"NEW SECTION.  Sec. 1   A new section is added to chapter 47.60 RCW to read as follows:
     The legislature finds and declares that there is a compelling need for passenger-only ferry service on Puget Sound. The Bremerton to Seattle, Southworth to Seattle, Vashon to Seattle, and Kingston to Seattle routes are the routes currently in need of funding. As other routes become viable for passenger-only ferry service, funding may be provided to those routes as well.
     It is the intent of the legislature to provide funding to passenger-only ferry systems operated by Washington state ferries or local governments through the sale or disposition of existing Washington state ferries' passenger-only vessels. Until the funds provided by the sale or disposition of these vessels become available, it is the intent of the legislature to fund passenger-only ferry systems from other available funds.

Sec. 2   RCW 47.60.645 and 1995 2nd sp.s. c 14 s 558 are each amended to read as follows:
     (1) There is hereby established in the transportation fund the passenger ferry account. Money in the account shall be used for ((capital improvements for passenger ferry projects including, but not limited to, pedestrian and transit facilities at ferry terminals and passenger-only ferry vessels)) grants for passenger-only ferry systems operated by Washington state ferries and for passenger-only ferry systems operated or contracted for by local governments. Moneys in the account shall be expended with legislative appropriation.
     (2) The transportation commission shall administer this ferry grant program subject to the availability of amounts appropriated for this specific purpose.
     (3) In providing grants under this section, the transportation commission may enter into multiple-year contracts with a stipulation that allocations for future years are subject to the availability of funding as provided by legislative appropriation.

NEW SECTION.  Sec. 3   A new section is added to chapter 47.60 RCW to read as follows:
     By January 1, 2007, the department shall sell or otherwise dispose of the Washington state ferries Snohomish and Chinook for market value and deposit the proceeds of the sales into the passenger ferry account established under RCW 47.60.645.

NEW SECTION.  Sec. 4   A new section is added to chapter 47.60 RCW to read as follows:
     (1) Passenger-only ferry systems operated or contracted for by local governments on the Bremerton to Seattle, Southworth to Seattle, and Kingston to Seattle routes are eligible for the grants provided in RCW 47.60.645.
     (2) As a condition of receiving the grants provided in RCW 47.60.645, the passenger-only ferry systems operated or contracted for by local governments shall coordinate their schedules with the schedules of any Washington state ferries' auto ferries operating on the same route so as to complement the auto ferry service rather than compete against it.

NEW SECTION.  Sec. 5   A new section is added to chapter 47.60 RCW to read as follows:
     The Washington state ferries and any passenger-only ferry systems operated or contracted for by local governments that express interest shall, in good faith, negotiate a mutually agreeable and reasonable agreement regarding the shared use of Washington state ferries' facilities at Colman dock by September 1, 2006.

NEW SECTION.  Sec. 6   A new section is added to chapter 47.60 RCW to read as follows:
     The department shall maintain the level of service existing on January 1, 2006, for the Vashon to Seattle passenger-only ferry route until the earlier of July 1, 2007, or when the legislature approves assumption of the route as authorized in section 7 of this act.

NEW SECTION.  Sec. 7   A new section is added to chapter 47.60 RCW to read as follows:
     (1) A county with a population greater than one million persons and having a boundary on Puget Sound, a county to the west of Puget Sound with a population greater than two hundred thirty thousand, but less than three hundred thousand persons, or Washington state ferries may assume a passenger-only ferry route between Vashon and Seattle, including an expansion of that route to include Southworth after submitting a complete business plan to the transportation commission. The transportation commission shall review any business plans submitted and recommend to the legislature the most viable business plan.
     (2) The business plan must, at a minimum, include hours of operation, vessel needs, labor needs, proposed routes, passenger terminal facilities, passenger rates, anticipated federal and local funding, coordination with the Washington state ferry system, coordination with existing transit providers, long-term operation and maintenance needs, and a long-term financial plan.
     (3) In order to be considered for assuming the route, operations must begin by July 1, 2007.
     (4) For the purposes of this section, Puget Sound is considered as extending north to Admiralty Inlet."