H-1498.2          _______________________________________________

                                  HOUSE BILL 2050

                  _______________________________________________

State of Washington              52nd Legislature             1991 Regular Session

By Representatives R. Meyers, Spanel and R. Johnson.

Read first time February 20, 1991.  Referred to Committee on Transportation.Revising the state subsidy of county ferries.

     AN ACT Relating to county ferry systems; and amending RCW 47.56.725.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     Sec. 1.  RCW 47.56.725 and 1984 c 7 s 286 are each amended to read as follows:

     (1) The department is hereby authorized to enter into a continuing agreement with Pierce, Skagit, and Whatcom counties pursuant to which the department shall, from time to time, direct the distribution to each of the counties the amounts authorized in subsection (2) of this section in accordance with RCW 46.68.100.

     (2) The department is authorized to include in each ((such continuing)) agreement a provision for the distribution to each ((such)) county funds to reimburse the county for fifty percent of the deficit incurred during each previous fiscal year in the operation and maintenance of the ferry system owned and operated by the county((, commencing with the fiscal year ending June 30, 1976)).  The total amount to be reimbursed to Pierce, Skagit, and Whatcom counties collectively shall not exceed ((five hundred thousand)) one million dollars in any biennium.  Each county agreement shall contain a requirement that the county shall maintain tolls on its ferries at levels sufficient to produce aggregate annual revenues at least equal to the annual revenue of the county's ferry system in calendar year ((1975)) 1990.

     (3) The annual fiscal year operating and maintenance deficit, if any, shall be determined by Pierce, Skagit, and Whatcom counties subject to review and approval of the department.  The annual fiscal year operating and maintenance deficit is defined as the total of operations and maintenance expenditures less the sum of ferry toll revenues and that portion of fuel tax revenue distributions which are attributable to the county ferry as determined by the department.  Distribution of the amounts authorized by subsection (2) of this section by the state treasurer shall be directed by the department upon the receipt of properly executed vouchers from each county.

(4) The county road administration board may evaluate requests by Pierce, Skagit, Wahkiakum, and Whatcom counties for county ferry capital improvement funds.  The board shall evaluate the requests and, if approved by a majority of the board, submit the requests to the legislature for funding out of the amounts available under RCW 46.68.100(3).