05/08/2003 01:36 PM Senate L&C

        SB 109-MEDICAID COST CONTAINMENT & PRIORITY LIST                                                                    
                                                                                                                                
MR. PHELAN STRAUBE,  staff to Senator Ben  Stevens, prime sponsor                                                               
of SB  109, said  this bill authorizes  an exemption  from marine                                                               
pilotage  in  Alaskan  waters   for  certain  foreign  registered                                                               
pleasure craft. Vessels  of 60 ft. or less will  be exempted from                                                               
all pilotage laws.  Yachts greater than 60 ft. and  less than 173                                                               
ft.  may  be  granted  a  waiver  from  pilotage  laws  after  an                                                               
application process and  review by the Board of  Marine Pilots or                                                               
its  designee. A  fee based  on the  size of  the vessel  will be                                                               
charged  for each  waiver granted.  A waiver  for a  60 ft.  boat                                                               
would  cost $1,500;  every additional  foot up  to 173  ft. would                                                               
cost $50. If a waiver  is granted, upon entering pilotage waters,                                                               
a yacht  would need to employ  a marine pilot at  the first pilot                                                               
station into the  initial port of entry in  each pilotage region.                                                               
The same procedure would also  be followed when the vessel leaves                                                               
Alaskan  waters. These  vessels would  also be  required to  work                                                               
with an  agent licensed in  Alaska. The legislation  authorizes a                                                               
civil penalty of $10,000 vessel for non-compliance.                                                                             
                                                                                                                                
He  told  members  this  change  was in  part  recommended  in  a                                                               
legislative budget and audit report  for the renewal of the Board                                                               
of  Marine   Pilots.  This  legislation   is  supported   by  the                                                               
communities of  Sitka, Ketchikan,  Whittier, Juneau,  Haines, and                                                               
many  other   chambers  of  commerce  and   economic  development                                                               
organizations.                                                                                                                  
                                                                                                                                
He  concluded saying  that this  legislation would  encourage the                                                               
growth of  this small but  growing industry, which brings  in new                                                               
cash  from out  of state  to local  coastal communities.  It also                                                               
adds revenue  to the general  fund by  charging the fees  to come                                                               
into  our  waters.  The  pilotage  requirements  promote  safety,                                                               
protect the marine environment and  provide a penalty for failure                                                               
to comply.                                                                                                                      
                                                                                                                                
SENATOR STEVENS moved  to adopt CSSB 201(L&C), version  D, as the                                                               
committee's  working document.  There were  no objections  and it                                                               
was so ordered.                                                                                                                 
                                                                                                                                
CAPTAIN   BOB  WINTER,   Southeast   Alaska  Pilot   Association,                                                               
supported  SB  209 and  said  the  Association looks  forward  to                                                               
working with the sponsor and staff  to produce a bill that serves                                                               
the interests of all parties, including the State of Alaska.                                                                    
                                                                                                                                
MS.  KATE TESAR,  Alaska Yacht  Services, said  her client  books                                                               
services for  yachts that are  traveling to Alaska.  Her client's                                                               
problems served  as the  impetus for  this legislation.  She said                                                               
the new fees would bring in around $100,000.                                                                                    
                                                                                                                                
SENATOR  SEEKINS moved  to pass  CSSB 209(L&C),  version D,  with                                                               
attached   fiscal   notes    from   committee   with   individual                                                               
recommendations.  SENATORS DAVIS,  FRENCH,  SEEKINS, STEVENS  and                                                               
BUNDE voted yea and SB 209 passed from committee.