125th MAINE LEGISLATURE
		LD 188		LR 43(01)
	An Act To License Residential Builders and Register Specialty Contractors
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor: Rep. Pilon of Saco
	Committee: Labor, Commerce, Research and Economic Development
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
			FY 2011-12	FY 2012-13	Projections  FY 2013-14	Projections  FY 2014-15
Net Cost (Savings)
	General Fund		$0	$837,732	$368,587	$0
Appropriations/Allocations
	Other Special Revenue Funds		$0	$495,507	$805,536	$760,748
Revenue
	Other Special Revenue Funds		$0	$0	$2,100,000	$2,100,000
Transfers
	General Fund		$0	($837,732)	($368,587)	$0
	Other Special Revenue Funds		$0	$837,732	$368,587	$0
Correctional and Judicial Impact Statements
	Establishes new Class D and Class E crimes. The collection of additional fines 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 $443,389 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 allocation is funding for 2 Office Specialist I positions, one Director position and one Office Associate II position effective July 1, 2012.  Additionally, Other Special Revenue Fund allocations will be required for 2 Inspector positions, one Senior Inspector position and one Paralegal position and related all other expenses effective January 1, 2014.
	The Administrative Services program within the Department of Professional and Financial Regulation will require Other Special Revenue Funds allocations of $52,118 in fiscal year 2012-13 for the general operating costs necessary to support both the board and the staff.  An additional $285,000 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, 2012 through January 1, 2014, 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, 2012 and July 1, 2013, respectively.  However, based on the estimates provided by the Department of Professional and Financial Regulation, the amount of General Fund support necessary for the operation of the board is $780,507 in fiscal year 2012-13 and $357,758 in fiscal year 2013-14.  The language in the bill should be amended to reflect the revised amounts.
	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 2014.  This preliminary fiscal impact statement assumes 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 2014 at $350 per license resulting in $2,100,000 in dedicated revenues to the board in fiscal year 2013-14.  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 2013-14.