ALJDEC decisions subject to certification as final

2013A-172-ROC · Registrar of Contractors · 2013-07-02

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: June 24, 2013

APPEARANCES: Respondent Russell Mott appeared on his own behalf; the State of Arizona, Registrar of Contractors, was represented by Assistant Attorney General Mary DeLaat Williams and ROC Investigator Manuel Bermudez.

WITNESSES: Manuel Bermudez, ROC Investigator Russell Mott

ADMINISTRATIVE LAW JUDGE: Eric A. Bryant _____________________________________________________________________

Respondent appeals a Civil Citation issued by the Arizona Registrar of Contractors (“ROC”) for operating unlawfully as an unlicensed contractor. The Citation imposes a civil penalty of $1,500.00. Respondent appeared at hearing to defend his appeal. This tribunal entered the investigation file received from the Registrar of Contractors into the record, along with marked Exhibits 1 through 6 offered by the State. The parties presented evidence and testimony from the witnesses listed above. Based on the entire record, the Administrative Law Judge makes the following Findings of Fact, Conclusions of Law, and Recommend Order finding a violation and recommending imposition of a $500.00 civil penalty. FINDINGS OF FACT 1. Respondent is not a licensed contractor. On November 29, 2012, he entered into a contract with a homeowner to remove and replace a roof on a manufactured home.[1] The contract price was $5,000.00. The homeowner paid Respondent $3,000.00 as an initial payment on the contract. 2. On December 1, 2012, only two days after the contract was signed, Respondent cancelled the contract at the request of the homeowner. The homeowner also requested the initial payment back. Although it took some time, Respondent eventually returned all of the money to the homeowner. 3. The ROC issued a Cease & Desist Order and a Civil Citation for the unlicensed activity, imposing a civil penalty of $1,500.00.[2] Respondent requested a hearing.[3] 4. Arizona contracting law allows an exemption from licensure, with certain limitations, for a “handyman.”[4] At hearing, Respondent explained the transaction and admitted that it did not fit within the handyman exemption. 5. The evidence shows that Respondent operated as a contractor without a license by entering into an agreement for construction work for $5,000.00, cancelled the contract a few days later at the request of the homeowner, and returned the initial payment to the homeowner. CONCLUSIONS OF LAW 1. Arizona contracting law prohibits persons from acting as a contractor without a license.[5] The law allows an exemption from licensure, with certain limitations, for a “handyman.” An unlicensed handyman can perform construction work, excluding certain activities, as long as the aggregate price for the job does not exceed $1,000.00[6] The ROC can order a person who performs contracting without a license and who is not exempt from licensure to cease and desist such activity and may impose a civil penalty of at least $200.00 and up to $2,500.00 for each violation but not more than $2,500.00 per day.[7] 2. In this case, Respondent admits to the violation. 3. The evidence shows a violation of Arizona contracting laws. Thus, a civil penalty is warranted. However, there is a good amount of mitigating evidence that supports a civil penalty amount less than $1,500.00. Due to the fact that Respondent did no work, cancelled the contract at the request of the homeowner, and returned the money, the Administrative Law Judge concludes that a civil penalty of $750.00 is warranted in this case. RECOMMENDED ORDER IT IS RECOMMENDED that the Registrar of Contractors impose a civil penalty of $750.00 against Russell Mott.

In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the order will be 40 days from the date of that certification.

Done this day, July 2, 2013.

/s/ Eric A. Bryant Administrative Law Judge

Transmitted electronically to:

William A. Mundell, Director Registrar of Contractors ----------------------- [1] Exhibit 1. [2] Exhibits 4 and 5.. [3] Exhibit 6. [4] See A.R.S. § 32-1121(A)(14). [5] A.R.S. § 32-1164(A)(2). [6] A.R.S. § 32-1121(A)(14). [7] A.R.S. § 32-1166(A).

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Office of Administrative Hearings 1400 West Washington, Suite 101 Phoenix, Arizona 85007 (602) 542-9826