BILL REQ. #:  Z-0273.2 

Read first time 01/10/2005.   Referred to Committee on Transportation.

     AN ACT Relating to transportation funding and appropriations; amending 2004 c 229 ss 206, 207, 208, 209, 211, 212, 213, 215, 218, 219, 220, 222, 223, 224, 225, 401, 402, 404, 405, and 406 (uncodified); amending 2003 c 360 s 218 (uncodified); adding a new section to 2003 c 360 (uncodified); making appropriations; and declaring an emergency.

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

NEW SECTION.  Sec. 201   A new section is added to 2003 c 360 (uncodified) to read as follows:
     FOR TRANSPORTATION AGENCIES. (1) Operating appropriations made in this act to the department of transportation, department of licensing, and the Washington state patrol shall initially be allotted as required by this act. Subsequent allotment modifications shall not include transfers of moneys between sections of this act except as expressly provided in this act, nor shall allotment modifications permit moneys that are provided solely for a specified purpose to be used for other than that purpose.
     (2) The operating appropriations to the department of transportation in this act shall be expended for the programs and in the amounts specified in this act. However, after May 1, 2005, unless specifically prohibited by this act, the department may transfer motor vehicle account--state appropriations, multimodal transportation account--state appropriations, or Puget Sound ferry operations account--state appropriations for fiscal year 2005 among programs after approval by the director of financial management.
     (3) The operating appropriations to the department of licensing in this act shall be expended for the programs and in the amounts specified in this act. However, after May 1, 2005, unless specifically prohibited by this act, the department may transfer highway safety account--state appropriations for fiscal year 2005 among programs after approval by the director of financial management.
     (4) The operating appropriations to the Washington state patrol in this act shall be expended for the programs and in the amounts specified in this act. However, after May 1, 2005, unless specifically prohibited by this act, the department may transfer state patrol highway account--state appropriations for fiscal year 2005 among programs after approval by the director of financial management.

Sec. 202   2004 c 229 s 206 (uncodified) is amended to read as follows:
FOR THE WASHINGTON STATE PATROL -- FIELD OPERATIONS BUREAU
State Patrol Highway Account -- State Appropriation . . . . . . . . . . . . (($174,438,000))
       $175,642,000
State Patrol Highway Account -- Federal Appropriation . . . . . . . . . . . . $6,957,000
State Patrol Highway Account -- Private/Local Appropriation . . . . . . . . . . . . $175,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($181,570,000))
       $182,774,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) Washington state patrol officers engaged in off-duty uniformed employment providing traffic control services to the department of transportation or other state agencies are authorized to use state patrol vehicles for the purposes of that employment, subject to guidelines adopted by the chief of the Washington state patrol. The Washington state patrol shall be reimbursed for the use of the vehicle at the prevailing state employee rate for mileage and hours of usage, subject to guidelines developed by the chief of the Washington state patrol. The patrol shall report to the house of representatives and senate transportation committees by December 31, 2004, on the use of agency vehicles by officers engaging in the off-duty employment specified in this subsection. The report shall include an analysis that compares cost reimbursement and cost-impacts, including increased vehicle mileage, maintenance costs, and indirect impacts, associated with the private use of patrol vehicles.
     (2) $2,075,000 of the state patrol highway account--state appropriation in this section is provided solely for the addition of thirteen troopers to those permanently assigned to vessel and terminal security. The Washington state patrol shall continue to provide the enhanced services levels established after September 11, 2001.
     (3) In addition to the user fees, the patrol shall transfer into the state patrol nonappropriated airplane revolving account created under section 1501 of this act, no more than the amount of appropriated state patrol highway account and general fund funding necessary to cover the costs for the patrol's use of the aircraft. The state patrol highway account and general fund--state funds shall be transferred proportionately in accordance with a cost allocation that differentiates between highway traffic enforcement services and general policing purposes.
     (4) The patrol shall not account for or record locally provided DUI cost reimbursement payments as expenditure credits to the state patrol highway account. The patrol shall report the amount of expected locally provided DUI cost reimbursements to the transportation committees of the senate and house of representatives by December 31 of each year.
     (5) $2,138,000 of the state patrol highway account--state appropriation is provided solely for additional security personnel and equipment necessary to comply with the ferry security plan submitted by the Washington state ferry system to the United States coast guard.
     (6) $264,600 of the state patrol highway account--state appropriation in this subsection is provided solely for two full-time detectives to work solely to investigate incidents of identity fraud, drivers' license fraud, and identity theft. The detectives, as part of their duty to police the public highways, shall work cooperatively with the department of licensing's driver's special investigation unit.

Sec. 203   2004 c 229 s 207 (uncodified) is amended to read as follows:
FOR THE WASHINGTON STATE PATROL -- SUPPORT SERVICES BUREAU
State Patrol Highway Account -- State Appropriation . . . . . . . . . . . . (($69,799,000))
       $70,658,000
State Patrol Highway Account -- Private/Local
     Appropriation . . . . . . . . . . . . $1,290,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($71,089,000))
       $71,948,000

     The appropriations in this section are subject to the following conditions and limitations: Under the direction of the legislative auditor, the patrol shall update the pursuit vehicle life-cycle cost model developed in the 1998 Washington state patrol performance audit (JLARC Report 99-4). The patrol shall utilize the updated model as a basis for determining maintenance and other cost impacts resulting from the increase to pursuit vehicle mileage above 110 thousand miles in the 2003-05 biennium. The patrol shall submit a report, that includes identified cost impacts, to the transportation committees of the senate and house of representatives by December 31, 2003.
     

Sec. 204   2004 c 229 s 208 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF LICENSING -- MANAGEMENT AND SUPPORT SERVICES
Marine Fuel Tax Refund Account -- State Appropriation . . . . . . . . . . . . $3,000
Motorcycle Safety Education Account -- State Appropriation . . . . . . . . . . . . $97,000
Wildlife Account -- State Appropriation . . . . . . . . . . . . $84,000
Highway Safety Account--Local Appropriation . . . . . . . . . . . . $6,000
Highway Safety Account -- State Appropriation . . . . . . . . . . . . (($8,316,000))
       $8,318,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . $4,403,000
DOL Services Account -- State Appropriation . . . . . . . . . . . . $144,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($13,053,000))
       $13,055,000

Sec. 205   2004 c 229 s 209 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF LICENSING -- INFORMATION SERVICES
Marine Fuel Tax Refund Account -- State Appropriation . . . . . . . . . . . . $2,000
Motorcycle Safety Education Account -- State
     Appropriation . . . . . . . . . . . . $144,000
Wildlife Account -- State Appropriation . . . . . . . . . . . . $55,000
Highway Safety Account -- State Appropriation . . . . . . . . . . . . (($11,656,000))
       $11,690,000
Highway Safety Account -- Federal Appropriation . . . . . . . . . . . . $6,000
Highway Safety Account--Local Appropriation . . . . . . . . . . . . $60,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . $6,285,000
DOL Services Account -- State Appropriation . . . . . . . . . . . . $1,220,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($19,428,000))
       $19,462,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) The department shall submit a report to the transportation committees of the legislature detailing the progress made in transitioning off of the Unisys system by December 1, 2003, and each December 1 thereafter.
     (2) $151,000 of the highway safety account--state appropriation is provided solely for the implementation of Third Substitute Senate Bill No. 5412. Within the amount provided, the department of licensing shall prepare to implement a "one-to-one" biometric matching system that compares the biometric identifier submitted to the individual applicant's record. The authority to expend funds provided under this subsection is subject to compliance with the provisions under section 504 of this act. If Third Substitute Senate Bill No. 5412 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

Sec. 206   2004 c 229 s 211 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF LICENSING -- DRIVER SERVICES
Motorcycle Safety Education Account -- State Appropriation . . . . . . . . . . . . $2,576,000
Highway Safety Account -- State Appropriation . . . . . . . . . . . . (($87,259,000))
       $87,123,000
Highway Safety Account -- Federal Appropriation . . . . . . . . . . . . $318,000
Highway Safety Account--Local Appropriation . . . . . . . . . . . . $67,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($90,220,000))
       $90,084,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $178,000 of the highway safety account--state appropriation is provided solely for two temporary collision processing FTEs to eliminate the backlog of collision reports. The department shall report, informally, to the house of representatives and senate transportation committees quarterly, beginning October 1, 2003, on the progress made in eliminating the backlog.
     (2) $369,000 of the highway safety account--state appropriation is provided solely to implement Engrossed Substitute Senate Bill No. 5428 or House Bill No. 1681. Within the amount provided in this subsection, the department is authorized to accept applications for driver's license and identicard renewals via the mail or internet. If Engrossed Substitute Senate Bill No. 5428 or House Bill No. 1681 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.
     (3) $282,000 of the highway safety account--state appropriation is provided solely for the implementation of Third Substitute Senate Bill No. 5412. Within the amount provided, the department of licensing shall prepare to implement a "one-to-one" biometric matching system that compares the biometric identifier submitted to the individual applicant's record. The authority to expend funds provided under this subsection is subject to compliance with the provisions under section 504 of this act. If Third Substitute Senate Bill No. 5412 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.
     (4) $354,000 of the highway safety account--state appropriation is provided solely for the implementation of Substitute House Bill No. 2532. If Substitute House Bill No. 2532 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.
     (5) $538,000 of the highway safety account--state appropriation is provided solely for the implementation of Substitute House Bill No. 2660. If Substitute House Bill No. 2660 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

Sec.207   2004 c 229 s 212 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION--INFORMATION TECHNOLOGY -- PROGRAM C
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($56,236,000))
       $55,363,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $5,163,000
Puget Sound Ferry Operations Account -- State
     Appropriation . . . . . . . . . . . . $7,038,000
Multimodal Transportation Account -- State Appropriation . . . . . . . . . . . . $363,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($68,800,000))
       $67,927,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $850,000 of the motor vehicle account--state appropriation is provided for the continued maintenance and support of the transportation executive information system (TEIS). The TEIS shall be enhanced during the 2004 interim to shift towards a monitoring and reporting system capable of tracking and reporting on major project milestones and measurements. The department shall work with the legislature to identify and define meaningful milestones and measures to be used in monitoring the scope, schedule, and cost of projects.
     (2)(a) $2,959,000 of the motor vehicle account--state appropriation and $2,963,000 of the motor vehicle account--federal appropriation are provided solely for implementation of a new revenue collection system, including the integration of the regional fare coordination system (smart card), at the Washington state ferries. By December 1st of each year, an annual update must be provided to the legislative transportation committee concerning the status of implementing and completing this project.
     (b) $200,000 of the Puget Sound ferry operation account--state appropriation is provided solely for implementation of the smart card program.
     (3) The department shall contract with the department of information services to conduct a survey that identifies possible opportunities and benefits associated with siting and use of technology and wireless facilities located on state right of way authorized by RCW 47.60.140. The department shall submit a report regarding the survey to the appropriate legislative committees by December 1, 2004.

Sec. 208   2004 c 229 s 213 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION--FACILITY MAINTENANCE, OPERATIONS AND CONSTRUCTION -- PROGRAM D -- OPERATING
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($30,981,000))
       $30,515,000

Sec. 209   2004 c 229 s 215 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION--PROGRAM DELIVERY MANAGEMENT AND SUPPORT -- PROGRAM H
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($49,056,000))
       $48,056,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $400,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($49,456,000))
       $48,456,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) (($14,310,000)) $13,985,000 of the motor vehicle account--state appropriation is provided solely for the staffing, activities, and overhead of the department's environmental affairs office. This funding is provided in lieu of funding provided in sections 305 and 306 of this act.
     (2) $3,100,000 of the motor vehicle account--state appropriation is provided solely for the staffing and activities of the transportation permit efficiency and accountability committee. The committee shall develop a model national environmental policy act (NEPA) tribal consultation process for federal transportation aid projects related to the preservation of cultural, historic, and environmental resources. The process shall ensure that Tribal participation in the NEPA consultation process is conducted pursuant to treaty rights, federal law, and state statutes, consistent with their expectations for protection of such resources.
     (3) $300,000 of the motor vehicle account--state appropriation is provided to the department in accordance with RCW 46.68.110(2) and 46.68.120(3) and shall be used by the department solely for the purposes of providing contract services to the association of Washington cities and Washington state association of counties to implement section 2(3)(c), (5), and (6), chapter 8 (ESB 5279), Laws of 2003 for activities of the transportation permit efficiency and accountability committee.

Sec. 210   2003 c 360 s 218 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION--ECONOMIC PARTNERSHIPS--PROGRAM K
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($1,011,000))
       $996,000

Sec. 211   2004 c 229 s 218 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TRAFFIC OPERATIONS -- PROGRAM Q--OPERATING
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($38,924,000))
       $38,338,000
Motor Vehicle Account -- Private/Local Appropriation . . . . . . . . . . . . $125,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($39,049,000))
       $38,463,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) A maximum of $8,800,000 of the motor vehicle account--state appropriation may be expended for the incident response program, including the service patrols. The department and the Washington state patrol shall continue to consult and coordinate with private sector partners, such as towing companies, media, auto, insurance and trucking associations, and the legislative transportation committees to ensure that limited state resources are used most effectively. No funds shall be used to purchase tow trucks.
     (2) $4,400,000 of the motor vehicle account--state appropriation is provided solely for low-cost enhancements. The department shall give priority to low-cost enhancement projects that improve safety or provide congestion relief. The department shall prioritize low-cost enhancement projects on a statewide rather than regional basis.
     (3) At a frequency determined by the department, the interstate-5 variable message signs shall display a message advising slower traffic to keep right.
     (4) The appropriation authority under this section includes spending authority to administer the motorist information sign panel program. The department shall establish the annual fees charged for these services so that all costs to administer this program are recovered; in no event, however, shall the department charge more than:
     (a) $1,000 per business per location on freeways and expressways with average daily trips greater than 80,000;
     (b) $750 per business per location on freeways and expressways with average daily trips less than 80,000; and
     (c) $400 per business per location on conventional highways.

Sec. 212   2004 c 229 s 219 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TRANSPORTATION MANAGEMENT AND SUPPORT -- PROGRAM S
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($24,579,000))
       $24,079,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $636,000
Puget Sound Ferry Operations Account -- State Appropriation . . . . . . . . . . . . $1,093,000
Multimodal Transportation Account -- State Appropriation . . . . . . . . . . . . $973,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($27,281,000))
       $26,781,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $627,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 5248. If Substitute Senate Bill No. 5248 is not enacted by June 30, 2003, the amount provided in this subsection shall lapse. The agency may transfer between programs funds provided in this subsection.
     (2) The department shall transfer at no cost to the Washington state patrol the title to the Walla Walla colocation facility.

Sec. 213   2004 c 229 s 220 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TRANSPORTATION PLANNING, DATA, AND RESEARCH -- PROGRAM T
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($29,494,000))
       $24,694,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $14,814,000
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . $1,521,000
Multimodal Transportation Account -- Federal Appropriation . . . . . . . . . . . . $2,000,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($47,829,000))
       $43,029,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $3,800,000 of the motor vehicle account--state appropriation is provided solely for a study of regional congestion relief solutions for Puget Sound (including state route 169), Spokane, and Vancouver. The study must include proposals to alleviate congestion consistent with population and land use expectations under the growth management act, and must include measurement of all modes of transportation.
     (2) $2,000,000 of the motor vehicle account--state appropriation is provided solely for additional assistance to support regional transportation planning organizations and long-range transportation planning efforts. As a condition of receiving this support, a regional transportation planning organization containing any county with a population in excess of one million shall provide voting membership on its executive board to any incorporated principal city of a metropolitan statistical area within the region, as designated by the United States census bureau.
     (3) (($3,000,000)) $1,200,000 of the motor vehicle account--state appropriation is provided solely for the costs of the regional transportation investment district (RTID) election and department of transportation project oversight. These funds are provided as a loan to the RTID and shall be repaid to the state motor vehicle account within one year following the certification of the election results related to the RTID.
     (4) $650,000 of the motor vehicle account--state appropriation is provided to the department in accordance with RCW 46.68.110(2) and 46.68.120(3) and shall be used by the department to support the processing and analysis of the backlog of city and county collision reports.
     (5) The department shall contribute to the report required in section 208(1) of this act in the form of an analysis of the cost impacts incurred by the department as the result of the policy implemented in section 208(1) of this act. The analysis shall contrast overtime costs charged by the patrol prior to July 1, 2003, with contract costs for similar services after July 1, 2003.
     (6) $60,000 of the distribution under RCW 46.68.110(2) and 46.68.120(3) is provided solely to the department for the Washington strategic freight transportation analysis.
     (7) $500,000 of the multimodal transportation account--state appropriation is provided solely for contracting with the department of natural resources to develop data systems for state submerged lands that can be shared with other governmental agencies and that can support the state vision for ecoregional planning. The data to be shared shall include, but not limited to, tabular and geospatial data describing public land ownership, distributions of native plants, marine and aquatic species and their habitats, physical attributes, aquatic ecosystems, and specially designated conservation or environmentally sensitive areas.

Sec. 214   2004 c 229 s 222 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- PUBLIC TRANSPORTATION -- PROGRAM V
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . (($47,057,000))
       $46,757,000
Multimodal Transportation Account -- Federal Appropriation . . . . . . . . . . . . $2,574,000
Multimodal Transportation Account -- Private/Local
     Appropriation . . . . . . . . . . . . $155,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($49,786,000))
       $49,486,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) $18,000,000 of the multimodal transportation account--state appropriation is provided solely for a grant program for special needs transportation provided by transit agencies and nonprofit providers of transportation.
     (a) $4,000,000 of the amount provided in this subsection is provided solely for grants to nonprofit providers of special needs transportation. Grants for nonprofit providers shall be based on need, including the availability of other providers of service in the area, efforts to coordinate trips among providers and riders, and the cost effectiveness of trips provided.
     (b) $14,000,000 of the amount provided in this subsection is provided solely for grants to transit agencies to transport persons with special transportation needs. To receive a grant, the transit agency must have a maintenance of effort for special needs transportation that is no less than the previous year's maintenance of effort for special needs transportation. Grants for transit agencies shall be prorated based on the amount expended for demand response service and route deviated service in calendar year 2001 as reported in the "Summary of Public Transportation - 2001" published by the department of transportation. No transit agency may receive more than thirty percent of these distributions.
     (2) $1,500,000 of the multimodal transportation account--state appropriation is provided solely for grants to implement section 9 of Engrossed Substitute House Bill No. 2228.
     (3) Funds are provided for the rural mobility grant program as follows:
     (a) $6,000,000 of the multimodal transportation account--state appropriation is provided solely for grants for those transit systems serving small cities and rural areas as identified in the Summary of Public Transportation - 2001 published by the department of transportation. Noncompetitive grants must be distributed to the transit systems serving small cities and rural areas in a manner similar to past disparity equalization programs.
     (b) $4,000,000 of the multimodal transportation account--state appropriation is provided solely to providers of rural mobility service in areas not served or underserved by transit agencies through a competitive grant process.
     (4) $4,000,000 of the multimodal transportation account--state appropriation is provided solely for a vanpool grant program for: (a) Public transit agencies to add vanpools; and (b) incentives for employers to increase employee vanpool use. The grant program for public transit agencies will cover capital costs only; no operating costs for public transit agencies are eligible for funding under this grant program. No additional employees may be hired for the vanpool grant program, and supplanting of transit funds currently funding vanpools is not allowed. Additional criteria for selecting grants will include leveraging funds other than state funds. The commute trip reduction task force shall determine the cost effectiveness of the grants, including vanpool system coordination, regarding the use of the funds.
     (5) $100,000 of the multimodal transportation account--state appropriation is provided solely for the commute trip reduction program for Benton county.
     (6) $3,000,000 of the multimodal transportation account--state appropriation is provided to the city of Seattle for the Seattle streetcar project on South Lake Union.
     (7) $500,000 of the multimodal transportation account--state appropriation is provided solely to King county as a state match to obtain federal funding for a car sharing program.

Sec. 215   2004 c 229 s 223 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- MARINE -- PROGRAM X
Puget Sound Ferry Operations Account -- State
     Appropriation . . . . . . . . . . . . (($312,490,000))
       $309,490,000
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . (($5,120,000))
       $16,688,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($317,610,000))
       $326,178,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) The appropriation is based on the budgeted expenditure of (($35,348,000)) $46,676,000 for vessel operating fuel in the 2003-2005 biennium. If the actual cost of fuel is less than this budgeted amount, the excess amount may not be expended. If the actual cost exceeds this amount, the department shall request a supplemental appropriation.
     (2) The appropriation provides for the compensation of ferry employees. The expenditures for compensation paid to ferry employees during the 2003-2005 biennium may not exceed $208,935,700, plus a dollar amount, as prescribed by the office of financial management, that is equal to any insurance benefit increase granted general government employees in excess of $495.30 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for fiscal year 2004 and $567.67 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for fiscal year 2005, a dollar amount as prescribed by the office of financial management for costs associated with pension amortization charges, and a dollar amount prescribed by the office of financial management for salary increases during the 2003-2005 biennium. For the purposes of this section, the expenditures for compensation paid to ferry employees shall be limited to salaries and wages and employee benefits as defined in the office of financial management's policies, regulations, and procedures named under objects of expenditure "A" and "B" (7.2.6.2).
     The prescribed salary increase or decrease dollar amount that shall be allocated from the governor's compensation appropriations is in addition to the appropriation contained in this section and may be used to increase or decrease compensation costs, effective July 1, 2003, and thereafter, as established in the 2003-2005 general fund operating budget.
     (3) $4,234,000 of the multimodal transportation account--state appropriation and $800,000 of the Puget Sound ferry operations account--state appropriation are provided solely for operating costs associated with the Vashon to Seattle passenger-only ferry. The Washington state ferries will develop a plan to increase passenger-only farebox recovery to at least forty percent by July 1, 2003, with an additional goal of eighty percent, through increased fares, lower operation costs, and other cost-saving measures as appropriate. In order to implement the plan, ferry system management is authorized to negotiate changes in work hours (requirements for split shift work), but only with respect to operating passenger-only ferry service, to be included in a collective bargaining agreement in effect during the 2003-05 biennium that differs from provisions regarding work hours in the prior collective bargaining agreement. The department must report to the transportation committees of the legislature by December 1, 2003.
     (4) $984,000 of the Puget Sound ferry operations account--state appropriation is provided solely for ferry security operations necessary to comply with the ferry security plan submitted by the Washington state ferry system to the United States coast guard. The department shall track security costs and expenditures. Ferry security operations costs shall not be included as part of the operational costs that are used to calculate farebox recovery.
     (5) $866,000 of the multimodal transportation account--state appropriation and $200,000 of the Puget Sound ferry operations account--state appropriation are provided solely for operating costs associated with the Bremerton to Seattle passenger-only ferry service for thirteen weeks.
     (6) The department shall study the potential for private or public partners, including but not limited to King county, to provide passenger-only ferry service from Vashon to Seattle. The department shall report to the legislative transportation committees by December 31, 2003.
     (7) The Washington state ferries shall continue to provide service to Sidney, British Columbia.
     (8) When augmenting the existing ferry fleet, the department of transportation ferry capital program shall explore cost-effective options to include the leasing of ferries from private-sector organizations.
     (9) The Washington state ferries shall work with the department of general administration, office of state procurement to improve the existing fuel procurement process and solicit, identify, and evaluate, purchasing alternatives to reduce the overall cost of fuel and mitigate the impact of market fluctuations and pressure on both short- and long-term fuel costs. Consideration shall include, but not be limited to, long-term fuel contracts, partnering with other public entities, and possibilities for fuel storage in evaluating strategies and options. The department shall report back to the transportation committees of the legislature by December 1, 2003, on the options, strategies, and recommendations for managing fuel purchases and costs.
     (10) The department must provide a separate accounting of passenger-only ferry service costs and auto ferry service costs, and must provide periodic reporting to the legislature on the financial status of both passenger-only and auto ferry service in Washington state.
     (11) The Washington state ferries must work with the department's information technology division to implement a new revenue collection system, including the integration of the regional fare coordination system (smart card). Each December, annual updates are to be provided to the transportation committees of the legislature concerning the status of implementing and completing this project, with updates concluding the first December after full project implementation.
     (12) The Washington state ferries shall evaluate the benefits and costs of selling the depreciation rights to ferries purchased by the state in the future through sale and lease-back agreements, as permitted under RCW 47.60.010. The department is authorized to issue a request for proposal to solicit proposals from potential buyers. The department must report to the transportation committees of the legislature by December 1, 2004, on the options, strategies, and recommendations for sale/lease-back agreements on existing ferry boats as well as future ferry boat purchases.

Sec. 216   2004 c 229 s 224 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- RAIL -- PROGRAM Y -- OPERATING
Multimodal Transportation Account -- State
     Appropriation . . . . . . . . . . . . (($34,118,000))
       $33,488,000

     The appropriation in this section is subject to the following conditions and limitations:
     (1) (($29,961,000)) $29,331,000 of the multimodal transportation account--state appropriation is provided solely for the Amtrak service contract and Talgo maintenance contract associated with providing and maintaining the state-supported passenger rail service.
     (2) No Amtrak Cascade runs may be eliminated.
     (3) The department is directed to explore scheduling changes that will reduce the delay in Seattle when traveling from Portland to Vancouver B.C.
     (4) The department is directed to explore opportunities with British Columbia (B.C.) concerning the possibility of leasing an existing Talgo trainset to B.C. during the day for a commuter run when the Talgo is not in use during the Bellingham layover.

Sec. 217   2004 c 229 s 225 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- LOCAL PROGRAMS -- PROGRAM Z--OPERATING
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($7,067,000))
       $6,957,000
Motor Vehicle Account -- Federal Appropriation . . . . . . . . . . . . $2,569,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($9,636,000))
       $9,526,000

     The appropriations in this section are subject to the following conditions and limitations:
     (1) Up to $75,000 of the total appropriation is provided in accordance with RCW 46.68.110(2) and 46.68.120(3) to fund the state's share of the 2004 Washington marine cargo forecast study. Public port districts, acting through their association, must provide funding to cover the remaining cost of the forecast.
     (2) $300,000 of the motor vehicle account--state appropriation is provided in accordance with RCW 46.68.110(2) and 46.68.120(3) solely to fund a study of the threats posed by flooding to the state and other infrastructure near the Interstate 5 crossing of the Skagit River. This funding is contingent on the receipt of federal matching funds.

Sec. 401   2004 c 229 s 401 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALES DISCOUNTS AND DEBT TO BE PAID BY MOTOR VEHICLE ACCOUNT AND TRANSPORTATION FUND REVENUE
Highway Bond Retirement Account Appropriation . . . . . . . . . . . . (($250,000,000))
       $180,970,000
Nondebt-Limit Reimbursable Account Appropriation . . . . . . . . . . . . $4,131,000
Ferry Bond Retirement Account Appropriation . . . . . . . . . . . . (($43,340,000))
       $40,800,000
Transportation Improvement Board Bond Retirement
     Account -- State Appropriation . . . . . . . . . . . . (($36,721,000))
       $33,209,000
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . $5,254,000
Special Category C Account -- State Appropriation . . . . . . . . . . . . $338,000
Transportation Improvement Account -- State
     Appropriation . . . . . . . . . . . . $240,000
Multimodal Transportation Account -- State Appropriation . . . . . . . . . . . . $358,000
Transportation 2003 Account (nickel account)
     Appropriation . . . . . . . . . . . . $2,117,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($342,499,000))
       $267,417,000

Sec. 402   2004 c 229 s 402 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES AND FISCAL AGENT CHARGES
Motor Vehicle Account -- State Appropriation . . . . . . . . . . . . (($1,293,000))
       $793,000
Special Category C Account Appropriation . . . . . . . . . . . . $111,000
Transportation Improvement Account -- State
     Appropriation . . . . . . . . . . . . $21,000
Multimodal Transportation Account -- State Appropriation . . . . . . . . . . . . $119,000
Transportation 2003 Account (nickel account)--State
     Appropriation . . . . . . . . . . . . (($700,000))
       $400,000
          TOTAL APPROPRIATION . . . . . . . . . . . . (($2,244,000))
       $1,444,000

Sec. 403   2004 c 229 s 404 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- STATE REVENUES FOR DISTRIBUTION
     Motor Vehicle Account Appropriation for
motor vehicle fuel tax distributions to
cities and counties . . . . . . . . . . . . (($440,228,000))
       $435,138,000
     Motor Vehicle Account--State Appropriation:
For license permit and fee distributions to cities
and counties . . . . . . . . . . . . (($13,119,000))
       $0

Sec. 404   2004 c 229 s 405 (uncodified) is amended to read as follows:
FOR THE STATE TREASURER -- TRANSFERS
     (1) State Patrol Highway Account -- State
Appropriation: For transfer to the Motor
Vehicle Account . . . . . . . . . . . . (($20,000,000))
       $14,000,000
     (2) Motor Vehicle Account -- State
Appropriation: For motor vehicle fuel tax
refunds and transfers . . . . . . . . . . . . (($770,347,000))
       $752,823,000
     (3) Highway Safety Account -- State
Appropriation: For transfer to the motor
vehicle account -- state . . . . . . . . . . . . (($12,000,000))
       $13,000,000

     The state treasurer shall perform the transfers from the state patrol highway account and the highway safety account to the motor vehicle account on a quarterly basis.

Sec. 405   2004 c 229 s 406 (uncodified) is amended to read as follows:
FOR THE DEPARTMENT OF TRANSPORTATION -- TRANSFERS
     (1) Motor Vehicle Account -- State Appropriation:
For transfer to Puget Sound Ferry Operations
Account . . . . . . . . . . . . $21,757,000
     (2) RV Account -- State Appropriation:
For transfer to the Motor Vehicle Account -- State . . . . . . . . . . . . $1,954,000
     (3) Motor Vehicle Account--State Appropriation:
For transfer to Puget Sound Capital Construction
Account . . . . . . . . . . . . (($61,287,000))
       $60,287,000
     (4) Puget Sound Ferry Operations Account--State
Appropriation: For transfer to Puget Sound Capital
Construction Account . . . . . . . . . . . . $22,000,000
     (5) Transportation Equipment Fund--State
Appropriation: For transfer to the Motor Vehicle
Account--State . . . . . . . . . . . . $5,000,000
     (6) Advanced Right-of-Way Revolving Account--
State Appropriation: For transfer to the Motor
Vehicle Account--State . . . . . . . . . . . . $3,000,000

     The transfers identified in this section are subject to the following conditions and limitations:
     (a) The department of transportation shall only transfer funds in subsections (2) and (3) of this section up to the level provided, on an as-needed basis.
     (b) The department of transportation shall transfer funds in subsection (4) of this section up to the amount identified, provided that a minimum balance of $5,000,000 is retained in the Puget Sound ferry operations account.
     (c) The amount identified in subsection (4) of this section may not include any revenues collected as passenger fares.

NEW SECTION.  Sec. 501   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.

NEW SECTION.  Sec. 502   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.