, the audit found
three donors5 notified by mail were not tracked by
date and recipient. Therefore, the timeliness of the
drug tests could not be confirmed.
The Southeast Alaska Pilots' Association relied on a
third party contractor to notify selected donors that
were out-of-state or out-of-town. The association was
not aware the mail notifications were not adequately
tracked. Drug test requirements under 46 CFR 16.230(h)
specify that each marine employer shall ensure random
drug tests are unannounced. Inadequate procedures for
tracking drug test notifications limit the ability to
verify timeliness of drug tests and increase the risk
to public safety.
We recommend the board ensure the Southeast Alaska
Pilots' Association improves procedures for tracking
drug test notifications.
Ms. Curtis noted that the responses to the audit began on
page 25, from both the Department of Commerce, Community
and Economic Development (DCCED) and board and relayed that
both agreed with the recommendations. She added that the
boards chair at the time was also the commissioner of
DCCED [Mike Navarre].
1:34:50 PM
Co-Chair Wilson OPENED and CLOSED public testimony.
Co-Chair Wilson asked to hear from the department on the
fiscal note.
CHARLES WARD, MARINE PILOT COORDINATOR, DIVISION OF
CORPORATIONS, BUSINESS AND PROFESSIONAL LICENSING,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT,
was available for questions.
Co-Chair Wilson discussed a fiscal note attachment titled
Board of Marine Pilots Schedule of Revenues and
Expenditures (copy on file)that was included in the
members packets that contained the boards expenses and
fees.
1:36:14 PM
AT EASE
1:37:20 PM
RECONVENED
Co-Chair Wilson noted that the fiscal note reported the use
of Designated General Funds (DGF) only, which meant the
boards expenses were paid by licensing fee receipts.
Representative Knopp referenced hearing concern expressed
by the marine pilots over the size of one the new largest
cruise ships maneuvering in high winds. He wondered how the
issue was addressed. Mr. Ward answered that the topic of
VLS (Very Large Cruise Ships) had been discussed at board
meetings for the past year. He relayed that the board was
aware of the navigational concerns raised. The Southeast
Alaska Pilots Association would be piloting the ships and
had been working with the cruise agencies on how to bring
ships into ports. The entities were developing best
practices with the ship captains and Coast Guard on how to
navigate the ships safely into Southeast Alaska and Alaskan
waters. Representative Knopp inquired whether the ships
would be allowed to dock if any uncertainties remained due
to high winds. Mr. Ward answered in the affirmative. He
indicated that the pilot and the ships captain would
confer on a navigation plan. If conditions prohibited a
safe approach, a safe port would be found for docking.
1:40:17 PM
Vice-Chair Ortiz interjected that there was a recognition
amongst the pilot association that larger tugs were
necessary to provide service to the VLS coming into ports.
The larger tugs meant a larger investment in the support
infrastructure. The discussions were ongoing with the
pilots, cruise lines, and local communities. He offered
that the local communities had a vested interest in
assuring that the expensive port facilities were protected
in high wind situations. The issues regarding VLS were a
significant concern.
Representative Merrick looked at the fiscal note analysis
and noted that total revenue collected from the fees
equated to the regulatory costs. She cited a balance from
the scheduled revenues and expenditures of close to $300
thousand. She wondered whether there was something else the
money was used for. She noted that the pilot's fees were
$2.5 thousand each year. She thought that the fees were too
high. Mr. Ward answered that the board had a significant
fee reduction in 2018. The new pilots fee was $1.5
thousand and agent fees were reduced from $1 thousand to $5
hundred and test and application fees were reduced. The
board and division were aware of the healthy surplus and
was engaged in lowering fees and using some of the surplus
to offset any other board costs that arose. He noted that
investigations were costly, and the board wanted a reserve
to cover the costs in the event of an investigation. A
costly investigation with a small board membership could
quickly increase licensing fees and the reserve would
offset the situation.
Co-Chair Wilson asked if the money could be utilized for
anything other than what the board was authorized to do.
Mr. Ward replied in the negative.
Co-Chair Wilson set an amendment deadline of 9:00 am the
following day.
SB 29 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 75 E-Rate Consumer Guide FCC.pdf |
HFIN 5/7/2019 1:30:00 PM |
HB 75 |
| HB 75 School Bag Admin Code.pdf |
HFIN 5/7/2019 1:30:00 PM |
HB 75 |
| HB 75 Supporting Doc Broadband Networks map.pdf |
HFIN 5/7/2019 1:30:00 PM |
HB 75 |
| HB 75 YKSD Support letter.pdf |
HFIN 5/7/2019 1:30:00 PM |
HB 75 |