ALJDEC decisions subject to certification as final

2013A-2054-ROC · Registrar of Contractors · 2014-06-02

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: January 8, 2014 (record held open to May 12, 2014)

APPEARANCES: Respondent Jeff Anderson appeared on his own behalf; the State of Arizona, Registrar of Contractors, was represented by Assistant Attorney General Michael Raine.

WITNESSES: Jeff Helter, ROC Investigator Randy Gates, Homeowner

ADMINISTRATIVE LAW JUDGE: Eric A. Bryant _____________________________________________________________________

Respondent appeals a Civil Penalty Citation issued by the Arizona Registrar of Contractors (“ROC”) for operating unlawfully as an unlicensed contractor. The Citation imposes a civil penalty of $2,500.00. Respondent appeared at hearing but provided no evidence. This tribunal entered marked Exhibits 1 through 9 offered by the ROC. The ROC presented evidence and testimony from the witnesses listed above. After the ROC presented its case in chief, Respondent requested a postponement of the conclusion of the hearing so that he could get advice from counsel because there was information, confirmed by the ROC, that criminal charges might be brought against him in this matter. Without objection from the ROC, postponement was allowed and the hearing recessed in January 2014. By order, Respondent was to provide status information to the tribunal in early April 2014. Respondent filed nothing. Despite an attempt to get updated information or even contact from Respondent in May 2014, this tribunal has received no contact from Respondent since the hearing. Thus, in accordance with the ruling made in January, this tribunal will issue a decision based on the evidence of record submitted by the ROC. 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 $2,500.00 civil penalty. FINDINGS OF FACT 1. Respondent is not a licensed contractor. In December 2012, he entered into a contract with a homeowner, Randy Gates, to remodel swimming pool features at a cost of $18,360.00.[1] The written contract used information, including name and license numbers, for Arizona Pool Remodeling & Service LLC. It appears, on the basis of the contract, that Gates hired Arizona Pool Remodeling & Service LLC. He later learned that he had not. Gates paid Respondent $6,000.00 as an initial payment on the contract, and after some of the work had been started, eventually paid Respondent another $10,500.00.[2] 2. Some of the work was performed, mostly by Alvaro Quijada, another unlicensed person who was working with Respondent.[3] After a few weeks, the job was abandoned. 3. In April and May 2013, two complaints were filed against Respondent: one complaint from Gates[4] and another complaint from Alan Stoner[5] who is the holder of the licenses for Arizona Pool Remodeling & Service LLC, whose name and licenses Respondent had used in the contract with Gates. Stoner alleged that Respondent was using the licenses and name without permission.[6] This was later confirmed in the investigation. 4. ROC Investigator Jeff Helter spoke with all the people involved in this matter: Gates, Stoner, Alvaro Quijada, and Respondent.[7] He found Gates and Stoner to be believable and Quijada and Respondent to not be believable. 5. The ROC issued a Cease & Desist Order and a Civil Citation to Respondent for the unlicensed activity, imposing a civil penalty of $2,500.00.[8] Respondent requested a hearing. 4. Respondent was given an opportunity to present evidence in his defense, but chose not to do so. Thus, the ROC’s evidence is uncontested. 5. The evidence shows that Respondent operated as a contractor without a license by entering into an agreement with Gates for construction work for $18,360.00, that Respondent was paid over $16,000.00 for the work, and that Respondent abandoned the job. CONCLUSIONS OF LAW 1. Arizona contracting law prohibits persons from acting as a contractor without a license.[9] 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[10] 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.[11] 2. In this case, Respondent did not deny the allegations at hearing. 3. The evidence shows a violation of Arizona contracting laws. Thus, a civil penalty is warranted. Given the circumstances described above, the maximum penalty imposed by the ROC is warranted. RECOMMENDED ORDER IT IS RECOMMENDED that the Registrar of Contractors impose a civil penalty of $2,500.00 against Jeff Anderson.

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, June 2, 2014.

/s/ Eric A. Bryant Administrative Law Judge

Transmitted electronically to:

William A. Mundell, Director Registrar of Contractors ----------------------- [1] Exhibit 2. [2] Exhibit 3; Exhibit 9 at p. 3 of 6. [3] Exhibit 9. [4] Exhibit 1. [5] Exhibit 6. [6] Id. [7] Exhibit 9. [8] Exhibits 7 and 8. [9] A.R.S. § 32-1164(A)(2). [10] A.R.S. § 32-1121(A)(14). [11] A.R.S. § 32-1166(A).

-----------------------

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