An Act To Enable the Installation of Broadband Infrastructure
Maine Legislature, Session 124, LD 1778
Committee Amendment CA_A_H784 (House)
Amends: 35-A MRSA §102, 35-A MRSA §711, 35-A MRSA §2102, 35-A MRSA §2301, 35-A MRSA §2501, 35-A MRSA §7902, 35-A MRSA §9216

COMMITTEE AMENDMENT ,,~ " to H.P. 1265, L.D. 1778, Bill, "An Act To 
Enable the Installation of Broadband Infrastructure" 
Amend the bill in the emergency preamble by striking out all of the 2nd to 5th 
paragraphs (page 1, lines 3 to 11 in L.D.) and inserting the following: 
'Whereas, it is important to address in a timely fashion celtain impOItant issues 
relating to a dark fiber project that was recently awarded a grant by the United States 
Department of Commerce, National Telecommunications and Information Administration 
pursuant to the federal American Recovery and Reinvestment Act of 2009, Public Law 
111-5, 123 Stat. 115 (2009); and' 
Amend the bill by striking out everything after the enacting clause and before the 
emergency clause and inserting the following: 
'Sec. 1. 35-A MRSA §102, sub-§4-A is enacted to read: 
4-A. Dark fiber provider. 
"Dark fiber provider" means a person, its lessees, 
trustees, receivers or trustees appointed by any court, owning, controlling, operating or 
managing federally supported dark fiber that: 
A. 
Offers its federally suppOIted dark fiber on an open-access basis without 
unreasonable discrimination as confirmed in a schedule of rates, terms and conditions 
filed for informational purposes with the commission; 
B. Is required to conduct its business subject to restrictions established and enforced 
by the Federal Government pursuant to Title VI of the federal American Recovery 
and Reinvestment Act of 2009, Public Law I 11-5, 123 Stat. 115 (2009) and to grant 
security interests to the Federal Government under that Act; and 
C. Does not transmit communications for compensation inside this State. 
Sec. 2. 35-A MRSA §102, sub-§4-B is enacted to read: 
4-B. Federally supported darl{ fiber. "Federally suppOIted dark fiber" means one 
or more strands within a bundle of fiber-optic cable through which an associated light 
COMMITTEE AMENDMENT 
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COMMrITEE A~ENDMENT "A .. to H.P. 1265, L.D. 1778 
signal or light communication transmission must be provided to provide communications 
service, but excluding the electronic equipment required in order to render the fiber 
capable of transmitting communications, the construction of which is financed in whole 
or in part with funds provided by a grant awarded before January 1, 2010 by the United 
States Department of Commerce, National Telecommunications and Information 
Administration pursuant to the federal American Recovery and Reinvestment Act of 
2009, Public Law 111-5, 123 Stat. 115 (2009). 
Sec. 3. 35-A MRSA §102, sub-§19, as amended by PL 2003, c. 153, §1, is 
further amended to read: 
19. 
Telephone utility. 
"Telephone utility" includes every person, its lessees, 
trustees, receivers or trustees appointed by any court, that provides telephone service for 
compensation inside this State. "Telephone utility" also includes a dark fiber provider. 
"Telephone utility" does not include any person or entity that is excluded from the 
definition of "public utility" as defined in subsection 13, subject to the provisions of 
subsection 13, paragraphs A to C. 
Sec. 4. 35-A MRSA §711, sub-§5 is enacted to read: 
5. Dark tiber provider. This section applies to a dark fiber provider only with 
respect to the construction and maintenance of federally supp0l1ed dark fiber. 
Sec. 5. 35-A MRSA §2102, sub-§l, as amended by PL 2007, c. 638, §1, is 
further amended to read: 
1. Approval required. Except as provided in subsection 2 and in section 4507, a 
public utility may not furnish any of the services set out in section 2101 in or to any 
municipality in or to which another public utility is furnishing or is authorized to furnish 
a similar service, and a dark fiber provider may not offer federally supported dark fiber, 
without the approval of the commission. The commission may condition approval upon 
the submission of a bond or other financial security if the commission determines that 
such a requirement is necessary to ensure that a public utility has the financial ability to 
meet its obligations under this Title. 
A. 
The commission may not grant approval to a telephone utility under this 
subsection unless the telephone utility submits evidence satisfactory to the 
commission that the telephone utility has at least $250,000 in fixed assets in this State 
or the telephone utility purchases and maintains a surety bond satisfactory to the 
commission in the amount of $250,000 to ensure the telephone utility has the 
financial ability to meet its obligations under this Title. This paragraph does not 
apply to a telephone utility authorized to provide telephone service in this State on 
the effective date of this paragraph. 
Sec. 6. 35-A MRSA §2102, sub-§4 is enacted to read: 
4. Dark tibel' provider. The commission shall issue its order approving or denying 
an application from a dark fiber provider for approval under this section, including its 
decision on any waivers or exemptions requested by the dark fiber provider in 
conjunction with its application, within 60 days of receipt of the application, except that if 
the commission determines that it requires additional time, it may extend its review and 
issue its order no later than 90 days after receipt of the application. 
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COMMITTEE AMENDMENT ,{1 "to H.P. 1265, L.D. 1778 
Sec. 7. 35-A MRSA §2301, as amended by PL 1995, c. 225, §8, is further 
amended to read: 
§2301. Telephone utilities, federally supported dark fiber providers and television 
corporations may construct lines 
Except as limited, every corporation organized under section 2101 for the purpose of 
operating telephones, every dark fiber provider for the purposes of constructing and 
maintaining its federally supported dark fiber, and every corporation organized for the 
purpose of transmitting television signals by wire may construct, maintain and operate its 
lines upon and along the route or routes and between the points stated in its certificate of 
incorporation; and may construct its lines and necessary erections and fixtures for them 
along, over, under and across any of the roads and streets and across or under any of the 
waters upon and along the route or routes subject to the conditions and under the 
restrictions provided in this chapter and chapter 25. 
Sec. 8. 35-A MRSA §2501, suh-§2, as amended by PL 2007, c. 268, §2, is 
further amended to read: 
2. Applicability of section 2503. Except as otherwise provided, a person may not 
construct facilities upon and along highways and public roads without applying for and 
obtaining a written location permit from the applicable licensing authority under section 
2503. 
Included within this requirement is every person operating telephones or 
transmitting television signals by wire; every person that owns, controls, operates or 
manages any pipeline within or through this State for the transp0l1ation as a common 
carrier for hire of oil, gas, gasoline, petroleum or any other liquids or gases; every water 
utility and every person making, generating, selling, distributing and supplying gas or 
electricity; every water utility or sewer company, district or system privately or 
municipally owned; every municipally owned or operated fire alarm, police alarm or 
street lighting circuit or system; every cooperative organized under chapter 35; the 
University of Maine System, for purposes described in section 2301-A; every dark fiber 
provider for the purposes of constructing and maintaining its federally supported dark 
fiber; and any other person engaged in telecommunications or the transmission of heat or 
electricity. 
Sec. 9. 35-A MRSA §7902, as amended by PL 1995, c. 225, § 14, is further 
amended to read: 
§7902. Lines along highways and across waters 
Every telephone utility or person transmitting television signals by wire may, except 
as limited, construct, maintain and operate its lines upon and along the routes and 
between the points stated in its certificate of incorporation; and may, subject to the 
conditions and under the restrictions provided in this Title, construct its lines along, over, 
under and across any of the roads and streets and across or under any of the waters upon 
and along the routes, with all necessary erections and fixtures. The authority provided 
under this section applies to a dark fiber provider for the purposes of constructing and 
maintaining its federally supp0l1ed dark fiber. 
Sec. 10. 35-A MRSA §9216 is enacted to read: 
COMMITTEE AMENDMENT 
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COMMIITEE AMENDMENT "A" to H.P. 1265, L.D. 1778 
§9216. Broadband sustainability fee 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "First assessment period" means the period: 
(1) Commencing on the first day of the month following the date on which a 
dark fiber provider first sells, leases or otherwise provides one or more strands of 
federally supp0l1ed dark fiber to an entity in this State; and 
(2) Ending on the last day of the 60th month following the commencement under 
subparagraph (1). 
B. "Incumbent local exchange carrier" means a telephone utility that provided single-
party service, voice grade access to the public switched telephone network in a 
defined service territory in the State on February 8, 1996, or its successor, or that is 
designated as an incumbent local exchange carrier pursuant to 47 United States Code, 
Section 251 (h)(2). 
C. "'Second assessment period" means the period: 
(1) Commencing on the first day of the month following the end of the first 
assessment period; and 
(2) Ending on December 3l, 2017. 
2. Broadband sustainability fee. An entity that purchases, leases or otherwise 
obtains federally supported dark fiber from a dark fiber provider is subject to the 
following broadband sustainability fees: 
A. During the first assessment period, a monthly fee equal to $3 ri:1Ultiplied by the 
number of miles of federally supported dark fiber strand purchased, leased or used by 
the entity during the month; and 
B. 
During the 2nd assessment period, a monthly fee equal to $2 multiplied by the 
number of miles of federally suppol1ed dark fiber strand purchased, leased or used by 
the entity during the month. 
3. Collection. A dark fiber provider shall collect the broadband sustainability fees 
under subsection 2 and within 15 days after the end of each month remit the amounts 
collected to the authority. When remitting funds to the authority, the dark fiber provider 
shall include sufficient information to allow the authority to determine the number of 
miles of federally supported dark fiber strands sold, leased or used in the service territory 
of each incumbent local exchange carrier. 
4. Deposit. The authority shall: 
A. Deposit 5% of the funds received under subsection 3 into the ConnectME Fund 
established under section 9211 and may use these funds to support the activities of 
the authority under this section and for the purposes of section 9204; and 
B. 
Deposit 95% of the funds received under subsection 3 into the broadband 
sustainability fund established pursuant to subsection 5. 
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COMMITTEE AMENDMENT "A" to H.P. J265, L.D. J778 
5. 
Broadband sustainability fund. 
The authority shall establish a broadband 
sustainability fund, separate and distinct from any other funds held or maintained by the 
authority, for use in accordance with subsection 6. The fund is non lapsing and all interest 
on funds in the fund remains in the fund for use in accordance with subsection 6. The 
authority may contract with an appropriate independent fiscal agent that is not a state 
entity to serve as the administrator of the fund. All funds deposited in the broadband 
sustainability fund are deemed to be encumbered for purposes of subsection 6 at the time 
the fU!1ds are deposited in the fund. 
6. 
Use of the broadband sustainabilitv fund. 
The authority shall use the 
broadband sustain ability fund established pursuant to subsection 5 in accordance with this 
subsection. 
A. The authority shall allocate funds in the broadband sustainability fund established 
pursuant to subsection 5 to each incumbent local exchange carrier in accordance with 
this paragraph. Each month, the authority shall allocate to each incumbent local 
exchange carrier an amount equal to the total amount deposited that month into the 
broadband sustainability fund multiplied by a fraction, the denominator of which is 
the total number of miles of federally supported dark fiber leased, sold or used in this 
State during the previous month and the numerator of which is the total number of 
miles of federally supported dark fiber leased, sold or used in that incumbent local 
exchange carrier's service territory during the previous month. 
Any accumulated 
interest in the fund must be allocated proportionally. Only those amounts allocated to 
an incumbent local exchange carrier under this paragraph are available for 
disbursement to that carrier pursuant to paragraph B. By December 31 st of each 
calendar year, the authority shall make an accounting of the total funds allocated 
during that calendar year to each incumbent local exchange carrier under this 
paragraph, and if by December 31st of the following calendar year some or all of 
those funds allocated to a carrier are not disbursed to that carrier in accordance with 
paragraph B, the authority shall transfer those unspent funds to the ConnectME Fund 
established under section 9211 for use in accordance with that section. 
Funds 
transferred to the ConnectME Fund under this paragraph cease to be available to any 
incumbent local exchange carrier pursuant to the provisions of this section. The 
authority, at the request of a carrier, may, for good cause shown, maintain funds 
allocated to that carrier within the broadband sustainability fund for a longer period. 
B. 
To receive a disbursement from the broadband sustainability fund established 
pursuant to subsection 5, an incumbent local exchange carrier (mist file with the 
authority a request for funds together with a certification indicating that the funds 
requested will be used to deploy broadband infrastructure in unserved areas within 
the carrier's service territory or, if the authority verifies that there are no unserved 
areas within the carrier's service territory, that the funds will be used to increase 
available broadband speeds for customers within the carrier's service territory. The 
certification must include the projected cost for the project and the scope of work, 
which must indicate how the funds will be spent. Upon receipt of a request for funds 
accompanied by the required ce(1ification, the authority shall disburse the requested 
amount to the incumbent local exchange carrier up to an amount not to exceed the 
total amount allocated under paragraph A to the requesting carrier. 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT "A " 
to II.P. 1265, 1..0. 1778 
C. 
An incumbent local exchange carrier may not expend funds received under 
paragraph B in a manner inconsistent with the certification provided by the carrier 
under paragraph B. The authority may audit the use by an incumbent local exchange 
carrier of funds disbursed in accordance with paragraph B. 
D. On the last day of the 36th month following the end of the 2nd assessment period, 
the authority shall transfer all funds remaining in the broadband sustainability fund 
established pursuant to subsection 5 to the ConnectME Fund established under 
section 9211 for use in accordance with that section. 
Funds transferred to the 
ConnectME Fund pursuant to this paragraph cease to be available to any incumbent 
local exchange carrier pursuant to the provisions of this section.' 
SUMMARY 
This amendment replaces the bill and also modifies the emergency preamble. This 
amendment: 
1. Defines a dark fiber provider as an entity that owns, controls, operates or manages 
federally supported dark fiber and that meets other qualifications and establishes that a 
dark fiber provider is a telephone utility under the public utility laws of the Maine 
Revised Statutes, Title 35-A; 
2. Authorizes a dark fiber provider to construct lines and to place facilities along 
public roads in the same manner as other telephone utilities for the purposes of 
constructing and maintaining its federally supported dark fiber and authorizes the Public 
Utilities Commission to resolve pole attachment disputes involving a dark fiber provider 
with respect to the construction and maintenance of federally supported dark fiber; 
3. Requires that a dark fiber provider apply for approval £i'om the Public Utilities 
Commission to offer federally supported dark fiber and requires that the commission 
approve or deny the application and make its decisioil on any waivers or exemptions 
requested by the dark fiber provider within 60 days of its receipt of the application. The 
commission may extend its review if it determines that it requires additional time, but 
must issue its order no later than 90 days after receipt of the application; and 
4. Establishes a broadband sustainability fee that a dark fiber provider must collect 
from entities that obtain federally supported dark fiber from the dark fiber provider. For 
the first 5 years the fee is $3 per month multiplied by the number of miles of strand 
purchased, leased or used; the fee then drops to $2 per month. The fee ends on December 
31,2017. The funds are administered by the ConnectME Authority. Five percent of the 
funds is deposited in the ConnectME Fund and is available to support the authority's 
administrative expenses and for use in accordance with the authority's current statutory 
purposes. The remaining funds are deposited in a separate broadband sustainability fund 
administered by the authority. These funds may be disbursed to an incumbent local 
exchange carrier to fund deployment of broadband' infrastructure in unserved areas within 
the carrier's service territory or, if there are no unserved areas, to increase available 
broadband speeds for customers within the carrier's service territory. The portion of the 
funds within the broadband sustainability fund available to each incumbent local 
exchange can-ier is calculated based on that pOliion of the total miles of leased, sold or 
used federally supported dark fiber in the State that is leased, sold or used within the 
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COMMITTEE AMENDMENT "11" to H.P. 1265, L.D. 1778 
carrier's service territory. The funds remain available in the broadband sustainability 
fund for one year and, if not disbursed to carriers, are transferred to the ConnectME Fund, 
unless the authority for good cause shown extends this period. To receive funds the 
carrier must provide a request and a certification relating to the use of the funds for 
deployment of broadband infrastructure in unserved areas or to increase available 
broadband speeds. 
The carrier is required to use the funds in accordance with that 
celtification. All funds remaining in the broadband sustainability fund at the end of the 
3rd year after the broadband sustainability fee ceases are transferred to the ConnectME 
Fund. 
FISCAL :'i(JTli: REQURED 
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Pag~ 7 - 124LR2565(02)-1 
COMMITTEE AMENDMENT 
Revised: 03/25/1 0 ;:?/czc:.. 
LD 1778 
LR 2565(02) 
An Act To Enable the Installation of Broadband I.nfrastructure 
Fiscal Note for Bill as Amended by Committee Amendment "'''' 
Committee: Utilities and Energy 
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Fiscal Note Required: Yes 
Fiscal Note 
Potential future biennium revenue increase - General Fund 
Potential future biem1ium revenue increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
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Establishing an approval process for the Public Utilities Commission (PUC) to facilitate the offering ·of federally 
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supported dark fiber may result in future revenue increases to the General Fund in the form of additional state'" 
telecommunications personal property taxes paid by lessees of dark fiber for interactive two-way communications. 
Maine Revenue Services has indicated the complexity of assumptions required to estimate the revenue that might be. 
received by the state and no estimates are made at this time. The collection of a broadband sustainability fee and 
remission of same to ConnectME will also increase Other Special Revenue Funds. Any additional cost to the PUC 
associated with administration of dark fiber applications and hearings can be absorbed within existing budgeted 
resources. 
LR2565(02) Fiscal Note - Page 1 of 1 
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