124th MAINE LEGISLATURE
LD 1089 LR 1571(01)
An Act To Regulate Mixed Martial Arts Competitions, Exhibitions and Events
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Rep. Peterson of Rumford
Committee: Business, Research and Economic Development
Fiscal Note Required: Yes
             
Preliminary Fiscal Impact Statement
2009-10 2010-11 Projections 2011-12 Projections 2012-13
Appropriations/Allocations
Other Special Revenue Funds $213,926 $262,734 $275,597 $289,231
Revenue
Other Special Revenue Funds $243,926 $302,734 $315,597 $329,231
Correctional and Judicial Impact Statements
Reduces Class E crimes and establishes new Class E crimes.
This bill has the potential to both increase and decrease the collection of General Fund fine revenue.
Fiscal Detail and Notes
This bill requires the regulation of mixed martial arts competitions, exhibitions or events held in the State by the Department of Professional and Financial Regulation.  The Department estimates the total cost of this measure to be $243,926 in fiscal year 2009-10 and $302,734 in fiscal year 2010-11. This fiscal impact statement assumes that the regulation of mixed martial arts will be part of the Office of Licensing and Registration and will become effective on October 1, 2009.  
The Office of Licensing and Registration will require Other Special Revenue Funds allocations totaling $187,988 in fiscal year 2009-10 and $249,483 in fiscal year 2010-11 for one Office Specialist I position, one Field Investigator position and one Chief Field Investigator position effective October 1, 2009 and related All Other expenses.  The Administrative Services Division will require Other Special Revenue Funds allocations of $25,938 in fiscal year 2009-10 and $13,251 in fiscal year 2010-11 for Securities and Employment Service Center and other support services costs.  Additional internal costs associated with administrative support from the Office of Licensing and Registration, the Administrative Services Division and the Commissioner's Office, as well as services from the Office of the Attorney General and other related expenses are estimated to be $30,000 in fiscal year 2009-10 and $40,000 in fiscal year 2010-11.
This bill allows for the establishment of fees for annual licenses.  However, there is insufficient information available to determine the number of licenses that will be issued.  This fiscal estimate assumes licensing fees will be set at a rate that will generate sufficient revenues to cover the anticipated costs $243,926 in fiscal year 2009-10 and $302,734 in fiscal year 2010-11 and that licensing will begin in January 2010.  A General Fund appropriation may be required if sufficient revenues are not received to support the operation of the Board beginning in January 2010.
Because sufficient dedicated funds will not be available to support the start up costs of the regulation of mixed martial arts from October 1, 2009 through December 31, 2009, this legislation will require either 1) a one-time General Fund appropriation of $105,232 to the Office of Licensing and Registration within the Department of Professional and Financial Regulation in fiscal year 2009-10 or 2) 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 an amount sufficient to cover the expenses of the Board from October 1, 2009 through December 31, 2009 and to transfer that amount to the Office of Licensing and Registration to support the initial start up costs by October 1, 2009. This language should also specify that these funds are to be paid back to the existing boards by January 1, 2011.