2SHB 1923
IntroducedHouse
Passenger-only ferries
Increasing the availability of passenger-only ferries by establishing the mosquito fleet act.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill creates a new framework for local governments to establish passenger-only ferry districts and receive state funding to expand ferry service—especially to fill gaps during Washington State Ferries disruptions. It also sets up a dedicated grant program and ensures ongoing funding through state investment earnings.
- Creates passenger-only ferry service districts that local governments (counties, ports, transit agencies, etc.) can establish to operate ferry services, with powers to buy vessels, build docks, contract operations, and raise revenue.
- Establishes a local passenger-only ferry grant program, funded by state treasury investment earnings, to help districts purchase used ferries, improve docks, operate services, and study new routes.
- Adds the local passenger-only ferry account to the list of accounts that receive a share of state treasury investment earnings, based on average daily balance.
- Authorizes districts to use public-private partnerships and alternative procurement methods (e.g., design-build) to speed up project delivery.
- Includes provisions for dissolving ferry districts once obligations are paid off, and sets a sunset date for the investment earnings allocation (July 1, 2028).
Who is affected
- Local governments and transportation agencies — Counties, port districts, public transportation benefit areas, cities, and other local transportation agencies gain new authority to create special districts to operate passenger-only ferries, including powers to acquire vessels and facilities, issue contracts, and collect revenues.
- Residents of ferry-dependent communities — Communities relying on ferry service—especially in island, coastal, and rural areas—gain improved access to reliable transportation for jobs, health care, and education, and benefit from reduced traffic and travel time during ferry disruptions.
- Maritime workforce and training programs — Mariners and maritime workers gain new pathways to career advancement through training and licensing upgrades to operate larger vessels, including potential pathways to jobs with Washington State Ferries or private operators.
- Tourism-dependent small businesses — Small tourism- and hospitality-related businesses (e.g., restaurants, lodging, retail) in ferry-served communities benefit from increased visitor access and reliability, especially during major events like the FIFA World Cup.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The bill significantly expands access to ferry service for ferry-dependent communities—especially islands, coastal, and rural areas—by enabling local governments to quickly establish new routes using used vessels and modular infrastructure. This improves access to jobs, health care, and education, and provides critical redundancy during Washington State Ferries disruptions. The use of used vessels and design-build procurement accelerates deployment, directly benefiting communities with high transit dependency.
TransportationPeopleRef: Sec. 1 (findings); Sec. 2(1) (expands eligible entities to include all counties, ports, transit agencies bordering navigable water); Sec. 4(1)(a) (grants for purchase of used vessels and dock improvements)The bill creates a new grant program to support feasibility studies and operations of passenger-only ferries, which directly benefits small tourism- and hospitality-related businesses in ferry-served communities by increasing visitor access and reliability. It also supports workforce development by enabling mariners to upgrade licenses and transition to larger vessels—including Washington State Ferries—creating new career pathways for low- and middle-income workers.
Business & EmploymentPeopleRef: Sec. 1 (findings); Sec. 4(1)(c) (grants for feasibility studies); Sec. 4(1)(b) (grants for operations and maintenance)The bill empowers local governments—including counties, ports, and transit agencies—to establish quasi-municipal ferry districts with broad operational and procurement flexibility (e.g., design-build, P3s), enabling faster, more responsive service delivery. This is especially valuable for smaller jurisdictions that lack in-house ferry expertise but can partner with private operators to fill gaps in service.
Local GovernmentPeopleRef: Sec. 1 (findings); Sec. 2(3) (grants districts 'usual powers of a corporation for public purposes'); Sec. 2(4) (authorizes public-private partnerships and alternative procurement)The bill creates a new dedicated funding stream—grants from state treasury investment earnings—for ferry districts to purchase vessels, improve docks, and operate services. Because the account receives a share of earnings based on average daily balance, it provides predictable, non-appropriated funding that avoids competitive budget battles—reducing fiscal uncertainty for local governments.
FinancialPeopleRef: Sec. 1 (findings); Sec. 4 (establishes grant program funded by state treasury investment earnings); Sec. 5(4)(a) (includes 'local passenger-only ferry account' in earnings distribution list)The bill includes a sunset and dissolution clause, which provides a built-in fiscal safeguard: districts must repay obligations or transfer them before dissolving, preventing perpetual debt. While the 2028 sunset limits long-term funding, it also creates a built-in review point for legislative oversight—potentially leading to more responsible fiscal planning.
Local GovernmentLean peopleRef: Sec. 1 (findings); Sec. 2(5) (authorizes dissolution after obligations paid off); Sec. 9 (sunset of investment earnings allocation on July 1, 2028)
Potential Concerns (5)
The bill diverts state treasury investment earnings—generated from public pension and trust funds—to fund a new grant program, reducing funds available for other state priorities like K–12 education, higher education, or health care. Because investment earnings are currently allocated across dozens of accounts based on average daily balances, adding a new account dilutes returns for all others, especially those with smaller balances (e.g., education construction fund, early learning facilities). This is not a new tax but a reallocation that reduces funding for existing public services.
FinancialPeopleRef: Sec. 4(2); Sec. 5(4)(a) (listing 'local passenger-only ferry account' among accounts receiving proportionate share of investment earnings)The bill authorizes ferry districts to become independent taxing authorities, enabling them to levy local taxes (e.g., property or sales taxes) to fund operations. While this provides flexibility, it adds administrative complexity and could increase local tax burdens—especially in smaller or fiscally strained jurisdictions—without guaranteeing matching state support or cost controls. The authority is broad but not capped, raising long-term fiscal risk for local governments.
Local GovernmentPeopleRef: Sec. 2(4) (requires districts to develop investment plans including 'locally collected tax revenues' as revenue source); Sec. 2(3) (grants districts 'independent taxing authority' status)The bill allows ferry districts to impose tolls or user fees, which may disproportionately burden low-income riders who rely on ferries as their only practical transportation link—especially in island and rural communities. Without statutory fare caps or income-based subsidies, cost-sharing could reduce ridership and accessibility, undermining the bill’s stated equity goals.
TransportationLean peopleRef: Sec. 2(4) (requires districts to develop investment plans including 'tolls' as revenue source); Sec. 2(2) (authorizes districts to 'finance and provide passenger-only ferry service... in the same manner as authorized for public transportation benefit areas')The program’s funding is tied to a 2028 sunset of the investment earnings allocation, creating long-term uncertainty. After 2028, districts may face funding cliffs unless the legislature reauthorizes the allocation—potentially disrupting operations and capital plans. This short-term funding mechanism undermines planning stability for local governments and maritime operators.
FinancialLean peopleRef: Sec. 9 (sunset of investment earnings allocation on July 1, 2028); Sec. 5(4)(a) (list of accounts receiving earnings is fixed and non-permanent)While the bill does not explicitly waive environmental review, its emphasis on rapid deployment (e.g., design-build procurement, use of used vessels) may prioritize speed over ecological safeguards—particularly for sensitive marine habitats. Without new environmental protections or tribal consultation mandates, local governments may proceed with projects that conflict with habitat restoration goals or treaty-reserved fishing rights.
EnvironmentLean peopleRef: Sec. 2(4) (requires districts to develop investment plans but does not mandate environmental review or tribal consultation beyond existing law); Sec. 2(5) (authorizes dissolution only after obligations are paid off)
Who Is Most Affected
Local governments (especially counties, ports, and transit agencies in island/rural areas) gain new authority to establish ferry districts and access state grants—reducing reliance on WSF and improving local mobility. However, they also assume new fiscal and operational responsibilities, including potential local taxation and tolling, which may strain smaller jurisdictions.
Residents of ferry-dependent communities benefit from improved access to jobs, health care, and education, especially during WSF disruptions. Low-income and rural residents gain most—but could be harmed if user fees/tolls are imposed without affordability safeguards.
Maritime workers and training programs gain new pathways to licensing upgrades and jobs on larger vessels—including WSF—boosting career mobility. However, benefits depend on whether districts prioritize local hiring and union partnerships, which the bill does not mandate.
Small tourism- and hospitality businesses benefit from increased visitor access and reliability, especially ahead of major events. However, benefits are uneven: only communities with new or expanded ferry service will see gains, and small businesses in non-served areas may see no change.
The state’s general fund and other existing treasury accounts (e.g., education, health care) lose a share of investment earnings due to the new allocation, potentially reducing funding for other public services. This affects all state residents indirectly through reduced public service capacity.