123rd MAINE LEGISLATURE
		LD 1038		LR 891(01)
	An Act To License Home Building and Improvement Contractors
	Fiscal Note for Original Bill
	Sponsor: Rep. Hinck of Portland
	Committee: Business, Research and Economic Development
	Fiscal Note Required: Yes
Fiscal Note
Potential current biennium cost increase - General Fund Minor revenue increase - General Fund
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Appropriations/Allocations
	Other Special Revenue Funds		$193,278	$830,550	$915,943	$942,767
Revenue
	Other Special Revenue Funds		$0	$900,000	$1,140,000	$1,140,000
Correctional and Judicial Impact Statements
	Establishes new civil violations and Class E crimes. Establishes new Class D crimes. This bill may increase the number of civil suits filed in the court system. The collection of additional fines and filing fees may increase General Fund revenue by minor amounts.
Fiscal Detail and Notes
	This bill establishes the Maine Home Contractor Licensing Board within the Department of Professional and Financial Regulation's Office of Licensing and Registration.  The Office of Licensing and Registration will require Other Special Revenue Funds allocations totaling $193,278 in fiscal year 2007-08 for the operation of the board from January 1, 2008 through June 30, 2008 for costs associated with per diem and other expenses of board members, consulting fees to assist the Board in adopting a Maine building code, administrative support from the Office of Licensing and Registration and upgrade of the licensing system.  Other Special Revenue Funds allocations of $830,550 will be required beginning in fiscal year 2008-09 for two Inspector positions, one Senior Inspector position, one Paralegal position, one Director position, 2 Office Specialist I positions, one Office Associate II position and All Other expenses, including funds for an attorney postion at the Office of the Attorney General.
	This bill establishes fees for general home contractor licenses, specialty licenses and registration and creates a two-part triggering mechanism in which registration and licensing will occur.  This fiscal note assumes that the triggering events occur before January 1, 2009 and that the receipt of registration fees will begin in January 2009.  An economic impact analysis prepared by Planning Decisions, Inc. of South Portland, Maine in November 2003 estimates a potential for approximately 12,000 home improvement contactors that could be licensed.  Given the exemptions from the licensure requirements provided in this bill, this fiscal note assumes the registration of 6,000 contractors beginning in January 2009 which will result in $900,000 in dedicated revenues to the Board in fiscal year 2008-09.  Actual dedicated revenues from registration fees will be higher or lower depending on the actual number of registrants and the timing of the triggering mechinism included in this legislation.  A General Fund appropriation may be required if sufficient dedicated revenues are not received to support the operation of the Board by January 2009.
	Because sufficient dedicated funds will not be available to support the operation of the Board from January 1, 2008 through December 31, 2008, this legislation will require language which directs the Office of Licensing and Registration within the Department of Professional and Financial Regulation to assess its Other Special Revenue Funds licensing programs an amount sufficient to cover the expenses of the Board from January 1, 2008 through December 31, 2008 and to transfer that amount to the Maine Contractor Licensing Board to support the initial start up costs by January 1, 2008. This language should also specify that these funds are to be paid back to the existing boards by January 1, 2010.