An Act To Amend the Caribou Utilities District Charter To Include Broadband Services
Maine Legislature, Session 130, LD 1949
Committee: Energy, Utilities and Technology
Sponsors: JACKSON

Legislative Document
No. 1949
S.P. 686
In Senate, January 26, 2022
An Act To Amend the Caribou Utilities District Charter To Include 
Broadband Services
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President JACKSON of Aroostook.
Be it enacted by the People of the State of Maine as follows:
Sec. 1. P&SL 1945, c. 83, §1, as corrected by RR 2009, c. 1, §33, is amended to 
read: 
Sec. 1. Territorial limits and corporate name and purposes. The inhabitants 
and territory within the City of Caribou in the County of Aroostook constitute a body politic 
and corporate under the name of the Caribou Utilities District, referred to in this Act as "the 
district," for the purpose purposes of supplying the City of Caribou and the inhabitants of 
the city or any part of the city with pure water for domestic, commercial, sanitary and 
municipal purposes, including the extinguishment of fires, and of supplying the City of 
Caribou and the inhabitants of the city or any part of the city with suitable and adequate 
sewerage facilities and of providing broadband services pursuant to section 22.
Sec. 2. P&SL 1945, c. 83, §22 is enacted to read:
Sec. 22.  Broadband services.  This section governs broadband services provided 
by the district.
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Broadband services" includes both broadband services and Internet services as 
those terms are used in the Maine Revised Statutes, Title 30-A, section 2203, 
subsection 9.
B.  "Business investment group" means a nonprofit entity exempt from federal income 
taxation pursuant to the United States Internal Revenue Code of 1986, Section 
501(c)(3) that is incorporated in the City of Caribou for the purpose of promoting local 
economic development.
C.  "Caribou economic growth council" means a nonprofit corporation exempt from 
federal income taxation pursuant to the United States Internal Revenue Code of 1986, 
Section 501(c)(6) that administers its programming using the City of Caribou’s director 
of economic and community development.
D. "Municipality" means any unit of municipal government, including towns, cities, 
plantations and unorganized territories.
E.  "Open-access fiber-optic network" or "network" means an open-access dark fiber 
network that provides broadband services throughout the district.
F.  "User" includes but is not limited to a resident, business, nonprofit organization or 
government entity located within the district.
2.  Powers.  The district may:
A.  Obtain, by mutual agreement, a detailed engineering or technical design for an 
open-access fiber-optic network from the business investment group, Caribou 
economic growth council or City of Caribou;
B.  Construct, operate and maintain a network;
C.  Apply for all licenses and permits required to provide all services authorized under 
this section;
D.  Own land, and own, construct, manage and maintain associated facilities, necessary 
to provide broadband services by means of a network, including, but not limited to, a 
so-called headend facility and office necessary for the operation of the network. The 
district may transfer properties and issue easements required for those facilities;
E.  Enter any contracts associated with providing broadband services for users and 
associated with designing, constructing, maintaining, replacing, expanding and 
operating the open-access fiber-optic network and associated facilities; and
F.  Establish and administer a regional municipal utility district pursuant to the Maine 
Revised Statutes, Title 30-A, section 2203, subsection 9 authorized to make provisions 
for broadband services, including establishing rates, collecting revenues and 
undertaking all other actions necessary and appropriate for a regional municipal utility 
district of this nature consistent with this section and the general law.
3.  Development.  After a detailed engineering and technical design is completed, the 
district may contract to establish or expand the network and operate or provide broadband 
services to the City of Caribou and to any other municipality that applies for broadband 
services membership and that the board of trustees accepts pursuant to subsection 8.
4.  Property.  All real property and improvements acquired or developed pursuant to 
this section must be held by the district. A municipality may assign property to the district.  
The district may own and encumber any property contributed to it, directly or indirectly, 
by municipalities.
5.  Operation and costs.  The costs of the design, construction and operation of an 
open-access fiber-optic network must be paid by the district from the funds provided for 
the development of the network and from any fees or charges assessed on users of the 
network. Pursuant to the Maine Revised Statutes, Title 30-A, section 2203, subsection 9, 
paragraph B, the district may issue revenue bonds in support of any of the activities 
undertaken pursuant to this section.  The district may seek grants and contributions to fund 
its operations and capital expenditures and acquire, lease, encumber and sell property in 
furtherance of its purposes under this section.
6.  Assessment; collection; payments.  The district is responsible for assessments, 
collections and payments associated with the open-access fiber-optic network.
7.  Distribution of nontax revenues; reserves.  The district shall determine the 
amount of revenues to be retained as reserves to fund future expenditures for maintenance, 
improvements and expansion of the network.  Any remaining revenues must be retained or 
distributed in a manner determined by the board of trustees. 
8. Admission of new municipalities for broadband services membership.  A 
municipality may apply for broadband services membership with the district.  In order to 
be accepted, a municipality:
A.  Must have obtained the approval of its legislative body to become a broadband 
services member and to be bound by this section, such municipal approval to be 
demonstrated by the provision of attested copies of resolutions in substantially the 
following form:
AUTHORITY 
OF 
THE 
[TOWN/CITY/PLANTATION/UNORGANIZED 
TERRITORY] OF ___________________________________ TO ENTER INTO 
AGREEMENT
WHEREAS, the [legislative body of town/city/plantation/unorganized territory] of 
________________________ has determined it is in the best interest of 
________________________________ to join the Caribou Utilities District in order 
to design, construct and operate an open-access fiber-optic network in _____________; 
and
WHEREAS, there is a need in ______________ for an open-access fiber-optic 
network; and
WHEREAS, municipalities including Caribou, _______________, ___________ and 
_______________ have agreed to the terms contained in the charter for the Caribou 
Utilities District for the purpose of establishing and operating an open-access fiber-
optic network in these municipalities; and
WHEREAS, for the Caribou Utilities District Board of Trustees to vote and approve 
membership, the [Town/City/Plantation/Unorganized Territory] of _______________ 
must first approve membership;
NOW, THEREFORE, BE IT RESOLVED BY THE [legislative body of 
town/city/plantation/unorganized territory] OF ______________________________, 
MAINE THAT:
The [Town/City/Plantation/Unorganized Territory] of _______________ has accepted 
broadband services membership into the Caribou Utilities District; and
The [Town/City/Plantation/Unorganized Territory] of _______________ authorizes 
the Caribou Utilities District to issue revenue bonds in accordance with the Maine 
Revised Statutes, Title 30-A, section 2203, subsection 9 and to acquire, lease and sell 
property in furtherance of its purpose.
ADOPTED this ______ day of _______, 20___.
  ______________________________
            [Authorized signature]
A true copy, Attest:
____________________________________
[Town/City/Plantation/Unorganized Territory] Clerk
[Town/City/Plantation/Unorganized Territory] of __________________;
B.  Must have agreed to make an initial contribution consisting of an amount equal to 
110% of the cost of extending the network to and constructing a network in the 
municipality, the amount of the initial contribution to be determined by the board of 
trustees in advance of accepting broadband services membership; and
C.  Must have agreed to a starting date for broadband services membership that will 
enable the municipality either to have appropriated the funds to meet its initial 
contribution or to have made other arrangements satisfactory to the board of trustees 
to ensure the initial contribution can and will be paid upon acceptance.
The board of trustees may, by majority vote at a public meeting, accept the application of 
the municipality outright or conditionally upon fulfillment of one or more of the 
requirements of this subsection.  The board of trustees shall, as part of its vote of 
acceptance, enter an assessment for the municipality for the ensuing year.  The assessment 
for the municipality must be determined by the board of trustees.
9.  Withdrawal of municipalities.  A municipality may withdraw from its broadband 
services membership with the district after meeting all of the conditions described in this 
subsection.
A.  The municipality shall make the withdrawal pursuant to the approval of its 
legislative body.
B.  The municipality shall give written notice of its intent to withdraw at least 90 days 
prior to the commencement of the district’s budgetary year.
C. At or prior to the time of withdrawing, the municipality shall pay the entire amount 
of its outstanding obligations incurred pursuant to this section. 
SUMMARY
This bill allows the Caribou Utilities District to provide broadband services to 
residents, businesses, nonprofit organizations and government entities within the district 
and provides for municipalities other than Caribou the opportunity to be admitted for 
broadband services membership with the district.