BILL REQ. #:  S-4023.2 

Read first time 01/23/2006.   Referred to Committee on Transportation.

     AN ACT Relating to local government passenger ferry service funding; amending RCW 47.60.645; adding a new section to chapter 47.60 RCW; adding a new section to chapter 47.66 RCW; and creating new sections.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 47.60 RCW to read as follows:
     By August 1st, November 1st, February 1st, and May 1st of every year, the department of transportation shall notify the state treasurer in writing of the amount of state sales and use tax paid under chapters 82.08 and 82.12 RCW by the Washington state ferries on the purchase of fuel for the preceding calendar quarter. By September 1st, December 1st, March 1st, and June 1st of every year, the state treasurer shall transfer an amount equal to the amount indicated by the department in their notification to the treasurer into the passenger ferry account created in RCW 47.60.645.

Sec. 2   RCW 47.60.645 and 1995 2nd sp.s. c 14 s 558 are each amended to read as follows:
     There is hereby established in the transportation fund the passenger ferry account. Money in the account shall be used for: (1) Grants for ferry systems operated by local governments; and (2) capital improvements for local government passenger ferry projects including, but not limited to, pedestrian and transit facilities at ferry terminals and passenger-only ferry vessels. Moneys in the account shall be expended with legislative appropriation.

NEW SECTION.  Sec. 3   The indication of the amount of fuel taxes paid by the Washington state ferries in section 1 of this act applies to all calendar quarters beginning on or after April 1, 2006.

NEW SECTION.  Sec. 4   (1) By April 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.
     (2) By April 1, 2007, the department shall sell or otherwise dispose of the Washington state ferries Skagit and Kalama for market value or offer the ferries as a grant to a Washington state public transportation benefit area or county for use on a ferry system operated by the recipient. Proceeds from the sale of the ferries shall be deposited in the passenger ferry account established under RCW 47.60.645.

NEW SECTION.  Sec. 5   A new section is added to chapter 47.66 RCW to read as follows:
     (1) In addition to the grants provided in RCW 47.60.645, the department shall establish a local government ferry grant program subject to availability of amounts appropriated for this specific purpose.
     (2) In providing grants under this section, the department may enter into multiple year contracts with stipulation that future year allocations are subject to the availability of funding as provided by legislative appropriation.
     (3) Priority shall be given to grant applications that provide continuity of existing passenger-only service and the provision of local or federal matching funds.