SENATE BILL REPORT

SB 6380

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Transportation, February 6, 2014

Title: An act relating to deficit reimbursement agreements with counties owning and operating ferry systems.

Brief Description: Concerning deficit reimbursement agreements with counties owning and operating ferry systems.

Committee Activity: Transportation: 2/05/14, 2/06/14 [DPS, w/oRec].

Majority Report: That Substitute Senate Bill No. 6380 be substituted therefor, and the substitute bill do pass.

Signed by Senators Eide, Co-Chair; King, Co-Chair; Hobbs, Vice Co-Chair; Fain, Budget Leadership Cabinet; Angel, Brown, Cleveland, Dansel, Ericksen, Liias, Litzow, O'Ban, Rolfes and Sheldon.

Minority Report: That it be referred without recommendation.

Signed by Senator Mullet.

Background: The Washington State Department of Transportation may reimburse Pierce, Skagit, and Whatcom counties for up to 50 percent of any deficit that is incurred during the previous fiscal year from the county portion of the motor vehicle fuel tax. The total reimbursement may not exceed $1 million during a biennium.

Summary of Bill (Recommended Substitute): The total reimbursement to Pierce, Skagit, and Whatcom counties for any deficit that is incurred may not exceed $1.8 million during a biennium.

EFFECT OF CHANGES MADE BY TRANSPORTATION COMMITTEE (Recommended Substitute): The provision requiring that the maximum reimbursement amount be increased by the average growth in state personal income for the prior ten years is removed.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony on Original Bill: PRO: Pierce County operates a two-boat ferry system that serves about 400,000 people. The deficit reimbursement rate has not been increased since 1991. Had this been increased at the rate of inflation it would be about $1.8 million and that is how that number was selected. Pierce County receives half of the reimbursement because of the size of the system but the reimbursement only accounts for 13 percent of the actual deficit.