Legislature(2013 - 2014)BARNES 124

01/28/2013 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 26 EXTEND BOARD OF PUBLIC ACCOUNTANCY TELECONFERENCED
Moved Out of Committee
*+ HB 22 BOARD OF MARINE PILOTS TELECONFERENCED
Moved CSHB 22(L&C) Out of Committee
                  HB 22-BOARD OF MARINE PILOTS                                                                              
3:36:04 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  final order of business  would be                                                              
HOUSE BILL NO. 22,  "An Act extending the termination  date of the                                                              
Board of Marine Pilots; and providing for an effective date."                                                                   
                                                                                                                                
3:36:07 PM                                                                                                                    
                                                                                                                                
ANNA  LATHAM,  Staff,  Representative  Kurt  Olson,  Chair,  House                                                              
Labor  & Commerce  Standing Committee,  Alaska State  Legislature,                                                              
stated  HB 22  will extend  the  terminate date  of  the Board  of                                                              
Marine Pilots.   This  bill would extend  the termination  date of                                                              
the  Board  of Marine  Pilots  (BMP)  until  June  30, 2018.    In                                                              
accordance with  the provisions  of AS 24  and AS 44,  Legislative                                                              
Budget &  Audit Committee  (LB&A) reviewed  the activities  of the                                                              
Board  of Marine Pilots  (BMP) to  determine  whether there  was a                                                              
demonstrated public  need for the board's continued  existence and                                                              
to see if  it had been operating  in an efficient manner.   It was                                                              
the  opinion  of  the  LB&A  that  the  BMP  should  be  extended.                                                              
Regulating  and licensing  qualified  marine  pilots benefits  the                                                              
public safety and welfare and protects the marine environment.                                                                  
                                                                                                                                
3:37:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  made  a  motion to  adopt  the  proposed                                                              
committee  substitute   (CS)  for  HB  22,   labeled  28-LS0139/U,                                                              
Martin, 1/24/13, as the working document.                                                                                       
                                                                                                                                
CHAIR OLSON [treated  it as though he objected for  the purpose of                                                              
discussion.]                                                                                                                    
                                                                                                                                
MS.  LATHAM referred  to  the changes  in  the proposed  committee                                                              
substitute for HB  22.  The bill was prefiled  and after reviewing                                                              
the audit  the termination  date was changed  to reflect  the date                                                              
suggested in the legislative audit.                                                                                             
                                                                                                                                
CHAIR OLSON  remarked he took his  best guess when  submitting the                                                              
bill for prefile.                                                                                                               
                                                                                                                                
3:38:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  referred to the  audit and said  he noticed                                                              
more positive  responses came from  within the industry  than from                                                              
marine pilots.   He asked for  an explanation and wondered  if any                                                              
disconnect exists between the pilots and the board.                                                                             
                                                                                                                                
3:39:06 PM                                                                                                                    
                                                                                                                                
LINDA   DAY,   Audit   Manager,    Legislative   Audit   Division,                                                              
Legislative  Agencies  &  Offices,  stated  the  response  to  the                                                              
survey  was good.    She  related that  62  percent  of 86  pilots                                                              
responded to  the survey and 12  of 24 industry  stakeholders also                                                              
responded.   She  reported the  response rate  was slightly  lower                                                              
for stakeholders,  which may  be due to  the timing of  the survey                                                              
since the division conducted the survey in the summer.                                                                          
                                                                                                                                
3:40:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  whether the  board has  experienced                                                              
any difficulties with investigative expenses.                                                                                   
                                                                                                                                
MS. CURTIS  deferred to  Ms. Day,  but noted  the Board  of Marine                                                              
Pilots   has    a   coordinator   position   who    conducts   any                                                              
investigations   rather  than   the  BMP   using  the   division's                                                              
investigative unit.                                                                                                             
                                                                                                                                
MS.  DAY, after  clarifying  that  the  question referred  to  the                                                              
investigative  process and  cost of  investigations, answered  no.                                                              
The auditors found  investigations were occurring  and the process                                                              
was reasonable.                                                                                                                 
                                                                                                                                
3:41:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  asked   whether  substantive  questions                                                              
about marine pilots can be addressed today.                                                                                     
                                                                                                                                
3:41:55 PM                                                                                                                    
                                                                                                                                
PAUL  FUHS,   Lobbyist,  Southwest   Alaska  Pilots   Association,                                                              
related that  HB 22,  [Version U], would  extend the  board [until                                                              
June  30,   2019].     He  related  about   ten  years   ago  some                                                              
difficulties  existed between  the  Board of  Marine Pilots  (BMP)                                                              
and  the industry.   He  said a  major compromise  was struck  and                                                              
providing  the   background  might   help  the  committee   better                                                              
understand how the  BMP operates.  He explained  marine pilots are                                                              
required, which  creates questions on  setting rates.   The system                                                              
subsequently  established  uses  a private  sector  approach,  and                                                              
allows the  pilots to post  the tariff,  and for industry  to have                                                              
opportunity to challenge  the rate before the BMP  if stakeholders                                                              
believe  the rates  are  too high.   Thus,  if  the marine  pilots                                                              
cannot justify  their tariff rate, the  BMP can reject  it and ask                                                              
the pilots to re-negotiate  a new rate.  He pointed  out the audit                                                              
describes  how the  system works,  including  highlighting that  a                                                              
"no  strike clause"  exists.   He  offered his  belief the  system                                                              
works well.  He  identified the BMP's makeup as  consisting of two                                                              
marine pilots,  two industry  members, and  three public  members.                                                              
The marine  pilots and industry  provide the necessary  expertise,                                                              
but in  instances in which the  marine pilots and  industry become                                                              
deadlocked,  the  public members  have  the  ability to  make  the                                                              
decision.  He advised  that marine pilot license fees  pay for the                                                              
program,  which consists  solely of program  receipts without  any                                                              
general fund monies.                                                                                                            
                                                                                                                                
3:44:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON asked what  recommendation Mr.  Fuhs has                                                              
during  instances  when  the  marine  pilot  coordinator  position                                                              
becomes vacant.   He related a  scenario in which  the coordinator                                                              
position  is  vacant  for  six  months  and no  one  is  there  to                                                              
coordinate public noticing and testing.                                                                                         
                                                                                                                                
MR. FUHS  said he  was unsure.   He said  the situation  has never                                                              
arisen, but  pointed out the division  has other supervisors.   He                                                              
surmised  that  Mr. Habeger  would  place  someone in  the  marine                                                              
pilot  coordinator  position  temporarily  who could  make  public                                                              
announcements and that the division would recruit timely.                                                                       
                                                                                                                                
3:46:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  recalled during  the  Exxon Valdez  oil                                                              
spill  that [alcohol  and  drug] testing  was  required, which  he                                                              
thought was federal  law.  He inquired as to whether  any drug and                                                              
alcohol testing occurs for tanker and sea captains.                                                                             
                                                                                                                                
MR.  FUHS said  he  was  not certain  of  the specific  laws,  but                                                              
marine pilots are  subjected to an extremely rigorous  random drug                                                              
and alcohol  testing.   He stated  that the  U.S. Coast  Guard has                                                              
increased   requirements    for   mariners,   in    general,   but                                                              
particularly for  marine pilots  who navigate the  Valdez Narrows.                                                              
He offered  his belief that  if a marine  pilot had been  on board                                                              
the  Exxon  Valdez [in  1989]  that  an  accident would  not  have                                                              
happened.    He  reported  there   has  never  been  a  subsequent                                                              
incident.                                                                                                                       
                                                                                                                                
3:47:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON recalled  under the  enabling act  it is                                                              
optional for  the BMP to conduct  [drug and alcohol]  testing, but                                                              
[the auditor]  goes on to say the  tests should be mandatory.   He                                                              
said  the auditor  expressed some  concern  about this  oversight.                                                              
He  asked whether  this  concern is  valid  or if  the concern  is                                                              
overstated.                                                                                                                     
                                                                                                                                
MR. FUHS  responded in  the previous audit,  five years  ago, some                                                              
additional  concerns  were  raised  by  auditors,  but  the  [BMP]                                                              
completely  resolved the issues,  and the  most current  audit has                                                              
found  the BMP  in compliance,  except for  some minor  scheduling                                                              
issues.    He  characterized  the  BMP  as  being  in  substantial                                                              
compliance.                                                                                                                     
                                                                                                                                
3:48:09 PM                                                                                                                    
                                                                                                                                
DAVID ARTZ, Captain; Marine Pilot, Board of Marine Pilots (BMP),                                                                
Department   of  Commerce,   Community   &  Economic   Development                                                              
(DCCED), said  he is  a marine pilot  and operates  in Region  3 -                                                              
Western  Alaska,  based  in  Dutch Harbor.    He  responded,  with                                                              
respect  to drug and  alcohol testing,  that  Mr. Fuhs is  correct                                                              
that state  pilots are  subject to  mandatory random drug  testing                                                              
throughout  the  whole  year.   Additionally,  the  marine  pilots                                                              
routinely  and regularly  submit  to  testing.   In  terms of  oil                                                              
tankers operating  in and out of Prince William  Sound, additional                                                              
requirements fall  under federal  and local requirements  for ship                                                              
masters  and marine  pilots, who  must submit  to alcohol  testing                                                              
prior to  the departure  of vessels  within Prince William  Sound.                                                              
He reiterated that  this requirement is an  additional requirement                                                              
[since the 1989 Exxon Valdez oil spill].                                                                                        
                                                                                                                                
3:50:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOSEPHSON   recalled    Representative   Herron's                                                              
question  that  some tension  was  identified  in the  surveys  of                                                              
marine  pilots and  stakeholders.   For example,  29 of 53  pilots                                                              
gave the  BMP a poor on objectivity.   He asked  for clarification                                                              
on the undercurrents.                                                                                                           
                                                                                                                                
MR. ARTZ  remarked that is  a tough question  to answer.   He said                                                              
at a  recent BMP's  meeting the  chairman addressed this  specific                                                              
issue.  He  offered his belief  that the pendulum swings  back and                                                              
forth  depending on  the  makeup  of the  board  and the  specific                                                              
chairman.   He characterized  the  board process  as being  a fair                                                              
system,  consisting  of  six  members   plus  a  designee  of  the                                                              
commission.   He  suggested it  depends  on whether  the board  is                                                              
holding  a  rate  hearing  or  addressing   something  else.    He                                                              
reported the  influence swings between  the marine pilots  and the                                                              
industry.    He characterized  it  as  a  working system  and  the                                                              
pilots operating in  Western Alaska, for the most  part, think the                                                              
system is currently  working well in terms of  the primary purpose                                                              
of  safe  navigation   of  vessels  under  the   pilot's  control,                                                              
protection  of life,  and protection  of  the marine  environment.                                                              
He  concluded  that   he  did  not  think  the   relationship  was                                                              
adversarial  or  specific tensions  existed,  but  is  a means  of                                                              
keeping a balance.                                                                                                              
                                                                                                                                
3:52:28 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after  first  determining  no one  else  wished  to                                                              
testify, closed public testimony on HB 22.                                                                                      
                                                                                                                                
3:52:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOSEPHSON  asked   the  auditors   to  speak   to                                                              
potential vacancies and staffing issues.                                                                                        
                                                                                                                                
MS. CURTIS  reiterated the question,  which is whether  the agency                                                              
has  done anything  to address  periodic vacancies  of the  marine                                                              
pilot coordinator  position.   The auditors  identified the  issue                                                              
in  a   prior  sunset  audit.     She  reported  the   agency  has                                                              
established  procedures  in  response   to  the  concern  and  the                                                              
procedures are reasonable.                                                                                                      
                                                                                                                                
3:53:55 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON removed his objection to the bill.                                                                                  
                                                                                                                                
3:54:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD moved  to report  the proposed  committee                                                              
substitute (CS)  for HB 22, labeled 28-LS0139/U,  Martin, 1/24/13,                                                              
out  of   committee  with   individual  recommendations   and  the                                                              
accompanying fiscal  note.  There being no  objection, CSHB22(L&C)                                                              
was reported from the House Labor & Commerce Standing Committee.                                                                
                                                                                                                                
REPRESENTATIVE JOSEPHSON  stated he  would support the  motion and                                                              
said:                                                                                                                           
                                                                                                                                
     I think marine  pilots do pretty heroic work.   I'm glad                                                                   
     they're  there.  I'll  never forget where  I was  at the                                                                   
     end  of March  1989.   I  remember  the intersection  in                                                                   
     Anchorage  when   I  heard  over  the  radio   what  had                                                                   
     happened  in Prince  William Sound  and I  hope I  never                                                                   
     have to hear or see anything like that again.                                                                              
                                                                                                                                
CHAIR  OLSON remarked  that a marine  pilot was  not piloting  the                                                              
vessel at the time of the 1989 incident.                                                                                        

Document Name Date/Time Subjects
HB26 Supporting Documents-Summary Leg. Audit #08-20077-12.pdf HL&C 1/28/2013 3:15:00 PM
HB 26
HB26 ver A.pdf HL&C 1/28/2013 3:15:00 PM
HB 26
HB26 Sponsor Statement.pdf HL&C 1/28/2013 3:15:00 PM
HB 26
HB26 Supporting Documents-Leg. Audit #08-20077-12.pdf HL&C 1/28/2013 3:15:00 PM
HB 26
HB22 ver A.pdf HL&C 1/28/2013 3:15:00 PM
HB 22
HB22 Supporting Documents-Basis of Marine Pilotage Requirements.PDF HL&C 1/28/2013 3:15:00 PM
HB 22
HB22 Draft Proposed CS ver U.pdf HL&C 1/28/2013 3:15:00 PM
HB 22
HB22 Sponsor Statement.pdf HL&C 1/28/2013 3:15:00 PM
HB 22
HB22 Supporting Documents-Audit 08-20076-13.pdf HL&C 1/28/2013 3:15:00 PM
HB 22
HB22 Supporting Documents-Audit Summary.pdf HL&C 1/28/2013 3:15:00 PM
HB 22
HB22-Fiscal Note-DCCED-CBPL-01-25-13.pdf HL&C 1/28/2013 3:15:00 PM
HB 22
HB26-Fiscal Note-DCCED-CBPL-1-25-13.pdf HL&C 1/28/2013 3:15:00 PM
HB 26
HB22 Supporting Documents-Letter-SEAK Pilots Assoc 1-25-2013.pdf HL&C 1/28/2013 3:15:00 PM
HB 22