State Lawmakers, Stakeholders Clash Over Ending ConnectMaine Authority
A legislative proposal to eliminate the ConnectMaine Authority (CMA) saw both support and criticism in a hearing Thursday of the state's Joint Energy, Utilities and Technology Committee. LD-1975, introduced in May, would disband the agency -- the predecessor to the Maine Connectivity Authority (MCA), the state's broadband office -- by repealing the Advanced Technology Infrastructure Act. "Maine does not need two broadband authorities in the long term," said Rep. Jack Ducharme (R), the bill's sponsor.
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Ducharme noted that a lot of the CMA's functions have been absorbed by MCA, and many of its statutory purposes, such as establishing criteria to define unserved and underserved areas and supporting local and regional broadband planning, have been completed. CMA funding, which comes from a pair of fees on VoIP, mobile, video and satellite services, goes to MCA, he said. By eliminating CMA, "there's an opportunity to save our citizens over $2 million a year."
Rep. Walter Runte Jr. (D) said that while many of CMA's goals have been met, there's uncertainty about BEAD funding and how to fully transition CMA to MCA. There needs to be a plan to answer questions such as what happens to the $2 million in annual fees, he added.
Ducharme said he would be open to setting a sunset date for CMA, given that it has ongoing project grants that need to be completed. There's already an agreement between MCA and CMA to ratchet down the latter's activities by 2027, but Ducharme argued that a firm decision must be made about the fees.
Rep. Valli Geiger (D) questioned whether it's sensible to end the CMA revenue stream when it's not clear what other funding MCA has available.
Testifying in favor of LD-1975, CTIA Director of State and Local Affairs Annissa Reed said that since Maine has received more than $270 million in federal broadband funding, the separate state fund and charge are "unnecessary." That surcharge provides no direct benefit to wireless users, who already give millions annually to Maine via 911 fees, a 5.5% sales tax and USF surcharges, she said.
Chris Hodgdon, Comcast's vice president of government affairs in Maine, agreed that "now is the right time to sunset these fees," noting that the state is on the cusp of universal connectivity thanks to BEAD. He said $9 million provided to MCA and communities for planning and administrative functions will let the agency manage its grant programs to their conclusion.
Maine Chamber of Commerce Government Relations Specialist Ashley Luszczki said some CMA statutory functions remain critical, such as broadband market data collection. The chamber wants lawmakers to put the bill on hold until it's clear what allocation Maine actually gets from BEAD, she said. Once that's known, the state should evaluate reducing or eliminating the $2 million in annual fees.
Maine Broadband Coalition Director Joe Oliva said in written testimony that BEAD funding won't solve the state's connectivity challenges, especially since "turbulence in the program has clawed back hundreds of millions of dollars from Maine." State funds "will be vital" to its goals, he added.
Peggy Schaffer, who retired in 2022 as the CMA director, said there was talk then of repealing the ConnectMaine statute in light of the substantial broadband funding coming to the state via BEAD. But it was kept in part because the ConnectMaine fund "was a hard-fought victory," and moving it to a new entity "would bring back all these battles." That issue still exists today, Schaffer said.