Modifies state ferry system management provisions by: (1) Strengthening performance incentives for Washington state ferries managers;

(2) Increasing the accountability and transparency of ferry management and operations;

(3) Improving service to ferry riders; and

(4) Realizing cost savings in the ferry system.

Requires the Washington state ferries to meet or exceed the target performance level for seventy-five percent of the performance criteria under section 2(2) of the act.

Requires performance targets to be established by an ad hoc committee.

Requires the department of transportation to: (1) Complete a performance report that provides a baseline assessment of current performance using final 2009-2011 data, by October 1, 2011; and

(2) Complete a performance report for the prior fiscal year, by October 1, 2012, and each year thereafter.

Prohibits a collective bargaining agreement from allowing department of transportation Washington management services managers or exempt management services managers to belong to the same bargaining unit representing employees whom the managers supervise.