Bill to Eliminate Maine’s Broadband Authority Struck-and-Replaced by Committee

WASHINGTON, Jan. 6, 2025 – A Maine legislative committee voted Tuesday to advance a revised version of a bill that initially sought to eliminate the state’s broadband authority.

The state’s Energy, Utilities and Technology committee considered LD 1975, sponsored by Rep. Jack Ducharme, R-Madison, which as introduced would phase out the Maine Connect Authority and the ConnectMaine Fund. Instead, the committee moved forward with a “strike-and-replace” version requiring additional planning, reports and recommendations before any such action could take effect.

At the heart of the debate are two modest communications surcharges that fund the ConnectMaine Fund, the state’s primary source of support for broadband planning, rural deployment, and digital literacy and device access initiatives.

As introduced, LD 1975 would eliminate: a 0.25 percent fee on the revenue of communications service providers and a $0.10 per-line monthly fee on wireline, wireless, and VoIP customer lines. The fees, in place since 2005 and 2019, generate about $2 million annually for the ConnectMaine Fund and are often tacked on to Mainer’s phone bills.

Charter, Comcast, and CTIA argued in support of repealing the surcharges in October, arguing the state fund had become less necessary as Maine prepares to receive federal broadband funding through the Broadband Equity, Access, and Deployment program. 

However, several lawmakers at Tuesday's Energy, Utilities and Technology committee working session expressed they were uneasy with Ducharme’s bill. 

Lawmakers weigh risks of cutting funding

Lawmakers cautioned that relying solely on BEAD funds – and cutting the ConnectMaine Fund now – could put Maine’s universal broadband goals at risk, particularly with more than 80 percent of the state’s $272 million BEAD allocation still held up by the federal government.

“I feel very uncomfortable removing this small fee at this time, because Maine's ability to access BEAD funding is now threatened because of an executive order that's usurping states rights,” said Rep. Valli Gieger, D-Rockland.

“There's no way that I would support stopping [the Fund] right now, because we would be doing that on a premise that there's money out there, which we've now been told will probably not be there,” she lamented. “We can lose the BEAD fund – that is real.”

“In light of what's going on with the federal government,” Rep. Christopher Kessler, D-South Portland, added, “I think it's important now more than ever, that we maintain the ability of our state to help our citizens.” 

“I am uncomfortable with Representative Ducharme’s bill,” said another representative. “Given what we know about rural Maine and how much it is falling behind economically.”

Rep. Nicole Grohoski, D-Hancock, added she was not compelled by arguments brought forward by the bill’s sponsor. “There's just so many ways that we're all benefited and enriched by more access to connected services,” she said.

Still, other lawmakers voiced strong support for the bill as originally drafted. 

“Some of the folks that are paying for this may only want a phone line, and may never take advantage of it,” argued Rep. Steven Foster, R-Dexter. “Let's save this money for folks. We need to end ConnectMaine.”

MCA president pushes back on bill

Speaking with Broadband Breakfast, MCA President Andrew Butcher criticized what he called “surprisingly outdated” thinking behind LD 1975.

Butcher was one of only two individuals to testify at Tuesday’s working session. The other was the bill’s sponsor, Rep. Ducharme.

“I think the [bill’s] sponsors have not recognized that there is zero state budget allocated towards any aspect of connectivity,” Butcher said. He emphasized that the ConnectMaine Fund was “the only” source of local funding to advance policy planning, community engagement, technical assistance, constituent engagement, and more.

Butcher also noted that 90 percent of Maine residents fall within the federal government’s definition of a covered population, arguing that the Fund’s $0.10 per-line surcharge represents “a very smart investment” to ensure residents have access to devices and know how to use them.

He pushed back against claims that federal funding had made the state fund unnecessary.

“It is a misrepresentation to suggest that the job is done and federal funding has taken care of all of our connectivity needs,” Butcher said. “Amidst the federal infusion of funding, it's still very important for states to be able to set policy and prioritize the activity that is unique to success for that state.”

Addressing the bill’s proposal to combine two state broadband entities, Butcher explained that most ConnectMaine staff were transferred to the Maine Connect Authority when it was created, and that MCA now oversees both state and federal broadband programs, including active grants like a middle-mile award from the National Telecommunications and Information Administration. 

“Part of the reason to not dissolve the entity is that it has an active federal grant,” he said, stressing that eliminating the fund now would undermine Maine’s broadband strategy.

Bill advances with amendments

Ultimately, the committee opted for a more measured approach. 

Committee Chair Rep. Melanie Sachs, D-Freeport, offered an amendment establishing a more intentional process, which was refined by Geiger and supported by other lawmakers.

The revised plan ensures that no changes to the authority or its funding will take effect until a strategic planning process is completed and a legislative plan is submitted to the Energy, Utilities, and Technology Committee.

Butcher expressed cautious optimism about the bill’s outcome. While concerns remain until a full legislative vote is held, he said the working session and the resulting amendment represented a “rich dialog” and a meaningful step forward.

While the majority of the committee voted to support Sachs' amended approach, two minority positions were also recorded: one favoring changes more in line with the position of the bill's sponsor, and the other supporting the bill as initially drafted.

In effect, all three proposals received some level of approval within the committee, with the majority report carrying the day.

The bill will now advance to the full House floor for a vote, with the state legislature scheduled to adjourn in April, Butcher noted.

This story was updated to correct the spelling of Committee Chair Melanie Sachs’ name and the Maine Connect Authority.