ALJDEC decisions subject to certification as final

2013A-465-ROC · Registrar of Contractors · 2013-05-21

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: May 1, 2013

APPEARANCES: No one appeared for Respondent; Investigator Manuel Bermudez appeared for the Registrar of Contractors.

WITNESSES: Manuel Bermudez, ROC Investigator

ADMINISTRATIVE LAW JUDGE: Eric A. Bryant _____________________________________________________________________

Respondent appeals a Civil Citation issued by the Arizona Registrar of Contractors (“ROC”) for improper advertising as an unlicensed contractor. The Citation imposes a fine of $1,500.00. Respondent filed a written request for hearing, but did not appear for hearing and prosecute his appeal. This tribunal entered the investigation file received from the Registrar of Contractors into the record. the Administrative Law Judge heard testimony for the ROC Investigator. 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 upholding the $1,500.00 civil penalty. FINDINGS OF FACT 1. Based on a tip, on January 31, 2013, Investigator Bermudez located a Craig’s List advertisement that stated the following: Tile, Stone, Kitchen and Bath Remodeling (Peoria/Glendale/Scottsdale)

Over 20 yrs in the home building and remodeling trades...Bath to shower conversions/Cabinets and Counter tops...Tile and Stone flooring as well as granite counter tops Mark references and pictures available....Quality work @ competitive pricing [telephone number listed]

The telephone number listed is that at which Bermudez reached Mark McLaughlin to contact him about the advertisement. The remainder of the Craig’s List ad is a series of 13 photographs of tile and countertop work, ostensibly done by “Mark.” These projects clearly exceed the $1,000.00 limit that is available under the “handyman” exemption for unlicensed activity. At the end of the ad, the phrase “License info: Unlicensed” appears. 2. Arizona contracting law allows an exemption from licensure, with certain limitations, for a “handyman.” An unlicensed handyman can advertise services as long as the ad includes the specific words “not a licensed contractor.”[1] 3. Bermudez searched the ROC database and found that Mark McLaughlin/Tile & More is not licensed as a contractor and has had prior violations for improper advertising without a license. 4. Bermudez interviewed Respondent on February 1, 2013. Respondent did not deny that the advertisement was his. 5. The ROC issued a Civil Citation for the improper advertisement, imposing a civil penalty of $1,500.00. Respondent requested a hearing. 6. As noted, Respondent failed to appear and offer any testimony on his own behalf. 7. The evidence shows that Respondent is responsible for the ad and that it is not in compliance with Arizona law. CONCLUSIONS OF LAW 1. Arizona contracting law prohibits persons from advertising as a contractor without a license.[2] The law allows an exemption from licensure, with certain limitations, for a “handyman.” One of the limitations is that no single project can be more than $1,000.00.[3] An unlicensed handyman can advertise services as long as the ad includes the words “not a licensed contractor.”[4] The ROC can order a person who violates the advertising provisions to cease and desist such activity and may impose a civil penalty of at least $200 for each violation but not more than $2500 per day.[5] 2. In this case, Respondent’s advertisement did not comply with the law. In addition, the work that Respondent is displaying in the photographs does not appear to be handyman-type work, but rather extensive tile and countertop work that only a licensed contractor is allowed to perform. 3. The evidence shows a violation of the Arizona contracting laws. The amount of the civil penalty is supported by the fact that this is not Respondent’s first violation. RECOMMENDED ORDER IT IS RECOMMENDED that the Registrar of Contractors impose a civil penalty of $1,500.00 against Mark McLaughlin/Tile & More.

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, May 21, 2013.

/s/ Eric A. Bryant Administrative Law Judge

Transmitted electronically to:

William A. Mundell, Director Registrar of Contractors ----------------------- [1] See A.R.S. § 32-1121(A)(14)(c). [2] A.R.S. § 32-1165. [3] A.R.S. § 32-1121(A)(14)(b). [4] A.R.S. § 32-1121(A)(14)(c). [5] 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