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F I S C A L I M P A C T R E P O R T

SPONSOR M.J Garcia

ORIGINAL DATE

LAST UPDATED

2/6/2007

HB

SHORT TITLE Illegal Activities of Unlicensed Contractors

SM 6

ANALYST Schuss

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

Senate Memorial 6 expresses concerns about illegal activities of unlicensed contractors in the

construction trades.

SIGNIFICANT ISSUES

Senate Memorial 6 states that persons claiming wrongfully to be licensed contractors sometimes

prey on the poor and the elderly of New Mexico by performing unsatisfactory and potentially

harmful home repairs. Unscrupulous activities by unlicensed contractors inflict financial and

emotional harm on those least able to defend themselves. Unlicensed contractors do not have the

surety required of licensed contractors that can provide protection for consumers against injury

resulting from incomplete or improper home repairs.

The Construction Industries Division of the Regulation and Licensing Department makes every

effort to discourage illegal behavior in the construction trades and to alert consumers to illegal

and unethical activities of unlicensed contractors, and radio and television stations make air time

available to public officials to warn residents against illegal and harmful practices. SM 6 requests

that the Construction Industries Division of the Regulation and Licensing Department take every

opportunity through media announcements to warn the people of New Mexico about

unscrupulous and unethical activities by persons wrongfully claiming to be licensed contractors.

BS/mt