FINACT2018A-1685-LDA-ROC.pdf

2018A-1685-LDA-ROC · Registrar of Contractors · 2018-10-17

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

REGISTRAR OF CONTRACTORS, Case No. 2018-1685 Docket No. 2018A-1685-LDA-ROC v.

IHS CONTRACTORS, LLC, FINAL ADMINISTRATIVE DECISION Pending License Application No. 317693 AND ORDER APPLICANT.

Under A.R.S. § 41-1092.08(B), the Registrar may review and accept, modify, or reject an administrative law judge’s written decision. If the Registrar modifies or rejects that decision, then the Registrar must provide written justification setting forth the reasons for the modification or rejection. REGISTRAR’S ACCEPTANCE In this case, a hearing was held, and the administrative law judge issued a written decision. See Administrative Law Judge Decision, attached. The Registrar reviewed that decision and hereby accepts it. CONCLUSION Because the Registrar has accepted the administrative law judge’s decision, that decision is the final administrative decision in this case and becomes effective on November 20, 2018. Dated October 11, 2018. Registrar of Contractors /s/ Nicole Sornsin Nicole Sornsin Assistant Director, Legal and Recovery Fund

of 2 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 Copy mailed via USPS First Class mail October 11, 2018 to: Respondent IHS Contractors LLC PO Box 51143 Mesa, AZ 85208 AND copy electronically mailed this same date to: Respondent’s email address on record with the Registrar Office of Administrative Hearings Randolph D. Wolfson, Administrative Law Judge

Registrar’s Counsel Thomas Raine, Assistant Attorney General Case No. 2018-1685 / AN

of 2 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 RECEIVED 9.17.2018 ROC LEGAL IN THE OFFICE OF ADMINISTRATIVE HEARINGS

IN THE MATTER OF THE APPLICATION No. 2018A-1685-LDA-ROC OF: ADMINISTRATIVE LAW JUDGE IHS Contractors LLC, DECISION

PENDING LICENSE NO: 317693

HEARING: September 4, 2018. APPEARANCES: Raymon Carson, Applicant; Bonny Allen, Esq., Registrar of Contractors, Thomas Raine, Esq., Asst. Atty General, Registrar’s Legal Counsel; Brain Kirby, Chief of Licensing.

ADMINISTRATIVE LAW JUDGE: Randolph D. Wolfson

FINDINGS OF FACT 1. On September 4, 2018, a hearing was conducted before the Office of Administrative Hearings, an independent agency, to receive evidence on the appeal of IHS Contractors, LLC. [hereinafter, “IHS”] regarding the Registrar’s March 12, 2018 Notice of Denial1 of IHS’s Contractors License Application dated January 11, 2018. 2 2. At hearing, all parties stipulated, on the record, that the only question presented for determination is whether Raymon Carson [hereinafter, “R. Carson”] and/or Vicci Suzette Carson [hereinafter. “Ms. Carson] failed to establish good character and reputation by being named on a suspended or revoked contractor's license in violation of A.R.S. §§ 32-1122(C) and 32-1154(A)(20). The Registrar withdrew, without prejudice. All other allegations in its March 12, 2018 Notice of Denial. 3. On or about January 11, 2018, Applicant IHS Contractors LLC, (hereinafter, “HIS”) submitted an application for licensure to the Registrar. 4. R. Carson) is named as manager and qualifying party on the application.3 See, Registrar’s Exhibit 1, “Notice of License Denial dated 3/12/18.” Administrative Judicial Notice is taken of the entire Registrar of Contractors’ files in this matter. Ibid.

Office of Administrative Hearings 1740 West Adams Street, Lower Level Phoenix, Arizona 85007 (602) 542-9826 RECEIVED 9.17.2018 ROC LEGAL

5. R. Carson was named as a member and qualifying party on License No, 172410 issued to Eagle Rock Contracting, LLC (Eagle Rock).4 6. Per the testimony of Brain Kirby, Registrar’s Chief of Licensing, Mr. R. Carson was on Eagle Rock’s license from March l, 2002 until it was cancelled on September 9, 2010. 7. Ms. Carson is named as a member on the IHS application.5 Ms. Carson was named as a member on Eagle Rock.6 8. Per the testimony of Brain Kirby, Registrar’s Chief of Licensing, Ms. Carson was on Eagle Rock from March l, 2002 until it was cancelled on September 9, 20I0.

9. In Case Number 20I0-23500266 (20I0-2350), R. Carson and Ms. Carson have an unresolved license discipline on Eagle Rock. In Case Number 20I0-2350 Eagle Rock was found to have violated A.RS. § 32-1154(A)(10), Eagle Rock’s license was Ordered suspended as of August 2, 2010 and Eagle Rock was ordered to pay the Complainant in 20I0-2350, Brooks Bros Utility Contractors, Inc., the sum of $60,850.00. The act or omission which caused the revocation occurred on March 25, 2008. 10. R. Carson testified at hearing that he has approached Brooks Bros Utilities numerous times in order to reach a payment agreement. But, Mr. Carson stated, a payment plan or compromise could not be reached. He admits the $60,850.00 payment ordered in 20I0-2350 from Eagle Rock not been paid.

CONCLUSIONS OF LAW 11. This matter lies within the Registrar’s jurisdiction. See A.R.S. § 32-1101 et seq. 12. The Applicant bears the burden of proof to establish Respondent’s statutory

violation by a preponderance of the evidence. See A.R.S. § 41-1092.07(G)(2); A.A.C.

R2-19-119(A) and A.A.C. R2-19-119(B)(1); see also Vazanno v. Superior Court, 74 Ariz.

369, 372, 249 P.2d 837 (1952). “A preponderance of the evidence is such proof as

4 Registrar’s Exhibit 4. Registrar’s Exhibit 2, supra. Registrar’s Exhibit 4, supra. RECEIVED 9.17.2018 ROC LEGAL

convinces the trier of fact that the contention is more probably true than not.” MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960). 13. A.R.S. §32-1122. ( Qualifications for license) provides:

To obtain or renew a license under this chapter, each person shall be of good character and reputation. Lack of good character and reputation may be established by showing that a person has engaged in contracting without a license or committed any act that, if committed or done by any licensed contractor, would be grounds for suspension or revocation of a contractor's license …. 14. Both R. Carson and Ms. Carson have failed to establish good character and

reputation due to being named on the suspended license of Eagle Rock.

15. A.R.S. §32-1154 provides: Grounds for suspension or revocation of license. A. The holder of a license or any person listed on a license pursuant to this chapter shall not commit any of the following acts or omissions …. 20. Having a person named on the license who is or was named on any other license in this state or in another state that is under suspension or revocation for any act or omission that occurs while the person is or was named on the license….

16. By a preponderance of the evidence, both R. Carson and Ms. Carson are persons named on the IHS license “who [are] or [were] named on Eagle Rock’s license” - which license is under suspension or revocation for acts or omissions that occurred while both R. Carson and Ms. Carson were named on the license of Eagle Rock. 17. A.R.S. §32-1161 provides:

A. After suspension of the license upon any of the grounds set forth in section 32-1154, the registrar shall renew it upon … proper showing that all loss caused by the act or omission for which the license was suspended has been fully satisfied. ….

C. After revocation of a license upon any of the grounds set forth in section 32-1154, the license shall not be renewed or reissued for one year after final determination of revocation and then only on proper showing that

RECEIVED 9.17.2018 ROC LEGAL

all loss caused by the act or omission for which the license was revoked has been fully satisfied. 18. IHS, R. Carson and Ms. Carson have failed to show, by a preponderance of the evidence, that all harm caused by the suspended license of Eagle Rock has been cured as required by A.R.S. §32-1161, et seq. 19. IHS is not qualified to apply for a contractors license and, therefore, the Registrar’s March 12, 2018 Notice of Denial should be upheld and confirmed. RECOMMENDED ORDER

In light of the foregoing, IT IS RECOMMENDED that Registrar’s March 12, 2018 Notice of Denial should be upheld and confirmed. FURTHER IT IS RECOMMENDED remanding this matter to the Registrar for such further action as may be necessary.

Done this day, September 17, 2018.

/s/ Randolph D. Wolfson Administrative Law Judge

Transmitted electronically to: Jeffrey Fleetham, Director Registrar of Contractors c/o Legal Department 1700 W. Washington Street, Suite 105 Phoenix, AZ 85007 By: _________________