121st Maine Legislature
		Office of Fiscal and Program Review
		LD 1551
		An Act to License Home Building and Improvement Contractors
		LR 1815(02)
		Fiscal Note for Bill as Amended by Committee Amendment " "
		Committee: Business, Research and Economic Development
		Fiscal Note Required: Yes
		Minority Report
Fiscal Note
Potential current biennium cost increase - General Fund
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Appropriations/Allocations
	Other Special Revenue Funds		$0	$480,725	$684,585	$548,835
Revenue
	Other Special Revenue Funds		$0	$600,000	$1,140,000	$1,140,000
Transfers
	Other Special Revenue Funds		$0	$0	$0	$0
Correctional and Judicial Impact Statements
	Establishes new Class D and Class E crimes
	Establishes new civil violations
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.  This bill includes an Other Special Revenue Funds allocation totaling $480,725 in fiscal year 2004-05.  Of this amount, $284,054 is estimated to be required for the operation of the board from September 1, 2004 through December 31, 2004, and includes the costs associated with the per diem and other expenses for board members, administrative support from the Office of Licensing and Registration and the upgrade of the licensing system. An additional $196,671 in funding will be required for the remainder of the 2004-05 fiscal year to support the costs of one Clerk IV position and one Clerk Typist II position beginning in January 2005, as well as the per diem and All Other expenses related to the operation of the Board.  Additional Other Special Revenue Funds allocations will be required beginning in fiscal year 2005-06 for two Inspector positions, one Paralegal position, one Director position and additional All Other expenses.
	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, 2005 and that the receipt of registration fees will begin in January 2005.  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 2005 which will result in $600,000 in dedicated revenues to the Board in fiscal year 2004-05.  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 2005.
	Because sufficient dedicated funds will not be available to support the operation of the Board from September 1, 2004 through December 31, 2004, this fiscal note includes 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 in the amount of $284,052 and to transfer that amount to the Maine Contractor Licensing Board to support the initial start up costs  by September 1, 2004. This language also specifies that these funds are to be paid back to the existing boards by January 1, 2006.