State of Alaska
Fiscal Note
Bill Version: HB 277
2018 Legislative Session
Fiscal Note Number: 2
(H) Publish Date: 3/7/2018
Identifier: HB277-DCCED-RCA-02-02-18 Department: Department of Commerce, Community and
Title: BROADBAND INTERNET: Economic Development
NEUTRALITY/REGULATION Appropriation: Regulatory Commission of Alaska
Sponsor: KAWASAKI Allocation: Regulatory Commission of Alaska
Requester: (H) Labor and Commerce OMB Component Number: 2417
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2019 Governor's
Appropriation FY2019 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2019 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Personal Services *** *** *** *** *** ***
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating *** 0.0 *** *** *** *** ***
Fund Source (Operating Only)
None
Total *** 0.0 *** *** *** *** ***
Positions
Full-time
Part-time
Temporary
Change in Revenues
None *** *** *** *** *** ***
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2018) cost: 0.0 (separate supplemental appropriation required)
(discuss reasons and fund source(s) in analysis section)
Estimated CAPITAL (FY2019) cost: 0.0 (separate capital appropriation required)
(discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? yes
If yes, by what date are the regulations to be adopted, amended or repealed? 01/01/23
Why this fiscal note differs from previous version/comments:
Not applicable, initial version.
Prepared By: Stephen McAlpine, Chairman Phone: (907)276-6222
Division: Regulatory Commission of Alaska Date: 02/02/2018
Approved By: Catherine Reardon, Director Date: 02/02/18
Agency: Division of Administrative Services, DCCED
Printed 3/7/2018 Page 1 of 2 Control Code: VzYdj
 HB 277 - Fiscal Note 2
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. HB 277
2018 LEGISLATIVE SESSION
Analysis
House Bill 277 would add a new section (AS 42.05.147) to the enabling statutes of the Regulatory Commission of Alaska
(RCA). That provision would require a utility that provides broadband services in the state to publicly disclose accurate
information regarding the network management practices, performance, and commercial terms of the utility's
"broadband Internet access service" (a new term defined by the bill). Further, proposed AS 42.05.147 would prohibit
certain conduct by a utility that provides broadband services in the state subject to reasonable network management.
The classes of prohibited conduct can broadly be described as blocking, throttling, paid and affiliate prioritization, and
interference with network use by an "edge provider" (a new term defined by the bill). However, whether specific behavior
is prohibited conduct would entail a technical analysis of network operations. The RCA may waive the provision related to
paid or affiliate prioritization on a showing of benefit to the public interest and no negative impact on "the open nature of
Internet in the state."
Section 2 of House Bill 277 would make violation of proposed AS 42.05.147 an unlawful act and practice actionable under
AS 45.50.471 (Unfair Trade Practices and Consumer Protection). The Attorney General is authorized to investigate and
seek action to restrain prohibited acts under AS 45.50.
It is anticipated that regulations directed by House Bill 277 would be adopted within the time allowed by
AS 42.05.175(e), within 730 days after a rulemaking proceeding is opened.
The fiscal impact of this legislation cannot be accurately determined at this time. It is anticipated that additional staff
would be necessary, but the RCA has not had the opportunity to meet and deliberate on precisely how the statutes would
be implemented or how the costs would be funded.
(Revised 9/26/17 OMB/LFD) Page 2 of 2
HB277-DCCED-RCA-02-02-18 Page 2 of 2 Control Code: VzYdj


Statutes affected:
HB0277A, AM HB 277, introduced 01/16/2018: 45.50.471, 42.05.147