AN ACT Relating to the Washington toll bridge authority; amending RCW 47.01.021, 47.56.030, 47.56.032, 47.56.040, 47.56.042, 47.56.050, 47.56.070, 47.56.080, 47.56.090, 47.56.120, 47.56.250, 47.56.254, and 47.60.326; adding new sections to chapter 47.56 RCW; and creating new sections.

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

NEW SECTION. Sec. 1. All powers, duties, and functions of the department of transportation pertaining to the financial operations of the state ferry and toll bridge system are transferred to the toll bridge authority. All references to the secretary or the department of transportation in the Revised Code of Washington shall be construed to mean the toll bridge authority when referring to the functions transferred in this section.

Sec. 2. Section 2, chapter 151, Laws of 1977 ex. sess. and RCW 47.01.021 are each amended to read as follows:

As used in this title unless the context indicates otherwise:

(1) "Department" means the department of transportation created in RCW 47.01.031;

(2) "Commission" means the transportation commission created in RCW 47.01.051;

(3) "Secretary" means the secretary of transportation as provided for in RCW 47.01.041.

(4) "Authority" means the Washington toll bridge authority created in section 3 of this act.

NEW SECTION. Sec. 3. The Washington toll bridge authority is created to govern the financial operations of the state ferry and toll bridge system. The authority shall consist of the governor, two members of the state transportation commission designated by the commission to serve at its pleasure, and two members appointed by the governor for terms of office as provided in section 4 of this act. The members appointed by the governor shall be known as appointive members. The secretary of transportation shall be an ex officio member of the authority but without a vote.

NEW SECTION. Sec. 4. Within ninety days after the effective date of this act, the governor shall appoint the first appointive members of the authority: One member to serve two years and one member to serve four years from the first day of July 1986. Upon expiration of the original terms subsequent appointments of the appointive members shall be for four years except in the case of vacancy, in which event appointment shall be only for the remainder of the unexpired term in which the vacancy has occurred.

NEW SECTION. Sec. 5. The appointive members and the transportation commission members of the Washington toll bridge authority shall be compensated in accordance with RCW 43.03.250. Each member of the authority shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060 in going to, attending, and returning from meetings of the authority, and his actual and necessary traveling and other expenses incurred in the discharge of such duties as may be requested of him by a majority vote of the authority.

NEW SECTION. Sec. 6. The authority shall adopt such rules as may be deemed wise and lay down policies of procedure and generally supervise and control the operation of the functions vested in it by law. The authority is clothed with all necessary powers to carry out those functions. The authority shall appoint an executive secretary who shall serve at its pleasure and who shall be the chief administrative officer of the authority. The staff of the marine division of the department shall also serve as staff for the authority.

NEW SECTION. Sec. 7. The authority shall act collectively with recorded resolutions or motions adopted by a majority of the authority at regular or special meetings, notice of which meetings shall be given to all members pursuant to the rules of the authority. Three members constitute a quorum at any meeting, but no resolution, motion, or other decision of the authority may be adopted or passed without a favorable vote of at least three members.

Sec. 8. Section 47.56.030, chapter 13, Laws of 1961 as last amended by section 66, chapter 151, Laws of 1977 ex. sess. and RCW 47.56.030 are each amended to read as follows:

The department of transportation shall have full charge of the construction of all toll bridges and other toll facilities including the Washington state ferries that may be authorized by the Washington toll bridge authority, and the operation and maintenance thereof. ((The transportation commission shall determine and establish the tolls and charges thereon, and shall perform all duties and exercise all powers relating to the financing, refinancing, and fiscal management of all toll bridges and other toll facilities including the Washington state ferries, and bonded indebtedness in the manner provided by law.)) The department shall have full charge of design of all toll facilities. The department shall proceed with the construction of such toll bridges and other facilities and the approaches thereto by contract in the manner of state highway construction immediately upon there being made available funds for such work and shall prosecute such work to completion as rapidly as practicable. The department is authorized to negotiate contracts for any amount without bid in order to make repairs to ferries or ferry terminal facilities or removal of such facilities whenever continued use of ferries or ferry terminal facilities constitutes a real or immediate danger to the traveling public or precludes prudent use of such ferries or facilities.

Sec. 9. Section 9, chapter 278, Laws of 1961 as amended by section 247, chapter 7, Laws of 1984 and RCW 47.56.032 are each amended to read as follows:

All powers vested in the toll bridge authority as of September ((21)) 20, 1977, relating to the acquiring, operating, extending, designing, constructing, repairing, and maintenance of the Washington state ferries or any part thereof and the collecting of tolls and charges for use of its facilities, shall be performed by the authority through the department. The ((~~commission~~)) authority shall determine all fares, tolls, and other charges for its facilities and shall directly perform all duties and exercise all powers relating to financing, refinancing, and fiscal management of the system's bonded indebtedness in the manner provided by law.

Sec. 10. Section 47.56.040, chapter 13, Laws of 1961 as amended by section 248, chapter 7, Laws of 1984 and RCW 47.56.040 are each amended to read as follows:

The ((~~department~~)) authority is empowered, in accordance with the provisions of this chapter, to provide for the establishment and construction of toll bridges upon any public highways of this state together with approaches thereto wherever it is considered necessary or advantageous and practicable for crossing any stream, body of water, gulch, navigable water, swamp, or other topographical formation whether that formation is within this state or constitutes a boundary between this state and an adjoining state or country. The necessity or advantage and practicability of any such toll bridge shall be determined by the ((~~department~~)) authority, and the feasibility of financing any toll bridge in the manner provided by this chapter shall be a primary consideration and determined according to the best judgment of the ((~~department~~)) authority. For the purpose of obtaining information for the consideration of the ((~~department~~)) authority upon the construction of any toll bridge or any other matters pertaining thereto, any cognizant officer or employee of the state shall, upon the request of the ((~~department~~)) authority, make reasonable examination, investigation, survey, or reconnaissance for the determination of material facts pertaining thereto and report this to the ((~~department~~)) authority. The cost of any such examination, investigation, survey, or reconnaissance shall be borne by the department or office conducting these activities from the funds provided for that department or office for its usual functions.

Sec. 11. Section 47.56.042, chapter 13, Laws of 1961 as amended by section 249, chapter 7, Laws of 1984 and RCW 47.56.042 are each amended to read as follows:

The ((~~department~~)) authority is authorized to enter into agreements with any county of this state and/or with an adjoining state or county thereof for the purpose of implementing an investigation of the feasibility of any toll bridge project for the bridging of a river forming a portion of the boundary of this state, and the adjoining state. The ((~~department~~)) authority may use funds available to it to carry out the purposes of this section. These agreements may provide that if any such project is determined to be feasible and is adopted, any advancement of funds by any state or county may be reimbursed out of any proceeds derived from the sale of bonds or out of tolls and revenues to be derived from the project.

Sec. 12. Section 47.56.050, chapter 13, Laws of 1961 as last amended by section 250, chapter 7, Laws of 1984 and RCW 47.56.050 are each amended to read as follows:

(1) The ((~~department~~)) authority, whenever it is considered necessary or advantageous and practicable, is empowered to provide for the acquisition by purchase of, and to acquire by purchase (a) any bridge or bridges or ferries which connect with or may be connected with the public highways of this state (b) together with approaches thereto.

(2) In connection with the acquisition by purchase of any bridge or bridges or ferries under subsection (1) of this section, the authority, the department, the state treasurer, any city, county, or other political subdivision of this state, and all of their officers:

(a) Are empowered and required to do all acts and things provided for in this chapter to establish and construct toll bridges and operate, finance, and maintain such bridges insofar as the powers and requirements are applicable to the purchase of any bridge or bridges or ferries and their operation, financing, and maintenance; and

(b) In purchasing, operating, financing, and maintaining any bridge or bridges or ferries acquired or to be acquired by purchase under this section, shall act in the same manner and under the same procedures as are provided in this chapter to establish, construct, operate, finance, and maintain toll bridges insofar as such manner and procedure are applicable to the purchase of any bridge or bridges or ferries and their operation, financing, and maintenance.

(3) Without limiting the generality of the provisions contained in subsections (1) and (2) of this section, the ((~~department~~)) authority is empowered: (a) To cause surveys to be made for the purpose of investigating the propriety of acquiring by purchase any such bridge or bridges or ferries and the right of way necessary or proper for that bridge or bridges or ferries, and other facilities necessary to carry out the provisions of this chapter; (b) to issue, sell, and redeem bonds, and to deposit and pay out the proceeds of the bonds for the financing thereof; (c) to collect, deposit, and expend tolls therefrom; (d) to secure and remit financial and other assistance in the purchase thereof; and (e) to carry insurance thereon.

(4) The provisions of RCW 47.56.220 apply when any bridge or bridges or ferries are acquired by purchase pursuant to this section.

Sec. 13. Section 47.56.070, chapter 13, Laws of 1961 as amended by section 67, chapter 151, Laws of 1977 ex. sess. and RCW 47.56.070 are each amended to read as follows:

The ((~~department of transportation~~)) authority may((~~, with the approval of the transportation commission,~~)) provide for the establishment, construction, and operation of toll tunnels, toll roads, and other facilities necessary for their construction and connection with public highways of the state. It may cause surveys to be made to determine the propriety of their establishment, construction, and operation, and may acquire rights of way and other facilities necessary to carry out the provisions hereof; and may issue, sell, and redeem bonds, and deposit and expend them; secure and remit financial and other assistance in the construction thereof; carry insurance thereon; and handle any other matters pertaining thereto, all of which shall be conducted in the same manner and under the same procedure as provided for the establishing, constructing, operating, and maintaining of toll bridges by the ((~~department~~)) authority, insofar as reasonably consistent and applicable. No toll facility, toll bridge, toll road, or toll tunnel, shall be combined with any other toll facility for the purpose of financing unless such facilities form a continuous project, to the end that each such facility or project be self-liquidating and self-sustaining. No toll road may be constructed, obligations for its construction entered into, or right of way acquired without prior approval of the location, plans, and specifications by the commission.

Sec. 14. Section 47.56.080, chapter 13, Laws of 1961 as amended by section 68, chapter 151, Laws of 1977 ex. sess. and RCW 47.56.080 are each amended to read as follows:

Whenever in the judgment of the transportation commission it is considered in the best interest of the public highways of the state that any new toll bridge or bridges be constructed upon any public highway and across any stream, body of water, gulch, navigable water, swamp, or other topographical formation and operated by the state the commission shall submit its recommendations to that effect to the authority together with the preliminary estimates of the cost of construction and an estimate of the amount necessary to be raised for that purpose by the issuance of revenue bonds, and a statement of the probable amount of money, property, materials, or labor to be contributed from other sources in aid of any such construction. If the authority concurs in the recommendation of the commission or on its own motion determines to construct a toll bridge, the authority shall adopt a resolution declaring that public interest and necessity require the construction of such toll bridge or bridges and authorizing the issuance of revenue bonds for the purpose of obtaining funds in an amount not in excess of that estimated to be required for such construction. The issuance of bonds as provided in this chapter for the construction of more than one toll bridge may at the discretion of the ((~~commission~~)) authority be included in the same authority and issue of bonds.

Sec. 15. Section 47.56.090, chapter 13, Laws of 1961 as amended by section 69, chapter 151, Laws of 1977 ex. sess. and RCW 47.56.090 are each amended to read as follows:

Whenever the authority authorizes and directs the department to construct a toll bridge, the department of transportation is empowered to secure right of way for toll bridges and for approaches thereto by gift or purchase, or by condemnation in the manner provided by law for the taking of private property for public highway purposes.

Sec. 16. Section 47.56.120, chapter 13, Laws of 1961 as amended by section 70, chapter 151, Laws of 1977 ex. sess. and RCW 47.56.120 are each amended to read as follows:

((~~In the event that the transportation commission should~~)) If the authority determines that any toll bridge should be constructed under its authority, it shall authorize and direct the department to construct the toll bridge. If the department is authorized and directed to construct the toll bridge, all cost thereof including right of way, survey, and engineering shall be paid out of any funds available for payment of the cost of such toll bridge under this chapter.

Sec. 17. Section 47.56.250, chapter 13, Laws of 1961 as amended by section 71, chapter 151, Laws of 1977 ex. sess. and RCW 47.56.250 are each amended to read as follows:

Whenever a proposed toll bridge, toll road, toll tunnel, or any other toll facility of any sort is to be constructed, any city, county, or other political subdivision located in relation to such facility so as to benefit directly or indirectly thereby, may, either jointly or separately, at the request of the authority or the transportation commission advance or contribute money, or bonds, rights of way, labor, materials, and other property toward the expense of building the toll facility, and for preliminary surveys and the preparation of plans and estimates of cost therefor and other preliminary expenses. Any such city, county, or other political subdivision may, either jointly or separately, at the request of the authority or the transportation commission advance or contribute money or bonds for the purpose of guaranteeing the payment of interest or principal on the bonds issued by the ((~~commission~~)) authority to finance the toll facility. Appropriations for such purposes may be made from any funds available, including county road funds received from or credited by the state, or funds obtained by excess tax levies made pursuant to law or the issuance of general obligation bonds for this purpose. General obligation bonds issued by a city, county, or political subdivision may with the consent of the authority or the commission be placed with the ((~~department of transportation~~)) authority to be sold by the ((~~department~~)) authority to provide funds for such purpose. Money, or bonds, or property so advanced or contributed may be immediately transferred or delivered to the ((~~department~~)) authority to be used for the purpose for which contribution was made. The ((~~commission~~)) authority may enter into an agreement with a city, county, or other political subdivision to repay any money, or bonds or the value of a right of way, labor, materials, or other property so advanced or contributed. The ((~~commission~~)) authority may make such repayment to a city, county, or other political subdivision and reimburse the state for any expenditures made by it in connection with the toll facility out of tolls and other revenues for the use of the toll facility.

Sec. 18. Section 3, chapter 257, Laws of 1961 as last amended by section 4, chapter 189, Laws of 1979 ex. sess. and RCW 47.56.254 are each amended to read as follows:

If the ((~~secretary of transportation~~)) authority determines that any real property (including lands, improvements thereon, and any interests or estates) originally acquired for toll facility purposes is no longer required for purposes of the ((~~department~~)) authority, the ((~~department~~)) authority shall offer it for sale as authorized by RCW 47.12.063 or 47.12.283. The ((~~department~~)) authority may adopt rules further implementing this section.

Sec. 19. Section 5, chapter 344, Laws of 1981 as amended by section 25, chapter 15, Laws of 1983 and RCW 47.60.326 are each amended to read as follows:

(1) In order to maintain an adequate, fair, and economically sound schedule of charges for the transportation of passengers, vehicles, and commodities on the Washington state ferries, including the Hood Canal bridge, the department of transportation each year shall conduct a full review of such charges.

(2) Prior to February 1st of each odd-numbered year the department shall transmit to the ((~~transportation commission~~)) authority a report of its review together with its recommendations for the revision of a schedule of charges for the ensuing biennium. The ((~~commission~~)) authority on or before July 1st of that year shall adopt as a rule, in the manner provided by the Washington administrative procedure act, a schedule of charges for the Washington state ferries for the ensuing biennium commencing July 1st. The schedule may initially be adopted as an emergency rule if necessary to take effect on, or as near as possible to, July 1st.

(3) The department in making its review and formulating recommendations and the ((~~commission~~)) authority in adopting a schedule of charges may consider any of the following factors:

(a) The amount of subsidy available to the ferry system for maintenance and operation;

(b) The time and distance of ferry runs;

(c) The maintenance and operation costs for ferry runs with a proper adjustment for higher costs of operating outmoded or less efficient equipment;

(d) The efficient distribution of traffic between cross-sound routes;

(e) The desirability of reasonable commutation rates for persons using the ferry system to commute daily to work;

(f) The effect of proposed fares in increasing walk-on and vehicular passenger use;

(g) The effect of proposed fares in promoting all types of ferry use during nonpeak periods;

(h) Such other factors as prudent managers of a major ferry system would consider.

(4) If at any time during the biennium it appears that projected toll revenues from the ferry system, together with the appropriation from the Puget Sound ferry operations account and any other operating subsidy available to the Washington state ferries, will be less than the projected total cost of maintenance and operation of the Washington state ferries for the biennium, the department shall forthwith undertake a review of its schedule of charges to ascertain whether or not the schedule of charges should be revised. The department shall, upon completion of its review report, submit its recommendation to the ((~~transportation commission~~)) authority which may in its sound discretion revise the schedule of charges as required to meet necessary maintenance and operation expenditures of the ferry system for the biennium or may defer action until the regular annual review and revision of ferry charges as provided in subsection (2) of this section.

(5) The provisions of RCW 47.60.330 relating to public participation shall apply to the process of revising ferry tolls under this section.

NEW SECTION. Sec. 20. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of transportation and pertaining to the powers, functions, and duties transferred by section 1 of this act shall be delivered to the custody of the toll bridge authority. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of transportation in carrying out the powers, functions, and duties transferred by section 1 of this act shall be made available to the toll bridge authority. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred by section 1 of this act shall be assigned to the toll bridge authority.

Any appropriations made to the department of transportation for carrying out the powers, functions, and duties transferred by section 1 of this act shall, on the effective date of this act, be transferred and credited to the toll bridge authority.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 21. All classified employees of the department of transportation engaged in performing the powers, functions, and duties transferred by section 1 of this act are transferred to the jurisdiction of the toll bridge authority. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the toll bridge authority to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 22. All rules and all pending business before the department of transportation pertaining to the powers, functions, and duties transferred by section 1 of this act shall be continued and acted upon by the toll bridge authority. All existing contracts and obligations shall remain in full force and shall be performed by the toll bridge authority.

NEW SECTION. Sec. 23. The transfer of the powers, duties, functions, and personnel of the department of transportation shall not affect the validity of any act performed prior to the effective date of this act.

NEW SECTION. Sec. 24. If apportionments of budgeted funds are required because of the transfers directed by sections 20 through 23 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 25. Nothing contained in sections 1 or 20 through 24 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 26. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 27. Sections 3 through 7 of this act shall be added to chapter 47.56 RCW.