"NEW SECTION.  Sec. 8   A new section is added to chapter 47.64 RCW to read as follows:
     (1) Effective July 1, 2013, a captain of a Washington state ferry vessel, also known as the master of the vessel or the commanding officer, is the ultimate authority on and has responsibility for the entire vessel. The captain's responsibilities include, but are not limited to:
     (a) Ensuring the safe navigation of the vessel and its crew and passengers;
     (b) Following all applicable federal, state, and agency policies and regulations;
     (c) Supervising crew in performance, operations, training, security, and environmental protection;
     (d) Overseeing all aspects of vessel operations; and
     (e) Conforming with and ensuring that the vessel also conforms with the performance expectations set forth by the department.
     (2) Effective July 1, 2013, the office of financial management, the marine employees' commission, and the exclusive bargaining representative of the captains shall meet and determine a methodology for separating the captains from other licensed deck officers currently represented by the masters, mates, and pilots bargaining unit. This process must provide for the continuation of both bargaining units by the masters, mates, and pilots bargaining unit as well as a formal recognition by the state that the terms and conditions of the current licensed deck officer collective bargaining agreement must carry forward for both bargaining units and must serve as the bases for future negotiations with these bargaining units. The separation of these bargaining units must be completed by July 1, 2013.
     (3) If a new captains-only bargaining unit is created, the employer and the exclusive bargaining representative for the captains-only bargaining unit must negotiate a collective bargaining agreement exclusive to the captains-only bargaining unit. The collective bargaining agreement for the captains must include a negotiated provision that outlines the objectives and measurable performance expectations for the captains.
     (4) For negotiations covering the 2013-2015 biennium, the employer and the exclusive bargaining representative of the captains-only bargaining unit must negotiate agreements that are consistent with this section.
     (5) A collective bargaining agreement may not contain any provision that extends the term of an existing collective bargaining agreement or applicability of items incompatible with this section in an existing collective bargaining agreement."

"NEW SECTION.  Sec. 10   A new section is added to chapter 47.64 RCW to read as follows:
     (1) Performance targets for the Washington state ferries must be established by an ad hoc committee with members from and designated by the office of the governor, which must include at least one representative from labor, by October 1, 2013. The ad hoc committee shall solicit input from the joint transportation committee. Performance targets must be reviewed and reestablished by an ad hoc committee with members from and designated by the office of the governor every six years.
     (2) The ad hoc committee must consider the following performance measures to set performance targets:
     (a) Safety performance as measured by passenger and employee injuries;
     (b) On-time performance by route, excluding delays that are authorized or are outside of the control of the department;
     (c) Customer satisfaction, which may include customer surveys;
     (d) Fuel consumption; and
     (e) Terminal and vessel operating costs, not including fuel.
     (3) By October 1st of each year, the department shall complete a report to assess whether the performance targets have been met for the prior fiscal year. This performance report must be reviewed by the office of financial management. Biennially, the office of financial management must integrate the performance report into the report prepared by the office of financial management pursuant to RCW 47.04.280 regarding progress towards achieving Washington state's transportation system policy goals.
     (4) If the department does not meet the performance targets, it must develop an action plan to meet the performance targets within a set time frame and submit this plan to the office of financial management within thirty days of the performance report. The action plan must identify the cause and conditions that lead to nonperformance and must include recommendations to improve performance. Recommendations may include remedies that would require additional funds or legislative action. The office of financial management must also provide the action plan to the transportation committees of the legislature."