SENATE BILL REPORT

EHB 2641

BYRepresentatives S. Wilson, Haugen, Schmidt, Zellinsky, R. Fisher and Vekich

Declaring a moratorium on further private ferries.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):February 20, 1990

Majority Report:  Do pass as amended.

      Signed by Senators Patterson, Chairman; von Reichbauer, Vice Chairman; Bender, DeJarnatt, McMullen, Madsen, Murray, Patrick.

Senate Staff:Vicki Fabre (786-7313)

                  February 23, 1990

AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 20, 1990

BACKGROUND:

Since 1927, for-hire vessels and ferries operating between fixed termini or over regular routes on Washington waters (rivers, lakes, and Puget Sound) have been regulated by the Utilities and Transportation Commission (UTC) as steamboat companies.  Charter boats are excluded from the regulatory provisions because these vessels do not operate between fixed termini.

The entry standard is Public Convenience & Necessity (PC&N). Unlike motor freight carriers, a steamboat certificate holder normally has exclusive rights to the route granted.  The annual regulatory fee is .4 percent of the gross operating revenues. Steamboat companies are required to publish and file their rates with the commission.

Two types of operation exist:  Private passenger and freight ferries, and launch services.  Launch services provide ship to shore transportation of freight and the ship's crew for large ships anchored in Washington waters.  Regulation of launch services began in 1978 after an administrative law judge ruled that the ship's anchor served as a fixed termini.

Several issues have recently been brought to the attention of the Department of Transportation regarding private and public ferry routes.  The Puget Sound Council of Government's West Corridor Study has identified Kingston to Seattle as a high priority passenger-only ferry route for the corridor.  There is an existing UTC operating certificate for private ferry service from Port Townsend/Kingston/Seattle, although no service is currently being provided.  This private ferry route also crisscrosses the state's Seattle/Winslow route.

Under current law, a private ferry is prohibited from crossing within 10 miles of any Washington State ferry crossing.  The 10-mile rule is somewhat ambiguous as to whether the prohibition applies if the routes are within 10 miles at one end of the run but not the other, or if the private route intersects with a state ferry route.

Because of these issues, the Department of Transportation has asked for an Attorney General's opinion on the relationship between the 10-mile rule and UTC-issued certificates for private ferry service.

SUMMARY:

The Utilities and Transportation Commission is prohibited from issuing operating certificates for private ferries until such time as the Legislative Transportation Committee completes a study.  This moratorium does not affect the issuance of launch service certificates by the UTC.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Effective Date:The bill contains an emergency clause and takes effect immediately.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The study, by the Legislative Transportation Committee, on the issuance of certificates of operation for private ferry services must be completed by September 1, 1991.  A two-year moratorium is placed on the issuance of new operating certificates and certificates which have been granted for private ferry routes but which have not been placed in service.

Senate Committee - Testified: Representative Sim Wilson, prime sponsor; Admiral Parker, WSF; Steve Ross, Marine Engineers and Masters, Mates and Pilots; Jim Boldt, Clipper Navigation; Dave Freiboth, Inland Boatmen's Union