RCW ch. 47.60 — Revised Code of Washington Chapter 47.60 RCW — Puget Sound Ferry And Toll Bridge System

RCW 47.60.005 Definitions. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise. (1) "Adaptive management" means a systematic process for continually improving management policies and practices by learning from the outcomes of operational programs. (2) "Capital plan" means the state ferry system plan developed by the department as described in RCW 47.06.050(2), reviewed by the commission, and reported to the transportation committees of the legislature by the department. (3) "Capital project" has the same meaning as used in budget instructions developed by the office of financial management. (4) "Commission" means the transportation commission created in RCW 47.01.051. (5) "Fixed price contract" means a contract that requires the contractor to deliver a specified project for a set price. Change orders on fixed price contracts are allowable but should be used on a very limited basis. (6) "Improvement project" has the same meaning as in the budget instructions developed by the office of financial management. If the budget instructions do not define improvement project, then it has the same meaning as "program project" in the budget instructions. If a project meets both the improvement project and preservation project definitions in this section it must be defined as an improvement project. New vessel acquisitions must be defined as improvement projects. (7) "Life-cycle cost analysis" means an analysis of the full net present value cost of constructing and operating a vessel over its life span, including capital costs, financing costs, operation and maintenance costs, decommissioning costs, and variable costs including fuel. (8) "Life-cycle cost model" means that portion of a capital asset inventory system which, among other things, is used to estimate future preservation needs. (9) "Maintenance cost" has the same meaning as used in budget instructions developed by the office of financial management. (10) "Preservation project" has the same meaning as used in budget instructions developed by the office of financial management. (11) "Route" means all ferry sailings from one location to another, such as the Seattle to Bainbridge route or the Port Townsend to Keystone route. (12) "Sailing" means an individual ferry sailing for a specific route, such as the 5:00 p.m. sailing from Seattle to Bremerton. (13) "Travel shed" means one or more ferry routes with distinct characteristics as determined by the department. (14) "Washington state ferries" means the ferry division within the department, as described in RCW 47.60.015. [ 2023 c 188 s 2. Prior: 2015 3rd sp.s. c 14 s 1; 2008 c 124 s 1; 2007 c 512 s 3.] NOTES: Effective date— RCW 47.60.010 Ferry system, toll bridges, and facilities authorized—Power to contract, sell, and lease back. The department is authorized to acquire by lease, charter, contract, purchase, condemnation, or construction, and partly by any or all of such means, and to thereafter operate, improve, and extend, a system of ferries on and crossing Puget Sound and any of its tributary waters and connections thereof, and connecting with the public streets and highways in the state. However, any new vessel planning, construction, purchase, analysis, or design work must be consistent with RCW 47.60.810, except as otherwise provided in RCW 47.60.826. The system of ferries shall include such boats, vessels, wharves, docks, approaches, landings, franchises, licenses, and appurtenances as shall be determined by the department to be necessary or desirable for efficient operation of the ferry system and best serve the public. Subject to RCW 47.56.820, the department may in like manner acquire by purchase, condemnation, or construction and include in the ferry system such toll bridges, approaches, and connecting roadways as may be deemed by the department advantageous in channeling traffic to points served by the ferry system. In addition to the powers of acquisition granted by this section, the department is empowered to enter into any contracts, agreements, or leases with any person, firm, or corporation and to thereby provide, on such terms and conditions as it shall determine, for the operation of any ferry or ferries or system thereof, whether acquired by the department or not. The authority of the department to sell and lease back any state ferry, for federal tax purposes only, as authorized by 26 U.S.C., Sec. 168(f)(8) is confirmed. Legal title and all incidents of legal title to any ferry sold and leased back (except for the federal tax benefits attributable to the ownership thereof) shall remain in the state of Washington. [ 2023 c 429 s 5; 2015 3rd sp.s. c 14 s 2; 2008 c 122 s 20; 1984 c 18 s 1; 1984 c 7 s 296; 1961 c 13 s 47.60.010. Prior: 1949 c 179 s 1; Rem. Supp. 1949 s 6584-30.] NOTES: Effective date— RCW 47.60.013 Emergency powers of governor to insure continued operation of ferry and toll bridge system—Cost reimbursement. The governor is authorized to take such actions as may be necessary to insure the continued operation of the Puget Sound ferry and toll bridge system under any emergency circumstances which threaten the continued operation of the system. In the event of such an emergency, the governor may assume all the powers granted by law to the transportation commission and department of transportation with respect to the ferry system. In addition, notwithstanding the provisions of chapters 47.60 and 47.64 RCW, the governor may contract with any qualified persons for the operation of the Washington state ferry system, or any part thereof, or for ferry service to be provided by privately owned vessels. Administrative costs to the office of the governor incurred in the exercise of this authority shall be reimbursed by the department. [ 1981 c 341 s 1.] NOTES: Severability— RCW 47.60.015 "Washington State Ferries"—Name authorized. The department is authorized to operate its ferry system under the name: "Washington State Ferries." [ 1984 c 7 s 297; 1961 c 13 s 47.60.015. Prior: 1953 c 33 s 1.] RCW 47.60.017 State ferry system a public mass transportation system. The legislature finds and declares that the state ferry system is a public mass transportation system. [ 1974 ex.s. c 105 s 1.] RCW 47.60.020 Eminent domain—Condemnation proceedings. For the purpose of carrying out any or all of the powers granted in this chapter, the department has the power of eminent domain for the acquisition of either real or personal property, used or useful for the Puget Sound ferry system. Condemnation pursuant to this chapter shall be the procedure set out in chapter 8.04 RCW. The department may institute condemnation proceedings in the superior court of any county or other court of competent jurisdiction in which any of the property sought to be condemned is located or in which the owner of any thereof does business, and the court in any such action has jurisdiction to condemn property wherever located within the state. It shall not be necessary to allege or prove any offer to purchase or inability to agree with the owners thereof for the purchase of any such property in the proceedings. It is the intention of this section to permit the consolidation in one action of all condemnation proceedings necessary to acquire a ferry system and every type of property incident thereto, irrespective of its location within the state or diversity of ownership. Upon the filing of a petition for condemnation as provided in this section, the court may issue an order restraining the removal from the jurisdiction of the state of any personal property sought to be acquired by the proceeding during the pendency thereof. The court further has the power to issue such orders or process as are necessary to place the department into possession of any property condemned. [ 1984 c 7 s 298; 1961 c 13 s 47.60.020. Prior: 1949 c 179 s 2; Rem. Supp. 1949 s 6584-31.] RCW 47.60.030 Existing contracts—Prior negotiations and bids validated. In any case where the department takes over any property or properties which are under lease, contract, or concession, or where the department has heretofore entered into any contract or negotiation or received any bid for any of the purposes set forth in this chapter, the department is authorized to continue in effect and carry out any such contract, lease, or concession or complete any such negotiation or accept any such bid or any modification of any of them which appears advantageous to the department without regard to any limitations or directions as to the manner thereof contained in this chapter. However, this section shall not be construed as requiring the department so to act, but this section is permissive only and then only in respect to contracts, leases, concessions, negotiations, or bids existing, entered into, or received prior to April 1, 1949. [ 1984 c 7 s 299; 1961 c 13 s 47.60.030. Prior: 1949 c 179 s 7; Rem. Supp. 1949 s 6584-36.] RCW 47.60.040 Survey by department. For the purpose of obtaining information for the consideration of the department upon the acquisition of any ferries or ferry facilities or the construction of any toll bridge under this chapter, the department shall make any examination, investigation, survey, or reconnaissance for the determination of material facts pertaining thereto. The cost of any such examination, investigation, survey, or reconnaissance, and all preliminary expenses leading up to and resulting in the issuance of any revenue bonds including, but not being limited to expenses in making surveys and appraisals and the drafting, printing, issuance, and sale of bonds under this chapter shall be borne by the department out of the motor vehicle fund. All such costs and expenses as well as any thereof heretofore incurred shall be reimbursed to the motor vehicle fund out of any proceeds derived from the sale of bonds or out of tolls and revenues to be derived by the department through its operations hereunder. [ 1984 c 7 s 300; 1961 c 13 s 47.60.040. Prior: 1949 c 179 s 4, part; Rem. Supp. 1949 s 6584-33, part.] RCW 47.60.050 Improvement of facilities—Financing. Any facility that the department acquires or is authorized to acquire under the provisions of this chapter may be rehabilitated, rebuilt, enlarged, or improved, and the cost thereof may be paid from the revenues of the system or through the issuance of bonds as hereinafter provided. [ 1984 c 7 s 301; 1961 c 13 s 47.60.050. Prior: 1949 c 179 s 3, part; Rem. Supp. 1949 s 6584-32, part.] RCW 47.60.060 Revenue bonds authorized—Issuance—Conditions—Negotiability—Interim bonds. For the purpose of paying the cost of acquiring by lease, charter, contract, purchase, condemnation, or construction all or any part of such Puget Sound ferry system, including toll bridges, approaches, and roadways incidental thereto, and for rehabilitating, rebuilding, enlarging, or improving all or any part of the system, the department is authorized by resolution to issue its revenue bonds which shall constitute obligations only of the department and shall be payable solely and only from all or such part of the revenues from the operation of the system as may be provided in and by the resolution. Each revenue bond shall contain a recital that payment or redemption of the bond and payment of the interest thereon is secured by a direct charge and lien upon the tolls and revenues pledged for that purpose and that the bond does not constitute an indebtedness of the state of Washington. The department is empowered to include in any resolution authorizing the issuance of the bonds such covenants, stipulations, and conditions as may be deemed necessary with respect to the continued use and application of the income and revenues from the undertaking. The revenue bonds may bear such date or dates, may mature at such time or times as the department determines, may bear interest at such rate or rates, may be in such denomination or denominations, may be in such form, either coupon or registered, may carry such registration and conversion privileges, may be made subject to such terms of redemption with or without premium, and may contain such other terms and covenants not inconsistent with this chapter as may be provided in the resolution. Notwithstanding the form or tenor thereof, and in the absence of an express recital on the face thereof that the bond is nonnegotiable, each such revenue bond shall at all times be and shall be treated as a negotiable instrument for all purposes. All such bonds shall be signed by the state treasurer and countersigned by the governor, and any interest coupons appertaining thereto shall bear the signature of the state treasurer. The countersignature of the governor on the bonds and the signature of the state treasurer on the coupons may be their printed or lithographed facsimile signatures. Pending the issuance of definitive bonds, temporary or interim bonds, certificates, or receipts of any denomination and with or without coupons attached may be issued as may be provided by the resolution. [ 1984 c 7 s 302; 1973 c 106 s 28; 1970 ex.s. c 56 s 65; 1969 ex.s. c 232 s 34; 1961 c 13 s 47.60.060. Prior: 1949 c 179 s 4, part; Rem. Supp. 1949 s 6584-33, part.] NOTES: Purpose— RCW 47.60.080 Determining amount of bonds to be issued. In determining the amount of bonds required to be issued there may be included any expenses incurred by the department in connection with and incidental to the issuance and sale of bonds and for the preparation of surveys and estimates and making inspections and examinations, interest during the estimated construction period, and for six months thereafter, and a reasonable amount for working capital and prepaid insurance. [ 1984 c 7 s 303; 1961 c 13 s 47.60.080. Prior: 1949 c 179 s 4, part; Rem. Supp. 1949 s 6584-33, part.] RCW 47.60.090 Sale of bonds—Deposit, disbursement of proceeds. All bonds issued under or by authority of this chapter shall be sold to the highest and best bidder after such advertising for bids as the department deems proper. However, the department may reject any and all bids so submitted and thereafter sell such bonds so advertised under such terms and conditions as it deems most advantageous to its own interests. The purchase price of all bonds issued under this chapter shall be paid to the state treasurer consistent with the provisions of the resolution pursuant to which the bonds have been issued or to the trustee designated in the bond resolution and held as a separate trust fund to be disbursed on the orders of the department. [ 1984 c 7 s 304; 1961 c 13 s 47.60.090. Prior: 1949 c 179 s 4, part; Rem. Supp. 1949 s 6584-33, part.] RCW 47.60.100 Bonds are legal investment for state moneys. Notwithstanding any other provision of the law, bonds issued by the authority shall be legal investments by the state investment board of any state moneys in its hands, except permanent school funds and motor vehicle funds. [ 1981 c 3 s 40; 1961 c 13 s 47.60.100. Prior: 1953 c 154 s 14; 1951 c 259 s 3; 1951 c 121 s 14; 1949 c 179 s 8; Rem. Supp. 1949 s 6584-37.] NOTES: Effective dates— RCW 47.60.110 Bondholders may compel performance. The holder of any bond or the trustee for any bonds designated by resolution may by mandamus or other appropriate proceeding require and compel performance of any duties imposed upon any state department, official or employee, including any duties imposed upon or undertaken by the authority or its officers, agents and employees in connection with the construction, maintenance and operation of the ferry system and in connection with the collection, deposit, investment, application and disbursement of the proceeds of the bonds and the revenue and income derived from the operation of the system. [ 1961 c 13 s 47.60.110. Prior: 1949 c 179 s 4, part; Rem. Supp. 1949 s 6584-33, part.] RCW 47.60.113 Refunding bonds—Authorization—Amount—Interest—Conditions. The department is authorized to refund, at the maturity thereof, or before the maturity thereof if they are subject to call prior to maturity or if all of the holders thereof consent thereto, upon such terms and conditions as it deems best, any or all of its revenue bonds now or hereafter outstanding, issued for the purpose of acquiring, constructing, or reconstructing any toll bridge, toll road, toll tunnel, ferry system, or any other toll facility of any sort, or issued for the purpose of refunding such bonds, which revenue bonds are payable out of all or part of the revenues of the toll facility. Refunding bonds may be issued hereunder in a sufficient amount to provide additional funds for acquiring, constructing, reconstructing, rehabilitating, rebuilding, enlarging, or improving any toll bridge, toll road, toll tunnel, ferry system, or any other toll facility of any sort, and to pay all refunding costs and expenses and to provide adequate reserves for the toll facility and for any such refunding bonds. Various issues and series of such outstanding bonds, including refunding bonds, may be combined and refunded by a single issue of refunding bonds. The refunding bonds shall bear interest at such rates and mature at such times, without limitation by the interest rates or maturity of the bonds being refunded, and shall contain such other covenants and conditions as the department determines by resolution. [ 1984 c 7 s 305; 1961 c 13 s 47.60.113. Prior: 1957 c 152 s 1; 1955 c 17 s 1.] RCW 47.60.114 Refunding bonds—Payable from revenues. Any refunding bonds authorized by this chapter constitute obligations of the department only and not of the state of Washington. They shall be payable solely out of all or such part of the revenues derived from the operation of the toll bridge, toll road, toll tunnel, ferry system, or any other toll facility, as shall be provided in the resolution authorizing the issuance of the refunding bonds. [ 1984 c 7 s 306; 1961 c 13 s 47.60.114. Prior: 1957 c 152 s 2; 1955 c 17 s 2.] RCW 47.60.115 Refunding bonds—Disposition—Laws applicable. The bonds herein authorized shall, in the discretion of the department, be exchanged at the best possible price for the bonds being refunded, or any such bonds not exchanged shall be sold in the manner provided in RCW 47.60.090. The bonds herein authorized shall be issued in accordance with, and shall be subject to, the provisions of RCW 47.60.050, 47.60.060, 47.60.080, 47.60.100, 47.60.110, and 47.60.120. [ 1983 c 3 s 134; 1961 c 13 s 47.60.115. Prior: 1957 c 152 s 3; 1955 c 17 s 3.] RCW 47.60.120 Other crossings—Infringement of existing franchises—Waivers. (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 10 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 10-mile distance in subsection (1) of this section means 10 statute miles measured by airline distance. The 10-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 10-mile restriction. The waiver must not be detrimental to the public interest. In making a decision to waive the 10-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 90 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 30 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 by public transportation benefit areas meeting the requirements of RCW 36.57A.200 or to the operation of ferry service by ferry districts. [ 2026 c 187 s 5. Prior: 2003 c 373 s 2; 2003 c 83 s 204; 1993 c 427 s 1; 1984 c 7 s 307; 1961 c 13 s 47.60.120; prior: 1949 c 179 s 6; Rem. Supp. 1949 s 6584-35.] NOTES: Findings— RCW 47.60.122 Ferries, terminal facilities—Interim revenue warrants authorized. For the purpose of paying the cost of acquiring, constructing, or reconstructing ferries or ferry terminal facilities, and all costs which may be incurred in connection therewith, the department is authorized to issue interim revenue warrants, which shall constitute obligations only of the department, and which shall not be obligations of the state of Washington. Such warrants shall be payable solely out of part or all of the revenues derived from the operation of the Puget Sound ferry system as shall be provided in the resolution authorizing their issuance, and shall be drawn upon, and the principal thereof and interest thereon shall be payable out of, such fund or funds as shall be created in and provided by the resolution. The warrants may be interest-bearing coupon warrants with a fixed maturity date, or may be interest-bearing registered warrants payable in order of their issuance whenever there is sufficient money in the fund upon which they were drawn to redeem any of them. [ 1984 c 7 s 308; 1961 c 13 s 47.60.122. Prior: 1953 c 159 s 1.] RCW 47.60.124 Revenue refunding bonds to redeem interim warrants. If it is deemed advisable or found necessary to redeem any or all of such warrants, the department is authorized to issue its revenue refunding bonds for that purpose. The bonds shall constitute obligations only of the department, and shall not be obligations of the state of Washington. The refunding bonds shall be payable solely out of part or all of the revenues derived from the operation of the Puget Sound ferry system as shall be provided in the resolution authorizing their issuance. [ 1984 c 7 s 309; 1961 c 13 s 47.60.124. Prior: 1953 c 159 s 2.] RCW 47.60.126 Interim warrants and refunding bonds—Laws applicable. All provisions of chapter 47.60 RCW pertaining and applicable to the revenue bonds of the department authorized in that chapter are applicable to the warrants and revenue refunding bonds authorized herein except insofar as otherwise provided by RCW 47.60.122 through 47.60.126. [ 1984 c 7 s 310; 1961 c 13 s 47.60.126. Prior: 1953 c 159 s 3.] RCW 47.60.130 Unit or combined operation—Continuous project—Rental, charter, lease of system property—Sale of unneeded property. Such ferry system, including any toll bridges, approaches, and roadways incidental thereto, may be financed and operated in combination or separately as one or more units as the department of transportation may determine, and such ferry system together with any toll bridge hereafter constructed by the department upon or across the waters of Puget Sound or Hood Canal, or any part of either, replacing one or more presently operated ferry routes, is declared to be a continuous project within the meaning of *RCW 47.56.070. The department is empowered to rent, lease, or charter any property acquired under this chapter. If the department determines that any real property (including lands, improvements thereon, and any interests or estates) originally acquired for the ferry system is no longer required for the purposes of the ferry system, the department shall offer it for sale in the manner and with the authority authorized to the department by RCW 47.12.063 or 47.12.283. The secretary of transportation may adopt rules further implementing this section. The proceeds of all such sales shall be paid into the separate trust fund of the state treasury established pursuant to **RCW 47.60.150. [ 1979 ex.s. c 189 s 6; 1973 1st ex.s. c 177 s 5; 1961 c 13 s 47.60.130. Prior: 1955 c 22 s 1; 1953 c 32 s 1; 1949 c 179 s 3, part; Rem. Supp. 1949 s 6584-32, part.] NOTES: Reviser's note: RCW 47.60.135 Charter of state ferries—Hazardous materials. (1) The charter use of Washington State Ferry vessels when established route operations and normal user requirements are not disrupted is permissible. In establishing chartering agreements, Washington State Ferries shall consider the special needs of local communities and interested parties. Washington State Ferries shall use sound business judgment and be sensitive to the interests of existing private enterprises. (2) Consistent with the policy as established in subsection (1) of this section, the chief executive officer of the Washington State Ferries may approve agreements for the chartering of Washington State Ferry vessels to groups or individuals, including hazardous material transporters, in accordance with the following: (a) Vessels may be committed to charter only when established route operation and normal user requirements are not disrupted or inconvenienced. If a vessel is engaged in the transport of hazardous materials, the transporter shall pay for all legs necessary to complete the charter, even if the vessel is simultaneously engaged in an operational voyage on behalf of Washington State Ferries. (b) Charter rates for vessels must be established at actual vessel operating costs plus a market-rate profit margin. Actual vessel operating costs include, but are not limited to, all labor, fuel, and vessel maintenance costs incurred due to the charter agreement, including deadheading and standby. (c) Parties chartering Washington State Ferry vessels shall comply with all applicable laws, rules, and regulations during the charter voyage, and failure to so comply is cause for immediate termination of the charter voyage. [ 2003 c 374 s 1; 1997 c 323 s 2.] NOTES: Finding— RCW 47.60.140 System as self-liquidating undertaking—Powers of department—Concessions. (1) The department is empowered to operate such ferry system, including all operations, whether intrastate or international, upon any route or routes, and toll bridges as a revenue-producing and self-liquidating undertaking. The department has full charge of the construction, rehabilitation, rebuilding, enlarging, improving, operation, and maintenance of the ferry system, including toll bridges, approaches, and roadways incidental thereto that may be authorized by the department, including the collection of tolls and other charges for the services and facilities of the undertaking. The department has the exclusive right to enter into leases and contracts for use and occupancy by other parties of the concessions and space located on the ferries, wharves, docks, approaches, parking lots, and landings, including the selling of commercial advertising space and licenses to use the Washington State Ferries trademarks, but, except as provided in subsection (2) of this section, no such leases or contracts may be entered into for more than ten years, nor without a competitive contract process, except as otherwise provided in this section. The competitive process shall be either an invitation for bids in accordance with the process established by chapter 43.19 RCW, or a request for proposals in accordance with the process established by RCW 47.56.030. All revenues from commercial advertising, concessions, parking, leases, and contracts must be deposited in the Puget Sound ferry operations account in accordance with *RCW 47.60.150. (2) As part of a joint development agreement under which a public or private developer constructs or installs improvements on ferry system property, the department may lease all or part of such property and improvements to such developers for that period of time, not to exceed fifty-five years, or not to exceed thirty years for those areas located within harbor areas, which the department determines is necessary to allow the developer to make reasonable recovery on its initial investment. Any lease entered into as provided for in this subsection that involves state aquatic lands shall conform with the Washington state Constitution and applicable statutory requirements as determined by the department of natural resources. That portion of the lease rate attributable to the state aquatic lands shall be distributed in the same manner as other lease revenues derived from state aquatic lands as provided in **RCW 79.24.580. (3) The department shall include in the strategic planning and performance assessment process, as required by RCW 43.88.090, an analysis of the compatibility of public and private partnerships with the state ferry system's core business, and the department's efforts to maximize nonfarebox revenues and provide benefit to the public users of the ferry system facilities. The department shall include an assessment of the need for an open solicitation to identify and select possible public or private partnerships in order to maximize the value of projects and the state's investment in current and future ferry system operations. (a) When the department determines that an open solicitation is necessary, a request for proposal shall be released, consisting of an open solicitation outlining functional specifications to be used as the basis for selecting partnerships in the project. (b) Any responses to the request for proposal shall be evaluated, at a minimum, on the basis of compatibility with the state ferry system's core business, potential to maximize nonfarebox revenue, longevity of the possible partnership commitment, and benefit to the public users of the ferry system facilities. (c) If no responses are received, or those that are received are incompatible with ferry system operations, or do not meet the criteria stated in (b) of this subsection, the state ferry system may proceed with state ferry system operating strategies designed to achieve state ferry system objectives without established partnerships. [ 2003 c 374 s 2; 1995 1st sp.s. c 4 s 2; 1987 c 69 s 1; 1984 c 7 s 311; 1965 ex.s. c 170 s 58; 1961 c 13 s 47.60.140. Prior: 1951 c 259 s 1; 1949 c 179 s 5, part; Rem. Supp. 1949 s 6584-34, part.] NOTES: Reviser's note: RCW 47.60.145 Historic ferries—Acquisition by qualified persons or organizations. (1) An "historic ferry" is any vessel in the Washington state ferries fleet which has been listed in the Washington state register of historic places. (2) When the department of transportation determines that an historic ferry is surplus to the needs of Washington state ferries, the department shall call for proposals from persons who wish to acquire the historic ferry. Proposals for the acquisition of an historic ferry shall be accepted only from persons or organizations that (a) are a governmental entity or a nonprofit corporation or association dedicated to the preservation of historic properties; (b) agree to a contract approved by the state historic preservation officer, which requires the preservation and maintenance of the historic ferry and provides that title to the ferry reverts to the state if the secretary of transportation determines that the contract has been violated; and (c) demonstrate the administrative and financial ability successfully to comply with the contract. (3) The department shall evaluate the qualifying proposals and shall select the proposal which is most advantageous to the state. Factors to be considered in making the selection shall include but not be limited to: (a) Extent and quality of restoration; (b) Retention of original design and use; (c) Public access to the vessel; (d) Provisions for historical interpretation; (e) Monetary return to the state. (4) If there are no qualifying proposals, an historic ferry shall be disposed of in the manner provided by state law. [ 1982 c 210 s 1.] NOTES: Severability— RCW 47.60.170 Ferries revolving fund—Deposit of excess funds. Nothing in *RCW 47.60.150 forbids the establishment by the department of a Washington state ferries revolving fund of not to exceed six hundred thousand dollars from the proceeds of any bonds sold under the provisions of this chapter. The fund may be deposited by the department in such banks or financial institutions as it may select throughout the state. RCW 43.01.050 does not apply to the fund or any deposits therein made by the department under this section. The department may deposit all moneys received under this chapter in the fund. All expenses whatsoever arising in the operations of the Puget Sound ferry system shall be paid from the fund, if established, by check or voucher in such manner as may be prescribed by the department. All moneys received by the department or any employee under the foregoing sections of this chapter, except an amount of petty cash for each day's needs as fixed by the regulation of the department, shall each day and as often during the day as advisable, be deposited in the nearest authorized depositary selected by the department under this section. Whenever the fund exceeds six hundred thousand dollars, the department shall forthwith transmit the excess to the state treasurer for deposit in the trust fund established by *RCW 47.60.150. [ 1984 c 7 s 313; 1970 ex.s. c 85 s 6; 1961 c 13 s 47.60.170. Prior: 1951 c 259 s 13.] NOTES: *Reviser's note: RCW 47.60.200 Consent to liability not general liability of state. Any consent to liability given under the provisions of this chapter creates liability of the department only and does not create any general liability of the state. [ 1984 c 7 s 314; 1961 c 13 s 47.60.200. Prior: 1951 c 259 s 5.] RCW 47.60.210 Seamen may sue for injuries—Venue. The state consents to suits against the department by seamen for injuries occurring upon vessels of the department in accordance with the provisions of section 688, Title 46, of the United States code. The venue of such actions may be in the superior court for Thurston county or the county where the injury occurred. [ 1984 c 7 s 315; 1961 c 13 s 47.60.210. Prior: 1951 c 259 s 6.] RCW 47.60.220 Department as common carrier—Rights and liabilities. The department has all the obligations, duties, and rights of a common carrier of persons and property in its operation of ferries, terminals, or other facilities used in its ferry operations, including the right to participate in joint rates and through routes, agreements, and divisions of through and joint rates with railroads and other common carriers and the right to make any filings with the interstate commerce commission, the United States maritime commission, or any other state or federal regulatory or governmental body and to comply with the lawful rules and regulations or requirements of any such body, and is subject to laws relating to carrier's liability for loss or damage to property transported, and for personal injury or death of persons transported. [ 1984 c 7 s 316; 1961 c 13 s 47.60.220. Prior: 1951 c 259 s 7.] RCW 47.60.230 Liability for damages as to persons or property. In case of property loss or damage or personal injuries or death resulting from the operation of any ferry or terminal by the department, any person or the personal representative of any person, subject to and to the extent hereinafter provided, has a right of action against the department for the damage, loss, injury, or death. [ 1984 c 7 s 317; 1961 c 13 s 47.60.230. Prior: 1951 c 259 s 8.] RCW 47.60.240 Liability to persons other than shippers or passengers—Limitation. The right of action extended by this chapter is applicable to loss or damage of property and/or personal injury or death resulting from the operation of ferries or terminals by the department to persons other than shippers or passengers, but any recovery of damages in such cases shall not exceed an amount equal to the limitations of the insurance carried by the department to insure it against loss for such liability. [ 1984 c 7 s 318; 1961 c 13 s 47.60.240. Prior: 1951 c 259 s 9.] RCW 47.60.250 Claim for damages—Filing—Contents—Time limitations. As a condition to a recovery thereon, a verified claim against the department growing out of such damages, loss, injuries, or death must first be presented to the department and filed with the secretary within one hundred twenty days after the time when the claim accrued. If the claimant is incapacitated from verifying and filing a claim within the one hundred twenty days, or if the claimant is a minor, then the claim may be verified and presented on behalf of the claimant by his or her relative, attorney, or agent. Each claim must accurately locate and describe the event or defect that caused the damage, loss, injury, or death, reasonably describe the damage, loss, or injury, and state the time when the damage, loss, or injury occurred, give the claimant's residence for the last six months, and contain the items of damages claimed. No action may be maintained against the department upon the claim until the claim has been presented to, and filed with, the department and sixty days have elapsed after the presentation and filing, nor more than three years after the claim accrued. With respect to the content of the claims, this section shall be liberally construed so that substantial compliance will be deemed satisfactory. [ 1984 c 7 s 319; 1967 c 164 s 3; 1961 c 13 s 47.60.250. Prior: 1951 c 259 s 10.] NOTES: Purpose— RCW 47.60.260 Payment of claims. The department may upon such terms and conditions as it may impose and under such rules as it may adopt, pay claims arising under its operation of ferries or terminals or compromise or settle the claims. No claim may be paid by the department or any settlement or compromise of it be made except from the operating revenues of the department derived from its operation of ferries or terminals or from the proceeds of insurance recoveries. [ 1984 c 7 s 320; 1961 c 13 s 47.60.260. Prior: 1951 c 259 s 11.] RCW 47.60.270 Venue of actions—Enforcement of judgment. Actions for the recovery of damages under RCW 47.60.220 through 47.60.260 may be brought in Thurston county or in the county in which the aggrieved person resides. No execution upon a judgment or attachment may be levied against the property of the department, nor does the state consent to any maritime lien against vessels of the department, but the department may be required by order of court to pay any judgment. [ 1984 c 7 s 321; 1961 c 13 s 47.60.270. Prior: 1951 c 259 s 12.] RCW 47.60.275 Local law enforcement officers on ferries and terminals. Law enforcement officers of cities, towns, and counties which are served by state ferries shall have, and are hereby authorized to exercise, concurrent jurisdiction and authority with state law enforcement officers in the enforcement of laws of the state and local governmental divisions at those state ferry terminals located within the respective governmental division served by such local law enforcement officers and on state ferries at the terminals and throughout the ferry runs, notwithstanding that the ferry may not be in the officer's governmental division. [ 1969 ex.s. c 13 s 1.] RCW 47.60.280 Ferry service—Lummi Island to Orcas Island—Limitation on operation. The department is authorized and directed to establish and operate a ferry service from a suitable point on Lummi Island in Whatcom county to a suitable point on Orcas Island in San Juan county by the most feasible route if and when Whatcom county constructs a bridge from Gooseberry Point on the mainland to Lummi Island. The actual operation of the ferry service shall not begin until Whatcom county has completed the construction of such bridge. [ 1984 c 7 s 322; 1961 c 13 s 47.60.280. Prior: 1959 c 198 s 1.] RCW 47.60.282 Ferry service between Port Townsend and Keystone—Operation authorized, when. The department is authorized to operate a ferry service between Port Townsend and Keystone on Admiralty Inlet if the certificate of convenience and necessity for the ferry operation is theretofore surrendered, rights thereunder are abandoned, and the ferry service is discontinued. In no event may the department undertake such a ferry service preceding events as set forth herein or before April 1, 1973. [ 1984 c 7 s 323; 1972 ex.s. c 44 s 1.] RCW 47.60.283 Ferry service between Port Townsend and Keystone—Purpose. The purpose of RCW 47.60.282 and 47.60.283 is to provide service on the ferry route between Port Townsend and Keystone to be determined by the department. Operation of this route is necessary for the economic health, safety, and welfare of the people of the state. Additionally, state operation of this route will further benefit the people of the state by providing better access to important installations maintained by the United States Navy and the United States Coast Guard. [ 1984 c 7 s 324; 1972 ex.s. c 44 s 2.] RCW 47.60.286 Ferry user data survey. (1) The commission shall, with the involvement of the department, conduct a survey to gather data on ferry users to help inform level of service, operational, pricing, planning, and investment decisions. The survey must include, but is not limited to: (a) Recreational use; (b) Walk-on customer use; (c) Vehicle customer use; (d) Freight and goods movement demand; and (e) Reactions to potential operational strategies and pricing policies described under RCW 47.60.327 and 47.60.290. (2) The commission shall develop the survey after providing an opportunity for ferry advisory committees to offer input. (3) The survey must be updated at least every two years and maintained to support the development and implementation of adaptive management of ferry services. [ 2007 c 512 s 4.] NOTES: Finding— RCW 47.60.290 State ferries—Review of fares and pricing policies—Proposals. (1) The department shall annually review fares and pricing policies applicable to the operation of the Washington state ferries. (2) Beginning in 2008, the department shall develop fare and pricing policy proposals that must: (a) Recognize that each travel shed is unique, and might not have the same farebox recovery rate and the same pricing policies; (b) Use data from the current survey conducted under RCW 47.60.286; (c) Be developed with input from affected ferry users by public hearing and by review with the affected ferry advisory committees, in addition to the data gathered from the survey conducted in RCW 47.60.286; (d) Generate the amount of revenue required by the biennial transportation budget; (e) Consider the impacts on users, capacity, and local communities; and (f) Keep fare schedules as simple as possible. (3) While developing fare and pricing policy proposals, the department must consider the following: (a) Options for using pricing to level vehicle peak demand; and (b) Options for using pricing to increase off-peak ridership. [ 2007 c 512 s 5; 1983 c 3 s 136; 1972 ex.s. c 24 s 6; 1961 c 13 s 47.60.290. Prior: 1959 c 199 s 1.] NOTES: Finding— RCW 47.60.300 State ferries—Scope of review—Periodic reviews required. The review shall include but not be limited to tariffs for automobiles, passengers, trucks, commutation rates, and volume discounts. The review shall give proper consideration to time of travel, distance of travel, operating costs, maintenance and repair expenses, and the resultant effect any change in tariff might have on the debt service requirements of the department as specifically provided in existing financing programs. The review shall also include the allocation of vessels to particular runs, the scheduling of particular runs, the adequacy and arrangements of docks and dock facilities, and any other subject deemed by the department to be properly within the scope of the review. The department is further authorized and directed to make a like review within every three-year period. [ 1984 c 7 s 325; 1961 c 13 s 47.60.300. Prior: 1959 c 199 s 2.] RCW 47.60.310 State ferries—Local expressions—Ferry advisory committees. (1) The department is further directed to conduct such review by soliciting and obtaining expressions from local community groups in order to be properly informed as to problems being experienced within the area served by the Washington state ferries. In order that local representation may be established, the department shall give prior notice of the review to the ferry advisory committees. (2) The legislative authorities of San Juan, Skagit, Clallam, and Jefferson counties shall each appoint a committee to consist of five members to serve as an advisory committee to the department or its designated representative in such review. The legislative authorities of other counties that contain ferry terminals shall appoint ferry advisory committees consisting of three members for each terminal area in each county, except for Vashon Island, which shall have one committee, and its members shall be appointed by the Vashon/Maury Island community council. If the Vashon/Maury Island community council fails to appoint a qualified person to fill a vacancy within ninety days of the occurrence of the vacancy, the legislative authority of King county shall appoint a qualified person to fill the vacancy. At least one person appointed to each ferry advisory committee shall be representative of an established ferry user group or of frequent users of the ferry system. Each member shall reside in the vicinity of the terminal that the advisory committee represents. (3) The members of the San Juan, Clallam, and Jefferson county ferry advisory committees shall be appointed for four-year terms. The initial terms shall commence on July 1, 1982, and end on June 30, 1986. Any vacancy shall be filled for the remainder of the unexpired term by the appointing authority. At least one person appointed to the advisory committee shall be representative of an established ferry-user group or of frequent users of the ferry system, at least one shall be representative of persons or firms using or depending upon the ferry system for commerce, and one member shall be representative of a local government planning body or its staff. Every member shall be a resident of the county upon whose advisory committee he or she sits, and not more than three members shall at the time of their appointment be members of the same major political party. (4) The members of each terminal area committee shall be appointed for four-year terms. The initial terms of the members of each terminal area committee shall be staggered as follows: All terms shall commence September 1, 1988, with one member's term expiring August 31, 1990, one member's term expiring August 31, 1991, and the remaining member's term expiring August 31, 1992. Any vacancy shall be filled for the remainder of the unexpired term by the appointing authority. Not more than two members of any terminal-area committee may be from the same political party at the time of their appointment, and in a county having more than one committee, the overall party representation shall be as nearly equal as possible. (5) The chairs of the several committees constitute an executive committee of the Washington state ferry users. The executive committee shall meet twice each year with representatives of the marine division of the department to review ferry system issues. (6) The committees to be appointed by the county legislative authorities shall serve without fee or compensation. [ 2016 c 25 s 1; 2010 c 8 s 10020; 1988 c 100 s 1; 1983 c 15 s 24; 1983 c 3 s 137; 1977 c 29 s 1; 1961 c 13 s 47.60.310. Prior: 1959 c 199 s 3.] RCW 47.60.315 Fares and pricing policies—Adoption schedule—Revenues—Vessel replacement surcharges. (1) The commission shall adopt fares and pricing policies by rule, under chapter 34.05 RCW, according to the following schedule: (a) Each year the department shall provide the commission a report of its review of fares and pricing policies, with recommendations for the revision of fares and pricing policies for the ensuing year; (b) By September 1st of each year, beginning in 2008, the commission shall adopt by rule fares and pricing policies for the ensuing year. (2) The commission may adopt by rule fares that are effective for more or less than one year for the purposes of transitioning to the fare schedule in subsection (1) of this section. (3) The commission may increase ferry fares included in the schedule of charges adopted under this section by a percentage that exceeds the fiscal growth factor. (4) The chief executive officer of the ferry system may authorize the use of promotional, discounted, and special event fares to the general public and commercial enterprises for the purpose of maximizing capacity use and the revenues collected by the ferry system. The department shall report to the commission a summary of the promotional, discounted, and special event fares offered during each fiscal year and the financial results from these activities. (5) Fare revenues and other revenues deposited in the Puget Sound ferry operations account created in RCW 47.60.530 may not be used to support the Puget Sound capital construction account created in RCW 47.60.505, unless the support for capital is separately identified in the fare or except as provided in section 716, chapter 472, Laws of 2023 during the 2023-2025 fiscal biennium and section 716, chapter 416, Laws of 2025 during the 2025-2027 fiscal biennium. (6) The commission may not raise fares until the fare rules contain pricing policies developed under RCW 47.60.290, or September 1, 2009, whichever is later. (7) The commission shall impose a vessel replacement surcharge of 75 cents on every one-way and round-trip ferry fare sold, including multiride and monthly pass fares. Beginning October 1, 2027, the commission shall raise the vessel replacement surcharge under this subsection to 85 cents. Beginning October 1, 2029, the commission shall raise the vessel replacement surcharge under this subsection to 95 cents. This surcharge must be clearly indicated to ferry passengers and drivers and, if possible, on the fare media itself. (8) Except as provided in subsection (10) of this section, beginning May 1, 2020, the commission shall impose an additional vessel replacement surcharge in an amount sufficient to fund 25 year debt service on one 144-auto hybrid vessel taking into account funds provided in chapter 417, Laws of 2019. The department of transportation shall provide to the commission vessel and debt service cost estimates. Information on vessels constructed or purchased with revenue from the surcharges must be publicly posted including, but not limited to, the commission website. (9) The vessel replacement surcharges imposed in this section may only be used for the construction or purchase of ferry vessels and to pay the principal and interest on bonds authorized for the construction or purchase of new ferry vessels. (10) The commission shall not impose the additional vessel replacement surcharge in subsection (8) of this section if doing so would increase fares by more than 10 percent. (11) For the 2023-2025 and 2025-2027 fiscal biennia, any ferry fuel surcharge imposed by the commission may not go into effect until after the ensuing regular legislative session. If a fuel surcharge is imposed as provided under this subsection, the commission must reevaluate the need for the surcharge on at least a quarterly basis to determine if the surcharge is still needed to cover increased fuel costs, and revoke the surcharge if the determination is that the surcharge is no longer needed for this purpose. [ 2025 c 417 s 401; 2025 c 416 s 715; 2023 c 472 s 714; 2021 c 333 s 716; 2019 c 431 s 3; 2011 1st sp.s. c 16 s 3; 2007 c 512 s 6.] NOTES: Reviser's note: RCW 47.60.322 Capital vessel replacement account—Transfers. (1) The capital vessel replacement account is created in the motor vehicle fund. All revenues generated from the vessel replacement surcharges under RCW 47.60.315 (7) and (8), and service fees collected by the department of licensing or county auditor or other agent appointed by the director under RCW 46.17.040, 46.17.050, and 46.17.060, must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the construction or purchase of ferry vessels and to pay the principal and interest on bonds authorized for the construction or purchase of ferry vessels. (2) The legislature may transfer from the capital vessel replacement account to the connecting Washington account created under RCW 46.68.395 such amounts as reflect the excess fund balance of the capital vessel replacement account to be used for ferry terminal construction and preservation. (3) During the 2021-2023 and 2023-2025 fiscal biennia, the legislature may direct the state treasurer to make transfers of moneys in the capital vessel replacement account to the transportation partnership account and the connecting Washington account. (4) During the 2025-2027 fiscal biennium, the legislature may direct the state treasurer to make transfers of moneys in the capital vessel replacement account to the Puget Sound capital construction account. [ 2026 c 257 s 708; 2025 c 417 s 402; 2023 c 472 s 715; 2021 c 333 s 712; 2019 c 416 s 716; 2015 3rd sp.s. c 44 s 213; 2014 c 59 s 1; 2011 1st sp.s. c 16 s 2.] NOTES: Effective date— RCW 47.60.327 Operational strategies for asset utilization. (1) The department shall develop, and the commission shall review, operational strategies to ensure that existing assets are fully utilized and to guide future investment decisions. These operational strategies must, at a minimum: (a) Recognize that each travel shed is unique and might not have the same operational strategies; (b) Use data from the current survey conducted under RCW 47.60.286; (c) Be consistent with vehicle level of service standards; (d) Choose the most efficient balance of capital and operating investments by using a life-cycle cost analysis; and (e) Use methods of collecting fares that maximize efficiency and achieve revenue management control. (2) After the commission reviews recommendations by the department, the commission and department shall make joint recommendations to the legislature for the improvement of operational strategies. (3) In developing operational strategies, the following, at a minimum, must be considered: (a) The feasibility of using reservation systems; (b) Methods of shifting vehicular traffic to other modes of transportation; (c) Methods of improving on-dock operations to maximize efficiency and minimize operating and capital costs; (d) A cost-benefit analysis of remote holding versus overwater holding; (e) Methods of reorganizing holding areas and minimizing on-dock employee parking to maximize the dock size available for customer vehicles; (f) Schedule modifications; (g) Efficiencies in exit queuing and metering; (h) Interoperability with other transportation services; (i) Options for leveling vehicle peak demand; and (j) Options for increasing off-peak ridership. (4) Operational strategies must be reevaluated periodically and, at a minimum, before developing a new capital plan. [ 2007 c 512 s 7.] NOTES: Finding— RCW 47.60.330 Public participation—Legislative approval. (1) Before a substantial change to the service levels provided to ferry users, the department shall consult with affected ferry users by public hearing and by review with the affected ferry advisory committees. (2) Before adding or eliminating a ferry route, the department shall consult with affected ferry users and receive legislative approval. [ 2007 c 512 s 8; 2003 c 374 s 5; 1983 c 15 s 26.] NOTES: Finding— RCW 47.60.335 Appropriation limitations—Capital program cost allocation. (1) Appropriations made for the Washington state ferries capital program may not be used for maintenance costs. (2) Appropriations made for preservation projects shall be spent only on preservation and only when warranted by asset condition, and shall not be spent on master plans, right-of-way acquisition, or other nonpreservation items. (3) Systemwide and administrative capital program costs shall be allocated to specific capital projects using a cost allocation plan developed by the department. Systemwide and administrative capital program costs shall be identifiable. (4) The vessel emergency repair budget may not be used for planned maintenance and inspections of inactive vessels. [ 2008 c 124 s 7; 2007 c 512 s 9.] NOTES: Finding— RCW 47.60.340 Vessel maintenance and preservation program—Report. (1) The department shall develop and maintain a vessel maintenance and preservation program that meets or exceeds all federal requirements and, at a minimum: (a) Includes a bilge and void maintenance program; (b) Includes a visual inspection/audio gauging steel preservation program; and (c) Uses a lowest life-cycle cost method. (2) The vessel maintenance and preservation program must maximize cost efficiency by, at a minimum: (a) Reducing planned out-of-service time to the greatest extent possible; and (b) Striving to eliminate planned peak season out-of-service periods. (3) When construction is underway for the replacement of a vessel, the vessel that is scheduled for retirement is exempt from the requirement in subsection (1)(c) of this section. (4) The department shall include a plain language status report on the maintenance and preservation vessel program with each budget submittal to the office of financial management. This report must include, at a minimum: (a) A description of the maintenance and preservation of each vessel in the fleet; (b) A highlight and explanation of any significant deviation from the norm; (c) A highlight and explanation of any significant deviation from the vessel preservation plan required under RCW 47.60.375; (d) A highlight and explanation of decisions not to invest in vessels; and (e) A highlight and explanation of decisions to invest early in vessels. [ 2008 c 124 s 5.] RCW 47.60.345 Life-cycle cost model on capital assets. (1) The department shall maintain a life-cycle cost model on capital assets such that: (a) Available industry standards are used for estimating the life of an asset, and department-adopted standard life cycles derived from the experience of similar public and private entities are used when industry standards are not available; (b) Standard estimated life is adjusted for asset condition when inspections are made; (c) It does not include utilities or other systems that are not replaced on a standard life cycle; and (d) It does not include assets not yet built. (2) All assets in the life-cycle cost model must be inspected and updated in the life-cycle cost model for asset condition at least every three years. (3) The life-cycle cost model shall be used when estimating future terminal and vessel preservation needs. (4) The life-cycle cost model shall be the basis for developing the budget request for terminal and vessel preservation funding. [ 2008 c 124 s 4; 2007 c 512 s 10.] NOTES: Finding— RCW 47.60.355 Terminal and ve