BP BHEAD INT H [atlas:bill]

AN ACT Relating to terminating state operation of the Washington state ferry system and authorizing local government operation of a ferry system; amending RCW 47.06.050, 36.57A.010, 36.57A.060, 36.57A.090, 81.104.015, 47.56.030, 47.56.032, 47.60.013, 47.60.015, 47.60.040, 47.60.280, 47.60.282, 47.60.290, 47.60.300, 47.60.310, 47.60.326, 47.60.330, 47.60.140, 47.06.140, 47.04.140, 47.60.220, 47.60.230, 47.60.260, 47.60.649, 47.80.030, 47.60.010, 47.60.130, 47.12.023, 47.12.026, 47.56.050, 47.56.253, 47.60.145, 47.60.550, 47.64.005, 47.64.090, and 36.57A.120; adding a new section to chapter 47.64 RCW; creating new sections; repealing RCW 47.60.017, 47.60.020, 47.60.120, 47.60.122, 47.60.283, 47.60.652, 47.60.654, 47.60.680, 47.60.690, 47.60.700, 47.60.710, 47.60.720, 47.60.730, 47.60.740, 47.60.750, 47.60.760, 47.60.770, 47.60.772, 47.60.774, 47.60.776, 47.60.778, 47.60.780, and 47.64.006; and providing for submission of this act to a vote of the people.

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

NEW SECTION. Sec. 1. The legislature intends to authorize local governments to operate ferries on the navigable waters of Washington state. While the state and federal governments will continue to regulate ferry traffic for purposes of assuring the health and safety of riders and the general public, the operation of ferries should be the responsibility of the communities that primarily benefit from the service. To implement this purpose, the legislature is requiring the phase-out of the state operation of ferries on Puget Sound. The phase-out does not require divestment of capital assets. The phase-out will commence with the effective date of this act and be completed no later than July 1, 2006. After that date, the state will no longer operate ferries on Puget Sound. The legislature is further authorizing public transportation benefit areas formed under chapter 36.57A RCW to provide ferry service on the navigable waters of Washington state when it is in the best interests of the citizens served by the public transportation benefit area.

PART I: GOVERNANCE

Sec. 2. RCW 47.06.050 and 1993 c 446 s 5 are each amended to read as follows:

The state-owned facilities component of the state-wide transportation plan shall consist of:

(1) The state highway system plan, which identifies program and financing needs and recommends specific and financially realistic improvements to preserve the structural integrity of the state highway system, ensure acceptable operating conditions, and provide for enhanced access to scenic, recreational, and cultural resources. The state highway system plan shall contain the following elements:

(a) A system preservation element, which shall establish structural preservation objectives for the state highway system including bridges, identify current and future structural deficiencies based upon analysis of current conditions and projected future deterioration, and recommend program funding levels and specific actions necessary to preserve the structural integrity of the state highway system consistent with adopted objectives. This element shall serve as the basis for the preservation component of the six-year highway program and the two-year biennial budget request to the legislature;

(b) A capacity and operational improvement element, which shall establish operational objectives, including safety considerations, for moving people and goods on the state highway system, identify current and future capacity, operational, and safety deficiencies, and recommend program funding levels and specific improvements and strategies necessary to achieve the operational objectives. In developing capacity and operational improvement plans the department shall first assess strategies to enhance the operational efficiency of the existing system before recommending system expansion. Strategies to enhance the operational efficiencies include but are not limited to access management, transportation system management, demand management, and high-occupancy vehicle facilities. The capacity and operational improvement element must conform to the state implementation plan for air quality and be consistent with regional transportation plans adopted under chapter 47.80 RCW, and shall serve as the basis for the capacity and operational improvement portions of the six-year highway program and the two-year biennial budget request to the legislature;

(c) A scenic and recreational highways element, which shall identify and recommend designation of scenic and recreational highways, provide for enhanced access to scenic, recreational, and cultural resources associated with designated routes, and recommend a variety of management strategies to protect, preserve, and enhance these resources. The department, affected counties, cities, and towns, regional transportation planning organizations, and other state or federal agencies shall jointly develop this element;

(d) A paths and trails element, which shall identify the needs of nonmotorized transportation modes on the state transportation systems and provide the basis for the investment of state transportation funds in paths and trails, including funding provided under chapter 47.30 RCW.

(2) The state ferry system plan, which shall guide capital and operating investments in the state ferry system. The plan shall include a schedule for the termination of state operation of the Washington state ferry system no later than July 1, 2006. The plan shall ((~~establish service objectives for state ferry routes,~~)) forecast travel demand for the various markets served in the system((,)) and develop strategies for ferry system investment that consider regional and state-wide vehicle and passenger needs((~~, support local land use plans, and assure that ferry services are fully integrated with other transportation services~~)). The plan shall ((~~assess the role of private ferries operating under the authority of the utilities and transportation commission and shall~~)) coordinate ferry system capital and operational plans consistent with ((~~these private operations~~)) use of ferry system assets and operation of selected ferry routes by public transportation benefit areas. The ferry system plan must ((~~be consistent with the regional transportation plans for areas served by the state ferry system, and shall be developed in conjunction with the ferry advisory committees~~)) provide for public comment and involvement prior to adoption of the final plan.

Sec. 3. RCW 36.57A.010 and 1983 c 65 s 1 are each amended to read as follows:

The definitions set forth in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Public transportation benefit area" means a municipal corporation of the state of Washington created pursuant to this chapter.

(2) "Public transportation benefit area authority" or "authority" means the legislative body of a public transportation benefit area.

(3) "City" means an incorporated city or town.

(4) "Component city" means an incorporated city or town within a public transportation benefit area.

(5) "City council" means the legislative body of any city or town.

(6) "County legislative authority" means the board of county commissioners or the county council.

(7) "Population" means the number of residents as shown by the figures released for the most recent official state, federal, or county census, or population determination made by the office of financial management.

(8) "Public transportation service" means the transportation of packages, passengers, and their incidental baggage by means other than by chartered bus, sight-seeing bus, together with the necessary passenger terminals and parking facilities or other properties necessary for passenger and vehicular access to and from such people moving systems: PROVIDED, That nothing shall prohibit an authority from leasing its buses to private certified carriers or prohibit the authority from providing school bus service.

"Public transportation service" also means the transportation of packages, vehicles, and passengers and their incidental baggage by a system of ferries.

(9) "Public transportation improvement conference" or "conference" means the body established pursuant to RCW 36.57A.020 which shall be authorized to establish, subject to the provisions of RCW 36.57A.030, a public transportation benefit area pursuant to the provisions of this chapter.

Sec. 4. RCW 36.57A.060 and 1975 1st ex.s. c 270 s 16 are each amended to read as follows:

The public transportation benefit area authority authorized pursuant to RCW 36.57A.050 shall develop a comprehensive transit plan for the area. Such plan shall include, but not be limited to the following elements:

(1) The levels of transit service and ferry service that can be reasonably provided for various portions of the benefit area.

(2) The funding requirements, including local tax sources, state and federal funds, necessary to provide various levels of service within the area.

(3) The impact of such a transportation program on other transit systems operating within that county or adjacent counties.

(4) The future enlargement of the benefit area or the consolidation of such benefit area with other transit systems.

Sec. 5. RCW 36.57A.090 and 1981 c 25 s 4 are each amended to read as follows:

A public transportation benefit area authority shall have the following powers in addition to the general powers granted by this chapter:

(1) To prepare, adopt, and carry out a general comprehensive plan for public transportation service which will best serve the residents of the public transportation benefit area and to amend said plan from time to time to meet changed conditions and requirements.

(2) To acquire by purchase, condemnation, gift, or grant and to lease, construct, add to, improve, replace, repair, maintain, operate, and regulate the use of transportation facilities and properties within or without the public transportation benefit area or the state, including systems of surface, underground, or overhead railways, tramways, buses, or any other means of local transportation except taxis, and including escalators, moving sidewalks, or other people-moving systems, passenger terminal and parking facilities and properties, and such other facilities and properties as may be necessary for passenger and vehicular access to and from such people-moving systems, terminal and parking facilities and properties, together with all lands, rights of way, property, equipment, and accessories necessary for such systems and facilities. Public transportation facilities and properties which are owned by any city may be acquired or used by the public transportation benefit area authority only with the consent of the city council of the city owning such facilities. Cities are hereby authorized to convey or lease such facilities to a public transportation benefit area authority or to contract for their joint use on such terms as may be fixed by agreement between the city council of such city and the public transportation benefit area authority, without submitting the matter to the voters of such city.

The facilities and properties of a public transportation benefit area system whose vehicles will operate primarily within the rights of way of public streets, roads, or highways, may be acquired, developed, and operated without the corridor and design hearings which are required by RCW 35.58.273, as now or hereafter amended, for mass transit facilities operating on a separate right of way.

(3) To fix rates, tolls, fares, and charges for the use of such facilities and to establish various routes and classes of service. Fares or charges may be adjusted or eliminated for any distinguishable class of users including, but not limited to, senior citizens, handicapped persons, and students.

In the event any person holding a certificate of public convenience and necessity from the Washington utilities and transportation commission under RCW 81.68.040 has operated under such certificate for a continuous period of one year prior to the date of certification and is offering service within the public transportation benefit area on the date of the certification by the county canvassing board that a majority of votes cast authorize a tax to be levied and collected by the public transportation benefit area authority, such authority may by purchase or condemnation acquire at the fair market value, from the person holding the existing certificate for providing the services, that portion of the operating authority and equipment representing the services within the area of public operation. The person holding such existing certificate may require the public transportation benefit area authority to initiate such purchase of those assets of such person, existing as of the date of the county canvassing board certification, within sixty days after the date of such certification.

(4) To authorize acquisition by lease, charter, contract, purchase, condemnation, or construction, and partly by any or all of such means, and to thereafter operate, improve, and extend, a system of ferries at any unfordable stream, lake, estuary, or bay, and connecting with the public streets and highways within the boundaries of the public transportation benefit area. The system of ferries shall include any boats, vessels, wharves, docks, approaches, landings, franchises, licenses, and appurtenances as determined by the public transportation benefit area to be necessary or desirable for efficient operation of a ferry run or runs and best serve the public. The public transportation benefit area may in like manner acquire by purchase, condemnation, or construction and include in the ferry system any toll bridges, approaches, and connecting roadways as may be deemed by the public transportation benefit area advantageous in channeling traffic to points served by the ferry system. In addition to the powers of acquisition granted by this section, the public transportation benefit area is empowered to enter into any contracts, agreements, or leases with any person, firm, or corporation and to provide terms and conditions as it shall determine, for the operation of any ferry or ferries or system, whether acquired by the public transportation benefit area or not.

Sec. 6. RCW 81.104.015 and 1999 c 202 s 9 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "High-capacity transportation system" means a system of public transportation services within an urbanized region operating principally on exclusive rights of way, and the supporting services and facilities necessary to implement such a system, including interim express services, ferries, and high occupancy vehicle lanes, which taken as a whole, provides a substantially higher level of passenger capacity, speed, and service frequency than traditional public transportation systems operating principally in general purpose roadways.

(2) "Rail fixed guideway system" means a light, heavy, or rapid rail system, monorail, inclined plane, funicular, trolley, or other fixed rail guideway component of a high-capacity transportation system that is not regulated by the Federal Railroad Administration, or its successor. "Rail fixed guideway system" does not mean elevators, moving sidewalks or stairs, and vehicles suspended from aerial cables, unless they are an integral component of a station served by a rail fixed guideway system.

(3) "Regional transit system" means a high-capacity transportation system under the jurisdiction of one or more transit agencies except where a regional transit authority created under chapter 81.112 RCW exists, in which case "regional transit system" means the high-capacity transportation system under the jurisdiction of a regional transit authority.

(4) "Transit agency" means city-owned transit systems, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas.

Sec. 7. RCW 47.56.030 and 1995 1st sp.s. c 4 s 1 are each amended to read as follows:

(1) Except as provided in subsection (3) of this section:

(a) The department of transportation shall have full charge of the construction of all toll bridges and other toll facilities including the Washington state ferries, and the operation and maintenance thereof.

(b) The transportation commission shall determine and establish the tolls and charges thereon, and shall perform all duties and exercise all powers relating to the financing, refinancing, and fiscal management of all toll bridges and other toll facilities including the Washington state ferries, and bonded indebtedness in the manner provided by law.

(c) The department shall have full charge of design of all toll facilities. The department shall proceed with the construction of such toll bridges and other facilities and the approaches thereto by contract in the manner of state highway construction immediately upon there being made available funds for such work and shall prosecute such work to completion as rapidly as practicable.

(d) The department is authorized to negotiate contracts for any amount without bid in order to make repairs to ferries or ferry terminal facilities or removal of such facilities whenever continued use of ferries or ferry terminal facilities constitutes a real or immediate danger to the traveling public or precludes prudent use of such ferries or facilities.

(2) Except as provided in subsection (3) of this section, the department shall proceed with the procurement of materials, supplies, services, and equipment needed for the support, maintenance, and use of a ferry, ferry terminal, or other facility operated by Washington state ferries, in accordance with chapter 43.19 RCW except as follows:

((~~(1)~~)) (a) When the secretary of the department of transportation determines in writing that the use of invitation for bid is either not practicable or not advantageous to the state and it may be necessary to make competitive evaluations, including technical or performance evaluations among acceptable proposals to complete the contract award, a contract may be entered into by use of a competitive sealed proposals method, and a formal request for proposals solicitation. Such formal request for proposals solicitation shall include a functional description of the needs and requirements of the state and the significant factors.

((~~(2)~~)) (b) When purchases are made through a formal request for proposals solicitation the contract shall be awarded to the responsible proposer whose competitive sealed proposal is determined in writing to be the most advantageous to the state taking into consideration price and other evaluation factors set forth in the request for proposals. No significant factors may be used in evaluating a proposal that are not specified in the request for proposals. Factors that may be considered in evaluating proposals include but are not limited to: Price maintainability; reliability; commonality; performance levels; life cycle cost if applicable under this section; cost of transportation or delivery; delivery schedule offered; installation cost; cost of spare parts; availability of parts and service offered; and the following:

((~~(a)~~)) (i) The ability, capacity, and skill of the proposer to perform the contract or provide the service required;

((~~(b)~~)) (ii) The character, integrity, reputation, judgment, experience, and efficiency of the proposer;

((~~(c)~~)) (iii) Whether the proposer can perform the contract within the time specified;

((~~(d)~~)) (iv) The quality of performance of previous contracts or services;

((~~(e)~~)) (v) The previous and existing compliance by the proposer with laws relating to the contract or services;

((~~(f)~~)) (vi) Objective, measurable criteria defined in the request for proposal. These criteria may include but are not limited to items such as discounts, delivery costs, maintenance services costs, installation costs, and transportation costs; and

((~~(g)~~)) (vii) Such other information as may be secured having a bearing on the decision to award the contract.

When purchases are made through a request for proposal process, proposals received shall be evaluated based on the evaluation factors set forth in the request for proposal. When a life cycle cost analysis is used, the life cycle cost of a proposal shall be given at least the same relative importance as the initial price element specified in the request of proposal documents. The department may reject any and all proposals received. If the proposals are not rejected, the award shall be made to the proposer whose proposal is most advantageous to the department, considering price and the other evaluation factors set forth in the request for proposal.

(3) ((The legislative transportation committee shall review the secretary's use of the request for proposals solicitation for Washington state ferries projects to determine if the process established under chapter 4, Laws of 1995 1st sp. sess. is appropriate. The results of the review, including recommendations for modification of the request for proposal process, shall be reported to the house of representatives and senate transportation committees by January 1, 1997)) All powers vested in the department or commission over the operation of ferries shall terminate on a route-by-route basis as authority to operate ferries on existing and new routes is transferred to public transportation benefit areas under chapter . . ., Laws of 2000 (this act).

Sec. 8. RCW 47.56.032 and 1984 c 7 s 247 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, all powers vested in the toll bridge authority as of September 21, 1977, relating to the acquiring, operating, extending, designing, constructing, repairing, and maintenance of the Washington state ferries or any part thereof and the collecting of tolls and charges for use of its facilities, shall be performed by the department. Except as provided in subsection (2) of this section, the commission shall determine all fares, tolls, and other charges for its facilities and shall directly perform all duties and exercise all powers relating to financing, refinancing, and fiscal management of the system's bonded indebtedness in the manner provided by law.

(2) All powers vested in the department or commission over the operation of ferries shall terminate on a route-by-route basis as authority to operate ferries on existing and new routes is transferred to public transportation benefit areas under chapter . . ., Laws of 2000 (this act).

Sec. 9. RCW 47.60.013 and 1981 c 341 s 1 are each amended to read as follows:

((The governor is authorized to take such actions as may be necessary to insure the continued operation of the Puget Sound ferry and toll bridge system under any emergency circumstances which threaten the continued operation of the system. In the event of such an emergency, the governor may assume all the powers granted by law to the transportation commission and department of transportation with respect to the ferry system. In addition,)) Notwithstanding the provisions of chapters 47.60 and 47.64 RCW, the governor may contract with any qualified persons for the operation of ((~~the Washington state ferry system, or any part thereof, or for~~)) ferry service to be provided by privately owned vessels or vessels owned or leased by public transportation benefit areas. Administrative costs to the office of the governor incurred in the exercise of this authority shall be reimbursed by the department.

Sec. 10. RCW 47.60.015 and 1984 c 7 s 297 are each amended to read as follows:

Until July 1, 2006, the department is authorized to operate its ferry system under the name: "Washington State Ferries."

Sec. 11. RCW 47.60.040 and 1984 c 7 s 300 are each amended to read as follows:

For the purpose of obtaining information for the consideration of the department upon the ((~~acquisition of any ferries or ferry facilities or the~~)) construction of any toll bridge under this chapter, the department shall make any examination, investigation, survey, or reconnaissance for the determination of material facts pertaining thereto.

The cost of any such examination, investigation, survey, or reconnaissance, and all preliminary expenses leading up to and resulting in the issuance of any revenue bonds including, but not being limited to expenses in making surveys and appraisals and the drafting, printing, issuance, and sale of bonds under this chapter shall be borne by the department out of the motor vehicle fund. All such costs and expenses as well as any thereof heretofore incurred shall be reimbursed to the motor vehicle fund out of any proceeds derived from the sale of bonds or out of tolls and revenues to be derived by the department through its operations hereunder.

Sec. 12. RCW 47.60.280 and 1984 c 7 s 322 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, the department is authorized and directed to establish and operate a ferry service from a suitable point on Lummi Island in Whatcom county to a suitable point on Orcas Island in San Juan county by the most feasible route if and when Whatcom county constructs a bridge from Gooseberry Point on the mainland to Lummi Island. The actual operation of the ferry service shall not begin until Whatcom county has completed the construction of such bridge.

(2) The department's authority to provide the ferry service authorized under this section shall terminate upon the transfer of the route as authorized under chapter . . ., Laws of 2000 (this act) or in any case no later than July 1, 2006.

Sec. 13. RCW 47.60.282 and 1984 c 7 s 323 are each amended to read as follows:

(1) Subject to the limitations of subsection (2) of this section, the department is authorized to operate a ferry service between Port Townsend and Keystone on Admiralty Inlet if the certificate of convenience and necessity for the ferry operation is theretofore surrendered, rights thereunder are abandoned, and the ferry service is discontinued. In no event may the department undertake such a ferry service preceding events as set forth herein or before April 1, 1973.

Sec. 14. RCW 47.60.290 and 1983 c 3 s 136 are each amended to read as follows:

Subject to the provisions of RCW 47.60.326, the department is hereby authorized and directed to review tariffs and charges as applicable to the operation of the Washington state ferries for the purpose of:

(1) Establishing a more fair and equitable tariff to be charged passengers, vehicles, and commodities on the routes of the Washington state ferries; and

(2) Facilitating the transfer of the operation of all or part of the state ferry system to public transportation benefit areas as directed by chapter . . ., Laws of 2000 (this act).

Sec. 15. RCW 47.60.300 and 1984 c 7 s 325 are each amended to read as follows:

The review required under RCW 47.60.290 shall:

(1) Include, but not be limited to, tariffs for automobiles, passengers, trucks, commutation rates, and volume discounts((~~. The review shall~~));

(2) Give proper consideration to time of travel, distance of travel, operating costs, maintenance and repair expenses, and the resultant effect any change in tariff might have on the debt service requirements of the department as specifically provided in existing financing programs((~~. The review shall also~~));

(3) Plan for and facilitate the transfer of the operation of the ferry system consistent with the provisions of chapter . . ., Laws of 2000 (this act);

(4) Include the allocation of vessels to particular runs, the scheduling of particular runs, the adequacy and arrangements of docks and dock facilities, and any other subject deemed by the department to be properly within the scope of the review. The department is further authorized and directed to make a like review ((~~within every three-year period~~)) by July 1, 2004.

Sec. 16. RCW 47.60.310 and 1988 c 100 s 1 are each amended to read as follows:

(1) The department is further directed to conduct such review by soliciting and obtaining expressions from local community groups in order to be properly informed as to problems being experienced within the area served by the Washington state ferries. In order that local representation may be established, the department shall give prior notice of the review to the ferry advisory committees.

(2) The legislative authorities of San Juan, Skagit, Clallam, and Jefferson counties shall each appoint a committee to consist of five members to serve as an advisory committee to the department or its designated representative in such review. The legislative authorities of other counties that contain ferry terminals shall appoint ferry advisory committees consisting of three members for each terminal area in each county, except for Vashon Island, which shall have one committee, and its members shall be appointed by the Vashon/Maury Island community council. At least one person appointed to each ferry advisory committee shall be representative of an established ferry user group or of frequent users of the ferry system. Each member shall reside in the vicinity of the terminal that the advisory committee represents.

(3) The members of the San Juan, Clallam, and Jefferson county ferry advisory committees shall be appointed for four-year terms. The initial terms shall commence on July 1, 1982, and end on June 30, 1986. Any vacancy shall be filled for the remainder of the unexpired term by the appointing authority. At least one person appointed to the advisory committee shall be representative of an established ferry-user group or of frequent users of the ferry system, at least one shall be representative of persons or firms using or depending upon the ferry system for commerce, and one member shall be representative of a local government planning body or its staff. Every member shall be a resident of the county upon whose advisory committee he or she sits, and not more than three members shall at the time of their appointment be members of the same major political party.

(4) The members of each terminal area committee shall be appointed for four-year terms. The initial terms of the members of each terminal area committee shall be staggered as follows: All terms shall commence September 1, 1988, with one member's term expiring August 31, 1990, one member's term expiring August 31, 1991, and the remaining member's term expiring August 31, 1992. Any vacancy shall be filled for the remainder of the unexpired term by the appointing authority. Not more than two members of any terminal-area committee may be from the same political party at the time of their appointment, and in a county having more than one committee, the overall party representation shall be as nearly equal as possible.

(5) The chairmen of the several committees constitute an executive committee of the Washington state ferry users. The executive committee shall meet twice each year with representatives of the marine division of the department to review ferry system issues.

(6) The committees to be appointed by the county legislative authorities shall serve without fee or compensation.

(7) The advisory committee requirements of this section only apply with respect to ferry terminals which are operated solely by the department. When the department transfers operation under chapter . . ., Laws of 2000 (this act) of the terminal that an advisory committee represents, that advisory committee shall no longer be authorized under this section.

Sec. 17. RCW 47.60.326 and 1999 c 94 s 27 are each amended to read as follows:

(1) In order to maintain an adequate, fair, and economically sound schedule of charges for the transportation of passengers, vehicles, and commodities on the Washington state ferries operated by the state, and to facilitate the transfer of ferry operations to public transportation benefit areas, the department of transportation each year shall conduct a full review of such charges.

(2)(a) Prior to February 1st of each odd-numbered year through July 1, 2006, the department shall transmit to the transportation commission a report of its review together with its recommendations for the revision of a schedule of charges for ferry runs operated by the state for the ensuing biennium.

(i) The department's recommendation for revision of the schedule of charges must meet the following funding goals: (A) By July 1, 2002, revenue from fares must be sufficient to pay at least seventy percent of the cost of operating the ferry system; (B) by July 1, 2004, revenue from fares must be sufficient to pay at least eighty percent of the cost of operating the ferry system; (C) by July 1, 2006, revenue from fares must be sufficient to pay at least one hundred percent of the cost of operating the ferry system. As used in this section, "cost of operating" does not include capital costs.

(ii) Any changes to the schedule of charges must facilitate the transfer of ferry operations to public transportation benefit areas under chapter . . ., Laws of 2000 (this act).

(b) The commission on or before July 1st of that year shall adopt as a rule, in the manner provided by the Washington administrative procedure act, a schedule of charges for the Washington state ferries for the ensuing biennium commencing July 1st. The schedule may initially be adopted as an emergency rule if necessary to take effect on, or as near as possible to, July 1st.

(3) The department in making its review and formulating recommendations and the commission in adopting a schedule of charges may consider any of the following factors:

(a) The amount of subsidy available to the ferry system for maintenance and operation;

(b) The time and distance of ferry runs;

(c) The maintenance and operation costs for ferry runs with a proper adjustment for higher costs of operating outmoded or less efficient equipment;

(d) The efficient distribution of traffic between cross-sound routes;

(e) ((~~The desirability of reasonable commutation rates for persons using the ferry system to commute daily to work;~~

~~(f) The effect of proposed fares in increasing walk-on and vehicular passenger use;~~

~~(g) The effect of proposed fares in promoting all types of ferry use during nonpeak periods;~~

~~(h) Such~~)) Any other factors as prudent managers of a major ferry system would consider.

(4) If at any time during the biennium it appears that projected revenues from the Puget Sound ferry operations account and any other operating subsidy available to the Washington state ferries will be less than the projected total cost of maintenance and operation of the Washington state ferries for the biennium, the department shall forthwith undertake a review of its schedule of charges to ascertain whether or not the schedule of charges should be revised. The department shall, upon completion of its review report, submit its recommendation to the transportation commission which may in its sound discretion revise the schedule of charges as required to meet necessary maintenance and operation expenditures of the ferry system for the biennium or may defer action until the regular annual review and revision of ferry charges as provided in subsection (2) of this section.

(5) The provisions of RCW 47.60.330 relating to public participation shall apply to the process of revising ferry tolls under this section.

(6) The commission is authorized to increase Washington state ferry tariffs in excess of the fiscal growth factor established under chapter 43.135 RCW.

Sec. 18. RCW 47.60.330 and 1983 c 15 s 26 are each amended to read as follows:

(1) Before a substantial expansion or curtailment in the level of service provided to ferry users, or a revision in the schedule of ferry tolls or charges, the department of transportation shall consult with affected ferry users. The consultation shall be: (a) By public hearing in affected local communities; (b) by review with the affected ferry advisory committees pursuant to RCW 47.60.310; (c) by conducting a survey of affected ferry users; or (d) by any combination of (a) through (c) of this subsection.

(2) There is created a ferry system productivity council consisting of a representative of each ferry advisory committee empanelled under RCW 47.60.310, elected by the members thereof, and two representatives of employees of the ferry system appointed by mutual agreement of all of the unions representing ferry employees, which shall meet from time to time with ferry system management to discuss means of improving ferry system productivity.

(3) Before increasing ferry tolls the department of transportation shall consider all possible cost reductions with full public participation as provided in subsection (1) of this section and, consistent with public policy, shall consider adapting service levels equitably on a route-by-route basis to reflect trends in and forecasts of traffic usage. Forecasts of traffic levels shall be developed by the bond covenant traffic engineering firm appointed under the provisions of RCW 47.60.450. Provisions of this section shall not alter obligations under RCW 47.60.450. Before including any toll increase in a budget proposal by the commission, the department of transportation shall consult with affected ferry users in the manner prescribed in subsection (1)(b) of this section plus the procedure of either subsection (1)(a) or (c) of this section.

(4) The public participation requirements of this section do not apply to the transfer of ferry runs or assets to public transportation benefit authorities, nor to the subsequent operation of ferry traffic by a successor entity.

Sec. 19. RCW 47.60.140 and 1995 1st sp.s. c 4 s 2 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, the department is empowered to operate such ferry system, including all operations, whether intrastate or international, upon any route or routes, and toll bridges as a revenue-producing and self-liquidating undertaking. The department has full charge of the ((~~construction,~~)) rehabilitation, rebuilding, ((~~enlarging, improving,~~)) operation, and maintenance of the ferry system, including toll bridges, approaches, and roadways incidental thereto that may be authorized by the department, including the collection of tolls and other charges for the services and facilities of the undertaking. The department ((~~has the exclusive right to~~)) may enter into leases and contracts for use and occupancy by other parties of the concessions and space located on the ferries, wharves, docks, approaches, and landings((~~, but, except as provided in subsection (2) of this section, no such~~)) that it owns. All leases or contracts ((~~may be entered into for more than ten years, nor without~~)) must expire no later than July 1, 2006, and must be negotiated using a competitive contract process, except as otherwise provided in this section. The competitive process shall be either an invitation for bids in accordance with the process established by chapter 43.19 RCW, or a request for proposals in accordance with the process established by RCW 47.56.030.

(2) ((As part of a joint development agreement under which a public or private developer constructs or installs improvements on ferry system property, the department may lease all or part of such property and improvements to such developers for that period of time, not to exceed fifty-five years, or not to exceed thirty years for those areas located within harbor areas, which the department determines is necessary to allow the developer to make reasonable recovery on its initial investment. Any lease entered into as provided for in this subsection that involves state aquatic lands shall conform with the Washington state Constitution and applicable statutory requirements as determined by the department of natural resources. That portion of the lease rate attributable to the state aquatic lands shall be distributed in the same manner as other lease revenues derived from state aquatic lands as provided in RCW 79.24.580)) All powers vested in the department or commission over the operation of ferries shall terminate on a route-by-route basis as the operation of ferries on existing and new routes is transferred under chapter . . ., Laws of 2000 (this act).

Sec. 20. RCW 47.06.140 and 1998 c 171 s 7 are each amended to read as follows:

The legislature declares the following transportation facilities and services to be of state-wide significance: The interstate highway system, interregional state principal arterials ((~~including ferry connections~~)) that serve state-wide travel, intercity passenger rail services, intercity high-speed ground transportation, major passenger intermodal terminals excluding all airport facilities and services, the freight railroad system, the Columbia/Snake navigable river system, marine port facilities and services that are related solely to marine activities affecting international and interstate trade, and high-capacity transportation systems serving regions as defined in RCW 81.104.015. The department, in cooperation with regional transportation planning organizations, counties, cities, transit agencies, public ports, private railroad operators, and private transportation providers, as appropriate, shall plan for improvements to transportation facilities and services of state-wide significance in the state-wide multimodal plan. Improvements to facilities and services of state-wide significance identified in the state-wide multimodal plan are essential state public facilities under RCW 36.70A.200.

The department of transportation, in consultation with local governments, shall set level of service standards for state highways ((~~and state ferry routes~~)) of state-wide significance. Although the department shall consult with local governments when setting level of service standards, the department retains authority to make final decisions regarding level of service standards for state highways ((~~and state ferry routes~~)) of state-wide significance. In establishing level of service standards for state highways ((~~and state ferry routes~~)) of state-wide significance, the department shall consider the necessary balance between providing for the free interjurisdictional movement of people and goods and the needs of local communities using these facilities.

Sec. 21. RCW 47.04.140 and 1989 c 62 s 1 are each amended to read as follows:

Whenever a county that operates or proposes to operate ferries obtains federal aid for the construction, reconstruction, or modification of any ferry boat or approaches thereto under Title 23, United States Code, the following provisions apply to the county's operation of its ferries:

(1) The county shall obtain from the ((~~department~~)) utilities and transportation commission a franchise authorizing the ferry operations. The county's application for a franchise or amended franchise shall designate all ferry routes it proposes to operate. The ((~~department~~)) commission shall issue the franchise or amended franchise for the operation of each route that it finds is not otherwise served by adequate transportation facilities. A county may terminate any ferry route without approval of the ((~~department~~)) commission.

(2) At least ninety days before applying for federal aid for the construction, reconstruction, or modification of any of its ferries or approaches thereto, and thereafter whenever new tolls or charges are proposed for use of its ferries, the county shall file with the ((~~department~~)) commission, the current or proposed schedule of tolls and charges for use of its ferries. Such tolls and charges shall be deemed approved by the ((~~department~~)) commission unless it finds that the aggregate revenues to be derived from the county's ferry operations will exceed the amount required to pay the actual and necessary costs of operation, maintenance, administration, and repair of the county's ferries and their appurtenances.

Sec. 22. RCW 47.60.220 and 1984 c 7 s 316 are each amended to read as follows:

Through July 1, 2006, the department has all the obligations, duties, and rights of a common carrier of persons and property in its operation of ferries, terminals, or other facilities used in its ferry operations, including the right to participate in joint rates and through routes, agreements, and divisions of through and joint rates with railroads and other common carriers and the right to make any filings with the interstate commerce commission, the United States maritime commission, or any other state or federal regulatory or governmental body and to comply with the lawful rules and regulations or requirements of any such body, and is subject to laws relating to carrier's liability for loss or damage to property transported, and for personal injury or death of persons transported.

Sec. 23. RCW 47.60.230 and 1984 c 7 s 317 are each amended to read as follows:

In case of property loss or damage or personal injuries or death resulting from the operation of any ferry or terminal by the department, any person or the personal representative of any person, subject to and to the extent hereinafter provided, has a right of action against the department for the damage, loss, injury, or death. This section does not authorize an action against a private or public successor entity that purchases, leases, or otherwise operates vessels or equipment formerly owned or operated by the department or operates a ferry run formerly operated by the department.

Sec. 24. RCW 47.60.260 and 1984 c 7 s 320 are each amended to read as follows:

The department may upon such terms and conditions as it may impose and under such rules as it may adopt, pay claims arising under its operation of ferries or terminals or compromise or settle the claims. No claim may be paid by the department or any settlement or compromise of it be made except from the operating revenues of the department derived from its operation of ferries or terminals or from the proceeds of insurance recoveries. The department is not authorized to pay claims arising from an action against a private or public successor entity that purchases, leases, or otherwise operates vessels or equipment formerly owned or operated by the department or operates a ferry run formerly operated by the department.

Sec. 25. RCW 47.60.649 and 1998 c 166 s 1 are each amended to read as follows:

The legislature finds and declares that ((~~there is a compelling need for the construction of additional state ferry~~)) passenger-only vessels and corresponding terminal improvements ((in order to provide more capacity and frequent service to meet the forecasted travel demands of citizens traveling on Puget Sound ferry routes. The vessel technology required must provide additional travel options for high growth ferry routes through increased passenger-only ferry service.

The 1989 west corridor study evaluated cross-sound travel through the year 2020 and identified the Southworth to Seattle and the Kingston to Seattle passenger-only ferry routes as promising based on criteria evaluating cost-effectiveness, time savings, physical constraints to operation, nonduplication of current service, and ability to relieve congestion.

Furthermore, as a result of legislative direction provided in the 1991-93 transportation budget to the state transportation commission to evaluate and determine the location of new passenger-only ferry routes, the commission reviewed several service alternatives, determined that the Southworth to Seattle and Kingston to Seattle routes ranked highest, and directed the Washington state ferries to proceed with the design and permitting processes for passenger-only terminals at both Southworth and Kingston)) should only be provided if a private entity, local government, or public/private partnership between a private entity and a local government determines that it can provide service without state funding. Beginning on the effective date of this act, the department shall no longer provide passenger-only ferry service. The department shall cooperate with and facilitate the sale or lease of department assets and the transfer of ferry runs previously used to provide passenger-only service.

Sec. 26. RCW 47.80.030 and 1998 c 171 s 9 are each amended to read as follows:

(1) Each regional transportation planning organization shall develop in cooperation with the department of transportation, providers of public transportation and high capacity transportation, ports, and local governments within the region, adopt, and periodically update a regional transportation plan that:

(a) Is based on a least cost planning methodology that identifies the most cost-effective facilities, services, and programs;

(b) Identifies existing or planned transportation facilities, services, and programs, including but not limited to major roadways including state highways and regional arterials, transit and nonmotorized services and facilities, multimodal and intermodal facilities, marine ports and airports, railroads, and noncapital programs including transportation demand management that should function as an integrated regional transportation system, giving emphasis to those facilities, services, and programs that exhibit one or more of the following characteristics:

(i) Crosses member county lines;

(ii) Is or will be used by a significant number of people who live or work outside the county in which the facility, service, or project is located;

(iii) Significant impacts are expected to be felt in more than one county;

(iv) Potentially adverse impacts of the facility, service, program, or project can be better avoided or mitigated through adherence to regional policies;

(v) Transportation needs addressed by a project have been identified by the regional transportation planning process and the remedy is deemed to have regional significance; and

(vi) Provides for system continuity;

(c) Establishes level of service standards for state highways ((~~and state ferry routes~~)), with the exception of transportation facilities of state-wide significance as defined in RCW 47.06.140. These regionally established level of service standards for state highways ((~~and state ferries~~)) shall be developed jointly with the department of transportation, to encourage consistency across jurisdictions. In establishing level of service standards for state highways ((~~and state ferries~~)), consideration shall be given for the necessary balance between providing for the free interjurisdictional movement of people and goods and the needs of local commuters using state facilities;

(d) Includes a financial plan demonstrating how the regional transportation plan can be implemented, indicating resources from public and private sources that are reasonably expected to be made available to carry out the plan, and recommending any innovative financing techniques to finance needed facilities, services, and programs;

(e) Assesses regional development patterns, capital investment and other measures necessary to:

(i) Ensure the preservation of the existing regional transportation system, including requirements for operational improvements, resurfacing, restoration, and rehabilitation of existing and future major roadways, as well as operations, maintenance, modernization, and rehabilitation of existing and future transit, railroad systems and corridors, and nonmotorized facilities; and

(ii) Make the most efficient use of existing transportation facilities to relieve vehicular congestion and maximize the mobility of people and goods;

(f) Sets forth a proposed regional transportation approach, including capital investments, service improvements, programs, and transportation demand management measures to guide the development of the integrated, multimodal regional transportation system; and

(g) Where appropriate, sets forth the relationship of high capacity transportation providers and other public transit providers with regard to responsibility for, and the coordination between, services and facilities.

(2) The organization shall review the regional transportation plan biennially for currency and forward the adopted plan along with documentation of the biennial review to the state department of transportation.

(3) All transportation projects, programs, and transportation demand management measures within the region that have an impact upon regional facilities or services must be consistent with the plan and with the adopted regional growth and transportation strategies.

PART II: FERRY SYSTEM ASSETS

Sec. 27. RCW 47.60.010 and 1984 c 18 s 1 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, the department is authorized to acquire by lease, charter, contract, purchase, condemnation, or construction, and partly by any or all of such means, and to thereafter operate, improve, and extend, a system of ferries on and crossing Puget Sound and any of its tributary waters and connections thereof, and connecting with the public streets and highways in the state. The system of ferries shall include such boats, vessels, wharves, docks, approaches, landings, franchises, licenses, and appurtenances as shall be determined by the department to be necessary or desirable for efficient operation of the ferry system and best serve the public. The department may in like manner acquire by purchase, condemnation, or construction and include in the ferry system such toll bridges, approaches, and connecting roadways as may be deemed by the department advantageous in channeling traffic to points served by the ferry system. In addition to the powers of acquisition granted by this section, the department is empowered to enter into any contracts, agreements, or leases with any person, firm, or corporation and to thereby provide, on such terms and conditions as it shall determine, for the operation of any ferry or ferries or system thereof, whether acquired by the department or not.

The authority of the department to sell and lease back any state ferry, for federal tax purposes only, as authorized by 26 U.S.C., Sec. 168(f)(8) is confirmed. Legal title and all incidents of legal title to any ferry sold and leased back (except for the federal tax benefits attributable to the ownership thereof) shall remain in the state of Washington.

(2) Beginning on the effective date of this act, the department may not acquire any additional vessels or real property to aid in the state operation of a ferry system.

(3) In order to facilitate the utilization of Washington state ferry system assets by public transportation benefit authorities to provide ferry service on ferry routes with a terminus within the geographic boundaries of the public transportation benefit authority, the department shall sell, lease, or grant ferry system vessels, terminals, and other real or other property necessary to accomplish the transfer of operations of a ferry route from the department to a public transportation benefit authority.

Sec. 28. RCW 47.60.130 and 1979 ex.s. c 189 s 6 are each amended to read as follows:

Such ferry system, including any toll bridges, approaches, and roadways incidental thereto, may be financed and operated in combination or separately as one or more units as the department of transportation may determine, and such ferry system together with any toll bridge hereafter constructed by the department upon or across the waters of Puget Sound or Hood Canal, or any part of either, replacing one or more presently operated ferry routes, is declared to be a continuous project within the meaning of RCW 47.56.070. The department is empowered to rent, lease, or charter any property acquired under this chapter. If the department determines that any real property (including lands, improvements thereon, and any interests or estates) originally acquired for the state ferry system is no longer required for the purposes of the state ferry system, the department shall offer it for sale or lease to a public transportation benefit authority on the condition that the authority continue the full or partial operation of the ferry run or runs associated with the property. If no public transportation benefit authority entity has entered into negotiations to purchase the property by July 1, 2006, or if such negotiations terminate after that date without resulting in a sale of the property, the department shall offer it for sale in the manner and with the authority authorized to the department by RCW 47.12.063 or 47.12.283. The secretary of transportation may adopt rules further implementing this section. The proceeds of all such sales shall be paid into the separate trust fund of the state treasury established pursuant to RCW 47.60.150.

Sec. 29. RCW 47.12.023 and 1984 c 7 s 115 are each amended to read as follows:

(1) Except as provided in RCW 47.12.026 and 47.12.029, whenever it is necessary to secure any lands or interests in lands for any highway purpose mentioned in RCW 47.12.010, or for the construction of any toll facility ((~~or ferry terminal or docking facility~~)), the title to which is in the state of Washington and under the jurisdiction of the department of natural resources, the department of transportation may acquire jurisdiction over the lands or interests in lands, or acquire rights to remove materials from the lands in the manner set forth in this section.

(2) At any time after the final adoption of a right of way plan or other plan requiring the acquisition of lands or interests in lands for any purpose as authorized in subsection (1) of this section, the department of transportation may file with the department of natural resources a notice setting forth its intent to acquire jurisdiction of the lands or interests in lands under the jurisdiction of the department of natural resources required for right of way or other highway purposes related to the construction or improvement of such state highway((,)) or toll facility((~~, or ferry terminal or docking facility~~)).

(3) The department of transportation at the time of filing its notice of intent as provided in subsection (2) of this section shall file therewith a written statement showing the total amount of just compensation to be paid for the property in the event of settlement. The offer shall be based upon the department of transportation approved appraisal of the fair market value of the property to be acquired. In no event may the offer of settlement be referred to or used during any arbitration proceeding or trial conducted for the purpose of determining the amount of just compensation.

(4) Just compensation and/or fair market value for the purposes of this section shall be determined in accordance with applicable federal and state constitutional, statutory, and case law relating to the condemnation of private and public property for public purposes.

(5) If the department of natural resources does not accept the offer of the department of transportation, the department of transportation may nonetheless pay to the department of natural resources the amount of its offer and obtain immediate possession and use of the property pending the determination of just compensation in the manner hereinafter provided.

(6) If the amount of just compensation is not agreed to, either the department of natural resources or the department of transportation may request in writing the appointment of an arbitrator for the purpose of determining the amount of compensation to be paid by the department of transportation for the acquisition of jurisdiction over the lands or interests in lands or rights therein. In that event the department of natural resources and the department of transportation may jointly agree on an arbitrator to determine the compensation, and his determination shall be final and conclusive upon both departments. The costs of the arbitrator shall be borne equally by the parties. If the department of natural resources and the department of transportation are unable to agree on the selection of an arbitrator within thirty days after a request therefor is made, either the department of transportation or the department of natural resources may file a petition with the superior court for Thurston county for the purpose of determining the amount of just compensation to be paid. The matter shall be tried by the court pursuant to the procedures set forth in RCW 8.04.080.

(7) Whenever the department of transportation has acquired immediate possession and use of property by payment of the amount of its offer to the department of natural resources, and the arbitration award or judgment of the court for the acquisition exceeds the payment for immediate possession and use, the department of transportation shall forthwith pay the amount of such excess to the department of natural resources with interest thereon from the date it obtained immediate possession. If the arbitration or court award is less than the amount previously paid by the department of transportation for immediate possession and use, the department of natural resources shall forthwith pay the amount of the difference to the department of transportation.

(8) Upon the payment of just compensation, as agreed to by the department of transportation and the department of natural resources, or as determined by arbitration or by judgment of the court, and other costs or fees as provided by statute, the department of natural resources shall cause to be executed and delivered to the department of transportation an instrument transferring jurisdiction over the lands or interests in lands, or rights to remove material from the lands, to the department of transportation.

(9) Except as provided in RCW 47.12.026, whenever the department of transportation ceases to use any lands or interests in lands acquired in the manner set forth in this section for the purposes mentioned herein, the department of natural resources may reacquire jurisdiction over the lands or interests in land by paying the fair market value thereof to the department of transportation. If the two departments are unable to agree on the fair market value of the lands or interests in lands, the market value shall be determined and the interests therein shall be transferred in accordance with the provisions and procedures set forth in subsections (4) through (8) of this section.

Sec. 30. RCW 47.12.026 and 1984 c 7 s 116 are each amended to read as follows:

(1) The department of transportation may acquire an easement for highway or toll facilities right of way ((~~or for ferry terminal or docking facilities~~)), including the right to make necessary fills, on, over, or across the beds of navigable waters which are under the jurisdiction of the department of natural resources, in accordance with the provisions of RCW 47.12.023, except that no charge may be made to the department of transportation for such an easement.

(2) The department of transportation may obtain an easement for highway or toll facilities purposes ((~~or for ferry terminal or docking facilities~~)) on, over, or across harbor areas in accordance with RCW 47.12.023 but only when the areas are approved by the harbor line commission as a public place for public landings, wharves, or other public conveniences of commerce or navigation. No charge may be made to the department of transportation for such an easement.

(3) Upon the selection by the department of transportation of an easement for highway or toll facilities right of way ((~~or for ferry terminal or docking facilities~~)), as authorized in subsections (1) and (2) of this section, the department of natural resources shall cause to be executed and delivered to the department of transportation an instrument transferring the easement. Whenever the state no longer requires the easement for highway or toll facilities right of way ((~~or for ferry terminal or docking facilities~~)), the easement shall automatically terminate and the department of transportation shall, upon request, cause to be executed an instrument relinquishing to the department of natural resources all of its interest in the lands.

(4) The department of transportation, pursuant to the procedures set forth in RCW 47.12.023, may remove sand and gravel and borrow materials and stone from the beds of navigable waters under the jurisdiction of the department of natural resources which lie below the line of ordinary high water upon the payment of fair market value per cubic yard for such materials to be determined in the manner set forth in RCW 47.12.023.

(5) The department of transportation may acquire full jurisdiction over lands under the jurisdiction of the department of natural resources including the beds of navigable waters that are required for the relocation of the operating tracks of any railroad that will be displaced by the acquisition of such railroad property for state highway purposes. The department of transportation may exchange lands so acquired in consideration or partial consideration for the land or property rights needed for highway purposes and may cause to be executed a conveyance of the lands in the manner prescribed in RCW 47.12.150. In that event the department of transportation shall pay to the department of natural resources, as just compensation for the acquisition, the fair market value of the property, including the beds of any navigable waters, to be determined in accordance with procedures set forth in RCW 47.12.023.

Sec. 31. RCW 47.56.050 and 1984 c 7 s 250 are each amended to read as follows:

(1) The department, whenever it is considered necessary or advantageous and practicable, is empowered to provide for the acquisition by purchase of, and to acquire by purchase (a) any bridge or bridges ((~~or ferries~~)) which connect with or may be connected with the public highways of this state (b) together with approaches thereto.

(2) In connection with the acquisition by purchase of any bridge or bridges ((~~or ferries~~)) under subsection (1) of this section, the department, the state treasurer, any city, county, or other political subdivision of this state, and all of their officers:

(a) Are empowered and required to do all acts and things provided for in this chapter to establish and construct toll bridges and operate, finance, and maintain such bridges insofar as the powers and requirements are applicable to the purchase of any bridge or bridges ((~~or ferries~~)) and their operation, financing, and maintenance; and

(b) In purchasing, operating, financing, and maintaining any bridge or bridges ((~~or ferries~~)) acquired or to be acquired by purchase under this section, shall act in the same manner and under the same procedures as are provided in this chapter to establish, construct, operate, finance, and maintain toll bridges insofar as such manner and procedure are applicable to the purchase of any bridge or bridges ((~~or ferries~~)) and their operation, financing, and maintenance.

(3) Without limiting the generality of the provisions contained in subsections (1) and (2) of this section, the department is empowered: (a) To cause surveys to be made for the purpose of investigating the propriety of acquiring by purchase any such bridge or bridges ((~~or ferries~~)) and the right of way necessary or proper for that bridge or bridges ((~~or ferries~~)), and other facilities necessary to carry out the provisions of this chapter; (b) to issue, sell, and redeem bonds, and to deposit and pay out the proceeds of the bonds for the financing thereof; (c) to collect, deposit, and expend tolls therefrom; (d) to secure and remit financial and other assistance in the purchase thereof; and (e) to carry insurance thereon.

(4) The provisions of RCW 47.56.220 apply when any bridge or bridges ((~~or ferries~~)) are acquired by purchase pursuant to this section.

Sec. 32. RCW 47.56.253 and 1984 c 7 s 270 are each amended to read as follows:

If the department deems it in the public interest and not inconsistent with the use and operation of the toll facility involved, the department may on application therefor issue a permit, lease, or license to the state, or to any city, county, port district, or other political subdivision or municipal corporation of the state or private entity to use any portion of the property of any toll bridge, toll road, toll tunnel, or ((~~Washington state~~)) ferry system upon such terms and conditions as the department may prescribe.

Sec. 33. RCW 47.60.145 and 1982 c 210 s 1 are each amended to read as follows:

(1) An "historic ferry" is any vessel in the Washington state ferries fleet which has been listed in the Washington state register of historic places.

(2) When the department of transportation determines that an historic ferry is surplus to the needs of Washington state ferries, the department shall promptly call for proposals from persons who wish to acquire the historic ferry. Proposals for the acquisition of an historic ferry shall be accepted only from persons or organizations that (a) are a governmental entity or a nonprofit corporation or association dedicated to the preservation of historic properties; (b) agree to a contract approved by the state historic preservation officer, which requires the preservation and maintenance of the historic ferry and provides that title to the ferry reverts to the state if the secretary of transportation determines that the contract has been violated; and (c) demonstrate the administrative and financial ability successfully to comply with the contract.

(3) The department shall evaluate the qualifying proposals and shall select the proposal which is most advantageous to the state. Factors to be considered in making the selection shall include but not be limited to:

(a) Extent and quality of restoration;

(b) Retention of original design and use;

(d) Provisions for historical interpretation;

(e) Monetary return to the state.

(4) If there are no qualifying proposals, an historic ferry shall be disposed of in the manner provided by state law.

Sec. 34. RCW 47.60.550 and 1986 c 66 s 10 are each amended to read as follows:

(1) Whenever a county, city, or other municipal corporation acquires or constructs a facility to be used in whole or in part for off-street parking of motor vehicles which is in the immediate vicinity of an existing or planned ferry terminal, the department or a successor entity operating a ferry utilizing the terminal may enter into an agreement with the local governmental body providing for the use in part or at specified times of the facility as a holding area for traffic waiting to board a ferry or for parking by ferry patrons. When the department transfers a ferry run to a public transportation benefit authority, the department's authority to enter into or perpetuate such agreements with respect to the terminal served by that run terminates.

(2) As a part of an agreement authorized by subsection (1) of this section, the department, subject to the limitations contained in RCW 47.60.505, may pledge any moneys in the Puget Sound capital construction account in the motor vehicle fund, or to be deposited in the account, to guarantee the payment of principal and interest on bonds issued by a county, city, or other municipal corporation to finance the acquisition or construction of the parking facility. In making the pledge, the department shall reserve the right to issue its own bonds for the purpose of paying the costs of acquiring ferry vessels with the provision that the bonds shall rank on parity with the bonds authorized by this section as a lien upon moneys in or to be deposited in the Puget Sound capital construction account.

The department shall also reserve the right to pledge moneys in the Puget Sound capital construction account to guarantee subsequent bonds issued by any county, city, or other municipal corporation to finance parking facilities as authorized in subsection (1) of this section with the provision that the subsequent bonds shall rank on parity with prior bonds guaranteed pursuant to this section as a lien upon moneys in or to be deposited in the Puget Sound capital construction account. To the extent of any pledge herein authorized, the department shall use the first moneys available in the Puget Sound capital construction account to meet the obligations as they arise.

PART III: MARINE EMPLOYEES

NEW SECTION. Sec. 35. A new section is added to chapter 47.64 RCW to read as follows:

The provisions of this chapter do not apply to employees working on vessels, terminals, or ferry route runs formerly operated by the Washington state ferry system after such vessels, terminals, or ferry routes are transferred to a public transportation benefit authority under chapter . . ., Laws of 2000 (this act).

Sec. 36. RCW 47.64.005 and 1961 c 13 s 47.64.005 are each amended to read as follows:

The state of Washington, as a public policy, declares that sound labor relations are essential to the development of a state ferry and bridge system which will best serve the interests of the people of the state.

Sec. 37. RCW 47.64.090 and 1983 c 15 s 27 are each amended to read as follows:

If any party, other than a public transportation benefit authority established under chapter 36.57A RCW, assumes the operation and maintenance of any ferry or ferry system by rent, lease, or charter from the department of transportation, such party shall assume and be bound by all the provisions herein and any agreement or contract for such operation of any ferry or ferry system entered into by the department shall provide that the wages to be paid, hours of employment, working conditions and seniority rights of employees will be established by the marine employees' commission in accordance with the terms and provisions of this chapter and it shall further provide that all labor disputes shall be adjudicated in accordance with chapter 47.64 RCW.

Sec. 38. RCW 36.57A.120 and 1975 1st ex.s. c 270 s 22 are each amended to read as follows:

Except for the acquisition of a ferry or ferry system, if a public transportation benefit area ((~~shall~~)) acquires any existing transportation system, it shall assume and observe all existing labor contracts relating to such system and, to the extent necessary for operation of facilities, all of the employees of such acquired transportation system whose duties are necessary to operate efficiently the facilities acquired shall be appointed to comparable positions to those which they held at the time of such transfer, and no employee or retired or pensioned employee of such systems shall be placed in any worse position with respect to pension seniority, wages, sick leave, vacation or other benefits that he enjoyed as an employee of such system prior to such acquisition. The public transportation benefit area authority shall engage in collective bargaining with the duly appointed representatives of any employee labor organization having existing contracts with the acquired transportation system and may enter into labor contracts with such employee labor organization.

PART IV: FUNDING

NEW SECTION. Sec. 39. During the interim period between the 2000 legislative session and the 2001 legislative session, the department of transportation shall work with affected stakeholders, including the transportation committees of the Washington state legislature, to develop a proposal for retiring, transferring, or otherwise disposing of any outstanding indebtedness of the state with respect to Washington state ferry system assets that are sold under chapter . . ., Laws of 2000 (this act). The department shall present any legislation necessary to accomplish this goal to the transportation committees of the legislature by December 1, 2000.

PART V: MISCELLANEOUS

NEW SECTION. Sec. 40. The following acts or parts of acts are each repealed:

(1) RCW 47.60.017 (State ferry system a public mass transportation system) and 1974 ex.s. c 105 s 1;

(2) RCW 47.60.020 (Eminent domain--Condemnation proceedings) and 1984 c 7 s 298 & 1961 c 13 s 47.60.020;

(3) RCW 47.60.120 (Other crossings--Infringement of existing franchises--Waivers) and 1993 c 427 s 1, 1984 c 7 s 307, & 1961 c 13 s 47.60.120;

(4) RCW 47.60.122 (Ferries, terminal facilities--Interim revenue warrants authorized) and 1984 c 7 s 308 & 1961 c 13 s 47.60.122;

(5) RCW 47.60.283 (Ferry service between Port Townsend and Keystone--Purpose) and 1984 c 7 s 324 & 1972 ex.s. c 44 s 2;

(6) RCW 47.60.652 (Passenger-only ferry service--Vessel and terminal acquisition, procurement, and construction) and 1998 c 166 s 2;

(7) RCW 47.60.654 (Passenger-only ferry service--Contingency) and 1998 c 166 s 3;

(8) RCW 47.60.680 (Prequalification of contractors required) and 1983 c 133 s 1;

(9) RCW 47.60.690 (Qualifications of contractor--Rules to assure) and 1983 c 133 s 2;

(10) RCW 47.60.700 (Application for prequalification--Form) and 1983 c 133 s 3;

(11) RCW 47.60.710 (Department authority to obtain information) and 1983 c 133 s 4;

(12) RCW 47.60.720 (Additional investigation--Terms of prequalification--Notice of nonqualification) and 1983 c 133 s 5;

(13) RCW 47.60.730 (Renewal of prequalification--Nonrenewal or revocation, notice) and 1983 c 133 s 6;

(14) RCW 47.60.740 (Rejection of bid despite prequalification--Unqualified bidder) and 1983 c 133 s 7;

(15) RCW 47.60.750 (Appeal of refusal, modification, or revocation of prequalification) and 1983 c 133 s 8;

(16) RCW 47.60.760 (Financial information regarding qualifying not public) and 1983 c 133 s 9;

(17) RCW 47.60.770 (Jumbo ferry construction--Notice) and 1993 c 493 s 1;

(18) RCW 47.60.772 (Jumbo ferry construction--Bidding documents) and 1993 c 493 s 2;

(19) RCW 47.60.774 (Jumbo ferry construction--Procedure on conclusion of evaluation) and 1993 c 493 s 4;

(20) RCW 47.60.776 (Jumbo ferry construction--Contract) and 1993 c 493 s 5;

(21) RCW 47.60.778 (Jumbo ferry construction--Bid deposits--Low bidder claiming error) and 1996 c 18 s 9 & 1993 c 493 s 6;

(22) RCW 47.60.780 (Jumbo ferry construction--Propulsion system acquisition) and 1994 c 181 s 2; and

(23) RCW 47.64.006 (Public policy) and 1989 c 327 s 1 & 1983 c 15 s 1.

NEW SECTION. Sec. 41. The secretary of state shall submit this act to the people for their adoption and ratification, or rejection, at the next general election to be held in this state, in accordance with Article II, section 1 of the state Constitution and the laws adopted to facilitate its operation.

NEW SECTION. Sec. 42. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.