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SB 226                                                                                                                        
SENATE BILL NO. 226 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act relating to the Alaska marine highway                                                                         
          system fund and the Alaska marine highway system                                                                      
          vessel replacement fund; establishing the Alaska                                                                      
          marine highway system fund and the Alaska marine                                                                      
          highway system vessel replacement fund outside the                                                                    

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          general fund; authorizing the commissioner of                                                                         
          transportation and public facilities to expend money                                                                  
          from the Alaska marine highway system fund and the                                                                    
          Alaska marine highway system vessel replacement                                                                       
          fund; and providing for an effective date."                                                                           
                                                                                                                                
was read the first time and referred to the Transportation and Finance                                                          
Committees.                                                                                                                     
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Transportation and Public                                                                     
  Facilities                                                                                                                    
 Fiscal Note No. 2, Office of the Governor                                                                                      
 Fiscal Note No. 3, Office of the Governor                                                                                      
                                                                                                                                
Governor's transmittal letter dated March 8:                                                                                    
                                                                                                                                
Dear President Micciche:                                                                                                        
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the removal of the                                                           
Alaska Marine Highway System fund (AMHS fund) and the Vessel                                                                    
Replacement fund from the general fund, authorizing that money                                                                  
appropriated to the AMHS fund or the Vessel Replacement fund may                                                                
be spent by the Commissioner of the Department of Transportation                                                                
and Public Facilities (DOT&PF) without further appropriation, and                                                               
defining purposes for which funds may be expended from the AMHS                                                                 
fund.                                                                                                                           
                                                                                                                                
This bill provides a framework for funding sources for legislative                                                              
appropriation into the AMHS fund and provides stability to the AMHS                                                             
fund and the Vessel Replacement fund by establishing both funds                                                                 
outside the general fund.                                                                                                       
                                                                                                                                
This bill permits the DOT&PF Commissioner to use the AMHS fund                                                                  
to pay costs incurred through the operation of the Alaska Marine                                                                
Highway System, excluding capital improvements, and otherwise fund                                                              
and support the operation of Alaska Marine Highway System without                                                               
the need of additional legislative appropriations. Additionally, the bill                                                       
permits the DOT&PF Commissioner to use the Vessel Replacement                                                                   

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fund for refurbishment of existing state ferry vessels, acquisition of                                                          
additional state ferry vessels, and replacement of retired or outmoded                                                          
state ferry vessels without further legislative appropriation.                                                                  
                                                                                                                                
Passage of this bill will ensure a stable accounting and operating                                                              
budget for the Alaska Marine Highway System.                                                                                    
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor