H-2390.1          _______________________________________________

                            SUBSTITUTE HOUSE BILL 2050

                  _______________________________________________

State of Washington              52nd Legislature             1991 Regular Session

By House Committee on Transportation (originally sponsored by Representatives R. Meyers, Spanel and R. Johnson).

Read first time March 6, 1991.  Revising the state subsidy of county ferries.

     AN ACT Relating to county ferry systems; and amending RCW 47.56.725 and 46.68.100.

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

     Sec. 1.  RCW 47.56.725 and 1984 c 7 s 286 are each amended to read as follows:

     (1) The department is hereby authorized to enter into a continuing agreement with Pierce, Skagit, and Whatcom counties pursuant to which the department shall, from time to time, direct the distribution to each of the counties the amounts authorized in subsection (2) of this section in accordance with RCW 46.68.100.

     (2) The department is authorized to include in each ((such continuing)) agreement a provision for the distribution to each ((such)) county funds to reimburse the county for fifty percent of the deficit incurred during each previous fiscal year in the operation and maintenance of the ferry system owned and operated by the county((, commencing with the fiscal year ending June 30, 1976)).  The total amount to be reimbursed to Pierce, Skagit, and Whatcom counties collectively shall not exceed ((five hundred thousand)) one million dollars in any biennium.  Each county agreement shall contain a requirement that the county shall maintain tolls on its ferries at levels sufficient to produce aggregate annual revenues at least equal to the annual revenue of the county's ferry system in calendar year ((1975)) 1990.

     (3) The annual fiscal year operating and maintenance deficit, if any, shall be determined by Pierce, Skagit, and Whatcom counties subject to review and approval of the department.  The annual fiscal year operating and maintenance deficit is defined as the total of operations and maintenance expenditures less the sum of ferry toll revenues and that portion of fuel tax revenue distributions which are attributable to the county ferry as determined by the department.  Distribution of the amounts authorized by subsection (2) of this section by the state treasurer shall be directed by the department upon the receipt of properly executed vouchers from each county.

(4) The county road administration board may evaluate requests by Pierce, Skagit, Wahkiakum, and Whatcom counties for county ferry capital improvement funds.  The board shall evaluate the requests and, if approved by a majority of the board, submit the requests to the legislature for funding out of the amounts available under RCW 46.68.100(3).  Any county making a request under this subsection shall first seek funding through the public works trust fund, or any other available revenue source, where appropriate.

     Sec. 2.  RCW 46.68.100 and 1986 c 66 s 1 are each amended to read as follows:

     From the net tax amount in the motor vehicle fund there shall be paid monthly as funds accrue the following sums:

     (1) To the cities and towns, to be distributed as provided by RCW 46.68.110, sums equal to six and ninety-two hundredths percent of the net tax amount;

     (2) To the cities and towns, to be expended as provided by RCW 46.68.115, sums equal to four and sixty-one hundredths percent of the net tax amount;

     (3) To the counties, sums equal to twenty-two and seventy-eight hundredths percent of the net tax amount out of which (a) there shall be distributed from time to time, as directed by the department of transportation, those sums as may be necessary to carry out the provisions of RCW 47.56.725, and (b) less any amounts appropriated to the county road administration board to implement the provisions of RCW 47.56.725(4), with the balance of such county share to be distributed monthly as the same accrues for distribution in accordance with RCW 46.68.120;

     (4) To the urban arterial trust account in the motor vehicle fund, sums equal to seven and twelve hundredths percent of the net tax amount;

     (5) To the state, to be expended as provided by RCW 46.68.130, sums equal to forty-five and twenty-six hundredths percent of the net tax amount;

     (6) To the state, to be expended as provided by RCW 46.68.150 as now or hereafter amended, sums equal to six and ninety-five hundredths percent of the net tax amount;

     (7) To the Puget Sound capital construction account in the motor vehicle fund sums equal to three and twenty-one hundredths percent of the net tax amount;

     (8) To the Puget Sound ferry operations account in the motor vehicle fund sums equal to three and fifteen hundredths percent of the net tax amount.

     Nothing in this section or in RCW 46.68.090 or 46.68.130 may be construed so as to violate any terms or conditions contained in any highway construction bond issues now or hereafter authorized by statute and whose payment is by such statute pledged to be paid from any excise taxes on motor and special vehicle fuels.