An Act To Enhance the ConnectMaine Authority's Capacity To Provide World-class Internet
Maine Legislature, Session 130, LD 1484
Committee: Energy, Utilities and Technology
Sponsors: BENNETT, BERRY, MAXMIN, SKOLFIELD
Amends: 5 MRSA §12004-G, 5 MRSA §12021, 35-A MRSA §9202, 35-A MRSA §9203, 35-A MRSA §9203-A, 35-A MRSA §9204-A, 35-A MRSA §9205, 35-A MRSA §9205-A, 35-A MRSA §9207, 35-A MRSA §9208, 35-A MRSA §9209, 35-A MRSA §9210, 35-A MRSA §9211-A

Legislative Document
No. 1484
S.P. 477
In Senate, April 14, 2021
An Act To Enhance the ConnectMaine Authority's Capacity To 
Provide World-class Internet
Received by the Secretary of the Senate on April 12, 2021.  Referred to the Committee on 
Energy, Utilities and Technology pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BENNETT of Oxford.
Cosponsored by Representative BERRY of Bowdoinham and
Senator: MAXMIN of Lincoln, Representative: SKOLFIELD of Weld.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §12004-G, sub-§33-F, as amended by PL 2019, c. 625, §1, is 
further amended to read:
33-F.  
Technology
ConnectMaine Authority
Not Authorized
35‑A MRSA 
§9203 
§9203-A
Sec. 2.  5 MRSA §12021, sub-§6, ¶B, as amended by PL 2019, c. 625, §2, is further 
amended to read:
B.  The ConnectMaine Authority under Title 35‑A, section 9203 9203-A;
Sec. 3.  35-A MRSA §9202, sub-§2, as amended by PL 2019, c. 625, §6, is further 
amended to read:
2.  Authority.  "Authority" means the ConnectMaine Authority established in section 
9203 9203-A.
Sec. 4.  35-A MRSA §9203, as amended by PL 2019, c. 625, §7, is repealed.
Sec. 5.  35-A MRSA §9203-A is enacted to read:
§9203-A.  ConnectMaine Authority
1.  Establishment; purpose.  The ConnectMaine Authority is established as a 
nonprofit corporation with public and charitable purposes whose duties, activities and 
operations are within the provisions of the United States Internal Revenue Code, Section 
501(c)(3).
A.  In accordance with the provisions of this chapter, the authority shall engage in all 
necessary activities and shall encourage and support projects and partnerships that 
further the goals and policies in section 9202-A.
B.  The authority shall operate as a nonprofit organization consistent with its 
composition and broad public purposes.  No part of the net earnings of the authority 
may benefit any member, officer, director or employee, including directors of the 
board, except that the authority may pay reasonable compensation for services rendered 
and otherwise hold, manage and dispose of its property in furtherance of the purposes 
of the authority.
2.  Board of directors.  The authority is governed and all of its powers exercised by a 
board of directors, referred to in this chapter as "the board," consisting of the following 7 
voting members:
A.  The chair of the Public Utilities Commission or the chair's designee; 
B.  The Chief Information Officer of the State or the officer's designee;  
C.  One representative of consumers, appointed by the Governor;
D.  Two members with significant knowledge of communications technology, 
appointed by the Governor;
E.  The Commissioner of Economic and Community Development or the 
commissioner's designee; and
F.  One member with significant knowledge of telehealth as defined in Title 24-A, 
section 4316, subsection 1, appointed by the Governor.
3.  Terms.  Directors of the board appointed by the Governor are appointed for 3-year 
terms.  Those directors may serve no more than 2 consecutive terms.  Directors who serve 
on the board by virtue of their offices serve terms coincident with their terms in office.
4.  Chair; vice-chair; secretary; treasurer.  The board shall elect a chair, a vice-chair, 
a secretary and a treasurer from among its members.  Each officer serves for a one-year 
term and is eligible for reelection.
5.  President.  Once every 2 years, the Governor shall submit the name of an individual 
to the board for confirmation to serve as the president of the authority.  Reappointment is 
subject to confirmation by the board.  The president shall manage the authority's programs, 
services and staff and shall perform other duties the board considers appropriate.
6.  Quorum.  A majority of the directors constitutes a quorum.
7.  Executive committee.  The board may elect an executive committee of not fewer 
than 6 members who, in intervals between meetings of the board, may transact such 
business of the authority as the board may authorize from time to time.
8.  Indemnification.  Each director of the board must be indemnified by the authority 
against expenses actually and necessarily incurred by the director in connection with the 
defense of any action or proceeding in which the director is made a party by reason of being 
or having been a director of the board and against any final judgment rendered against the 
director in that action or proceeding. 
9.  Liability of officers, directors and employees.  All officers, directors, employees 
and other agents of the authority, including directors of the board, entrusted with the 
custody of the securities of the authority or authorized to disburse the funds of the authority 
must be bonded either by a blanket bond or by individual bonds with a minimum limitation 
of $100,000 coverage for each person covered by the bond or bonds, or equivalent fiduciary 
liability insurance, conditioned upon the faithful performance of their duties. The premiums 
for the bond or bonds must be paid out of the assets of the authority.
10.  Prohibited interests of officers, directors and employees.  An officer, director 
or employee of the authority, including a director of the board, or a spouse or dependent 
child of any of those individuals may not receive any direct personal benefit from the 
activities of the authority in assisting any private entity. This section does not prohibit 
corporations or other entities with which an officer or director is associated by reason of 
ownership or employment from participating in activities with the authority if ownership 
or employment is made known to the board and the officer or director abstains from voting 
on matters relating to that participation. This prohibition does not extend to corporators 
who are not officers or directors of the authority.
11.  Staff; central broadband planning.  In accordance with section 9205, subsection 
19, the authority shall employ such employees and agents as may be necessary in the 
authority's judgment to carry out the purposes of this chapter.  That staff shall serve as the 
central broadband planning entity for the State and shall support the board and the authority 
in accordance with the provisions of this chapter.
Sec. 6.  35-A MRSA §9204-A, sub-§8, as enacted by PL 2015, c. 284, §7, is 
amended to read:
8.  Limitations on activities of the authority.  The authority may not develop, acquire, 
fund, coordinate or otherwise undertake any project or make any grant, direct investment 
or loan under this chapter unless the authority determines that without the authority's action 
the installation of adequate advanced communications technology infrastructure in an 
unserved or underserved area would not occur within the same time period.  When 
providing grants, direct investment or loans for broadband infrastructure investments, the 
authority shall give preference to those investments that provide the greatest relative 
improvement to existing broadband service in an unserved or underserved area.  The 
authority shall require as a condition of a grant, direct investment or loan for broadband 
infrastructure investments under this chapter that the recipient's performance under the 
agreement or contract governing the grant, investment or loan be subject to audit at the 
authority's discretion and that the recipient be required to return to the authority the amount 
of or a portion of the amount of the grant, investment or loan if the recipient, as determined 
by the authority, fails to comply with a material term of the governing agreement or 
contract.  Notwithstanding any other provision of this chapter, the authority may not 
provide any wireline, wireless, satellite, voice, data or video service at retail or wholesale.
Sec. 7.  35-A MRSA §9205, sub-§4-A is enacted to read:
4-A.  Securities.  To acquire, subscribe to, own, hold, sell, assign, transfer, mortgage 
or pledge the stock, shares, bonds, debentures, notes or other securities and evidences of 
interest in or indebtedness of any person, firm, corporation, joint stock company, 
partnership, association or trust and, while the owner or holder thereof, exercise all the 
rights, powers and privileges of ownership, including the right to vote;
Sec. 8.  35-A MRSA §9205, sub-§10, as enacted by PL 2005, c. 665, §3, is amended 
to read:
10.  Make and execute contracts.  To make and execute contracts and other 
instruments and enter into such transactions with any entity, public or private, as necessary 
or convenient for the exercise of the authority's powers and functions under this chapter;
Sec. 9.  35-A MRSA §9205, sub-§11, as enacted by PL 2005, c. 665, §3, is amended 
to read:
11.  Agreements; acceptions; contributions; aid; grants.  To enter into agreements 
with and accept loans, aid, contributions, grants and the cooperation or assistance of the 
United States, or any agency of the United States, or of the State or any agency or 
governmental subdivision or any private entity in furtherance of the purposes of this 
chapter, including, but not limited to, the development and financing of a project, and to 
do all things necessary in order to avail the authority of those loans, aid, contributions, 
grants and cooperation;
Sec. 10.  35-A MRSA §9205, sub-§17-A is enacted to read:
17-A.  Debt.  To borrow money for any of the purposes authorized in this chapter, 
incur debt, which includes the issuance of bonds, debt, notes or other evidences of 
indebtedness, whether secured or unsecured, and secure the same by mortgage, pledge, 
deed of trust or other lien on the authority's property, rights and privileges of every kind 
and nature or any part of or interest in any of them;
Sec. 11.  35-A MRSA §9205, sub-§17-B is enacted to read:
17-B.  Equity investments; loans; contractual arrangements.  In addition to 
disbursement of funds through grants as described in section 9204-A, to make alone or in 
participation or cooperation with others direct equity investments, loans or any other 
contractual arrangement allowed by law with public or private entities for the same 
purposes for which grants may be made;
Sec. 12.  35-A MRSA §9205, sub-§19, as enacted by PL 2005, c. 665, §3, is 
amended to read:
19.  Executive director; other employees Employees.  To employ an executive 
director, hire and compensate employees as well as consulting engineers, architects, 
attorneys, accountants, construction and financial experts and such other employees and 
agents individuals as may be necessary in the authority's judgment; and
Sec. 13.  35-A MRSA §9205-A is enacted to read:
§9205-A.  Limitation of powers
The authority may not enter into contracts, obligations or commitments of any kind on 
behalf of the State or any of its agencies, nor does it have the power of eminent domain or 
any other power not provided to business corporations generally. Bonds, notes and other 
evidences of indebtedness of the authority are not a debt or liability of the State and do not 
constitute a pledge of the faith and credit of the State.
Sec. 14.  35-A MRSA §9207, sub-§2, as amended by PL 2019, c. 625, §9, is further 
amended to read:
2.  Protection of information.  A communications service provider may request that 
confidential or proprietary information provided to the authority under this section not be 
viewed by those members of the authority directors of the board who could gain a 
competitive advantage from viewing the information.  Upon such a request, the authority 
shall ensure that the information provided is viewed only by those members of the authority 
directors of the board and staff who do not stand to gain a competitive advantage and that 
there are adequate safeguards to protect that information from members of the authority 
those directors of the board who could gain a competitive advantage from viewing the 
information.
Sec. 15.  35-A MRSA §9208, as amended by PL 2019, c. 625, §10, is further 
amended by adding after subsection 4 a new paragraph to read:
As part of the report under this section required to be submitted to the joint standing 
committee of the Legislature having jurisdiction over utilities matters no later than January 
15, 2030, the authority shall include a proposal, along with any necessary implementing 
legislation, designed to facilitate the termination and repeal of the authority by January 15, 
2032.  The proposal shall include an assessment of the authority's success in furthering the 
goals and policies in section 9202-A and may also include an alternative proposal designed 
to continue the activities of the authority for a specified period of time beyond January 15, 
2032.
Sec. 16.  35-A MRSA §9209, as enacted by PL 2005, c. 665, §3, is amended to read:
§9209.  Conflicts
A member of the authority director of the board may not participate in any decision on 
any contract entered into by the authority under this chapter if that member director has 
any interest, direct or indirect, in any firm, partnership, corporation or association that is 
party to the contract. The interest must be disclosed to the authority in writing and must be 
set forth in the minutes of the authority.
Sec. 17.  35-A MRSA §9210, as enacted by PL 2005, c. 665, §3, is amended to read:
§9210.  Actions against authority
A member of the authority director of the board, while acting within the scope of this 
chapter, is not subject to any personal liability resulting from the exercise or carrying out 
of any of the authority's purposes or powers.
Sec. 18.  35-A MRSA §9211-A, sub-§3, as enacted by PL 2015, c. 323, §1, is 
amended to read:
3.  Purpose of the fund.  The fund is established to address the need in the State for 
access to ultra high-speed broadband infrastructure that will enhance the State's 
competitiveness in national and international economies.  To the extent funds are available, 
the fund must be used to provide grants in accordance with subsections 4 and 5 to 
communities, regional partnerships and municipalities to support public-private 
partnerships to support a municipal gigabit fiber-optic broadband network in their regions 
with the following goals and to provide loans in accordance with subsection 7-A to any 
public or private entity to support the following goals:
A.  Provide high-speed broadband access to attract, create and grow the State's 
economy and market the products and services of businesses in the State in national 
and international markets with ultra high-speed symmetric connectivity and address 
challenges in geography;
B.  Provide expanded health care services by facilitating access to telemedicine, as 
defined in Title 24‑A, section 4316, subsection 1, and state and local services for senior 
citizens and persons with disabilities;
C.  Expand educational opportunities for students across the State through virtual and 
distance learning;
D.  Facilitate broader access for the public to services provided by municipal and 
county governments, including, but not limited to, law enforcement entities, the 
judicial system and child, youth and family social services; and
E.  Provide expanded residential services to support employment opportunities.
In order to facilitate the achievement of the goals and policies of this section, the authority 
shall establish and regularly update, after opportunity for public comment and taking into 
consideration relevant federal policies, definitions of "gigabit fiber-optic broadband 
network" and "ultra high-speed broadband infrastructure."
Sec. 19.  35-A MRSA §9211-A, sub-§7-A is enacted to read:
7-A.  Loans; equity investments; requirements.  To the extent funds are available in 
the fund, the authority shall award loans to or make direct equity investments in any public 
or private entity to achieve the purpose of the fund as described in subsection 3, subject to 
the following conditions:
A.  The amount of the loan or investment may not exceed $200,000 for each eligible 
project selected;
B.  The recipient of the loan or investment must demonstrate to the satisfaction of the 
authority that it has a viable plan identical or similar to one created in accordance with 
subsections 5 and 6; and
C.  The recipient of the loan or investment may be required, as a condition of the loan 
or investment, to provide a cash match.
In determining recipients of loans or direct equity investments under this subsection, the 
authority shall solicit proposals from public and private entities for such loans or 
investments and shall select the proposals that, as determined by the authority, represent 
the most cost-effective activities that will achieve the purpose of the fund as described in 
subsection 3.
Sec. 20.  35-A MRSA §9211-A, sub-§10, as enacted by PL 2015, c. 323, §1, is 
amended to read:
10.  Report.  Beginning December 15, 2016, the authority shall provide an annual 
report to the joint standing committee of the Legislature having jurisdiction over energy 
and utility matters on the grants, loans and investments distributed from the fund and an 
analysis of the fund's activities that have addressed the need for expansion of ultra high-
speed broadband access in the State.
Sec. 21.  Transition provisions. The following provisions govern the transition in 
the reorganization of the ConnectMaine Authority under this Act. 
1. The reorganized authority is the successor in every way to the powers, duties and 
functions of the former authority except as those powers, duties and functions are expressly 
altered by this Act. 
2. All existing rules and procedures in effect, in operation or adopted in or by the former 
authority or any of its administrative units or officers are in effect and continue in effect 
until rescinded, revised or amended by the reorganized authority. 
3. All existing contracts, agreements and compacts currently in effect under the former 
authority continue in effect. 
4. All members of the former authority continue as the same representative members 
of the board of the reorganized authority for the remainder of their terms, and any positions 
authorized and allocated subject to the personnel laws of the former authority continue 
within the reorganized authority. 
5. All records, property and equipment previously belonging to or allocated for the use 
of the former authority become, on the effective date of this Act, the property of the 
reorganized authority. 
6. All existing forms, licenses, letterheads and similar items bearing the name of or 
referring to "the ConnectMaine Authority" may be used by the reorganized authority.
SUMMARY
This bill amends the laws governing the ConnectMaine Authority as follows.
1.  It reorganizes the authority as a nonprofit organization with oversight provided by 
a board of directors.
2.  It clarifies the liability of officers, directors and employees of the authority as well 
as conflicts of interest for such individuals.
3.  It authorizes the authority to acquire and hold securities, issue bonds, acquire and 
hold equity investments and enter into agreements or contracts with public and private 
entities.
4.  It requires as a condition of receipt of a grant, direct investment or loan from the 
authority that the recipient's performance be subject to audit and that the amount or a 
portion of the amount of the grant, investment or loan be returned to the authority if the 
recipient fails to comply with a material term of the agreement or contract governing the 
grant, investment or loan.
5.  It requires the authority to submit to the joint standing committee of the Legislature 
having jurisdiction over utilities matters no later than January 15, 2030 a proposal, along 
with any necessary implementing legislation, designed to facilitate the termination and 
repeal of the authority by January 15, 2032.
6.  It alters the Municipal Gigabit Broadband Network Access Fund in the Maine 
Revised Statutes, Title 35-A, section 9211-A to authorize the authority to offer loans to and 
make direct equity investments in any public or private entity using a proposal solicitation 
process.
7.  It includes provisions governing the transition from the current organization of the 
ConnectMaine Authority to the reorganized ConnectMaine Authority.