BP BHEAD INT H [atlas:bill]

AN ACT Relating to operation of ferries in Washington state; amending RCW 47.60.326 and 47.60.326; creating new sections; providing an effective date; providing an expiration date; and declaring an emergency.

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

NEW SECTION. Sec. 1. (1) The joint task force on ferries is created, to be composed of:

(a) Eight members of the legislature selected as follows:

(i) Four members of the senate, two from each of the major caucuses, to be appointed by the president of the senate;

(ii) Four members of the house of representatives, two from each of the major caucuses, to be appointed by the speaker of the house of representatives; and

(iii) The members appointed from each major caucus of the senate and the house of representatives must include one member from a legislative district that encompasses a terminus of a Washington state ferry route and one from a legislative district that does not include a terminus of a Washington state ferry route;

(b) At least one person designated by the cochairs representing each of the following:

(i) Ferry advisory committees;

(ii) Persons who do not use ferries;

(iii) Labor organizations representing ferry workers;

(iv) Washington State Ferries;

(v) Transit operators;

(vi) The office of financial management; and

(vii) Other groups as deemed appropriate by the cochairs of the task force.

(2) The transportation committees shall provide staff support as mutually agreed by the cochairs of the joint select committee. The speaker of the house of representatives and the president of the senate shall designate the cochairs.

(3) The legislative transportation committee shall pay the expenses of the legislative committee members.

NEW SECTION. Sec. 2. The joint task force on ferries shall report to the full legislature at the beginning of the 2001 legislative session. The report must include, but not be limited to, analysis and recommendations on the following:

(1) Ferry fare equity between ferry routes of different lengths;

(2) Establishment of a target for recovery of operating costs from fare revenue that recognizes that the operation of the ferries is the proprietary provision of a service for a fee;

(3) Options for further cuts in ferry service or full or partial restoration of ferry service cuts;

(4) Feasibility of full or partial privatization of the ferry system, public-private partnerships, or state and local partnerships; and

(5) Establishing the short-term and long-term capital needs of the Washington state ferry system, recognizing that the ferry system is part of the state's highway system and that it is appropriate that the public pay for the capital needs of the ferry system as an extension of the land-based highway system.

Sec. 3. RCW 47.60.326 and 1990 c 42 s 406 are each amended to read as follows:

(1) In order to maintain an adequate, fair, and economically sound schedule of charges for the transportation of passengers, vehicles, and commodities on the Washington state ferries, the department of transportation each year shall conduct a full review of such charges.

(2) Prior to February 1st of each odd-numbered year the department shall transmit to the transportation commission a report of its review together with its recommendations for the revision of a schedule of charges for the ensuing biennium. The commission on or before July 1st of that year shall adopt as a rule, in the manner provided by the Washington Administrative Procedure Act, a schedule of charges for the Washington state ferries for the ensuing biennium commencing July 1st. The schedule may initially be adopted as an emergency rule if necessary to take effect on, or as near as possible to, July 1st.

(3) The department in making its review and formulating recommendations and the commission in adopting a schedule of charges may consider any of the following factors:

(a) The amount of subsidy available to the ferry system for maintenance and operation;

(b) The time and distance of ferry runs;

(c) The maintenance and operation costs for ferry runs with a proper adjustment for higher costs of operating outmoded or less efficient equipment;

(d) The efficient distribution of traffic between cross-sound routes;

(e) The desirability of reasonable commutation rates for persons using the ferry system to commute daily to work;

(f) The effect of proposed fares in increasing walk-on and vehicular passenger use;

(g) The effect of proposed fares in promoting all types of ferry use during nonpeak periods;

(h) Such other factors as prudent managers of a major ferry system would consider.

(4) If at any time during the biennium it appears that projected toll revenues from the ferry system, together with the transfer from the Puget Sound ferry operations account to the ferry system revolving account and any other operating subsidy available to the Washington state ferries, will be less than the projected total cost of maintenance and operation of the Washington state ferries for the biennium, the department shall forthwith undertake a review of its schedule of charges to ascertain whether or not the schedule of charges should be revised. The department shall, upon completion of its review report, submit its recommendation to the transportation commission which may in its sound discretion revise the schedule of charges as required to meet necessary maintenance and operation expenditures of the ferry system for the biennium or may defer action until the regular annual review and revision of ferry charges as provided in subsection (2) of this section.

(5) The provisions of RCW 47.60.330 relating to public participation shall apply to the process of revising ferry tolls under this section.

(6) The legislature finds that maintaining a ferry system and providing regular ferry service for a fee requires the Washington state ferry system to function in both a governmental capacity and a proprietary capacity. The ferry routes maintained by the Washington state ferry system are a part of the state highway system as identified in chapter 47.17 RCW. When the Washington state ferry system provides for the capital needs of the system it is acting in a governmental capacity to build and preserve the state highway system. In operating the system and providing passage for people and goods for a fee, the ferry system is operating as a common carrier as identified in RCW 47.60.220. When the Washington state ferry system operates the ferry system on a day-to-day basis it is acting in a proprietary capacity by engaging in a business-like venture to provide a service for a fee.

Because ferry tolls are charged directly to customers in exchange for passage at a prescribed time and place, and because fare revenue is dedicated to paying for the operating costs of the system under RCW 47.60.530 rather than the capital costs under RCW 47.60.505, ferry tolls are charged and collected by the Washington state ferry system in its proprietary capacity. The legislature finds that ferry tolls are not a tax within the meaning of RCW 43.135.090. Consistent with this finding, the transportation commission shall proceed to adjust fares as authorized under this section. Under RCW 43.135.055, the transportation commission may increase ferry tolls by a percentage that exceeds the fiscal growth factor.

Sec. 4. RCW 47.60.326 and 1999 c 94 s 27 are each amended to read as follows:

(3) The department in making its review and formulating recommendations and the commission in adopting a schedule of charges may consider any of the following factors:

(a) The amount of subsidy available to the ferry system for maintenance and operation;

(b) The time and distance of ferry runs;

(c) The maintenance and operation costs for ferry runs with a proper adjustment for higher costs of operating outmoded or less efficient equipment;

(d) The efficient distribution of traffic between cross-sound routes;

(e) The desirability of reasonable commutation rates for persons using the ferry system to commute daily to work;

(f) The effect of proposed fares in increasing walk-on and vehicular passenger use;

(g) The effect of proposed fares in promoting all types of ferry use during nonpeak periods;

(h) Such other factors as prudent managers of a major ferry system would consider.

(4) If at any time during the biennium it appears that projected revenues from the Puget Sound ferry operations account and any other operating subsidy available to the Washington state ferries will be less than the projected total cost of maintenance and operation of the Washington state ferries for the biennium, the department shall forthwith undertake a review of its schedule of charges to ascertain whether or not the schedule of charges should be revised. The department shall, upon completion of its review report, submit its recommendation to the transportation commission which may in its sound discretion revise the schedule of charges as required to meet necessary maintenance and operation expenditures of the ferry system for the biennium or may defer action until the regular annual review and revision of ferry charges as provided in subsection (2) of this section.

(5) The provisions of RCW 47.60.330 relating to public participation shall apply to the process of revising ferry tolls under this section.

NEW SECTION. Sec. 5. Section 3 of this act expires July 1, 2000.

NEW SECTION. Sec. 6. (1) Sections 1 through 3 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately.

(2) Section 4 of this act takes effect July 1, 2000.