04/22/2019 03:15 PM House LABOR & COMMERCE

              SB 29-EXTEND BOARD OF MARINE PILOTS                                                                           
                                                                                                                                
3:21:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL announced that the  next order of business would be                                                               
SENATE BILL  NO. 29,  "An Act extending  the termination  date of                                                               
the  Board  of Marine  Pilots;  and  providing for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
3:22:29 PM                                                                                                                    
                                                                                                                                
DAVID   SCOTT,  Staff,   Senator  Bert   Stedman,  Alaska   State                                                               
Legislature,  introduced  SB 29  on  behalf  of Senator  Stedman,                                                               
prime sponsor.   He  said the  bill extends  the Board  of Marine                                                               
Pilots  for  eight  years,  as  recommended  by  the  legislative                                                               
auditor.   He  explained that  the board  licenses and  regulates                                                               
marine pilots to  ensure they are competent and safe.   The board                                                               
also  makes  final  licensing decisions  and  takes  disciplinary                                                               
action against violators of laws  and regulations.  He noted that                                                               
the  board  has seven  members:  two  marine pilots,  two  vessel                                                               
agents,  two   public  members,  and  the   commissioner  of  the                                                               
Department   of  Commerce,   Community  &   Economic  Development                                                               
(DCCED).     He  further  noted  that   the  legislative  auditor                                                               
conducted a  review of the board  and found a continued  need for                                                               
it.  The auditor determined that  the board is following the law;                                                               
it  is processing  investigations timely  and actively  reviewing                                                               
and changing its  regulations to improve the  industry and better                                                               
protect the  public.  He  directed attention to the  fiscal note,                                                               
which is funded by Receipt Supportive Services.                                                                                 
                                                                                                                                
3:24:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  asked  why  the extension  is  for  eight                                                               
years.                                                                                                                          
                                                                                                                                
MR.  SCOTT offered  his  understanding that  eight  years is  the                                                               
longest  possible extension,  which means  the board  is in  good                                                               
standing.                                                                                                                       
                                                                                                                                
3:25:08 PM                                                                                                                    
                                                                                                                                
EILEEN  DONAHUE, Audit  Manager, Division  of Legislative  Audit,                                                               
Legislative Affairs  Agency, provided a  summary of the  Board of                                                               
Marine Pilot's sunset  audit.  She said the  audit concludes that                                                               
the  board  is  serving  the  public's  interest  by  effectively                                                               
licensing marine  pilots and approving trainees  and apprentices,                                                               
adding that  the maximum eight-year extension  is recommended for                                                               
the  board.   As  of January  2018,  there were  a  total of  103                                                               
licensees, and by  March the board had a surplus  of over 229,000                                                               
dollars.      She   noted   that    the   report   included   two                                                               
recommendations.    The  Division   of  Legislative  Audit  (DLA)                                                               
recommends that the board should  ensure applicable documents are                                                               
aboard  foreign pleasure  crafts  in  accordance with  regulatory                                                               
requirements.   The second recommendation  states that  the board                                                               
should ensure  the Southeast Alaska Pilot's  Association improves                                                               
its procedures for tracking drug test notifications.                                                                            
                                                                                                                                
3:28:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HANNAN  sought   clarification   on  the   first                                                               
recommendation and  the correct procedure for  a foreign pleasure                                                               
vessel that is not in compliance with the required documents.                                                                   
                                                                                                                                
MS.  DONAHUE  explained  that   the  recommendation  in  question                                                               
concerns  an  application  process  that  occurs  before  vessels                                                               
arrive in Alaska waters.                                                                                                        
                                                                                                                                
REPRESENTATIVE HANNAN  presumed that  any foreign  vessel lacking                                                               
proper documentation  would be denied permission  to enter Alaska                                                               
waters.  She asked if that was the conclusion of the audit.                                                                     
                                                                                                                                
MS. DONAHUE  clarified that  the audit  looks at  the application                                                               
process for  exemptions.  She  said before a vessel  arrives, the                                                               
operator  must submit  an application  that indicates  if certain                                                               
items are on  board.  The board approved any  exemptions with the                                                               
understanding that  the applicant will follow  through and obtain                                                               
the required documents  at a later date.  However,  the DLA is of                                                               
the  opinion that  the required  documents should  be aboard  the                                                               
vessels at the time of application.                                                                                             
                                                                                                                                
3:30:19 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  WOOL sought  clarification  on  the board's  cumulative                                                               
surplus.                                                                                                                        
                                                                                                                                
MS. DONAHUE  replied that it changes  from year to year  based on                                                               
biennial license  renewals.   She noted that  the DCCED  plans on                                                               
evaluating the fees  to ensure that the  board's surpluses aren't                                                               
excessive.                                                                                                                      
                                                                                                                                
3:32:29 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL announced that SB 29 was held over.