An Act To License Home Building and Improvement Contractors
Maine Legislature, Session 123, LD 1038
Committee Amendment CA_A_H978 (House)
Amends: 5 MRSA §12004-A, 32 MRSA §3510, 10 MRSA §1487, 10 MRSA §8001-A

COMMITTEE AMENDMENT ./1 " 
to H.P. 756, L.D. 1038, Bill, "An Act To 
License Home Building and Improvement Contractors" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 5 MRSA §12004-A, sub-§49 is enacted to read: 
49. 
Maine Residential Contractor 
Licensing Board 
Expenses Only 
MRSA §3510 
Sec. 2. 10 MRSA §1487, sub-§8, as enacted by PL 1987, c. 574, is amended to 
read: 
8. Resolution of disputes. A statement allowing the parties the option to adopt one 
of ; 6: methods of resolving contract disputes. 
At a minimum, this statement must 
provide the following information: 
"If a dispute arises concerning the provisions of this contract or the performance by 
the parties, then the parties agree to settle this dispute by jointly paying for one of the 
following (check only one): 
(1) BiREliRg arbitratieR as regulated by the MaiRe URiferm ArbitratieR Act, '",ith 
the parties agreeiRg te accept as fiRal the arbitrater's eecisieR ( 
); 
(2) :NeRbiReiRg areitratieR, with the parties free te Ret accept the arbitrator's 
decisieR aRe te seele satisfactieR thre1:lgH ether meaRS, iRcl1:leiRg a IWNs1:lit ( 
); 
6f= 
(3) Mediation, with the parties agreeing to enter into good faith negotiations 
through a neutral mediator in order to attempt to resolve their differences ( 
r;. 
; or 
COMMITTEE AMENDMENT 
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COMMmEE AMENDMENT ·n . to H.P. 756, L.D. 1038 
(4) A hearing and investigation performed by the Maine Residential Contractor 
Licensing Board, under the Maine Revised Statutes, Title 32, chapter 50, 
pursuant to the rules adopted under that chapter ( 
)"; 
Sec. 3. 10 MRSA §8001-A, sub-§9, as enacted by PL 1989, c. 450, §5, is 
amended to read: 
9. Board of Registration for Professional Engineers. 
Professional Engineers, 
Board of Registration for~; and 
Sec.4. 10 MRSA §8001-A, sub-§10 is enacted to read: 
10. Maine Residential Contractor Licensing Board. Maine Residential Contractor 
Licensing Board. 
Sec. 5. 32 MRSA c. 50 is enacted to read: 
CHAPTER 50 
MAINE RESIDENTIAL CONTRACTOR LICENSING 
§3510. Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1. Board. "Board" means the Maine Residential Contractor Licensing Board. 
2. 
Residential contractor services. 
"Residential contractor services" means 
services including home improvement and construction of a dwelling performed by a 
residential contractor for compensation above $10,000 per contract. 
§3511. Maine Residential Contractor Licensing Board 
The Maine Residential Contractor Licensing Board, established by Title 5, section 
12004-A, subsection 49, consists of 5 members appointed by the Governor. Members of 
the board are entitled to compensation in accordance with Title 5, section 12004-A, 
subsection 49. If in any year the fees to be collected under any of the provisions of this 
chapter are insufficient to pay the expenses provided by this section, the members of the 
board are entitled to only a pro rata payment for expenses for that year. 
Title 10, chapter 219-A, governing home construction contracts, and the Maine 
Unfair Trade Practices Act supplement the provisions of this chapter. 
§3512. Composition of board; terms of members 
1. Members. The members of the board appointed pursuant to section 3511 must 
include: 
A. Two residential contractors with expertise in the field of residential contracting; 
B. One commercial contractor with expertise in the field of residential contracting; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT A 
.. to H.P. 756, L.n. '03, 
C. One code enforcement officer with expertise in the field of residential contracting; 
and 
D. One public member, as defined in Title 5, section 12004-A, with significant 
expertise in residential housing building standards. 
2. Term. The term of office of a member of the board is 4 years. Appointment of a 
member must comply with Title 10, section 8009. A member of the board may be 
removed for cause by the Governor. 
§3513. Meetings; chair; quorum 
The board shall meet at least once a year to conduct the board's business and to elect 
a chair. Additional meetings must be held as necessary to conduct the business of the 
board and may be convened at the call of the chair or by a majority of the board 
members. Five members of the board constitute a quorum. 
§3514. Powers and duties 
The board shall administer and enforce the provisions of this chapter. The board shall 
propose, revise, adopt and enforce rules necessary to carry out this chapter in accordance 
with Title 5, chapter 375, subchapter 2. Rules adopted pursuant to this section are major 
substantive rules as defined in Title 5, chapter 375, subchapter 2-A. The board shall 
comply with Title 5, chapter 375, subchapter 4 in enforcing this chapter. 
Beginning January 1, 2012, the board shall license residential contractors in order to 
ensure that residential contractors build according to uniform building and energy 
standards under Title 10, as well as to ensure that residential contractors comply with the 
home construction contract requirements of Title 10, chapter 219-A. 
§3515. Prohibited practices 
1. Licenses. Beginning January 1, 2012, a person may not perform residential 
contractor services without first obtaining a license from the board as required in this 
chapter. 
2. Violation of rules and standards. A person who the board determines in an 
adjudicatory proceeding has violated the uniform building and energy standards under 
Title lOis subject to the rules, standards and penalties of the board pursuant to Title 10, 
section 8003, subsection 5. 
§3516. Investigations; suspensions; revocations 
1. Investigations. The board may conduct any inspections and investigations as may 
be necessary to carry out responsibilities under this chapter. The board may contract with 
local governments and private inspection organizations to carry out such inspection 
functions to the extent not prohibited by federal law, rule or regulation. 
2. 
Suspensions; revocations. 
The board may suspend and revoke residential 
contractor licenses pursuant to its authority under Title 10, section 8003, subsection 5. 
COMMITTEE AMENDMENT 
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COMMITfEE AMENDMENT if. to H.P. 756, L.D. '038 
§3517. Violations; penalties 
1. Unlicensed practice. A person, firm or corporation who violates section 3515 is 
subject to the provisions of Title 10, section 8003-C. 
§3518. Licenses 
A person who engages in the business of residential contractor services must first 
obtain a license issued by the board. The board shall, within a reasonable time, issue a 
license to a person who intends to perform residential contractor services in this State 
subject to filing and approval of an application. A person who is licensed to conduct 
these activities by other state or federal law is exempt from the requirement for licensure 
under this section when the law provides specific authority for the provision of a 
particular service or preempts the requirement for such licensure. 
Sec. 6. 
Initial appointments to the Maine Residential Contractor 
Licensing Board. By January 1, 2011, the Governor shall appoint members to the 
Maine Residential Contractor Licensing Board, established pursuant to the Maine 
Revised Statutes, Title 32, chapter 50, one for a term of one year, 2 for a term of 2 years 
and 2 for a term of 3 years. 
Sec. 7. Transfer. Notwithstanding any other provision of law, the State Controller 
shall transfer $212,450 from General Fund undedicated revenue to the Maine Residential 
Contractor Licensing Board Other Special Revenue Funds account within the Department 
of Professional and Financial Regulation no later than November 30,2010. 
Sec. 8. Effective date. Sections 1 to 5 of this Act take effect January 1,2011.' 
SUMMARY 
This amendment establishes the Maine Residential Contractor Licensing Board as an 
affiliated board within the Department of Professional and Financial Regulation. 
Beginning January 1, 2012, the board will be responsible for issuing licenses to 
residential contractors in Maine in order to ensure that residential contractors build 
according to uniform building and energy standards, as well as to ensure that residential 
contractors comply with the home construction contract requirements of Title 10, chapter 
219-A. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/08/08 frac::.. 
LD 1038 
LR 891(02) 
An Act To License Home Building and Improvement Contractors 
Fiscal Note for Bill as Amended by Committee Amendment .. n 
. 
Committee: Business, Research and Economic Development 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
2008-09 
Projections 
2009-10 
Net Cost (Savings) 
General Fund 
Appropriations! Allocations 
Other Special Revenue Funds 
Transfers 
General Fund 
Other Special Revenue Funds 
Correctional and Judicial Impact Statements 
Establishes new civil violations and Class E crimes. 
Establishes new Class D crimes. 
$0 
$0 
$0 
$0 
This bill may increase the number of civil suits filed in the court system. 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
The collection of additional fines and filing fees may increase General Fund revenue by minor amounts. 
Fiscal Detail and Notes 
Projections 
2010-11 
$212,450 
$212,450 
($212,450) 
$212,450 
This bill establishes the Maine Home Contractor Licensing Board as an affiliated Board within the Department of 
Professional and Financial Regulation effective January 1, 2011. The Board will require an Other Special Revenue 
Funds allocation of $212,450 in fiscal year 2010-11 for one Director position, one Senior Investigator position and one 
Office Specialist I position and related all other costs associated with establishing and operating the Board. Because 
sufficient dedicated funds will not be available to support the operation of the Board from January 1,2011 through 
December 31, 2011, this bi 11 i neludes language that requires the State Controller to transfer $212,450 from the General 
Fund undedicated revenue to the Board no later than November 30, 2010. 
LR0891(02) - Fiscal Note - Page 1 of 2 
The Maine Home Contractor Licensing Board may require additional Other Special Revenue Funds allocations 
beginning in fiscal year 2011-12 to support the continued operation of the Board once the issuing of licenses begins in 
January of 2012. The amount can not be detennined at this time. However, this fiscal note assumes that dedicated 
revenue received from licensing and other fees to be established by the Board through the rulemaking process will be 
sufficient to support the ongoing costs of the Board beginning in fiscal year 2011-12. 
The Department of Professional and Financial Regulation and the affiliated boards currently have 8.2 full time 
equivalent positions assigned by the Department of the Attorney General to service their legal needs. The Office of 
the Attorney General would reassign attorneys in order to support the Maine Residential Contractor Licensing Board 
upon its creation in January of2011. 
LR0891 (02) - Fiscal Note - Page 2 of2