Legislature(2011 - 2012)FAHRENKAMP 203

03/20/2012 01:30 PM Senate ADMINISTRATIVE REGULATION REVIEW


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Audio Topic
01:32:35 PM Start
01:33:08 PM Proposed Changes in 12 Aac 56.115 - Pleasure Craft Exemptions
02:36:38 PM Proposed Changes in 7 Aac 70.110 - Additional Requirements for Providing Alcohol and Drug Detoxification Services
02:59:07 PM Proposed Changes in 12 Aac 56.115 - Pleasure Craft Exemptions
03:01:01 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Proposed Changes in 12 AAC 56.115 - Pleasure TELECONFERENCED
Craft Exemptions
-- Testimony <Invitation Only> --
7 AAC 70.110 - Additional Requirements for
Providing Alcohol and Drug Detoxification
Services
-- Testimony <Invitation Only> --
                    ALASKA STATE LEGISLATURE                                                                                  
           ADMINISTRATIVE REGULATION REVIEW COMMITTEE                                                                         
                         March 20, 2012                                                                                         
                           1:32 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Hollis French, Chair                                                                                                    
Representative Kurt Olson, Vice Chair                                                                                           
Senator Thomas Wagoner                                                                                                          
Senator Bill Wielechowski                                                                                                       
Representative Chris Tuck                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Carl Gatto                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PROPOSED CHANGES in 12 AAC 56.115 - PLEASURE CRAFT EXEMPTIONS                                                                   
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PROPOSED CHANGES in 7 AAC 70.110 - ADDITIONAL REQUIREMENTS FOR                                                                  
PROVIDING ALCOHOL AND DRUG DETOXIFICATION SERVICES                                                                              
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CURTIS THAYER, Deputy Commissioner                                                                                              
Department of Commerce, Community and Economic Development and                                                                  
Chair, Board of Marine Pilots                                                                                                   
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Provided information related to the                                                                       
regulation changes in 12 AAC 56.115.                                                                                            
                                                                                                                                
CARTER WHALEN, President                                                                                                        
Alaska Marine Pilots                                                                                                            
Dutch Harbor, AK                                                                                                                
POSITION STATEMENT: Raised questions regarding the regulation                                                                 
changes in 12 AAC 56.115.                                                                                                       
                                                                                                                                
CAPTAIN ROBERT WINTER, Marine Pilot                                                                                             
Southeast Alaska Pilots Association                                                                                             
Ketchikan, AK                                                                                                                   
POSITION STATEMENT:  Questioned the  regulation changes in  12 AAC                                                            
56.115.                                                                                                                         
                                                                                                                                
TERI KEKLAK, Manager                                                                                                            
Program Integrity and Medicaid Services                                                                                         
Division of Behavioral Health                                                                                                   
Department of Health and Social Services (DHSS)                                                                                 
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Provided information regarding 7 ACC 70.110.                                                              
                                                                                                                                
PAUL FINCH, PA representing himself                                                                                             
Fairbanks, AK.                                                                                                                  
POSITION  STATEMENT:  Testified  in  support  of  changing  7  ACC                                                            
70.110 to authorize physician assistants to supervise nurses.                                                                   
                                                                                                                                
ROBERT R. THOMAS, PA representing himself                                                                                       
Anchorage, AK                                                                                                                   
POSITION  STATEMENT:  Testified  in  support  of  changing  7  ACC                                                            
70.110 to authorize physician assistants to supervise nurses.                                                                   
                                                                                                                                
JON SHERWOOD, Medical Assistance Administrator                                                                                  
Department of Health and Social Services (DHSS)                                                                                 
Juneau, AK                                                                                                                      
POSITION STATEMENT: Provided information regarding 7 ACC 70.110.                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:32:35 PM                                                                                                                    
CHAIR HOLLIS  FRENCH called  the Administrative Regulation  Review                                                            
Committee meeting  to order  at 1:32 p.m.  Present at the  call to                                                              
order   were  Representatives   Tuck   and   Olson  and   Senators                                                              
Wielechowski  and  Chair  French.  Senator  Wagoner  arrived  soon                                                              
thereafter.                                                                                                                     
                                                                                                                                
^Proposed Changes in 12 AAC 56.115 - Pleasure Craft Exemptions                                                                  
 Proposed Changes in 12 AAC 56.115 - Pleasure Craft Exemptions                                                              
                                                                                                                                
1:33:08 PM                                                                                                                    
CHAIR  FRENCH  announced the  first  order  of business  would  be                                                              
consideration  of the  proposed changes  to 12  AAC 56.115  by the                                                              
Board of Marine Pilots.                                                                                                         
                                                                                                                                
SENATOR WAGONER joined the committee.                                                                                           
                                                                                                                                
1:34:02 PM                                                                                                                    
CHAIR FRENCH asked  Mr. Thayer to summarize the  actions the Board                                                              
of  Marine  Pilots  recently  took   with  regard  to  regulations                                                              
dealing with marine pilots and foreign pleasure craft.                                                                          
                                                                                                                                
CURTIS  THAYER,  Deputy  Commissioner,   Department  of  Commerce,                                                              
Community  and Economic  Development (DCCED)  Commerce and  Chair,                                                              
Board  of Marine  Pilots, reviewed  the composition  of the  seven                                                              
member  board  and clarified  that  he  was  speaking as  a  board                                                              
member only.                                                                                                                    
                                                                                                                                
1:35:34 PM                                                                                                                    
MR. THAYER  discussed the  governor's request  for departments  to                                                              
review  regulations  with  the  idea  of  becoming  more  business                                                              
friendly,  and   the  Division   of  Corporations,   Business  and                                                              
Professional Licensing  decision to  introduce four  amendments to                                                              
12 AAC  56.115 during the  November 9,  2011 meeting of  the Board                                                              
of Marine Pilots.                                                                                                               
                                                                                                                                
He explained  that the  first amendment,  12 AAC  56.115(a)(3)(H),                                                              
revises  how  the division  addresses  applications  for  pilotage                                                              
exemptions  for foreign pleasure  craft.  Under current statute  a                                                              
foreign  pleasure  craft under  175  feet  that wants  a  pilotage                                                              
exemption   has  to   first  get   a   certificate  of   financial                                                              
responsibility  (COFR)   from  the  Department   of  Environmental                                                              
Conservation  (DEC) and then  submit the  application through  the                                                              
marine  pilot   coordinator.  The   proposed  change   allows  the                                                              
applications  to  be  submitted  simultaneously.  Nothing  in  the                                                              
application or requirements  was changed, and the  Board of Marine                                                              
Pilots still has the final say on granting the exemption.                                                                       
                                                                                                                                
CHAIR FRENCH asked  if the country of flagging has  any bearing on                                                              
the board's decision-making process for granting exemptions.                                                                    
                                                                                                                                
MR.  THAYER   said  no.  Responding   to  further   questions,  he                                                              
clarified that  the regulation applies  to vessels whose  keel was                                                              
laid in some country other than the United States.                                                                              
                                                                                                                                
CHAIR FRENCH  asked if most  of these vessels  were owned  by U.S.                                                              
citizens.                                                                                                                       
                                                                                                                                
MR. THAYER confirmed that many are U.S. owned.                                                                                  
                                                                                                                                
CHAIR FRENCH asked how many exemptions are granted each summer.                                                                 
                                                                                                                                
MR.  THAYER replied  the  number fluctuates  but  on average,  the                                                              
number is 20.                                                                                                                   
                                                                                                                                
1:42:56 PM                                                                                                                    
REPRESENTATIVE OLSON  asked how long it takes to  get an exemption                                                              
under the current process.                                                                                                      
                                                                                                                                
MR. THAYER replied it can take up to two weeks.                                                                                 
                                                                                                                                
REPRESENTATIVE  OLSON commented  that  the  time-savings would  be                                                              
meaningless to vessels  that plan their itineraries  a year or two                                                              
in advance.                                                                                                                     
                                                                                                                                
MR. THAYER  responded that a  delay of a  week or two can  be very                                                              
meaningful  to smaller  yachts  that  do not  make  plans well  in                                                              
advance.  He noted  that  there had  been  instances where  owners                                                              
were  unaware  of  the  requirements   and  arrived  in  Ketchikan                                                              
without having gone through the process.                                                                                        
                                                                                                                                
REPRESENTATIVE  OLSON asked  what  it would  cost for  a 175  foot                                                              
vessel to spend two months in Alaska waters.                                                                                    
                                                                                                                                
MR.  THAYER replied  he would  have to  follow up  with the  exact                                                              
numbers but the  cost is based on the length overall  (LOA) of the                                                              
vessel.  He  noted that  the  board  also addressed  a  regulation                                                              
about how to determine vessel length.                                                                                           
                                                                                                                                
REPRESENTATIVE  OLSON  questioned whether  it  might  not be  more                                                              
efficient  to structure  the  fee  schedule to  accommodate  last-                                                              
minute applications.  He opined that doubling the fee  on a multi-                                                              
million dollar vessel  would not discourage the  owner from making                                                              
the trip.                                                                                                                       
                                                                                                                                
MR.  THAYER said  that  was not  contemplated  in the  regulations                                                              
that were passed by the board.                                                                                                  
                                                                                                                                
1:46:14 PM                                                                                                                    
SENATOR  WAGONER asked  how many  vessels apply  for an  exemption                                                              
every year and the average length of stay.                                                                                      
                                                                                                                                
MR. THAYER  replied about  20 yachts  receive exemptions  and some                                                              
stay all summer.                                                                                                                
                                                                                                                                
SENATOR WAGONER asked  if any agency supervised  or controlled the                                                              
amount of fish these yachts take from Alaska waters.                                                                            
                                                                                                                                
MR. THAYER  responded that  was outside the  purview of  the Board                                                              
of  Marine  Pilots,   but  fish  and  wildlife   regulations  were                                                              
provided in the application package.                                                                                            
                                                                                                                                
1:48:30 PM                                                                                                                    
REPRESENTATIVE  TUCK asked what  reasons would  cause DEC  to deny                                                              
an exemption for a small vessel.                                                                                                
                                                                                                                                
MR. THAYER  replied there probably  were none; the  certificate of                                                              
financial  responsibility (COFR)  is required  by the Coast  Guard                                                              
and most vessels carry one automatically.                                                                                       
                                                                                                                                
REPRESENTATIVE TUCK  asked what reasons  would cause the  board to                                                              
disapprove an exemption.                                                                                                        
                                                                                                                                
MR. THAYER  replied there are numerous  reasons, but very  few are                                                              
actually  rejected. He explained  that consideration  is  given to                                                              
past  violations,  qualifications   of  the  crew,  experience  in                                                              
Alaska  waters,  type of  vessel,  and  insurance. He  noted  that                                                              
charter vessels were never exempted.                                                                                            
                                                                                                                                
REPRESENTATIVE  TUCK asked if  there was  a difference  between an                                                              
over  175 foot  private  vessel,  commercial vessel,  and  charter                                                              
vessel.                                                                                                                         
                                                                                                                                
MR. THAYER  clarified that the  exemption applies only  to foreign                                                              
hulled vessels  that are less  than 175  feet in length,  and that                                                              
charter  and commercial  vessels  do not  qualify  for a  pilotage                                                              
exemption.                                                                                                                      
                                                                                                                                
1:51:13 PM                                                                                                                    
SENATOR WIELECHOWSKI  asked how  many passengers are  typically on                                                              
board these vessels.                                                                                                            
                                                                                                                                
MR. THAYER  estimated that  a 150 foot  yacht would  probably have                                                              
6-10 guests and a professional crew of 3-5.                                                                                     
                                                                                                                                
SENATOR  WIELECHOWSKI   asked  if   the  crews  were   trained  or                                                              
qualified marine pilots.                                                                                                        
                                                                                                                                
MR.  THAYER replied  they  all  have certifications  and  merchant                                                              
marine licenses.                                                                                                                
                                                                                                                                
SENATOR WIELECHOWSKI  asked  if prior knowledge  of Alaska  waters                                                              
is required.                                                                                                                    
                                                                                                                                
MR.  THAYER said  no,  but  most of  the  people applying  for  an                                                              
exemption  have  been in  Alaska  waters  at  some time  in  their                                                              
career.                                                                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI  asked if,  for example, someone  who cruised                                                              
in  Southeast 20  years ago  would be  eligible to  cruise in  the                                                              
Whittier area.                                                                                                                  
                                                                                                                                
MR. THAYER said yes, if the board granted an exemption.                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI  asked how much fuel these  vessels typically                                                              
carry.                                                                                                                          
                                                                                                                                
MR. THAYER  estimated the capacity to  be up to 5,000  gallons for                                                              
the vessel plus 50-60 gallons for a tender.                                                                                     
                                                                                                                                
SENATOR WIELECHOWSKI  asked if there  was specific data as  to the                                                              
expected economic gain from these regulatory changes.                                                                           
                                                                                                                                
1:52:58 PM                                                                                                                    
MR. THAYER said no.                                                                                                             
                                                                                                                                
1:53:24 PM                                                                                                                    
SENATOR WIELECHOWSKI  asked if he thought it would  it be safer if                                                              
these yachts had an Alaska marine pilot aboard.                                                                                 
                                                                                                                                
MR. THAYER replied  he follows the statutes, which  stipulate that                                                              
any  vessel under  175 feet  can apply  for an  exemption and  any                                                              
vessel larger than 175 feet requires a marine pilot.                                                                            
                                                                                                                                
SENATOR  WAGONER  highlighted  his marine  experience  and  opined                                                              
that  certification  and  licensure  doesn't  necessarily  mean  a                                                              
person is a good marine pilot and can navigate.                                                                                 
                                                                                                                                
MR. THAYER  responded  that the  only incident  last year  that he                                                              
was aware  of was  a 100  foot vessel  that ran  aground while  on                                                              
anchor.  It  was  not  a  foreign  vessel  so  the  board  had  no                                                              
jurisdiction over it.                                                                                                           
                                                                                                                                
1:55:50 PM                                                                                                                    
MR. THAYER reviewed  the second amendment, a new  paragraph 12 AAC                                                              
56.115(a)(4) that  stipulates that a  copy of the  vessel registry                                                              
will  be  submitted  to the  marine  pilot  coordinator  with  the                                                              
exemption application.  He explained  that this standard  document                                                              
gives the  length overall of  the vessel  and that that  number is                                                              
used to calculate  tariffs and fees. The board  passed this change                                                              
6:1.                                                                                                                            
                                                                                                                                
The  third  change  amends  12 AAC  56.115(b)  and  reaffirms  the                                                              
state's right  to impose a  fine of up  to $10,000 per  episode on                                                              
pleasure  craft in  compulsory pilotage  waters  without either  a                                                              
pilot  or  an exemption.  As  a  side note,  he  highlighted  that                                                              
investigation costs  are borne by the  board, but the fines  go to                                                              
the general fund. This drives up costs for the licensees.                                                                       
                                                                                                                                
1:59:15 PM                                                                                                                    
CHAIR FRENCH  asked about the relative  economic impact of  a fine                                                              
versus the  charges recouped  for pilotage  services. He  asked if                                                              
each day  is a separate violation,  and specifically how  the fine                                                              
for a  vessel in violation  on a  continuous 30-day  trip compares                                                              
to the cost to hire a pilot for that same period.                                                                               
                                                                                                                                
MR.  THAYER deferred  the latter  question to  a pilot  explaining                                                              
that  the tariffs  are negotiated  between  the pilot  association                                                              
and vessel agents.                                                                                                              
                                                                                                                                
CHAIR  FRENCH observed  that  it was  a civil  fine  and that  the                                                              
statute  would be  construed against  the government  in favor  of                                                              
the  person paying  the fine.  He  opined that  unless a  specific                                                              
provision defines  each day  as a  separate violation,  the 30-day                                                              
trip would be just one violation.                                                                                               
                                                                                                                                
MR. THAYER  reviewed AS 08.62.190.  Penalties, and noted  that the                                                              
fine can be as high as $30,000 on the second offense.                                                                           
                                                                                                                                
CHAIR FRENCH  reminded Mr. Thayer  that he didn't  address whether                                                              
each day is a separate violation.                                                                                               
                                                                                                                                
MR.  THAYER   offered  to  follow   up  after  he   consulted  the                                                              
Department of Law (DOL).                                                                                                        
                                                                                                                                
CHAIR FRENCH observed  that legislative counsel,  Terri Lauterbach                                                              
was directing Mr.  Thayer to a provision that might  shed light on                                                              
the question.                                                                                                                   
                                                                                                                                
MR.  THAYER cited  AS  08.62.040(f) that  says,  "Each entry  into                                                              
state water in violation  of this chapter or AS  08.62.180(b) is a                                                              
separate violation."                                                                                                            
                                                                                                                                
CHAIR  FRENCH posed  the example  of  a vessel  that enters  state                                                              
waters at Ketchikan  and exits 30 days later at  Kachemak Bay, and                                                              
reiterated  his opinion  that  it will  be  construed against  the                                                              
department  to be one  violation unless  the statute  specifically                                                              
says that  each day is  a separate violation.  He agreed  that the                                                              
fine for  a second violation would  be $30,000 and  questioned why                                                              
there should be an opportunity for a second violation.                                                                          
                                                                                                                                
MR. THAYER responded  that the Marine Pilot Association  can still                                                              
charge the  vessel for services  not rendered so the  vessel owner                                                              
would pay that in addition to the fine.                                                                                         
                                                                                                                                
CHAIR  FRENCH pointed  out that  the state  was surrendering  that                                                              
option by eliminating that aspect of the regulation.                                                                            
                                                                                                                                
MR. THAYER  offered his belief  that the Marine  Pilot Association                                                              
retains the ability to charge for services not rendered.                                                                        
                                                                                                                                
CHAIR FRENCH agreed  the association can assess a  charge, but the                                                              
regulatory change allows  a vessel to get an  exemption not having                                                              
paid. The  deleted language  says the  vessel cannot return  until                                                              
the appropriate charges have been paid.                                                                                         
                                                                                                                                
MR. THAYER  said he  assumes in that  circumstance that  the board                                                              
would discuss the unpaid charges and deny the exemption.                                                                        
                                                                                                                                
CHAIR   FRENCH  turned   the  discussion   to   safety  with   the                                                              
observation  that that was  why the  legislature asked  for marine                                                              
pilots in the first place.                                                                                                      
                                                                                                                                
2:04:42 PM                                                                                                                    
SENATOR WAGONER stated  that it did not matter  whether the vessel                                                              
had a  foreign bottom or  a U.S. bottom.  The issue was  safety on                                                              
the water and that was what the committee should be addressing.                                                                 
                                                                                                                                
2:05:15 PM                                                                                                                    
REPRESENTATIVE  OLSON   referred  to  the  amendment   to  12  AAC                                                              
56.115(c) and  asked the intent  of removing the  requirement that                                                              
the  vessel   master  hold  a   valid  unlimited   radar  observer                                                              
endorsement.                                                                                                                    
                                                                                                                                
CHAIR  FRENCH noted  that question  was in reference  to the  last                                                              
regulation change the committee would address.                                                                                  
                                                                                                                                
MR.  THAYER  read the  regulation  and  explained that  the  board                                                              
voted  unanimously  to table  that  amendment  and  send it  to  a                                                              
subcommittee. Final action was not taken on that regulation.                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI  questioned whether any thought  was given to                                                              
putting the  Board of  Marine Pilots  under either the  Department                                                              
of   Transportation  and   Public   Facilities   (DOTPF)  or   the                                                              
Department  of Environmental  Conservation  (DEC)  instead of  the                                                              
Department  of   Commerce,  Community  and   Economic  Development                                                              
(DCCED).                                                                                                                        
                                                                                                                                
MR.  THAYER replied  he was  unaware  of any  such discussion.  He                                                              
then pointed out  that the Division of Corporations,  Business and                                                              
Professional  Licensing regulates  40 professional licenses,  half                                                              
of which have a  board like the marine pilots  so it appropriately                                                              
fits within  commerce. He  estimated that  foreign pleasure  craft                                                              
regulations  were probably five  percent of  the board's  work. He                                                              
listed  the   other  duties,  and   opined  that  if   Alaska  had                                                              
regulations and  policies in place that encouraged  pleasure craft                                                              
to come to Alaska  it would clearly help the small  communities in                                                              
Southeast. Also, when  more large and small yachts  come to Alaska                                                              
there's more  business for marine  pilots and vessel  agents. It's                                                              
about  commerce  and  the  board  wants  to  do  what  it  can  to                                                              
streamline  welcoming people to  Alaska. He  noted that  the board                                                              
voted 5:1 on these regulations.                                                                                                 
                                                                                                                                
2:10:54 PM                                                                                                                    
REPRESENTATIVE  TUCK commented  that  Carnival  Cruise Line  found                                                              
that commerce  was affected  when people did  not have a  sense of                                                              
security. The  company saw  a significant  drop in earnings  after                                                              
the   recent   [Costa  Concordia]   disaster,   illustrating   the                                                              
importance of maintaining the highest standards of safety.                                                                      
                                                                                                                                
MR.  THAYER emphasized  that these  regulatory changes  streamline                                                              
the  process, but  the  requirements  were the  same  and did  not                                                              
affect safety.                                                                                                                  
                                                                                                                                
SENATOR WIELECHOWSKI  asked if the  amendment to 12  AAC 56.115(b)                                                              
didn't  make it  easier  for foreign  vessels  to operate  without                                                              
marine pilots.                                                                                                                  
                                                                                                                                
MR. THAYER  offered his belief  that streamlining the  process did                                                              
not  change the  requirements. The  same  information is  required                                                              
and the application goes through the same approval process.                                                                     
                                                                                                                                
SENATOR WIELECHOWSKI  asked the dollar  amount of the  penalty for                                                              
a violation  under subsection (b).  He read the  deleted language,                                                              
"and (2)  pays the  appropriate charges  for pilotage  services in                                                              
accordance with 12 AAC 56.205(a),(b),(c), or (d)."                                                                              
                                                                                                                                
MR. THAYER responded  that refers to a private  action between the                                                              
pilot association  and the owner  of the pleasure  craft, although                                                              
the Board  of Marine  Pilots retains the  ability to  receive that                                                              
payment.  He interpreted  the change  as  reinforcing the  state's                                                              
right to fine, something it had not been doing.                                                                                 
                                                                                                                                
SENATOR  WIELECHOWSKI  questioned   the  wisdom  of  removing  the                                                              
language in paragraph (2).                                                                                                      
                                                                                                                                
MR. THAYER  explained that the deleted  language put the  state in                                                              
the  position of  forcing  a third-party  action.  It referred  to                                                              
charges the  vessel owner may owe  the pilot association,  not the                                                              
state. He  reiterated that the state  retains the ability  to fine                                                              
the owner  of the pleasure  craft, and  this clarifies  that there                                                              
may be two actions.                                                                                                             
                                                                                                                                
CHAIR FRENCH  offered his  view for  redrafting the regulation  to                                                              
eliminate the opportunity for a future exemption.                                                                               
                                                                                                                                
     (b)  If a  pleasure craft  of foreign  registry of  more                                                                   
     than   125  feet   overall   length  enters   compulsory                                                                   
     pilotage   waters  without   a  pilot   or  a   pilotage                                                                   
     exemption  under AS  08.62.180 (b) -  (e), the  operator                                                                   
     of the pleasure  craft will not be granted  a subsequent                                                                   
     pilotage exemption.                                                                                                        
                                                                                                                                
He  continued  that  the  board believes  it  is  reaffirming  the                                                              
state's right  to assess fines,  but to actually provide  a method                                                              
for  doing so  he  would suggest  replacing  the deleted  language                                                              
about  pilotage services  in paragraph  (2) with  the phrase  "and                                                              
paid  the  fine  under AS  08.62.040(f)."  That  subsection  talks                                                              
about the fines the state can assess.                                                                                           
                                                                                                                                
2:14:18 PM                                                                                                                    
SENATOR WIELECHOWSKI  commented on  the difficulty of  filing suit                                                              
to  recover  pilot  fees  when the  organization  is  based  in  a                                                              
foreign company.                                                                                                                
                                                                                                                                
MR. THAYER  responded that it would  be difficult with  or without                                                              
the changes  to the regulations.  He added that the  authority was                                                              
retained in statute.                                                                                                            
                                                                                                                                
SENATOR WIELECHOWSKI asked for the statutory reference.                                                                         
                                                                                                                                
CHAIR FRENCH said  the committee would hear testimony  from marine                                                              
pilots while Mr. Thayer looked for the reference.                                                                               
                                                                                                                                
2:15:53 PM                                                                                                                    
CARTER  WHALEN, President,  Alaska  Marine  Pilots, Dutch  Harbor,                                                              
AK,  discussed  the  reasons  that  regulations  regarding  marine                                                              
pilots were  critical to  the Alaska  economy and environment.  He                                                              
cited the  Costa Concordia  disaster to  emphasize the  importance                                                              
of the Alaska  laws regarding marine pilots in  maintaining safety                                                              
and preventing  marine accidents.  When passengers aren't  sure of                                                              
safe navigation  through  dangerous waters,  they won't sail,  and                                                              
any  large  vessel   plying  Alaskan  waters,   including  foreign                                                              
pleasure craft over  65 feet, is a potential oil  spill if it runs                                                              
aground.                                                                                                                        
                                                                                                                                
MR. WHALEN said  he finds it troubling that the  board tasked with                                                              
enforcing   Alaska's   system    of   pilotage   appears   to   be                                                              
accommodating  industries'  desire  to weaken  the  system.  DCCED                                                              
recently  offered  four  amendments that  weaken  marine  pilotage                                                              
regulations to  the Board of Marine  Pilots, and three  passed. In                                                              
each case  the logic  was to streamline  the exemption  process in                                                              
order  to   stimulate  economic   development  from   the  foreign                                                              
pleasure craft market.  However, no economic data  was offered for                                                              
the board to consider.                                                                                                          
                                                                                                                                
MR.  WHALEN   cited  the   amendment  to   12  AAC  56.115(b)   as                                                              
particularly  perplexing. The law  was broken  yet the  process to                                                              
get an  exemption was expedited  absent the only  measure designed                                                              
to  keep  foreign yachts  from  violating  the  law in  the  first                                                              
place.  He suggested  that if  the  board is  concerned about  the                                                              
pilot  association  being  compensated  for  the  avoided  service                                                              
fees,  it should  have amended  the  language to  include a  daily                                                              
penalty  equal  to the  cost  of  hiring a  state-licensed  marine                                                              
pilot.  Now  all  a  foreign  yacht has  to  do  for  next  year's                                                              
exemption is to  provide satisfactory documentation  detailing the                                                              
vessel's  entry   and  voyages   in  violation.  Regulations   and                                                              
penalties sufficient  to serve  as a  deterrent no longer  protect                                                              
the  state's  interest.  He  reconfirmed  his  opposition  to  the                                                              
regulation  changes  and  concluded  that  Alaska  and  protecting                                                              
Alaska's economy  and environment  should come first,  and foreign                                                              
pleasure craft owners should come second.                                                                                       
                                                                                                                                
REPRESENTATIVE  TUCK asked if  he agrees  that a foreign  pleasure                                                              
craft operator  can get  an exemption  without having  settled his                                                              
or her obligations.                                                                                                             
                                                                                                                                
MR. WAYLEN  said that's correct.  The board passed  the amendments                                                              
expeditiously  with  logic  that  doesn't hold  water.  The  third                                                              
change was a particularly good example of that.                                                                                 
                                                                                                                                
2:27:43 PM                                                                                                                    
CAPTAIN  ROBERT  WINTER,  marine pilot,  Southeast  Alaska  Pilots                                                              
Association, said he  has piloted vessels in Alaska  for more than                                                              
20 years,  is a retired U.S.  Coast Guard officer, and  has served                                                              
on the  Board of Marine Pilots  foreign yacht committee  since its                                                              
inception  in  2003. He  stated  that  when  the Board  of  Marine                                                              
Pilots considered  four amendments to the regulations  for foreign                                                              
pleasure  yachts, an overwhelming  majority  of the comments  were                                                              
against  these   changes.  Opposing  comments  came   from  marine                                                              
pilots, the  former chair  of the Board  of Marine Pilots,  former                                                              
public  members of  the board,  general counsel  for the  American                                                              
Pilots Association,  the U.S. Coast Guard, and  several members of                                                              
the public yet the board overwhelmingly passed each proposal.                                                                   
                                                                                                                                
He  agreed  with   other  statements  that  the   pilots'  primary                                                              
interest  in  the  issue  is  safety.  He  confirmed  that  pilots                                                              
generate  little  income  from  these  vessels  because  they  are                                                              
largely exempt  from needing a pilot.  Vessel agents are  the only                                                              
entity  that  stands  to  gain   from  slacking  the  requirements                                                              
because  exempt   yachts  are  required  to  hire   an  agent.  He                                                              
continued to  say that getting  the word  out that Alaska  is open                                                              
for business is  well and good as long as the  state is protected.                                                              
The  Alaska  Pilot  Act  requires   pilots  to  be  available  for                                                              
dispatch 24/7, 365  days a year and the expense of  having a pilot                                                              
available  is ongoing.  Those costs  don't go  away when a  vessel                                                              
that is  required to  employ a pilot  fails to do  so. He  cited a                                                              
recent  example  of a  foreign  pleasure  craft that  received  an                                                              
exemption  and spent most  of its  time in  Alaska operating  as a                                                              
charter  vessel.  When the  operator  was  caught and  fined,  the                                                              
vessel left  state waters  and the fine  and charges  went unpaid.                                                              
He concluded  by saying that Alaska  has one of the  weakest yacht                                                              
requirements  in the  nation and  he  hopes it  doesn't turn  into                                                              
Rodney Dangerfield's Caddyshack.                                                                                                
                                                                                                                                
2:32:41 PM                                                                                                                    
CHAIR  FRENCH  noted that  the  committee  could look  forward  to                                                              
receiving  written comments  from Terri Lauterbach.  He asked  Mr.                                                              
Thayer if he had any concluding comments.                                                                                       
                                                                                                                                
MR.  THAYER recapped  the public  process  for reviewing  proposed                                                              
regulation  changes, and said  it would  be helpful going  forward                                                              
if the  pilots and  their attorneys  offer suggestions  to improve                                                              
the process.  These regulations were  considered for over  90 days                                                              
and not  one attorney from  the pilot association  stepped forward                                                              
to offer comment.                                                                                                               
                                                                                                                                
2:35:19 PM                                                                                                                    
REPRESENTATIVE  TUCK asked  what entity  suggested the  regulation                                                              
changes.                                                                                                                        
                                                                                                                                
MR.  THAYER replied  the Division  of  Corporations, Business  and                                                              
Professional Licensing  asked for them based on  instances of past                                                              
issues. He  reiterated the  intent was  to streamline  the process                                                              
without dumbing down the regulations.                                                                                           
                                                                                                                                
^Proposed Changes  in 7 AAC  70.110 - Additional  Requirements for                                                              
Providing Alcohol and Drug Detoxification Services                                                                            
Proposed Changes  in 7  AAC 70.110  - Additional Requirements  for                                                          
Providing Alcohol and Drug Detoxification Services                                                                          
                                                                                                                                
2:36:38 PM                                                                                                                    
CHAIR  FRENCH announced  the second  matter  before the  committee                                                              
relates to  physician assistants  and additional requirements  for                                                              
providing  alcohol and drug  detoxification  services under  7 AAC                                                              
70.110. He asked  Ms. Keklak to give the committee  an overview of                                                              
the recent regulatory changes.                                                                                                  
                                                                                                                                
2:36:54 PM                                                                                                                    
TERI  KEKLAK, Manager,  Program Integrity  and Medicaid  Services,                                                              
Division  of Behavioral Health,  Department  of Health and  Social                                                              
Services  (DHSS), Anchorage,  AK,  explained  that the  Behavioral                                                              
Health  regulations  outlined  in 7  AAC  70.010-70.990  generally                                                              
outline  DHSS's   responsibilities  under  AS   47.30.520-620  the                                                              
Community Mental  Health Services  Act, and  AS 47.37  the Uniform                                                              
Alcoholism  and  Intoxication  Treatment   Act.  Specifically,  AS                                                              
47.37.140   grants  DHSS   the   responsibility  for   determining                                                              
standards in treatment facilities.                                                                                              
                                                                                                                                
The  Behavioral Health  regulations  in 7  AAC  70.110 define  the                                                              
requirements   for  providing   services   in  detox   facilities,                                                              
including staffing  requirements. The regulations were  drafted to                                                              
ensure  that professional  workers  practice within  the scope  of                                                              
practice  defined by  their  professional  licensing statutes  and                                                              
regulations.   AS    08.68.265   expressly    excludes   physician                                                              
assistants  as   a  category  of  professional  who   can  oversee                                                              
licensed  practical  nurses.  Therefore,   7  AAC  70.110(d)(3)(E)                                                              
limits  the supervision  of  licensed  practical  nurses (LPN)  to                                                              
physicians and advanced nurse practitioners.                                                                                    
                                                                                                                                
AS 08.64.107 grants  the Board of Medicine the  authority to adopt                                                              
regulations regarding  licensure of physician assistants,  and the                                                              
regulations under  12 AAC 40.410 require a physician  assistant to                                                              
practice  under  a  collaborative  relationship  with  a  licensed                                                              
physician. The  Behavioral Health  regulations under 7  AAC 70.110                                                              
were drafted  to ensure that they  did not allow  practice outside                                                              
of the professional authorities.                                                                                                
                                                                                                                                
MS.  KEKLAK  relayed that  DHSS  was  consulting with  the  Alaska                                                              
Medical  Board  to  clarify  whether   or  not  the  collaborative                                                              
relationship  includes RN  supervision. Depending  on the  outcome                                                              
of   that   consultation,   DHSS  will   amend   its   regulations                                                              
accordingly.                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  asked if the  collaborative agreement  is any                                                              
different  for   a  PA  working  in  a  certified   detoxification                                                              
facility compared to any other medical facility.                                                                                
                                                                                                                                
MS. KEKLAK  explained that  the collaborative  agreement  does not                                                              
speak  to  the  type  of facility;  it  is  an  agreement  with  a                                                              
licensed  physician  that  defines   the  scope  of  practice  and                                                              
service that the PA can provide.                                                                                                
                                                                                                                                
CHAIR  FRENCH  informed  the committee  that  Melissa  Stone,  the                                                              
director of the  Division of Behavioral Health,  and Jon Sherwood,                                                              
the medical assistance  administrator for DHSS, were  available to                                                              
answer questions.                                                                                                               
                                                                                                                                
2:42:45 PM                                                                                                                    
PAUL FINCH,  representing himself,  said he  works as  a physician                                                              
assistant at  Gateway to Recovery  Detox Center in  Fairbanks, AK.                                                              
He testified  in support of authorizing  PAs to supervise  RNs and                                                              
LPNs in  a detoxification  facility. He said  it was  an oversight                                                              
that they were  not included when the regulation  was written. PAs                                                              
now sign standing  orders for nurses to do their  work in clinics,                                                              
outpatient clinics,  and sometimes hospital  settings, so it  is a                                                              
matter of common sense to include detox services, he said.                                                                      
                                                                                                                                
2:45:43 PM                                                                                                                    
CHAIR  FRENCH asked  Mr. Finch  if  his view  was that  "physician                                                              
assistant" should  be added  in 7 AAC  70.110(b)(4)(D) and  (E) to                                                              
the list  of professions who can  supervise a registered  nurse or                                                              
a licensed practical nurse.                                                                                                     
                                                                                                                                
MR.  FINCH said  it  should be  added  there  and other  locations                                                              
where the same language appears throughout the regulation.                                                                      
                                                                                                                                
2:46:13 PM                                                                                                                    
ROBERT R.  THOMAS, physician  assistant (PA),  Anchorage,  AK, and                                                              
past  president of  the Alaska  Academy  of Physician  Assistants,                                                              
spoke  in support  of amending  the  regulations to  give PAs  the                                                              
authority  to supervise  nurses in  detoxification facilities.  He                                                              
said he believes  that when the regulations were written  it was a                                                              
simple  oversight  that PAs  were  omitted from  this  supervisory                                                              
role.  He explained  that  PAs work  under  the  supervision of  a                                                              
collaborative  physician  and  that  physician  delegates  certain                                                              
authority to  the PA.  In every other  setting, this  includes the                                                              
supervision of nurses.                                                                                                          
                                                                                                                                
2:48:19 PM                                                                                                                    
REPRESENTATIVE  TUCK asked  if he  was aware  of any other  fields                                                              
where PAs were not allowed to supervise nurses.                                                                                 
                                                                                                                                
MR. THOMAS said no.                                                                                                             
                                                                                                                                
2:48:47 PM                                                                                                                    
JON  SHERWOOD,  Medical Assistance  Administrator,  Department  of                                                              
Health and Social Services (DHSS), offered to answer questions.                                                                 
                                                                                                                                
CHAIR FRENCH asked  if he would characterize it as  an omission or                                                              
deliberate that  physician assistants were  not included in  7 AAC                                                              
70.110(b).                                                                                                                      
                                                                                                                                
MR. SHERWOOD  replied he would  agree with Ms. Keklak's  statement                                                              
that DHSS  tried to  write the  regulations to  not conflict  with                                                              
the statutes  regarding licensing  of physician assistants  or the                                                              
supervision of  registered nurses  and licensed practical  nurses.                                                              
If DHSS  changes the regulations  it wants to understand  from the                                                              
professional  boards that  it reflects  the  appropriate scope  of                                                              
practice. There  is a  very explicit statute  that limits  who can                                                              
supervise LPNs;  it lists doctors,  nurses, and dentists,  but not                                                              
physician  assistants. If  delegation is  permitted DHSS  wants to                                                              
ensure it  has clear  guidance from  the professional  boards that                                                              
DHSS's regulation would not conflict with that statute.                                                                         
                                                                                                                                
CHAIR FRENCH  asked for confirmation  that he saw the  omission as                                                              
deliberate.                                                                                                                     
                                                                                                                                
MR. SHERWOOD  responded that DHSS  deliberately tried to  write it                                                              
not to overstep  its authority. He did not know that  the issue of                                                              
delegation  was  explicitly  addressed   or  that  the  department                                                              
considered how  the regulation would  be interpreted.  He deferred                                                              
further comment to Ms. Keklak.                                                                                                  
                                                                                                                                
CHAIR  FRENCH asked  Ms. Keklak  to comment on  the last  exchange                                                              
and to remind him of the exact statute.                                                                                         
                                                                                                                                
MR. SHERWOOD cited  the reference as AS 08.68.265,  Supervision of                                                              
Practical Nurses.                                                                                                               
                                                                                                                                
2:51:42 PM                                                                                                                    
REPRESENTATIVE  TUCK  asked if  PAs  testified during  the  public                                                              
portion of the  regulation changes, and if they  reported what was                                                              
happening in the industry.                                                                                                      
                                                                                                                                
MR. SHERWOOD  replied he  did not  have an answer,  but it  may be                                                              
part of the record.                                                                                                             
                                                                                                                                
CHAIR FRENCH  asked Ms. Keklak if  she had anything to  add to the                                                              
exchange.                                                                                                                       
                                                                                                                                
2:52:32 PM                                                                                                                    
MS. KEKLAK agreed  with Mr. Sherwood's statements,  and offered to                                                              
go through  the record  and forward  any information and  comments                                                              
from PAs.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  TUCK  asked  if AS  08.68.265  specifically  omits                                                              
PAs.                                                                                                                            
                                                                                                                                
MR.  SHERWOOD said  AS 08.68.265  says, "A  practical nurse  shall                                                              
work  under the  supervision  of a  licensed  registered nurse,  a                                                              
licensed physician, or a licensed dentist."                                                                                     
                                                                                                                                
2:54:24 PM                                                                                                                    
REPRESENTATIVE  TUCK  asked if  that  was specific  to  behavioral                                                              
health services or in general.                                                                                                  
                                                                                                                                
MR. SHERWOOD  replied his understanding  was that it is  a general                                                              
requirement.                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  noted the conflict between  earlier testimony                                                              
and the statute and raised the issue of potential violations.                                                                   
                                                                                                                                
MR. SHERWOOD clarified  that he was not an expert  in professional                                                              
licensing  and suggested  it was  a  discussion to  have with  the                                                              
Board  of Nursing  or  staff from  the Division  of  Corporations,                                                              
Business and Professional Licensing.                                                                                            
                                                                                                                                
REPRESENTATIVE  TUCK asked  if it  was correct  to say that  there                                                              
was not opposition  to PAs overseeing nurses; the  concern relates                                                              
to the way the statutes were written.                                                                                           
                                                                                                                                
MR.  SHERWOOD replied  he  was not  aware  of  any opposition.  He                                                              
reiterated that  DHSS was simply  trying to write  the regulations                                                              
in a way  that did not conflict  with any statute relating  to the                                                              
regulation of professional licensing and professional oversight.                                                                
                                                                                                                                
2:56:37 PM                                                                                                                    
^Proposed Changes in 12 AAC 56.115 - Pleasure Craft Exemptions                                                                  
 Proposed Changes in 12 AAC 56.115 - Pleasure Craft Exemptions                                                                
                                                                                                                                
SENATOR WAGONER asked  for a little more discussion  on the marine                                                              
pilot  issue  and reiterated  that  the  focus should  be  boating                                                              
safety,  not  accommodating  a   special  interest.  He  expressed                                                              
reservations  about the  proposed changes,  particularly in  light                                                              
of Mr. Whalen's closing remark:                                                                                                 
                                                                                                                                
     In  closing we  see no  justification  for the  proposed                                                                   
     changes listed  above and do  not see any  corroborating                                                                   
     information  provided at  the November  Board of  Marine                                                                   
     Pilots meeting  that justifies  or supports the  changes                                                                   
     to regulation  as proposed.  At a  minimum, the  board's                                                                   
     yacht committee  should vet  this matter before  further                                                                   
     action by the board is considered.                                                                                         
                                                                                                                                
SENATOR  WAGONER said  he finds  it interesting  that the  board's                                                              
yacht  committee did  not meet  prior to  the proposed  regulation                                                              
changes.                                                                                                                        
                                                                                                                                
2:59:07 PM                                                                                                                    
REPRESENTATIVE OLSON  commented that it appeared  that convenience                                                              
was trumping safety on this issue.                                                                                              
                                                                                                                                
REPRESENTATIVE  TUCK added  that he  was not  sure what was  being                                                              
fixed, because it appeared that everything was working well.                                                                    
                                                                                                                                
SENATOR  WIELECHOWSKI  highlighted the  Administrative  Regulation                                                              
Review   Committee's   seeming   universal   opposition   to   the                                                              
regulation changes, and expressed curiosity about the next step.                                                                
                                                                                                                                
2:59:46 PM                                                                                                                    
CHAIR FRENCH  explained that the  next step is for  the lieutenant                                                              
governor to  decide whether  to sign  the regulation into  effect.                                                              
If the  committee believes  that something needs  to be  fixed, it                                                              
has to be done by statute.                                                                                                      
                                                                                                                                
REPRESENTATIVE  TUCK  agreed that  the  committee  was largely  in                                                              
unison about  the marine  pilot issue,  and questioned  whether it                                                              
wanted  to express  uniform disapproval  of the  second matter  as                                                              
well.                                                                                                                           
                                                                                                                                
SENATOR  WAGONER  commented that  he  had experience  in  teaching                                                              
nurses and had no desire to tread those waters again.                                                                           
                                                                                                                                
3:01:01 PM                                                                                                                    
There  being no  further business  to come  before the  committee,                                                              
Chair French adjourned the meeting at 3:01 p.m.                                                                                 

Document Name Date/Time Subjects
Agenda 3-20-12.pdf SARR 3/20/2012 1:30:00 PM
Agenda
Packet 3-20-12 MP.pdf SARR 3/20/2012 1:30:00 PM
Proposed Changes in 12 AAC 56.115 - Pleasure Craft Exemptions
Packet 3-20-12 PA.pdf SARR 3/20/2012 1:30:00 PM
7 AAC 70.110 - Additional Requirements for Providing Alcohol and Drug Detoxification Services