H-4627              _______________________________________________

                                          SUBSTITUTE HOUSE BILL NO. 1267

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By House Committee on Transportation (originally sponsored by Representatives Walk, Zellinsky, S. Wilson, Brough, Pruitt, Wang, Fisher, Schoon and P. King)

Read first time 2/5/88.

AN ACT Relating to ferry construction; adding a new section to chapter 39.08 RCW; providing an expiration date; and declaring an emergency.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 39.08 RCW to read as follows:

          (1) Any bond required under this chapter for the construction, alteration, repair, or improvement of one or more ferry vessels for the Washington state ferry system may be substituted with alternative forms of security in an amount equal to the bond, held in escrow accounts dedicated to secure performance under the contract, which include but are not limited to:

          (a) Certified check;

          (b) Cashiers check;

          (c) Treasury bills;

          (d) Irrevocable bank letter of credit;

          (e) Assignment of a savings account; or

          (f) Unencumbered personal and corporate assets.

          The combination of a bond and an alternative form or forms of security in an amount equal to the full contract price is also authorized under this section.

          Substitutions for any bond required under this chapter shall be subject to specified format and conditions as determined by the department of transportation marine division.

          (2) The department of transportation may, whenever it is to the advantage of the state, divide ferry construction, alteration, repair, or improvement projects.  This shall be accomplished by entering into individual or separate contracts that are separately awarded.

          (3) When the contract for ferry system repair requires the contractor to have an in-state shipbuilding yard, all contractors, including those contractors who use both in-state and out-of-state yards, shall perform all repair work under the contract in a yard in this state.

          (4) This section shall expire July 1, 1992.

NEW SECTION. Sec. 2.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.