HOUSE BILL REPORT

                  HB 2896

             As Reported By House Committee on:

                       Transportation

Title:  An act relating to state ferry bonds.

Brief Description:  Authorizing state ferry bonds.

Sponsor(s):  Representatives Zellinsky, Schmidt, Wilson, R. Meyers, P. Johnson, R. Johnson, Brough, R. Fisher, Wood, Heavey, Mitchell, Pruitt and Sheldon.

Brief History:

  Reported by House Committee on:

Transportation, February 6, 1992, DP.

HOUSE COMMITTEE ON

TRANSPORTATION

Majority Report: Do pass.  Signed by 27 members:  Representatives R. Fisher, Chair; R. Meyers, Vice Chair; Betrozoff, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Basich; Brough; Cantwell; Cooper; Day; G. Fisher; Forner; Haugen; Heavey; Horn; P. Johnson; R. Johnson; Jones; Kremen; Mitchell; Nelson; Orr; Prentice; Prince; Schmidt; Wilson; Wood; and Zellinsky.

Staff:  Gene Schlatter (786-7316).

Background:  Recent studies have identified the need for the acquisition of up to three Jumbo class ferries in order to meet increased ferry service demand.  The estimated cost for the acquisition of three Jumbo ferries is $210 million.

Summary of Bill:  Upon legislative appropriation authority, the state Finance Committee is authorized to sell up to $210 million in bonds for vessel acquisition.  The proceeds from the sale of bonds shall be deposited in the Puget Sound Capital Construction Account.

The principle and interest shall be paid from the state's share of the motor vehicle and special fuels tax.  The Motor Vehicle Fund will be reimbursed by the Puget Sound Capital Construction Account.

Fiscal Note:  Requested February 7, 1992.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Demand for ferry service has already exceeded the levels forecasted in 1988 for the year 2000 on many routes.  If the vessels were built in the state of Washington, jobs would be created which can help the state's economy.

Testimony Against:  None.

Witnesses:  John Horsley, Kitsap County Commissioner; Betti Sheldon, Bremerton Area Chamber of Commerce; Bob Dilger, Washington State Building & Construction Trades Council; Rick Bender, King County Labor Council; Nate Ford, Puget Sound Metal Trades Council; Gordon Baxter, Puget Sound Metal Trades Council; and Randy Ray, Todd Shipyards.