SENATE BILL 130                                                              
                                                                               
       "An  Act relating  to  marine pilots  and the  Board of                 
       Marine  Pilots; extending  the termination date  of the                 
       Board of Marine Pilots; and  providing for an effective                 
       date."                                                                  
                                                                               
  SENATE  PRESIDENT DRUE  PEARCE spoke in  support of  SB 130.                 
  She noted that  SB 130 was designed  to extend the  Board of                 
  Marine Pilots  and to  provide housekeeping  changes to  the                 
  Marine Pilotage Act of  1991 aimed at reducing the  level of                 
  litigation surrounding  the  marine  pilotage  industry  and                 
  providing  a stable  regulatory environment  for determining                 
  rate for pilotage services.                                                  
                                                                               
  Senator Pearce added that the legislation was  the result of                 
  extensive negotiations and  compromises between pilots,  the                 
  shipping industry and  the Administration.   The legislation                 
  is  supported  by  all  of those  groups.    Senator  Pearce                 
  concluded  that  passage of  SB  130 would  ensure  that the                 
  health, safety  and welfare of  the Alaskan people  would be                 
  met through the  State's regulation and oversight  of marine                 
  pilotage.                                                                    
                                                                               
  Representative  Brown  asked the  changes  made which  would                 
  affect liability.                                                            
                                                                               
  DAN  TWOHING,   MARINE  PILOT  COORDINATOR,   DEPARTMENT  OF                 
  COMMERCE  AND  ECONOMIC  DEVELOPMENT,   responded  that  the                 
                                                                               
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  changes involved for  the liability for marine pilots in the                 
  1991 bill was  limited to $250  thousand dollars.  That  law                 
  was written to relate to anything  the pilot could have done                 
  to  have  a sanction  for the  license.   He  concluded that                 
  amount of money given a major marine accident would diminish                 
  rapidly.  The  pilots, through  the Alaska Pilots  Alliance,                 
  requested to have the  statute amended so that  pilots would                 
  loose  their  liability only  in  incidence of  proven gross                 
  negligence  or  incompetence  resulting  from  chemicals  or                 
  alcohol.   Any remaining  items for  which they could  loose                 
  liability were removed.                                                      
                                                                               
  Representative Brown thought  that "incompetence" was  being                 
  removed.   Mr. Twohing advised that incompetence is a matter                 
  of  law.   Within the  scope of  maritime investigation  and                 
  prosecutions,  the real question  would be  gross negligence                 
  which could lead to an incompetent situation.  He added that                 
  the  actual  word  "incompetence"  was  too  vague  for  the                 
  Department of Law.                                                           
                                                                               
  Representative  Mulder asked  how  the proposed  legislation                 
  would promote  competition.   Senator Pearce commented  that                 
  the 1991 Law created competition  amongst pilotage groups in                 
  so much as it  allowed for separate groups.   Currently, two                 
  separate groups exist.                                                       
                                                                               
  Representative  Mulder  questioned the  need  of a  pilotage                 
  group.   Mr. Twohing  explained that  State licensed  marine                 
  pilots  have  knowledge  of  the  waters and  ship  handling                 
  experience.    That  information  is  in  the  State's  best                 
  interest  and   that  pilots   "speak"  the   same  language                 
  internationally.                                                             
                                                                               
  Representative Therriault asked  if there was  opposition to                 
  the legislation in the various pilot groups.  Senator Pearce                 
  explained that each pilot group  had compromised their needs                 
  and  that  SB  130  was   legislation  resulting  from  that                 
  compromise and was supported by all interests.                               
                                                                               
  SB 130 was HELD in Committee for further consideration.