Maine lawmakers once again debate bill to license home contractors

AUGUSTA (WGME) — A long-debated proposal to license home contractors in Maine is once again before lawmakers, as the state grapples with growing concerns about consumer protection and industry oversight.

Maine is currently one of just six states that does not require general contractors to be licensed. While the state mandates licenses for professionals like barbers, electricians and plumbers, there are no such regulations for those building or renovating homes.

That could soon change under LD 1226, a bill that would establish a licensing system for residential general contractors and create a new oversight board within the state’s Department of Professional and Financial Regulation.

The proposal would apply to residential construction projects valued at more than $15,000 or those involving two or more licensed professionals. If passed, the law would take effect in 2027.

Key Provisions of the Bill

• Licensing Required: Residential general contractors would need to be licensed to perform, offer, or bid on qualifying projects.
• New Oversight Board: The bill creates a nine-member Residential Construction Board, appointed by the Governor, to set licensing standards, approve educational programs, and oversee the licensing process.
• Education Requirements: Contractors would need to meet educational standards — either through board-approved training or proof of relevant work experience.
• Insurance and Disclosures: Applicants must show proof of general liability insurance ($500,000 minimum), worker’s comp coverage, and disclose any legal judgments or investigations related to their work.
• Fees and Renewals: Initial licenses could cost up to $500, with renewals up to $250. Licensees would also need to complete six hours of continuing education annually.
• Penalties: Violators could face fines of up to $10,000. Unlicensed contractors would also forfeit lien rights on any project they performed during the period they weren’t licensed.

The CBS13 I-Team testified at Thursday’s public hearing, not in support or opposition to the bill, but to share the scope of complaints we’ve received. Each year, our newsroom hears from dozens of people across the state—homeowners who say they’ve paid contractors thousands of dollars for work that was never finished, or never even started. Others tell us about shoddy workmanship that leaves their homes in worse condition than before.

“I’m not here today to say whether this particular bill before you is the perfect solution, but I can say with confidence that what we’re doing now is not working,” I-Team Reporter Dan Lampariello said in his testimony. “There is a clear and growing need for better protections for Maine homeowners—and a need to address the regulatory gap that leaves too many people vulnerable.”

According to the Maine Attorney General’s Office, its Consumer Protection Division has received more than 3,200 contractor fraud complaints since 2020 — totaling hundreds of thousands of dollars in alleged losses.

“There is no zip code immune to this,” Rep. Tiffany Roberts (D-South Berwick), the bill’s sponsor, said. “The time to study the problem has passed. The data is in, the harm is real, the system is broken and what we need now is action.”

Over the past four decades, the Maine Legislature has debated various proposals to regulate home contractors — but none have become law. Just last year, a similar bill passed both the House and Senate, only to fail in the final stages after it was not funded.

During Thursday’s public hearing, contractor Warren O’Shea added that many in the industry support this, because they’re often having to fix the work done by bad contractors. He added that this proposal is not to punish builders, but to give consumers a way to vet who they hire.

“It’s really not about the contractors — it’s about consumer safety,” O’Shea said. “Consumers should be able to research who they’re hiring and know they meet some base requirements.”

Not everyone supports the plan. Some builders and trade groups argue Maine already has consumer protections in place — such as required written contracts — and say better enforcement should be the focus.

“Those things should be enforced,” Garrett Mason with the Associated Builders and Contractors of Maine said. “ABC would absolutely be in favor of staffing up that department in a way that you could go after people like this effectively.”

They also warn that licensing and education requirements are overburdensome and could push skilled workers out of the state.

“This would absolutely cause people to not come to Maine to work,” Mason said. “A lot of [contractors I know] would gladly move to Florida if they could get licensed down there easily.”

If the bill passes, the licensing system would be phased in over two years, with the Residential Construction Board responsible for building out the framework.

Thursday’s hearing was just the first step. Lawmakers are expected to continue debating the proposal in the weeks ahead.

Have a consumer issue you’d like the I-Team to investigate, call 228-7713 or email [email protected]