HB 108-BOARD OF MARINE PILOTS CHAIR OLSON announced that the first order of business would be HOUSE BILL NO. 108, "An Act extending the termination date for the Board of Marine Pilots; and providing for an effective date." 3:07:53 PM CAPTAIN ROBERT WINTER, Pilot, Southeast Alaska Pilots Association, said that he is in support of HB 108. He encouraged the committee to pass the bill as it is currently written. 3:08:34 PM REPRESENTATIVE NEUMAN made a motion to adopt CSHB 108, Version 25-LS0445\C, as the working document. There being no objection, Version C was before the Committee. 3:08:55 PM RICK URION, Director, Division of Corporations, Business, and Professional Licensing, Juneau Office, Department of Commerce, Community, & Economic Development (DCCED), stated that he is in favor of HB 108. During the auditing process, many questions were brought up. He opined that these were answered "satisfactorily." CHAIR OLSON and Representative Neuman pointed out that Version C extends the sunset date to 2013. MR. URION stated that he has "reservations about extending the dates." He explained that from time to time, statutes need minor revisions, which are difficult to address without a sunset review. If this date is extended, it will be more difficult to address the aforementioned issues as they come up. In response to a question from Chair Olson, he explained that the eight year sunset date was recently implemented. Prior to this, all extensions were four years. 3:11:14 PM REPRESENTATIVE GARDNER referring to the [sponsor statement], pointed out that the extension is recommended by the Division of Legislative Audit. MR. URION opined that the extension "makes less work" for the Division. 3:11:32 PM REPRESENTATIVE LEDOUX asked how many times the Board of Marine Pilots ("Board") has been extended. Additionally, she inquired as to how many of these extensions have dealt with other concerns as well as the extension. MR. URION replied that he is not sure how many times the board has been extended. The sunset review has been in effect for 30 years. In response to additional questions, he stated that boards often have unforeseen issues that need to be dealt with. When these issues come up, the legislature is asked to amend the law; however the Board of Marine Pilots has no problems at this time. 3:13:28 PM REPRESENTATIVE NEUMAN asked if the regulatory changes can be brought to the Administrative Regulation Review Committee. MR. URION replied that the changes would be statutory, rather than regulatory. He explained that regulations can not be made without permissive statutory language. MR. URION, in response to a question from Representative Neuman, explained that board members serve limited terms which are "staggered." Additionally, the members serve at the will of the Governor. 3:14:48 PM AL CLOUGH, Deputy Commissioner, Department of Commerce, Community, & Economic Development (DCCED); Chairman, Board of Marine Pilots ("Board"), stated that the Board supports Version C. He explained that the statute which governs the Board "went through an extensive rewrite" around 10 years ago. The majority of changes are regulatory; however there are also statutory issues that require attention. 3:16:02 PM REPRESENTATIVE GATTO commented that this seems pretty "straight- forward." He inquired as to the future of statutory changes. MR. CLOUGH surmised that larger ships or changing traffic patterns may result in statutory changes. The board may not have regulatory authority to deal with the various issues that may come up. In response to additional questions, he explained that homeland security is becoming more of an issue for the Board, and is taken seriously. He does not anticipate that the Board will request a statutory change to deal with the pilots' method of getting on or off ships. However, he is unable to say for sure. The U.S. Coast Guard is considering these issues, and the Board is involved in discussions regarding ship and port security. 3:19:11 PM MR. CLOUGH, in response to a question from Representative Neuman, stated that in regard to the extension, he is speaking on behalf of the Board. The Board has not debated this issue "in any great detail." He stated that his personal opinion "would be the longer, the better," although he understands the intent behind a shorter date. In response to an additional question, he explained that the Board maintains the ability to come before the legislature or the Administration to make requests for legislation. 3:21:42 PM PAT DAVIDSON, Legislative Auditor, Legislative Audit Division, Alaska State Legislature, explained that sunset audits are required by statute and must be made available to the committees considering the extensions. She explained that two years ago, the statute regarding extensions was changed from "a period not to exceed four years" to "a period not to exceed eight years." The four year audits were too expansive, and resulted in "very few statutory change recommendations." The Boards are health, safety, and welfare boards, and would be a "high enough priority for the legislature" to make any necessary changes. In regard to the Board of Marine Pilots, she said, there were operational concerns, such as drug testing. She explained that "administrative tightening" was needed. In addition, investigative backup for the marine pilot coordinator was also needed. The Board uses a peer review as a way to ensure continued competency. Interviews and surveys of marine pilots have shown that this is not viewed as "particularly effective" as a method of showing continued competence. The Division recommends that this be reevaluated. In addition, rate-setting is a concern. Most occupational boards do not deal with this. The Board has an equal number of marine pilots and industry representatives. However, due to the ethics act, marine pilots may recuse themselves, while industry members may not. Thus, the balance is not maintained. This concern resulted in the six year recommendation. In response to a question, she agreed that she is comfortable with the six year recommendation. REPRESENTATIVE GATTO asked if a marine pilot has ever failed a drug test, and if so, inquired as to the penalty. MS. DAVIDSON replied that during the course of the most recent audit, there were no drug test failures. She explained that the Division is concerned with the method used to select individuals for testing, adding that this concern is administrative in nature. While the Coast Guard is "on top" of drug testing, the Board is not "on top" of the testing program. 3:27:51 PM PAUL FUHS, Lobbyist for Southwest Alaska Pilots, explained that the Southwest Pilots bring liquefied natural gas (LNG) tankers into Valdez, and handle cruise ships, as well as a variety of other vessels. Previously, there were "huge battles" between the industry and marine pilots. The state requires that companies retain pilots, which results in "an unusual labor relations situation." The board has two pilots, two industry members, and three public members. He explained that if there is a disagreement regarding tariffs, the pilots and industry members "cancel each other out," and the decision is made by the public members. He then explained this process. He opined that this works well as long as the public members appointed are "truly public members." MR. FUHS encouraged the committee to consider a "longer term" extension, as this provides stability. He added that a shorter term may result in attempts to "sneak" items in while the issue is being considered by the legislature. There is a heightened consideration of terrorism. All of the pilot boards and the majority of the industry are members of the Marine Exchange of Alaska, and vessels are tracked on a continuous basis. This information is reported to the U.S. Coast Guard. In addition, a marine distress signaling system in place. In regard to a question from Chair Olson, he explained that if a marine pilot makes a mistake, he or she can be fired immediately. He pointed out that marine pilots must attend a three or four year training, must keep up with all changes, and are tested on a regular basis. 3:32:31 PM REPRESENTATIVE NEUMAN moved to report CSHB 108, Version 25- LS0445\C out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 108(L&C) was reported from the House Labor and Commerce Standing Committee.