SENATE BILL REPORT

                                    HB 2896

         AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 28, 1992

Brief Description:  Authorizing state ferry bonds.

SPONSORS: Representatives Zellinsky, Schmidt, Wilson, R. Meyers, P. Johnson, R. Johnson, Brough, R. Fisher, Wood, Heavey, Mitchell, Pruitt and Sheldon

HOUSE COMMITTEE ON TRANSPORTATION

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass. 

      Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; von Reichbauer, Vice Chairman; Conner, Erwin, W. Hansen, Madsen, McMullen, Oke, Skratek, Snyder, and Vognild.

Staff:  Gene Schlatter (786‑7316)

Hearing Dates: February 20, 1992; February 28, 1992

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:

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 principal 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.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

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

TESTIFIED:  PRO:  Representatives Paul Zellinsky, Karen Schmidt; Gordon Walgren, Bremerton/Kitsap County; Lynn Horton, City of Bremerton; Jerry Reid, Bremerton Area Chamber of Commerce; Randy Ray, Todd Shipyards; Nate Ford, Puget Sound Metal Trades Council; Gordon Baxter, Puget Sound Metal Trades Council; T. K. Bentler, Inland Boatmen's Union