READ FIRST TIME 03/05/03.   

     AN ACT Relating to the provision of passenger ferry service; amending RCW 47.60.120, 47.64.090, and 82.14.050; adding new sections to chapter 36.57A RCW; adding a new section to chapter 47.52 RCW; adding a new section to chapter 82.80 RCW; adding a new section to chapter 82.14 RCW; adding a new section to chapter 36.54 RCW; creating new sections; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   INTENT. The legislature finds that passenger-only ferry service is a key element to the state's transportation system and that it is in the interest of the state to ensure provision of such services. The legislature further finds that diminished state transportation resources require that regional and local authorities be authorized to develop, operate, and fund needed services.
     It is the intent of the legislature that the state provide for a transition from state-provided to local service and that the department of transportation provide resources to assist in this effort.
     It is the intent of the legislature to encourage interlocal agreements to ensure passenger-only ferry service is maintained on routes that the Washington state ferry system eliminates.

NEW SECTION.  Sec. 2   A new section is added to chapter 36.57A RCW to read as follows:
     PTBA AUTHORIZATION FOR PASSENGER-ONLY FERRIES. A public transportation benefit area having a boundary located on Puget Sound may implement a passenger ferry service. For the purposes of this chapter and sections 7, 8, and 10 of this act, Puget Sound is considered as extending north as far as the Canadian border and west as far as Port Angeles. The benefit area must develop a passenger ferry investment plan including elements to operate or contract for the operation of passenger ferry services, purchase, lease, or rental of ferry vessels and dock facilities for the provision of transit service, and identify other activities necessary to implement the plan. The plan must set forth terminal locations to be served, projected costs of providing services, and revenues to be generated from tolls, locally collected tax revenues, and other revenue sources. The benefit area may use any of its powers to carry out this purpose, unless otherwise prohibited by law. In addition, the public transportation benefit area may enter into contracts and agreements to operate passenger-only ferry service and public-private partnerships and design-build, general contractor/construction management, or other alternative procurement process substantially consistent with chapter 39.10 RCW.

NEW SECTION.  Sec. 3   A new section is added to chapter 36.57A RCW to read as follows:
     TAXES, FEES, AND TOLLS. (1) A public transportation benefit area may, as part of a passenger ferry investment plan, recommend some or all of the following revenue sources as provided in this chapter:
     (a) A motor vehicle excise tax, as provided in section 7 of this act;
     (b) A sales and use tax, as provided in section 8 of this act;
     (c) Tolls for passengers and packages and, where applicable, parking; and
     (d) Charges or licensing fees for advertising, leasing space for services to ferry passengers, and other revenue-generating activities.
     (2) Taxes may not be imposed without an affirmative vote of the majority of the voters within the boundaries of the area voting on a single ballot proposition to both approve a passenger ferry investment plan and to approve taxes to implement the plan. Revenues from these taxes and fees may be used only to implement the plan. A district may contract with the state department of revenue or other appropriate entities for administration and collection of any of the taxes or charges authorized in this section.

NEW SECTION.  Sec. 4   A new section is added to chapter 47.52 RCW to read as follows:
     CONVEYANCE OF FERRY VESSELS. The department of transportation may enter into contracts with public transportation benefit areas meeting the requirements of section 2 of this act and ferry districts created under section 10 of this act to convey passenger ferry vessels and other properties associated with passenger-only ferry service that serve to provide passenger ferry service, as full or part consideration for the benefit area or ferry district assuming all future maintenance and operation obligations and costs required to maintain and operate the vessel and facilities. The conveyances must provide that the vessels or properties revert to the department if the vessels are not used for providing passenger ferry service.

Sec. 5   RCW 47.60.120 and 1993 c 427 s 1 are each amended to read as follows:
     TEN-MILE RULE EXEMPTION. (1) If the department acquires or constructs, maintains, and operates any ferry crossings upon or toll bridges over Puget Sound or any of its tributary or connecting waters, there shall not be constructed, operated, or maintained any other ferry crossing upon or bridge over any such waters within ten miles of any such crossing or bridge operated or maintained by the department excepting such bridges or ferry crossings in existence, and being operated and maintained under a lawfully issued franchise at the time of the location of the ferry crossing or construction of the toll bridge by the department.
     (2) The ten-mile distance in subsection (1) of this section means ten statute miles measured by airline distance. The ten-mile restriction shall be applied by comparing the two end points (termini) of a state ferry crossing to those of a private ferry crossing.
     (3) The Washington utilities and transportation commission may, upon written petition of a commercial ferry operator certificated or applying for certification under chapter 81.84 RCW, and upon notice and hearing, grant a waiver from the ten-mile restriction. The waiver must not be detrimental to the public interest. In making a decision to waive the ten-mile restriction, the commission shall consider, but is not limited to, the impact of the waiver on transportation congestion mitigation, air quality improvement, and the overall impact on the Washington state ferry system. The commission shall act upon a request for a waiver within ninety days after the conclusion of the hearing. A waiver is effective for a period of five years from the date of issuance. At the end of five years the waiver becomes permanent unless appealed within thirty days by the commission on its own motion, the department, or an interested party.
     (4) The department shall not maintain and operate any ferry crossing or toll bridge over Puget Sound or any of its tributary or connecting waters that would infringe upon any franchise lawfully issued by the state and in existence and being exercised at the time of the location of the ferry crossing or toll bridge by the department, without first acquiring the rights granted to such franchise holder under the franchise.
     (5) This section does not apply to the operation of passenger-only ferry service operated by public transportation benefit areas meeting the requirements of section 2 of this act or by ferry districts created under section 10 of this act.

Sec. 6   RCW 47.64.090 and 1983 c 15 s 27 are each amended to read as follows:
     USE OF STATE FERRY FACILITIES. (1) Except as provided in section 4 of this act and subsection (2) of this section, if any party assumes the operation and maintenance of any ferry or ferry system by rent, lease, or charter from the department of transportation, such party shall assume and be bound by all the provisions herein and any agreement or contract for such operation of any ferry or ferry system entered into by the department shall provide that the wages to be paid, hours of employment, working conditions, and seniority rights of employees will be established by the marine employees' commission in accordance with the terms and provisions of this chapter and it shall further provide that all labor disputes shall be adjudicated in accordance with chapter 47.64 RCW.
     (2) If a public transportation benefit area meeting the requirements of section 2 of this act or a ferry district created under section 10 of this act has voter approval to operate passenger-only ferry service, it may enter into an agreement with Washington State Ferries to rent, lease, or purchase passenger-only vessels, related equipment, or terminal space for purposes of loading and unloading the passenger-only ferry. A benefit area or ferry district or subcontractor of that benefit area or ferry district that qualifies under this subsection is not subject to the restrictions of subsection (1) of this section, but is subject to the terms of those agreements and contracts that it or its subcontractor negotiates with its labor groups. These labor contracts will be conducted in accordance with the provisions of the public employment relations commission, as provided for in chapter 41.58 RCW, or the National Labor Relations Act, as appropriate.

NEW SECTION.  Sec. 7   A new section is added to chapter 82.80 RCW to read as follows:
     MOTOR VEHICLE EXCISE TAX AUTHORIZED. (1) Public transportation benefit areas authorized to implement passenger ferry service under section 2 of this act whose boundaries (a) are on the Puget Sound, but (b) do not include an area where a regional transit authority has been formed, may submit an authorizing proposition to the voters and, if approved, may levy and collect an excise tax, at a rate approved by the voters, but not exceeding eighty one-hundredths of one percent on the value, under chapter 82.44 RCW, of every motor vehicle owned by a resident of the taxing district, solely for the purpose of providing passenger ferry service. The tax may be collected only at the time of vehicle license renewal under chapter 46.16 RCW. The tax will be imposed on vehicles previously registered in another state or nation when they are initially registered in this state. In a county imposing a motor vehicle excise tax surcharge under RCW 81.100.060, the maximum tax rate under this section must be reduced to a rate equal to eighty one-hundredths of one percent on the value less the equivalent motor vehicle excise tax rate of the surcharge imposed under RCW 81.100.060. This rate does not apply to vehicles licensed under RCW 46.16.070 with an unladen weight more than six thousand pounds, or to vehicles licensed under RCW 46.16.079, 46.16.085, or 46.16.090.
     (2) The department of licensing shall administer and collect the tax. The department shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected, for administration and collection expenses incurred by it. The remaining proceeds must be remitted to the custody of the state treasurer for monthly distribution to the public transportation benefit area.
     (3) The public transportation benefit area imposing this tax shall delay the effective date at least six months from the date the fee is approved by the qualified voters of the authority area to allow the department of licensing to implement administration and collection of the tax.
     (4) Before an authority may impose a tax authorized under this section, the authorization for imposition of the tax must be approved by a majority of the qualified electors of the authority area voting on that issue.

NEW SECTION.  Sec. 8   A new section is added to chapter 82.14 RCW to read as follows:
     SALES AND USE TAX AUTHORIZATION. Public transportation benefit areas providing passenger ferry service as provided in section 2 of this act whose boundaries (1) are on the Puget Sound, but (2) do not include an area where a regional transit authority has been formed, may submit an authorizing proposition to the voters and, if approved by a majority of persons voting, fix and impose a sales and use tax in accordance with the terms of this chapter, solely for the purpose of providing passenger ferry service.
     The tax authorized by this section is in addition to the tax authorized by RCW 82.14.030 and must be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of a taxable event within the taxing district. The maximum rate of the tax must be approved by the voters and may not exceed one percent of the selling price in the case of a sales tax or value of the article used in the case of a use tax. The maximum rate of the tax that may be imposed may not exceed nine-tenths of one percent in a county that imposes a tax under RCW 82.14.340. The exemptions in RCW 82.08.820 and 82.12.820 are for the state portion of the sales and use tax and do not extend to the tax authorized in this section.

Sec. 9   RCW 82.14.050 and 2002 c 56 s 406 are each amended to read as follows:
     ADMINISTRATION AND COLLECTION -- LOCAL SALES AND USE TAX ACCOUNT.
The counties, cities, and transportation authorities under RCW 82.14.045, public facilities districts under chapters 36.100 and 35.57 RCW, public transportation benefit areas under section 8 of this act, and regional transportation investment districts shall contract, prior to the effective date of a resolution or ordinance imposing a sales and use tax, the administration and collection to the state department of revenue, which shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected for administration and collection expenses incurred by the department. The remainder of any portion of any tax authorized by this chapter that is collected by the department of revenue shall be deposited by the state department of revenue in the local sales and use tax account hereby created in the state treasury. Moneys in the local sales and use tax account may be spent only for distribution to counties, cities, transportation authorities, public facilities districts, public transportation benefit areas, and regional transportation investment districts imposing a sales and use tax. All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW, as they now exist or may hereafter be amended, shall, insofar as they are applicable to state sales and use taxes, be applicable to taxes imposed pursuant to this chapter. Except as provided in RCW 43.08.190, all earnings of investments of balances in the local sales and use tax account shall be credited to the local sales and use tax account and distributed to the counties, cities, transportation authorities, public facilities districts, public transportation benefit areas, and regional transportation investment districts monthly.

NEW SECTION.  Sec. 10   A new section is added to chapter 36.54 RCW to read as follows:
     (1) The establishment of a ferry district to provide passenger ferry service is authorized for areas bordering the Puget Sound. Written application for the formation of such a district signed by at least twenty-five percent of the registered voters who reside in the proposed district, must be filed with the county legislative authority. The authority shall immediately transmit the application to the proper registrar of voters for the proposed district who shall check the names, residence, and registration of the signers with the records of the office and shall, as soon as possible, certify to the county legislative authority the number of qualified signers. If the requisite number of signers is so certified, the authority shall place the proposition, "Shall a ferry district be established in the following area to operate ferries between the following termini: (describing the proposed district and ferry routes)?" upon the ballot for a vote of the people of the proposed district at the next election, general or special. If sixty percent of the voters on the proposition vote in favor of the proposition, the authority shall, by resolution, declare the district established. If the requisite number of qualified persons have not signed the application, further signatures may be added and certified until the requisite number have signed and the procedure set forth in this subsection then followed.
     (2) When established, a ferry district is a municipality as defined by the statutes of the state and is entitled to all the powers conferred by law and exercised by municipal corporations in this state. A ferry district may levy a property tax in an amount not to exceed one dollar and twenty-five cents per thousand dollars of assessed value against the assessed valuation of the property lying within the district.
     (3) A ferry district has the right of eminent domain according to the laws of the state.
     (4) A ferry district may operate any vessel over its authorized routes upon any of the waters of the state that touch any of the area of the district.

NEW SECTION.  Sec. 11   CAPTIONS NOT LAW. Captions used in this act are not part of the law.

NEW SECTION.  Sec. 12   SEVERABILITY. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 13   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2003.