An Act to Require the Revenue Forecasting Committee to Prepare Economic Impact Statements for Certain Legislation
Maine Legislature, Session 131, LD 1733
Committee: State and Local Government
Sponsors: MILLETT, GUERIN, BRADSTREET, COLLAMORE, TERRY, TIMBERLAKE
Amends: 5 MRSA §1710-E, 5 MRSA §1710-F, 5 MRSA §1710-J

Legislative Document
No. 1733
H.P. 1112
House of Representatives, April 20, 2023
An Act to Require the Revenue Forecasting Committee to Prepare 
Economic Impact Statements for Certain Legislation
Reference to the Committee on State and Local Government suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative MILLETT of Waterford.
Cosponsored by Senator GUERIN of Penobscot and
Representatives: BRADSTREET of Vassalboro, COLLAMORE of Pittsfield, TERRY of 
Gorham, Senator: TIMBERLAKE of Androscoggin.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §1710-E, first ¶, as amended by PL 2019, c. 343, Pt. F, §1, is 
further amended to read:
There is established the Revenue Forecasting Committee, referred to in this chapter as 
the "committee," for the purpose of providing the Governor, the Legislature and the State 
Budget Officer with analyses, findings and recommendations relating to the projection of 
revenues for the General Fund and the Highway Fund based on economic assumptions 
recommended by the Consensus Economic Forecasting Commission. The committee shall 
also prepare economic impact statements for the Legislature as required by section 
1710-F-1, subsection 2. The committee includes the State Budget Officer, the Associate 
Commissioner for Tax Policy, the State Economist, an economist on the faculty of the 
University of Maine System selected by the chancellor, the Director of the Office of Fiscal 
and Program Review and another member of the Legislature's nonpartisan staff familiar 
with revenue estimating issues appointed by the Legislative Council. Beginning in calendar 
year 2019, the chair of the committee must be designated by a majority vote of the 6 
members, from among the Associate Commissioner for Tax Policy, the Director of the 
Office of Fiscal and Program Review, the State Economist, an economist on the faculty of 
the University of Maine System selected by the chancellor and another member of the 
Legislature's nonpartisan staff familiar with revenue estimating issues appointed by the 
Legislative Council.  The chair must be designated on a rotating basis and serves a 2‑year 
term.
Sec. 2.  5 MRSA §1710-F, as amended by PL 2011, c. 655, Pt. L, §1, is repealed.
Sec. 3.  5 MRSA §1710-F-1 is enacted to read:
§1710-F-1.  Duties of committee
1.  Biennial revenue projections; use of economic assumptions.  The committee 
shall develop current fiscal biennium and 2 ensuing fiscal biennia revenue projections using 
the economic assumptions recommended by the Consensus Economic Forecasting 
Commission.
A.  The committee shall submit recommendations for state revenue projections for the 
next 2 fiscal biennia and analyze revenue projections for the current fiscal biennium, 
which must be approved by a majority of the committee members. No later than 
December 1st of each even-numbered year, the committee shall submit to the 
Governor, the Legislative Council, the joint standing committee of the Legislature 
having jurisdiction over appropriations and financial affairs and the State Budget 
Officer a report that presents the analyses, findings and recommendations for General 
Fund and Highway Fund revenue projections for the next 2 fiscal biennia. In its report 
the committee shall fully describe the methodology employed in reaching its 
recommendations. Revenue projections for other funds of the State may be included in 
the report at the discretion of the committee.
B.  No later than May 1st and December 1st of each odd-numbered year and no later 
than March 1st and December 1st of each even-numbered year the committee shall 
submit to the Governor, the Legislative Council, the joint standing committee of the 
Legislature having jurisdiction over appropriations and financial affairs and the State 
Budget Officer a report that presents the analyses, findings and recommendations for 
adjustments to General Fund revenue and Highway Fund revenue for the current and 
ensuing fiscal biennia. In each report the committee shall fully describe the 
methodology employed in reaching its recommendations. Revenue adjustments for 
other funds of the State may be included in the report at the discretion of the committee.
C.  The committee shall make all determinations necessary to make the appropriation 
limitation calculations required under chapter 142.
2.  Economic impact statements.  At the written request of 3 or more members of a 
legislative committee, the committee shall prepare an economic impact statement for any 
legislation before that legislative committee or legislation being prepared by that legislative 
committee that creates a new workforce program or amends employment, labor or taxation 
laws.  The request must be made by the legislative committee members within 7 days of 
the legislation's referral to the committee of jurisdiction. The committee shall issue the 
economic impact statement within 21 days of the receipt of the request and not later than 
the final work session on the legislation. Any amendment introduced that would affect the 
economic impact statement of the original legislation must also include an economic 
impact statement prepared by the committee. The committee may coordinate with relevant 
state agencies and departments to gather data, analysis and other information necessary to 
prepare the economic impact statement. The economic impact statement must include, but 
is not limited to:
A.  A brief description of the nature and effect of the proposal;
B.  A detailed description of the extent to which the proposed legislation conforms with 
the actions, goals and strategies outlined in the State's 10-year strategic economic 
development plan; and
C.  A detailed description of any other short-term and long-term economic effects of 
the proposed legislation, including but not limited to the following information if 
appropriate:
(1)  A determination of whether the legislation is the most cost-effective method 
for achieving the stated purpose;
(2)  A determination of whether the legislation represents the most efficient 
appropriation or allocation of public and private resources to achieve the stated 
purpose;
(3)  The source of revenue to be used for implementing and enforcing the 
legislation;
(4)  A determination of the probable result of the legislation in terms of the number 
of public and private jobs that will be created, enhanced, retained, impaired, 
devalued or eliminated;
(5)  A determination of the impact the legislation will have on quality jobs in the 
State;
(6)  A determination of the relative impact of the legislation on firms of differing 
sizes;
(7)  A determination of the effect of the legislation on competition within the State, 
with other states and with regions, on the regulated community and on potential 
global competition;
(8)  A statement of the probable net impact of the legislation on employment levels 
and employment patterns in the State;
(9)  A determination of the effect of the legislation on the state tax base;
(10)  A determination of the effect of the legislation on the cost of living; and
(11)  A determination of the effect of the legislation on changes in revenue and 
expenditures of the State and local governments.
An economic impact statement that omits any information required by this subsection must 
specifically note the omission, state the reason for the omission and estimate the additional 
time and effort required to obtain the information.
Sec. 4.  5 MRSA §1710-J, sub-§2, as enacted by PL 2017, c. 211, Pt. A, §1, is 
amended to read:
2.  Capital gains data.  The Associate Commissioner for Tax Policy shall provide 
information annually to the committee before the committee's December 1st report 
pursuant to section 1710‑F 1710-F-1 concerning the amount of actual capital gains and 
losses experienced by resident taxpayers filing income tax returns in the State under Title 
36, Part 8 for tax years ending in the calendar year 2 years prior.  Data reported concerning 
capital gains and losses may be distributed by decile or quartile.  In the absence of actual 
data, the Associate Commissioner for Tax Policy may provide estimates of the capital gains 
or losses experienced.
SUMMARY
This bill requires that, at the request of 3 or more members of a legislative committee, 
the Revenue Forecasting Committee must prepare an economic impact statement for any 
legislation before that legislative committee or legislation being prepared by that legislative 
committee that creates a new workforce program or amends employment, labor or taxation 
laws. The request must be made by the Legislators within 7 days of the legislation's referral 
to the legislative committee. The committee must issue the economic impact statement 
within 21 days of the receipt of the request and not later than the final work session on the 
legislation. Any amendment introduced that would affect the economic impact statement 
of the original legislation must also include an economic impact statement. The committee 
may coordinate with relevant state agencies and departments to gather data, analysis and 
other information necessary to prepare the economic impact statement.