BILL REQ. #:  S-1537.1 

Read first time 02/17/2003.   Referred to Committee on Highways & Transportation.

     AN ACT Relating to the provision of passenger ferry service; amending RCW 47.60.120, 47.64.090, and 81.104.140; adding new sections to chapter 36.57A RCW; adding a new section to chapter 47.52 RCW; adding a new section to chapter 81.104 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. 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.

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) Those taxes authorized for high-capacity transportation for the purpose of passenger-only ferries in chapter 81.104 RCW. However, the motor vehicle excise tax may only be collected at the time of vehicle license renewal under chapter 46.16 RCW. The motor vehicle excise tax will be imposed on vehicles previously registered in another state when they are initially registered in this state;
     (b) Tolls for passengers and packages and, where applicable, parking; and
     (c) 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 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 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.

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 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 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 negotiates with its labor groups.

NEW SECTION.  Sec. 7   A new section is added to chapter 81.104 RCW to read as follows:
     PASSENGER-ONLY FERRIES AS HIGH-CAPACITY TRANSIT. (1) A public transportation benefit area, having a boundary located on Puget Sound, and meeting the requirements of section 2 of this act may implement high-capacity transportation systems to operate passenger-only ferry service. This includes responsibility for system implementation and may include contracts and agreements to operate passenger-only ferry service and public-private partnerships and design-build or other approved purchasing methods.
     (2) For the purposes of this chapter, high-capacity transportation system includes passenger-only ferry service.
     (3) The requirements of RCW 81.104.030, 81.104.070, 81.104.080, 81.104.100, and 81.104.110 do not apply to the public transportation benefit areas operating under this section. However, those agencies must comply with the requirements of section 2 of this act.

Sec. 8   RCW 81.104.140 and 2002 c 56 s 202 are each amended to read as follows:
     PTBA PASSENGER-ONLY FERRY--HIGH-CAPACITY TRANSIT TAX AUTHORIZATION.
(1) Agencies authorized to provide high capacity transportation service, including transit agencies and regional transit authorities, and regional transportation investment districts acting with the agreement of an agency, are hereby granted dedicated funding sources for such systems. These dedicated funding sources, as set forth in RCW 81.104.150, 81.104.160, and 81.104.170, are authorized only for agencies located in (a) each county with a population of two hundred ten thousand or more ((and)), (b) each county with a population of from one hundred twenty-five thousand to less than two hundred ten thousand except for those counties that do not border a county with a population as described under (a) of this subsection, and (c) for the purposes of implementing passenger-only ferry service, public transportation benefit areas whose boundaries (i) are on Puget Sound but (ii) do not include an area where a regional transit authority has been formed. In any county with a population of one million or more or in any county having a population of four hundred thousand or more bordering a county with a population of one million or more, these funding sources may be imposed only by a regional transit authority or a regional transportation investment district. Regional transportation investment districts may, with the approval of the regional transit authority within its boundaries, impose the taxes authorized under this chapter, but only upon approval of the voters and to the extent that the maximum amount of taxes authorized under this chapter have not been imposed.
     (2) Agencies planning to construct and operate a high capacity transportation system should also seek other funds, including federal, state, local, and private sector assistance.
     (3) Funding sources should satisfy each of the following criteria to the greatest extent possible:
     (a) Acceptability;
     (b) Ease of administration;
     (c) Equity;
     (d) Implementation feasibility;
     (e) Revenue reliability; and
     (f) Revenue yield.
     (4) Agencies participating in regional high capacity transportation system development are authorized to levy and collect the following voter-approved local option funding sources:
     (a) Employer tax as provided in RCW 81.104.150, other than by regional transportation investment districts;
     (b) Special motor vehicle excise tax as provided in RCW 81.104.160; and
     (c) Sales and use tax as provided in RCW 81.104.170.
     Revenues from these taxes may be used only to support those purposes prescribed in subsection (10) of this section. Before the date of an election authorizing an agency to impose any of the taxes enumerated in this section and authorized in RCW 81.104.150, 81.104.160, and 81.104.170, the agency must comply with the process prescribed in RCW 81.104.100 (1) and (2) and 81.104.110. No construction on exclusive right of way may occur before the requirements of RCW 81.104.100(3) are met.
     (5) Authorization in subsection (4) of this section shall not adversely affect the funding authority of transit agencies not provided for in this chapter. Local option funds may be used to support implementation of interlocal agreements with respect to the establishment of regional high capacity transportation service. Except when a regional transit authority exists, local jurisdictions shall retain control over moneys generated within their boundaries, although funds may be commingled with those generated in other areas for planning, construction, and operation of high capacity transportation systems as set forth in the agreements.
     (6) Agencies planning to construct and operate high capacity transportation systems may contract with the state for collection and transference of voter-approved local option revenue.
     (7) Dedicated high capacity transportation funding sources authorized in RCW 81.104.150, 81.104.160, and 81.104.170 shall be subject to voter approval by a simple majority. A single ballot proposition may seek approval for one or more of the authorized taxing sources. The ballot title shall reference the document identified in subsection (8) of this section.
     (8) Agencies shall provide to the registered voters in the area a document describing the systems plan and the financing plan set forth in RCW 81.104.100. It shall also describe the relationship of the system to regional issues such as development density at station locations and activity centers, and the interrelationship of the system to adopted land use and transportation demand management goals within the region. This document shall be provided to the voters at least twenty days prior to the date of the election.
     (9) For any election in which voter approval is sought for a high capacity transportation system plan and financing plan pursuant to RCW 81.104.040, a local voter's pamphlet shall be produced as provided in chapter 29.81A RCW.
     (10) Agencies providing high capacity transportation service shall retain responsibility for revenue encumbrance, disbursement, and bonding. Funds may be used for any purpose relating to planning, construction, and operation of high capacity transportation systems and commuter rail systems, personal rapid transit, busways, bus sets, and entrained and linked buses.

NEW SECTION.  Sec. 9   CAPTIONS NOT LAW. Captions used in this act are not part of the law.

NEW SECTION.  Sec. 10   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. 11   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.