SENATE BILL REPORT

SB 5403

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 21, 2017

Title: An act relating to ferry district authority.

Brief Description: Concerning ferry district authority.

Sponsors: Senators O'Ban and Conway.

Committee Activity: Transportation: 2/20/17, 2/21/17 [DPS].

Brief Summary of Substitute Bill

Allows a county ferry district to construct, purchase, operate, and maintain any type of ferry.

SENATE COMMITTEE ON TRANSPORTATION

Majority Report: That Substitute Senate Bill No. 5403 be substituted therefor, and the substitute bill do pass.

Signed by Senators King, Chair; Sheldon, Vice Chair; Hobbs, Ranking Minority Member; Liias, Assistant Ranking Minority Member; Cleveland, Ericksen, Fortunato, Hawkins, O'Ban, Saldaña, Takko, Van De Wege, Walsh and Wilson.

Staff: Hayley Gamble (786-7452)

Background: Counties are authorized to construct, purchase, operate, and maintain ferry systems under the direction and control of the county legislative authority. In lieu of the county operating and maintaining a ferry system, the county legislative authority may adopt an ordinance creating a county ferry district (district) in all or a portion of the area of the county. The ordinance may be adopted only after a public hearing has been held, and the county makes a finding that it is in the public interest to create the district. The members of the county legislative authority compose the governing body of any district created in their county.

A district may construct, purchase, operate, and maintain passenger-only ferries. A ferry district may provide services for free or may charge a toll. A district is considered an independent taxing authority and may levy an ad valorem tax on all taxable property located within the district not to exceed $0.75 per $1,000 of assessed value, except that a district located in a county with a population of 1.5 million or more may not levy at a rate that exceeds $0.075 cents per $1,000 of assessed value. Revenue from the tax may only be used for providing ferry services; operating, maintaining and improving vessels and dock facilities; providing shuttle services; landside improvements directly related to passenger-only ferry services; and related personnel costs. A district may incur general indebtedness and issue general obligation bonds for passenger-only ferries and associated terminals.

In 2006, Engrossed Senate Substitute Bill 6787 made a series of changes to the district statutes. These changes included allowing any county to form such a district and removed some references to passenger-only ferry service. Three references to passenger-only ferry service remains in the district statutes.

Summary of Bill: The bill as referred to committee not considered.

Summary of Bill (First Substitute): A county ferry district is allowed to construct, purchase, operate, and maintain any type of ferry, as well as the necessary landings. A district may incur debt and issue bonds to construct, purchase, and preserve any type of ferries and terminals. The taxes levied by a district may also be used for landside improvements related to the provision of any kind of ferry service.

Appropriation: None.

Fiscal Note: Available.

Creates Committee/Commission/Task Force that includes Legislative members: No.

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

Staff Summary of Public Testimony on First Substitute: PRO: This bill came from Pierce County, which operates an auto as well as passenger-only ferry service. Pierce County would like to use this statute and a recent study that recommended instituting a county ferry district in Pierce County.

Persons Testifying: PRO: Tiffany Speir, Pierce County.

Persons Signed In To Testify But Not Testifying: No one.