Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Transportation Committee

HB 2641

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.

Background:

County Ferries.

Any county may operate ferries under the direction and control of the county legislative authority. Such service may include auto-carrying capacity and may be funded from general county revenues.

Pierce, Skagit, Wahkiakum, and Whatcom counties operate ferries under this authority. For counties operating ferry service under this authority, the Washington State Department of Transportation may reimburse for a portion of the deficit incurred operating county ferry service.

County Ferry Districts.

A county ferry district can be established by the county legislative authority, which, acting independently, is also the governing body. Such a district can be county-wide or just a portion of a county, and it has the authority to operate a passenger-only ferry (POF) service.

A county ferry district can be funded by an annual ad valorem property tax levy of up to 75 cents per $1,000 of assessed valuation. This levy limit in King County is up to 7.5 cents per $1,000 of assessed valuation. Voter-approved annual excess property tax levies can also be imposed, along with a vessel replacement surcharge on every ferry fare sold.

Public Transportation Benefit Areas.

Any public transportation benefit area (PTBA) having a boundary on the Puget Sound may operate a POF service.

Voter-approved taxes to support POF service are in addition to all other taxes and may include a motor vehicle excise tax, local sales and use tax up to 0.4 percent, tolls, and other revenue-generating activities.

Public Transportation Benefit Areas Passenger-Only Ferry Districts.

A PTBA bordering the western side of the Puget Sound, with a population greater than 200,000 and containing at least one state ferry terminal, which is currently only Kitsap Transit, may also establish one or more POF service districts within all or a portion of the PTBA's boundaries.

Voter-approved taxes to support POF service are in addition to all other taxes and may include a sales and use tax of up to 0.3 percent, a parking tax, tolls, and other revenue generating activities.

Port Districts.

A port district may acquire, lease, construct, purchase, maintain, and operate passenger-carrying vessels on Puget Sound, interstate navigable rivers of the state, and intrastate waters of adjoining states. The service is provided under the terms, conditions, and rates fixed and approved by the port commission.

Summary of Bill:

Cities bordering the Puget Sound and Lake Washington are allowed to establish, finance, and provide POF service. This includes allowance for associated services to support and augment such POF operation.

Prior to providing such POF service, cities are required to develop a POF investment plan, which must address the following issues:

operating or contracting for the operation of POF services;
the purchase, lease, or rental of ferry vessels and dock facilities for the provision of transit service;
other activities necessary to implement the plan;
terminal locations to be served;
consistency with any study developed through the Puget Sound Regional Council for regional service;
projected costs of providing services; and
revenues to be generated from tolls, locally collected tax revenues, and other revenue sources, which may include additional revenue authority not yet authorized under state law.

In order to operate POF service, cities are granted the authority to enter into contracts, agreements, and public-private partnerships including, but not limited to, design-build, general contractor/construction management, or other alternative procurement processes substantially consistent with chapter 39.10 RCW.

The entirety of the act is created as a new chapter in Title 35 RCW.