ALJDEC decisions subject to certification as final

2015A-3367-ROC · Registrar of Contractors · 2016-06-27

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: June 10, 2016 APPEARANCES: Tom Raine, Attorney for the Registrar of Contractors; Dan Rhodes, Registrar of Contractors witness ADMINISTRATIVE LAW JUDGE: Dorinda M. Lang _____________________________________________________________________ After Respondent appealed the issuance of two Cease and Desist Orders, he failed to appear at the hearing. The Registrar of Contractors offered evidence in support of the two orders, but, in light of Respondent’s good faith attempt to cooperate, the Registrar of Contractors Attorney requested that the civil monetary penalties be reduced to $500.00. Therefore, it is recommended that the Cease and Desist Orders be affirmed but modified to reflect civil monetary penalties in the amount of $250.00 each. FINDINGS OF FACT 1. On October 20, 2015, the Registrar of Contractors issued two Cease and Desist Orders to Respondent for jobs that he performed that met the definition of contracting without a license under A.R.S. § 32-1151.[1] The orders initiate civil monetary penalties against Respondent in the amounts of $1,500.00 and $2,500.00. Respondent appealed the orders. 2. During a settlement that took place on December 17, 2015, Respondent agreed to finish some punch list items, return some money that had been paid by the client, and obtain a contractor’s license. Respondent made a good faith effort to complete the punch list items, he returned the money as agreed, and he made efforts to obtain a contractor’s license but failed the test two times. 3. Because of Respondent’s good faith efforts to abide by the proposed settlement terms, the Registrar of Contractors requested that the civil monetary penalty be reduced to $500.00. 4. Although additional time was allowed before the hearing in this matter convened, Respondent did not appear for the hearing and was, therefore, unable to offer additional evidence or legal argument. CONCLUSIONS OF LAW 1. This hearing was conducted in accordance with Arizona Revised Statutes (“A.R.S.”) § 41-1092.01 et seq. The Registrar of Contractors has the burden of proof and the standard of proof on all issues is by a preponderance of the evidence. See Arizona Administrative Code (“A.A.C.”) R2-19-119. 2. The Registrar of Contractors offered a clear prima facie basis for finding that Respondent engaged in contracting without a license in that he 3. A.R.S. 32-1151 provides that it is unlawful to engage in the business of a contractor without a license. A.R.S. § 32-1166 authorizes the Registrar of Contractors to impose a civil monetary penalty not to exceed $2,500.00 for each violation against anyone contracting without a license in Arizona. 4. In this case, it was undisputed that Respondent engaged in contracting without a license. However, it is appropriate to consider, as a factor in mitigation, the efforts that Respondent undertook to comply with the settlement terms requested by the Registrar. Therefore, it is recommended that the Registrar reduce the amount of the proposed civil monetary penalties to a total amount of $500.00, reflecting a penalty of $250.00 in each case. RECOMMENDED DECISION Based on the foregoing considerations, the undersigned Administrative Law Judge hereby recommends to the Registrar of Contractors that the two Cease and Desist Orders issued on October 20, 2015 be affirmed but modified to reflect civil monetary penalties in the amount of $250.00 each, for a total of $500.00. Done this day, June 27, 2016.

/s/ Dorinda M. Lang Administrative Law Judge

Transmitted electronically to:

Jeffrey Fleetham, Director Registrar of Contractors ----------------------- [1] See Exhibits 2 and 5.

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