An Act To Encourage Broadband Deployment in Unserved Areas
Maine Legislature, Session 129, LD 1742
Committee: Energy, Utilities and Technology
Sponsors: WADSWORTH, JACKSON, MARTIN, STEWART, LUCHINI, ROSEN
Amends: 35-A MRSA §9202, 35-A MRSA §9203, 35-A MRSA §9204-A, 35-A MRSA §9211, 35-A MRSA §9211-A, 35-A MRSA §9211-B

Legislative Document
No. 1742
H.P. 1241
House of Representatives, May 16, 2019
An Act To Encourage Broadband Deployment in Unserved Areas
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative WADSWORTH of Hiram.
Cosponsored by President JACKSON of Aroostook and
Representatives: MARTIN of Eagle Lake, McCREA of Fort Fairfield, STEWART of Presque 
Isle, Senators: LUCHINI of Hancock, ROSEN of Hancock.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §9202, as amended by PL 2015, c. 284, §2, is further 
amended to read:
§9202.  Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1.  Advanced communications technology infrastructure.  "Advanced 
communications technology infrastructure" means any communications technology 
infrastructure or infrastructure improvement that expands the deployment of, or improves 
the quality of, broadband availability and wireless service coverage.
2.  Authority.  "Authority" means the ConnectME Authority established in section 
9203.
2-A.  Broadband service.  "Broadband service" means a mass-market retail service 
using wireline or fixed wireless technology that provides the capability to transmit data 
from or to all or substantially all Internet devices.
2-B.  Broadband service provider.  "Broadband service provider" means a 
communications service provider that provides broadband service, but does not include a 
provider of commercial mobile service as defined under 47 United States Code, Section 
332(d)(1) (2018).
3.  Communications service.  "Communications service" means any wireline voice, 
satellite, data, fixed wireless data or video retail service.
4.  Communications service provider.  "Communications service provider" means:
A.  Any entity offering communications service to customers in the State; or
B.  Any facilities-based provider of wireless voice or data retail service that 
voluntarily chooses to be assessed by the authority pursuant to section 9211 that is 
granted funds pursuant to section 9211-B.
5.  Unserved or underserved area.  "Unserved or underserved area" means an area 
that the authority pursuant to section 9204-A, subsection 1 determines to meet criteria 
established by the authority by rule adopted pursuant to section 9205, subsection 3.
6.  Household.  "Household" means a house and its occupants, regarded as a unit.
7.  Infrastructure.  "Infrastructure" means a physical component or collection of 
physical components that provide the basic support for distributing communications 
service.
8.  Underserved area.  "Underserved area" means a census block as described by the 
United States Department of Commerce, Bureau of the Census or aggregation of adjacent 
census blocks where broadband service exists but less than 10% of the households within 
that area have access to broadband service with minimum speeds of at least 50 megabits 
per second from the broadband service provider to the customer and at least 5 megabits 
per second from the customer to the broadband service provider.
9.  Unserved area.  "Unserved area" means a census block as described by the 
United States Department of Commerce, Bureau of the Census or aggregation of adjacent 
census blocks without access to broadband service with minimum speeds of at least 25 
megabits per second from the broadband service provider to the customer and at least 3 
megabits per second from the customer to the broadband service provider.
Sec. 2.  35-A MRSA §9203, sub-§7 is enacted to read:
7.  Limitations on activities of authority.  Notwithstanding any other provision of 
this chapter to the contrary, the authority may not provide any wireline, wireless, satellite, 
voice, data or video service at retail or wholesale.
Sec. 3.  35-A MRSA §9204-A, sub-§1, as enacted by PL 2015, c. 284, §7, is 
repealed.
Sec. 4.  35-A MRSA §9204-A, sub-§4, as enacted by PL 2015, c. 284, §7, is 
amended to read:
4.  Support broadband infrastructure investment.  The authority shall expand the 
availability of broadband service to residential and small business customers in unserved 
or underserved areas by identifying, developing and providing funding for broadband 
infrastructure investments in unserved and underserved communities exclusively as 
provided in section 9211-B.  Such investments may include infrastructure that is used by 
a single provider or by multiple providers.
Sec. 5.  35-A MRSA §9211, as enacted by PL 2005, c. 665, §3, is amended to 
read:
§9211.  ConnectME Fund 
1.  ConnectME Fund established.  The ConnectME Fund, referred to in this section 
as "the fund," is established as a nonlapsing fund administered by the authority for the 
purposes of supporting the activities and projects of the authority under this chapter.
2.  Assessment.  After receiving authorization pursuant to Title 5, section 8072 to 
finally adopt major substantive rules under section 9205, subsection 3 or after January 15, 
2007, whichever is later, the authority may require every communications service 
provider to contribute on a competitively neutral basis to the fund.   The assessment may 
not exceed 0.25% of the revenue received or collected for all communications services 
provided in this State by the communications service provider.  A facilities-based 
provider of wireless voice or data retail service may voluntarily agree to be assessed by 
the authority as a communications service provider under this subsection.
3.  Explicit identification on customer bills.  A communications service provider 
assessed pursuant to subsection 2 may recover the amount of the assessment from the 
provider's customers.  If a provider recovers the amount from its customers, it must 
explicitly identify the amount owed by a customer on the customer's bill and indicate that 
the funds are collected for use in the ConnectME Fund.
4.  Bond authorization.  The authority may provide by resolution for the issuance of 
bonds for the purpose of providing funding and support for the construction of advanced 
communications technology infrastructure as provided in section 9211-B and for the 
fulfillment of other undertakings that the authority may assume.  All money received 
from any bonds issued by the authority must be applied for the support of construction of 
advanced communications technology infrastructure in accordance with section 9211-B 
and for the fulfillment of other undertakings that are within the power of the authority, 
except that not more than 5% of money received from any bonds issued by the authority 
may be used to support community broadband planning grants distributed pursuant to 
section 9217.  A lien is created upon the money until so applied in favor of the 
bondholders or any member of the authority as may be provided for the bonds.
Sec. 6.  35-A MRSA §9211-A, as enacted by PL 2015, c. 323, §1, is repealed.
Sec. 7.  35-A MRSA §9211-B is enacted to read:
§9211-B.  Broadband Infrastructure Grant Program
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Program" means the Broadband Infrastructure Grant Program established in 
subsection 2.
B.  "Project" means a proposed deployment of advanced communications technology 
infrastructure used to provide broadband service at speeds meeting or exceeding the 
minimum thresholds described in section 9202, subsection 9 or 10 that is set forth in 
an application for grant funding authorized under this section.
C.  "Project area" means a census block as described by the United States Department 
of Commerce, Bureau of the Census or aggregation of adjacent census blocks 
proposed to be covered in an application for grant funding of a project authorized 
under this section.
2.  Establishment; administration.  The Broadband Infrastructure Grant Program is 
established.  The authority shall administer and act as the fiscal agent for the program and 
is responsible for receiving and reviewing grant applications and awarding grants. 
3.  Eligible projects.  Assistance under this section may be used to carry out a project 
in a project area only if, as of the date on which the application of the eligible applicant is 
submitted, the area to be served by the project for which a grant is sought constitutes an 
unserved area or underserved area.  A grant may not be used to support any project 
involving the upgrade of existing broadband infrastructure by an applicant to the 
minimum speed thresholds set forth in section 9202, subsections 9 and 10.  The use of a 
grant granted pursuant to this section is limited to only the unserved portions of the 
project area.
4.  Eligible applicants.  An applicant for a grant under the program:
A.  May not receive a grant for a project covered by an application under a federal 
universal service fund as established pursuant to 47 United States Code, Section 254 
(2018) or any state government grant or loan program;
B.  Must commit to paying a minimum of 20% of the project costs out of the 
applicant's own funds and may not provide this minimum matching amount from any 
funds derived from government grants, loans or subsidies; and
C.  May be any entity with demonstrated experience in providing broadband service 
or other communications service to residential customers within the State.
5.  Applications.  The following provisions govern applications under the program.
A.  The authority shall establish an annual period, which may not be less than 60 days 
or more than 90 days, for submission of applications for a grant under the program.
B.  An eligible applicant shall submit an application to the authority on a form 
prescribed by the authority.  An application for a grant to fund a project must include 
the following information:
(1)  Evidence demonstrating the applicant's experience and ability in building, 
operating and managing broadband service networks serving residential 
customers;
(2)  A description of the project area, including a list of census blocks covered by 
the proposed project.  If a census block included in an application already is 
partially served by a provider of broadband service, the application must describe 
the portions of the census block that are already served and the portions of the 
census block that constitute an unserved area or underserved area and must 
include a certification that none of the grant funding provided by the program for 
the project proposed in the application will be used to extend or deploy facilities 
to a household that is already served by a provider of broadband service;
(3)  A description of the advanced communications technology infrastructure that 
is proposed to be deployed, including facilities, equipment and network 
capabilities, including minimum speed thresholds;
(4)  Evidence, including a certification from the application signatory, 
demonstrating the unserved or underserved nature of the project area;
(5)  The number of households that would have new access to broadband service 
as a result of the grant;
(6)  The total cost of the proposal and the time frame in which it will be 
completed;
(7)  The amount of matching funds the applicant proposes to contribute and a 
certification that no portion of such funds are derived from a federal universal 
service fund or any state government grant or loan program;
(8)  Evidence demonstrating the economic and commercial feasibility of the 
proposed project;
(9)  A list of all government authorizations, permits and other approvals required 
in connection with the proposed project and a timetable for the applicant's 
acquisition of such approvals; and
(10)  Any other information required by the authority.
6.  Review of applications; approval.  The following provisions govern the review 
and approval of applications under the program.
A.  Within 5 business days following the end of the period for submission of 
applications established pursuant to subsection 5, paragraph A, the authority shall 
make the applications available for review in a publicly accessible electronic file.
B.  A broadband service provider that provides service within or directly adjacent to a 
proposed project area may submit, within 45 days of the release of the applications 
pursuant to paragraph A, a written challenge to an application.  Such a challenge may 
include information:
(1)  Disputing an applicant's certification that a proposed project area is unserved 
or underserved or that a federal universal service fund or any state programs do 
not provide funding for a project for which program support is sought; or
(2)  Attesting to the challenging provider's existing, or planned, provision of 
broadband service within the applicant's proposed project area.
C.  During the 45-day challenge period established under paragraph B, a 
nongovernmental entity with demonstrated experience in providing broadband 
service or other communications service to residential customers within the State may 
submit a competing application for a grant for a project in any proposed project area 
that is the subject of an application submitted by or on behalf of a municipality.  In 
reviewing competing applications in any such project area, the authority shall give 
preference to the application submitted by a nongovernmental entity covering the 
project area, whether during the annual period for submission of applications 
established pursuant to subsection 5, paragraph A or through the competing 
application process authorized in this paragraph.
D.  In reviewing applications and any accompanying challenges, the authority shall 
conduct its own review of the proposed project areas to ensure that all awarded grants 
are used to deploy advanced communications technology infrastructure to unserved 
areas.  The authority may not award any grants to fund a project for any proposed 
project area that fails to meet the criteria for being unserved.
E.  The authority shall award grants for projects set forth in applications based upon a 
scoring system.  The scoring system must be released to the public at least 30 days 
prior to the period for submission of applications established pursuant to subsection 
5, paragraph A.  The scoring system must give the highest weight or priority to the 
following factors:
(1)  The size and scope of the unserved area or underserved area proposed to be 
served;
(2)  The experience, technical ability and financial means of the applicant in 
successfully deploying and providing broadband service;
(3) The length of time the applicant has been providing broadband service in the 
State;
(4)  The extent to which government funding support is necessary to deploy 
advanced communications technology infrastructure in an economically feasible 
manner in the proposed project area;
(5)  The amount and proportion of the matching funds proposed to be committed 
by the applicant;
(6)  Whether the proposed project area is an unserved area, rather than an 
underserved area;
(7)  The service speed thresholds proposed in the application and the scalability 
of the advanced communications technology infrastructure proposed to be 
deployed to speeds higher than 25 megabits per second from the broadband 
service provider to the customer and 3 megabits per second from the customer to 
the broadband service provider;
(8)  The applicant's ability to leverage nearby or adjacent advanced 
communications technology infrastructure to facilitate the proposed project and 
provision of service to households;
(9)  The extent to which the proposed project does not duplicate any existing 
advanced communications technology infrastructure in the proposed project area; 
and
(10)  Such other factors the authority determines to be reasonable and 
appropriate, consistent with the purpose of facilitating the economic deployment 
of advanced communications technology infrastructure to unserved areas.
F.  In awarding grants, the authority may not include consideration of any new or 
additional regulatory obligations beyond those required under applicable law, 
including, but not limited to, open access network requirements or any rate, service or 
other obligations beyond the speed requirements set forth in section 9202, subsection 
10.  In awarding grants, the authority may not include consideration of factors that 
would constrain a recipient from offering or providing broadband service in the same 
manner as such service is offered without funding support by the broadband service 
provider in other areas of the State.
G.  An applicant must be afforded a reasonable time frame to complete a project 
selected for funding approval.
7.  Implementation.  The following provisions govern the implementation of the 
program.
A.  The authority shall adopt rules within 180 days of the effective date of this section 
consistent with this section that implement the requirements of this section and 
govern the submission, review and approval of applications and the administration of 
projects funded under this section, including rules for grant agreements 
memorializing the award of funds.
B.  Rules that implement this section must include reasonable oversight and reporting 
provisions to ensure that grants are used as intended.  Such rules may not include 3rd-
party audit requirements, letter of credit or performance bond obligations or financial 
penalty or liquidated damages provisions or provisions that are not reasonably related 
to the deployment of advanced communications technology infrastructure by an 
applicant in accordance with the purposes and provisions of this section. Nothing in 
this paragraph precludes the authority from requiring disgorgement of grant funds in 
response to an applicant's pattern of failure, following notice and an opportunity to 
cure, to build out a project area in accordance with the time frames and timetables set 
forth in its application.
C.  Nothing in this section may be construed to preclude the authority from 
considering an applicant's financial ability to complete the project proposed in an 
application or making reasonable requests for information necessary for the oversight 
and administration of a project funded under this section.
D.  Nothing in this section may be construed to empower the authority to adopt rules 
or to impose any obligations or requirements on funding recipients, through grant 
agreements or any other mechanism, other than the program implementation rules 
expressly authorized in paragraph A.
E.  The provisions of this section supersede any contrary rules adopted prior to the 
effective date of this section by the authority to govern the disbursement of funds to 
support broadband investment.
SUMMARY
This bill facilitates the deployment of broadband infrastructure in unserved areas of 
this State by establishing the Broadband Infrastructure Grant Program under the 
ConnectME Authority to award grants to applicants for the purpose of extending 
deployment of facilities used to provide broadband service to unserved areas of the State 
and thus to encourage new investment in broadband service infrastructure.  The bill 
eliminates the Municipal Gigabit Broadband Network Access Fund.  The bill removes the 
authority of the ConnectME Authority to require communications service providers to 
contribute to the ConnectME Fund.  It allows the authority to issue bonds for the 
construction of advanced communications technology infrastructure.