The Maine House narrowly passed a bill on Monday that will make life and work more difficult for Mainers employed in building trades by imposing licensing requirements on residential construction contractors and creating yet another governmental board.
“Affordable housing is what we need. This does not help us achieve that at all. The cost of building houses today is only going to go up if we license the contractors,” said Rep. John Blier (R-Buxton) speaking on the House floor.
“Do you know how many projects are going to go without contractors? Think of those projects that get the teachers in their off time, the firemen, the policemen, the retired contractors that want to dabble. Those will be gone,” said Rep. Richard Campbell (R-Orrington) on the floor.
The committee voted 72-69 to accept the Housing and Economic Development Committee’s majority “ought to pass as amended” report, with 10 members absent. The vote was largely split along party lines, with all Republicans voting against it, and Reps. James Dill (D-Old Town), Allison Hepler (D-Woolwich), and Dani O’Halloran (D-Brewer) splitting with their party and opposing the bill.
The bill, LD 1226, sponsored by Rep. Tiffany Roberts (D-South Berwick), requires residential contractors undertaking a job for over $15,000 to apply for and attain state licenses before they can ply their trade.
License applications may cost up to $500, with $250 charged upon renewal. An applicant must provide evidence of up to $500,000 worth of liability insurance, worker’s compensation coverage for all employees, and must meet education requirements.
Licenses must be renewed annually and, in addition to paying the $250 fee, license holders must complete six hours of education and re-submit an application.
Failure to acquire a license while continuing to work as a contractor carries a civil fine of up to $10,000.
The bill does not lay out the specific education requirements imposed on contractors. Instead, LD 1226 creates a new taxpayer-funded Residential Construction Board that will set the education requirements and qualifications, and approve or deny license applications.
The board will be composed of three contractors, one municipal code enforcement officer, one attorney experienced in residential construction, one representative of the University of Maine System who oversees career and technical education programs, one residential architect, and two members of the public.
The amendment adopted by the committee was substantially the same but added language appropriating funds for the bill’s needs.
According to the fiscal note attached to the adopted amendment, the bill will cost taxpayers $620,126 in the 2025-2026 fiscal year, with that cost rising annually to a projected $1,020,799 in the 2028-2029 fiscal year.
Republicans on the Housing and Economic Development Committee tried to defang the bill with their own amendment that would have replaced the text with a resolution ordering a study of potential licensing requirements, rather than actually imposing the requirements.
The bill aims to address a real problem. It seeks to protect Mainers from predatory contractors who take on a job to steal their clients’ money or who perform subpar and potentially dangerous work in order to cut corners. The licensing requirement does not guarantee, however, that contractors will work properly, even if they undergo the board-mandated training regimen.
In effect, the bill will likely put further strain on Maine’s already struggling housing market by adding yet another obstacle for landowners building new residential constructions.
