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LD 1246

Resolve, Directing The Department Of Economic And Community Development To Convene A Working Group To Review The Process Of Setting Impact Fees

132nd Legislature (2025-2026) Introduced by Dan Ankeles and 5 co-sponsors

Directs DECD to convene a multi-agency working group to review how municipal impact fees are set and to produce a report with findings and recommendations.

Signed by Governor
#economicdevelopment #impactfees #planning
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Bill Summary · LD 1246

Summary — LD 1246 (132nd Maine Legislature)

Resolve, Directing the Department of Economic and Community Development To Convene a Working Group To Review the Process of Setting Impact Fees

Purpose

LD 1246 directs the Maine Department of Economic and Community Development (DECD) to convene an interagency working group to review how impact fees are established and to produce a study and report with findings and any recommendations. The effort is intended to examine the process used to set impact fees (charges levied on new development to cover public infrastructure and service costs) and identify potential improvements or areas for legislative or administrative action.

Key provisions

  • Directs DECD to convene and lead a working group to review the process of setting municipal impact fees.
  • Requires the working group to conduct a study and submit a written report (the bill text provided does not specify the report’s recipient or exact deadline).
  • Authorizes DECD to collaborate with:
    • the Office of Policy Innovation and the Future (OPIF), and
    • the Maine Office of Community Affairs (added via Committee Amendment A (H‑392)).
  • The committee amendment (H‑392) was adopted during the legislative process; the Resolve was passed as amended.

Who is affected

  • State agencies: DECD (lead), OPIF, and the Maine Office of Community Affairs (participants).
  • Municipal governments and local planning authorities that set and administer impact fees — potential subjects of review and future policy or statutory changes.
  • Developers, builders, and others engaged in new development who pay impact fees, and ultimately residents who may be affected by changes to infrastructure funding mechanisms.
  • The Legislature and/or executive branch may receive the working group’s report and any recommendations.

Fiscal impact

  • Fiscal notes (several versions as the bill was amended) indicate a minor General Fund cost increase.
  • Costs associated with convening the working group and preparing the report can be absorbed within existing budgeted resources of DECD (i.e., no new appropriation required).

Legislative action and timeline

  • Introduced: March 25, 2025 (sponsor: Rep. Gere of Kennebunkport).
  • Committee activity: Referred to the Committee on Housing and Economic Development; work sessions and a committee-approved amendment (OTP‑AM / H‑392).
  • Passed the Legislature as an emergency measure (required two‑thirds vote) and was finally passed in concurrence on June 12, 2025.
  • Signed by the Governor on June 18, 2025.
  • Because it was enacted as an emergency measure, it took effect immediately upon enactment (following the Governor’s signature).

Notes / Limitations

  • The summary is based on the provided documents (resolve title, fiscal notes, and legislative actions). The bill text that would specify the working group’s membership, deadlines, reporting recipient, and scope details was not provided; those specifics may appear in the full resolve text.

Compiled from official sources — confirm details with the bill’s official record.

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