124th MAINE LEGISLATURE
		LD 272		LR 191(02)
	An Act To License Home Building and Improvement Contractors
	Fiscal Note for Bill as Amended by Committee Amendment "   "
	Committee: Business, Research and Economic Development
	Fiscal Note Required: Yes
Fiscal Note
			2009-10	2010-11	Projections 2011-12	Projections 2012-13
Net Cost (Savings)
	General Fund		$0	$0	$837,732	$368,587
Appropriations/Allocations
	Other Special Revenue Funds		$0	$0	$631,997	$948,620
Revenue
	Other Special Revenue Funds		$0	$0	$0	$2,100,000
Transfers
	General Fund		$0	$0	($837,732)	($368,587)
	Other Special Revenue Funds		$0	$0	$837,732	$368,587
Correctional and Judicial Impact Statements
	Increases the number of civil suits. The collection of additional filing fees may also increase General Fund revenue by minor amounts.
Fiscal Detail and Notes
	This bill establishes the Maine Residential Builders and Specialty Contractors 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 $531,324 in fiscal year 2011-12 and $873,886 in fiscal year 2012-13 for the costs associated with per diem and other expenses of board members, contracting costs 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 July 1, 2011 and 2 Inspector positions, one Senior Inspector position and one Paralegal position effective January 1, 2013 and related all other expenses.
	The Administrative Services program within the Department of Professional and Financial Regulation will require Other Special Revenue Funds allocations of $56,408 in fiscal year 2011-12 and $30,891 in fiscal year 2012-13 for the general operating costs necessary to support both the board and the staff.  An additional $250,000 in costs are anticipated for Office of Licensing and Registration administrative support as well as Commissioner's Office support,  service center support, attorney general services, rulemaking and insurance.  Because sufficient dedicated funds will not be available to support the operation of the board from July 1, 2011 through January 1, 2013, this bill includes language that requires the State controller to transfer $837,732 and $368,587 from the unappropriated surplus of the General Fund to the Office of Licensing and Registration no later than July 1, 2011 and July 1, 2012, respectively.
	This bill provides for the establishment of fees for contractor licenses, renewal licenses and specialty licenses and caps the amount that can be collected for any one purpose at $350.  This fiscal estimate assumes that receipt of registration fees will begin in January 2013.  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 licensing of 6,000 contractors beginning in January 2013 at $350 per license resulting in $2,100,000 in dedicated revenues to the board in fiscal year 2012-13.  Actual revenues will be higher or lower depending on the actual number of applicants.  A General Fund appropriation may be required if sufficient revenues are not received to support the continued operation of the board beginning in fiscal year 2012-13.
	The Department of the Attorney General will require Other Special Revenue Funds allocations of $44,265 in fiscal year 2011-12 and $43,843 in fiscal year 2012-13 for one part-time Assistant Attorney General position to provide legal services for the Maine Residential Builders and Specialty Contractors Board.