00 SENATE BILL NO. 226 01 "An Act relating to the Alaska marine highway system fund and the Alaska marine 02 highway system vessel replacement fund; establishing the Alaska marine highway 03 system fund and the Alaska marine highway system vessel replacement fund outside the 04 general fund; authorizing the commissioner of transportation and public facilities to 05 expend money from the Alaska marine highway system fund and the Alaska marine 06 highway system vessel replacement fund; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 19.65.060(a) is amended to read: 09 (a) There is created, as a special account outside and separate from [IN] the 10 general fund, the Alaska marine highway system fund. The commissioner of 11 transportation and public facilities shall administer the Alaska marine highway 12 system fund consistent with AS 19.65.065 and may expend money from the fund 13 without further appropriation. The Alaska marine highway system fund consists 01 of money appropriated to it by the legislature from the following sources: [, INTO 02 WHICH SHALL BE DEPOSITED] 03 (1) the gross revenue of the Alaska marine highway system; 04 (2) the general fund [MONEY THAT IS APPROPRIATED TO THE 05 ALASKA MARINE HIGHWAY SYSTEM FUND BY THE LEGISLATURE IN AN 06 AMOUNT THAT IS CONSISTENT FROM YEAR TO YEAR AND IS THE 07 AMOUNT NECESSARY, AFTER CONSIDERATION OF GROSS REVENUE, TO 08 PROVIDE STABLE SERVICES TO THE PUBLIC CONSISTENT WITH THE 09 PROVISIONS OF AS 19.65.050(b)(4), WHICH APPROPRIATIONS ARE NOT 10 ONE-YEAR APPROPRIATIONS AND THE BALANCES OF WHICH DO NOT 11 LAPSE UNDER AS 37.25.010]; and 12 (3) designated federal receipts [ANY OTHER MONEY THAT IS 13 APPROPRIATED TO THE ALASKA MARINE HIGHWAY SYSTEM FUND BY 14 THE LEGISLATURE, WHICH APPROPRIATIONS ARE NOT ONE-YEAR 15 APPROPRIATIONS AND THE BALANCES OF WHICH DO NOT LAPSE UNDER 16 AS 37.25.010]. 17 * Sec. 2. AS 19.65 is amended by adding a new section to read: 18 Sec. 19.65.065. Permissible expenditures from the Alaska marine highway 19 system fund. The commissioner of transportation and public facilities may use money 20 from the Alaska marine highway system fund in a manner that is consistent with the 21 program and financial plan prepared under AS 37.07.050 to 22 (1) effectuate the intents and purposes of the legislature found in 23 AS 19.65.050(b) and (c); 24 (2) fund and support the operation of Alaska marine highway system; 25 (3) pay costs incurred through the operation of the Alaska marine 26 highway system, excluding capital improvements; 27 (4) acquire, hold, lease, sell, or dispose of property that is necessary to 28 the administrative functioning of the Alaska marine highway system; 29 (5) fund contracts or agreements relating to the Alaska Marine 30 highway system with 31 (A) the federal government, a municipality, or a political 01 subdivision; or 02 (B) with a foreign government, if the contract is approved by 03 the federal government; and 04 (6) award and administer grants authorized by the legislature. 05 * Sec. 3. AS 19.65.100(1) is amended to read: 06 (1) "annual operating cycle" means the calendar [ANNUAL STATE 07 FISCAL] year beginning on January 1 [JULY 1] and ending at midnight on the 08 following December 31 [JUNE 30]; 09 * Sec. 4. AS 37.05.550(a) is amended to read: 10 (a) The [THERE IS IN THE GENERAL FUND THE] Alaska marine 11 highway system vessel replacement fund is established as a fund outside and 12 separate from the general fund. The fund consists of money appropriated to it by the 13 legislature. Money appropriated to the fund does not lapse. [THE DEPARTMENT OF 14 REVENUE SHALL MANAGE THE FUND.] Interest received on money in the fund 15 shall be accounted for separately and may be appropriated into the fund annually. The 16 commissioner of transportation and public facilities shall administer the fund 17 and may expend money from the fund without further appropriation [THE 18 LEGISLATURE MAY APPROPRIATE MONEY FROM THE FUND] for 19 refurbishment of existing state ferry vessels, acquisition of additional state ferry 20 vessels, or replacement of retired or outmoded state ferry vessels. 21 * Sec. 5. AS 19.65.080 is repealed. 22 * Sec. 6. This Act takes effect June 30, 2022.