Bill
LD 1226
Establishes a state licensing regime for residential general contractors in Maine, requiring a license from the Residential Construction Board for contracts over $15,000 starting J
Status
- Introduced: March 25, 2025 (Sponsor: Rep. Roberts of South Berwick)
- Committee: Housing and Economic Development
- Latest legislative action: Passed both chambers as amended (Committee Amendment A, H‑333); placed on the Special Appropriations Table pending enactment; CARRIED OVER, in the same posture, to any special or regular session of the 132nd Legislature (Joint Order SP 800) — June 25, 2025.
Purpose
- Establish a state licensing regime for residential general contractors to protect consumers by ensuring minimum standards, oversight and a complaints/enforcement mechanism.
Key provisions
- Creates a Residential Construction Board within the Department of Professional and Financial Regulation’s Office of Professional and Occupational Regulation (OPOR).
- Licensing requirement: effective January 1, 2027, a residential general contractor may not perform, offer to perform, or agree to perform residential construction with a contract price that exceeds $15,000 without a license issued by the Board.
- Fee caps: initial license fee capped at $500; renewal fee capped at $250.
- Program administration: OPOR administers licensing, enforcement and board operations; language in the bill directs State Controller transfers to support start-up operations (see fiscal section).
- Includes language (in amended versions) requiring or enabling a working group that involves the Governor’s Office of Policy Innovation and the Future and the University of Maine System — participation costs reported as absorbable within existing budgets.
Who is affected
- Residential general contractors doing work in Maine with contract values over $15,000 (they will need to be licensed starting 1/1/2027).
- Consumers (homeowners) — intended to gain consumer protections via licensing, oversight and complaint resolution.
- OPOR and the newly created Board (administration, oversight, rulemaking).
- Potential minor increase in civil litigation (consumer suits) and associated court fees.
Fiscal impact (summary of fiscal notes)
- Implementing and operating the licensing program requires Other Special Revenue Fund allocations to OPOR: $634,514 (FY 2025‑26) and $1,006,344 (FY 2026‑27); continuing costs projected in FY 2027‑28 and FY 2028‑29 (~$1.16M and $1.21M in Other Special Revenue Fund appropriations).
- Fee revenue estimates: one-time licensing of ~600 contractors in January 2027 at $500 = $300,000 (FY 2026‑27). Ongoing: 570 renewals + 30 new applications annually → $157,500/year.
- Because fee revenue is insufficient to cover program costs, the bill includes General Fund transfers to OPOR unappropriated surplus: $620,126 (to be transferred no later than Oct 1, 2025) and $664,222 (no later than July 15, 2026) to support start-up and 2026‑27 biennium operations.
- Net General Fund costs (per fiscal note): $620,126 (FY25‑26); $664,222 (FY26‑27); projected increases in FY27‑28 and FY28‑29 ($974,690 and $1,020,799 respectively).
- Corrections/judicial: possible minor increase in civil suits; no additional funding required for courts per fiscal note.
Procedural notes
- Committee Amendment A (H‑333) was adopted; the amended bill passed both chambers by recorded votes and was sent for concurrence. The bill currently awaits action in a subsequent special or regular session of the 132nd Legislature (carried over under Joint Order SP 800).
Compiled from official sources — confirm details with the bill’s official record.
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