AUGUSTA – An amendment that would allow towns and cities to opt out of a new development law failed to win support from its legislative committee.

LD 1962, an act to amend last session’s Informed Growth Act, got a 6-5 ought-not-to-pass vote from the Legislature’s State and Local Government Committee last week. The measure would allow municipalities to opt out of a requirement that economic impact studies be conducted for retail developments 75,000 square feet or greater. The opt-out provision was contingent on a decision by the town’s governing authority, validated by referendum.

A minority report that amends LD 1962 by removing the referendum clause was supported by five committee members, including Rep. Terry Hayes of Buckfield.

But the bill’s sponsor, Sen. Dave Hastings of Fryeburg, said several legislators told him they thought the referendum clause was critical to an opt-out provision.

“I may have to figure out a way to put it back in,” Hastings said. “Are we for local control or not?”

Once the amendment is reported out of committee, it will be heard before the Senate.

The Informed Growth Act was enacted last year to force developers to pay for an economic impact study to assess the proposed project’s effect on jobs, other retailers, public services and other factors before it could win municipal approval. Backers say the law helps planning boards and others concerned with smart growth to better judge the suitability of big-box stores in their communities. Opponents say it is an unnecessary obstacle to development and hamstrings local control.

– Carol Coultas