BILL REQ. #:  S-0732.1 

Read first time 01/24/11.   Referred to Committee on Transportation.

     AN ACT Relating to removing commercial ferries operating in Puget Sound from the jurisdiction of the utilities and transportation commission; amending RCW 81.84.010, 81.84.020, 81.84.060, and 47.60.115; and repealing RCW 47.60.120.

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

Sec. 1   RCW 81.84.010 and 2009 c 557 s 2 are each amended to read as follows:
     (1) A commercial ferry may not operate any vessel or ferry for the public use for hire between fixed termini or over a regular route upon the waters within this state, including the rivers and lakes ((and Puget Sound)), without first applying for and obtaining from the commission a certificate declaring that public convenience and necessity require such operation. Service authorized by certificates issued to a commercial ferry operator must be exercised by the operator in a manner consistent with the conditions established in the certificate and tariff filed under chapter 81.28 RCW. However, a certificate is not required for a vessel primarily engaged in transporting freight other than vehicles, whose gross earnings from the transportation of passengers or vehicles, or both, are not more than ten percent of the total gross annual earnings of such vessel.
     (2) If the commission finds, after a hearing, that an existing or a proposed commercial ferry service does not serve an essential transportation purpose and is solely for recreation, the commission may, by order, exempt that service from the requirements of certification and regulation under this chapter. If the nonessential service is a proposed service not already provided by an existing certificate holder, the commission must also find, after notice to any existing certificate holder operating within the same territory and an opportunity to be heard, that the proposed service would not adversely affect the rates or services of any existing certificate holder.
     (3) This section does not affect the right of any county public transportation benefit area or other public agency within this state to construct, condemn, purchase, operate, or maintain, itself or by contract, agreement, or lease, with any person, firm, or corporation, ferries or boats across the waters within this state, including rivers and lakes and Puget Sound, if the operation is not over the same route or between the same districts being served by a certificate holder without first acquiring the rights granted to the certificate holder under the certificate.
     (4) The holder of a certificate of public convenience and necessity granted under this chapter must initiate service within five years of obtaining the certificate((, except that the holder of a certificate of public convenience and necessity for passenger-only ferry service in Puget Sound must initiate service within twenty months of obtaining the certificate)). The certificate holder shall report to the commission every six months after the certificate is granted on the progress of the certificated route. The reports shall include, but not be limited to, the progress of environmental impact, parking, local government land use, docking, and financing considerations. ((Except in the case of passenger-only ferry service in Puget Sound,)) If service has not been initiated within five years of obtaining the certificate, the commission may extend the certificate on a twelve-month basis for up to three years if the six-month progress reports indicate there is significant advancement toward initiating service.
     (5) This section does not apply to a commercial ferry operating on Puget Sound.

Sec. 2   RCW 81.84.020 and 2007 c 234 s 93 are each amended to read as follows:
     (1) Upon the filing of an application, the commission shall give reasonable notice to the department, affected cities, counties, and public transportation benefit areas and any common carrier which might be adversely affected, of the time and place for hearing on such application. The commission may, after notice and an opportunity for a hearing, issue the certificate as prayed for, or refuse to issue it, or issue it for the partial exercise only of the privilege sought, and may attach to the exercise of the rights granted by the certificate any terms and conditions as in its judgment the public convenience and necessity may require; but the commission may not grant a certificate to operate between districts or into any territory ((prohibited by RCW 47.60.120 or)) already served by an existing certificate holder, unless the existing certificate holder has failed or refused to furnish reasonable and adequate service, has failed to provide the service described in its certificate or tariffs after the time allowed to initiate service has elapsed, or has not objected to the issuance of the certificate as prayed for.
     (2) Before issuing a certificate, the commission shall determine that the applicant has the financial resources to operate the proposed service for at least twelve months, based upon the submission by the applicant of a pro forma financial statement of operations. Issuance of a certificate must be determined upon, but not limited to, the following factors: Ridership and revenue forecasts; the cost of service for the proposed operation; an estimate of the cost of the assets to be used in providing the service; a statement of the total assets on hand of the applicant that will be expended on the proposed operation; and a statement of prior experience, if any, in such field by the applicant. The documentation required of the applicant under this section must comply with the provisions of RCW 9A.72.085.
     (3) In granting a certificate for passenger-only ferries and determining what conditions to place on the certificate, the commission shall consider and give substantial weight to the effect of its decisions on public agencies operating, or eligible to operate, passenger-only ferry service.
     (((4) Until July 1, 2007, the commission shall not accept or consider an application for passenger-only ferry service serving any county in the Puget Sound area with a population of over one million people. Applications for passenger-only ferry service serving any county in the Puget Sound area with a population of over one million pending before the commission as of May 9, 2005, must be held in abeyance and not be considered before July 1, 2007.))

Sec. 3   RCW 81.84.060 and 2007 c 234 s 97 are each amended to read as follows:
     The commission, upon complaint by an interested party, or upon its own motion after notice and opportunity for hearing, may cancel, revoke, suspend, alter, or amend a certificate issued under this chapter on any of the following grounds:
     (1) Failure of the certificate holder to initiate service by the conclusion of the fifth year after the certificate has been granted or by the conclusion of an extension granted under RCW 81.84.010(((2))) (4), if the commission has considered the progress report information required under RCW 81.84.010(((2))) (4);
     (2) ((Failure of a certificate holder for passenger-only ferry service in Puget Sound to initiate service by the conclusion of the twentieth month after the certificate has been granted;
     (3))) Failure of the certificate holder to file an annual report;
     (((4))) (3) The filing by a certificate holder of an annual report that shows no revenue in the previous twelve-month period after service has been initiated;
     (((5))) (4) The violation of any provision of this chapter;
     (((6))) (5) The violation of or failure to observe the provisions or conditions of the certificate or tariffs;
     (((7))) (6) The violation of an order, decision, rule, regulation, or requirement established by the commission under this chapter;
     (((8))) (7) Failure of a certificate holder to maintain the required insurance coverage in full force and effect; or
     (((9))) (8) Failure or refusal to furnish reasonable and adequate service after initiating service.
     The commission shall take appropriate action within thirty days upon a complaint by an interested party or of its own finding that a provision of this section has been violated.

Sec. 4   RCW 47.60.115 and 1983 c 3 s 134 are each amended to read as follows:
     The bonds herein authorized shall, in the discretion of the department, be exchanged at the best possible price for the bonds being refunded, or any such bonds not exchanged shall be sold in the manner provided in RCW 47.60.090. The bonds herein authorized shall be issued in accordance with, and shall be subject to, the provisions of RCW 47.60.050, 47.60.060, 47.60.080, 47.60.100, and 47.60.110((, and 47.60.120)).

NEW SECTION.  Sec. 5   RCW 47.60.120 (Other crossings -- Infringement of existing franchises -- Waivers) and 2003 c 373 s 2, 2003 c 83 s 204, 1993 c 427 s 1, 1984 c 7 s 307, & 1961 c 13 s 47.60.120 are each repealed.