124th MAINE LEGISLATURE
		LD 272		LR 191(01)
	An Act To License Home Building and Improvement Contractors
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor: Rep. MacDonald of Boothbay
	Committee: Business, Research and Economic Development
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
Potential current biennium cost increase - General Fund
			2009-10	2010-11	Projections 2011-12	Projections 2012-13
Appropriations/Allocations
	Other Special Revenue Funds		$606,566	$740,888	$774,984	$811,124
Revenue
	Other Special Revenue Funds		$900,000	$1,140,000	$1,140,000	$1,140,000
Correctional and Judicial Impact Statements
	Increases the number of civil suits.
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 $606,566 in fiscal year 2009-10 and $740,888 in fiscal year 2010-11 for the costs associated with per diem and other expenses of board members, contracting, administrative support from the Office of Licensing and Registration and upgrading of the licensing system.  Also included in the Other Special Revenue Funds allocations is funding for 2 Office Specialist I positions, one Director position and one Office Associate II position effective October 1, 2009 and 2 Inspector positions, one Senior Inspector position and one Paralegal position effective January 1, 2010 and related all other expenses.
	This bill establishes fees for registration, general home contractor licenses and specialty licenses.  This fiscal estimate assumes that the the receipt of registration fees will begin in January 2010.  An economic impact analysis prepared by Planning Decisions, Inc. of South Portland, Maine in November 2003 estimates that approximately 12,000 home improvement contactors could be licensed.  Given the exemptions from the licensure requirements provided in this bill, this fiscal estimate assumes the registration of 6,000 contractors beginning in January 2010, resulting in $900,000 in dedicated revenues to the Board in fiscal year 2009-10.  The estimate also assumes that 20% of the licenses issued beginning in January 2011 will be specialty licenses and 80% will be general licenses, resulting in revenue from licensing fees of $1,140,000 per year beginning in fiscal year 2010-11.  Actual revenues will be higher or lower depending on the actual number of registrants.  A General Fund appropriation may be required if sufficient revenues are not received to support the operation of the Board beginning in January 2010.
	Because sufficient dedicated funds will not be available to support the operation of the Board and staff from October 1, 2009 through December 31, 2009, this legislation will require either 1) a one-time General Fund appropriation of $305,707 to the Office of Licensing and Registration within the Department of Professional and Financial Regulation in fiscal year 2009-10 or 2) 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 October 1, 2009 through December 31, 2009 and to transfer that amount to the Maine Contractor Licensing Board to support the initial start up costs by October 1, 2009. This language should also specify that these funds are to be paid back to the existing boards by January 1, 2011.