2024A-07278-OMC-LS-ROC Notice of Hearing & Packet MAILED

2024A-07278-OMC-LS-ROC · Registrar of Contractors · 2024-09-26

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Arizona Registrar of Contractors, Case No. 2024-07278

COMPLAINANT, Docket No. 2024A-07278-OMC-LS- ROC v. NOTICE OF HEARING ON Arizona Pools & Spas Inc. CONTESTED CASE License Nos. ROC 350935 and 351558

RESPONDENT. This Notice of Hearing is issued under A.R.S. § 41-1092.05(D).

HEARING INFORMATION The hearing is set for:

November 13, 2024 9:00 AM Sondra Vanella Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

If you have requested to appear in-person at the hearing, the hearing will be held at 1740 W Adams Street, Phoenix, AZ 85007.

You must attend this hearing. This is an adversarial hearing before an administrative law judge, and is conducted in a similar manner as judicial proceedings. Thus, you must be

prepared to present evidence, including witness testimony and documents, in support of your case.

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION

The State of Arizona has determined that the licensing and regulation of construction contractors is a proper state function, and has vested authority in the Registrar of Contractors to administer Title 32, Chapter 10 of the Arizona Revised Statutes. A.R.S. §§ 32-1101 et seq. All hearings for alleged violations of Title 32, Chapter 10 are conducted under Title 41,

Chapter 6, Article 10. A.R.S. § 32-1156.

The statutes and rules governing the hearing can be found at: Arizona Revised

Statutes §§ 41-1092 to -1092.12, and Arizona Administrative Code R2-19-101 to -122.

PARTICULAR ARIZONA STATUTES AND RULES INVOLVED

The statutes and rules the Respondent is alleged to have violated are cited in the

complaint and citation, which were served on the Respondent on July 1, 2024. SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED

The complaint and citation allege that the Respondent committed the following act(s): Charge: 1 A.R.S. § 32-1154(A) (20)

THE PARTIES TO THE ADMINISTRATIVE HEARING Because Respondent is a licensee and is charged with an act(s) or omission(s) that is cause for the suspension or revocation of a license, Respondent is a party to this case and will be a party to the hearing. Because Complainant alleged Respondent committed an act(s) or omission(s) that is cause for the suspension or revocation of a license, Complainant is a party to this case and will

be a party to the hearing.

Respondent and Complainant, as the parties to the hearing, will present evidence and

argument to the administrative law judge.

RIGHT TO BE REPRESENTED The parties to the administrative hearing may choose to be represented by an attorney. A.R.S. § 41-1092.07(B). If one of the parties is a company, the company may be represented

by an officer or employee if that person satisfies the conditions set forth in A.R.S. § 32-

1156(B).

CHANGE OF ADDRESS Each party must inform the Registrar and the Office of Administrative Hearings of any change of address within five (5) days of the change. A.R.S. § 41-1092.04.

HEARING PROCEDURES AND RULES

The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092 to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and

processes governing the administrative hearing. Copies of the statutes, rules, and articles regarding the administrative hearing process can be found at https://www.azoah.com/.

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE

The Registrar’s investigators, employees, and attorneys will appear at the hearing via

video conference or telephone unless requested by a party to appear in-person. Requests for the Registrar’s investigators, employees, or attorneys to appear in-person must be filed with the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days prior to the hearing date.

HEARING PACKET

In the interests of administrative efficiency, the Registrar compiles and discloses

certain documents to the parties and the Office of Administrative Hearings. These documents

are attached to this Notice of Hearing as the “Hearing Packet.” If any party wishes to submit additional evidence, they must do so during the hearing after completing a disclosure statement. See “Disclosure Statement” section below.

SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS

The parties to the hearing must be prepared to present evidence in support of their

case. If a party wants to obtain testimony from a witness or documents not in the party’s

possession, the party must prepare and file a written subpoena for the Administrative Law

Judge to review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a subpoena can be found on the Office of Administrative Hearings’ website at www.azoah.com.

The party seeking a subpoena must serve notice on all the parties to the hearing, and on the Registrar. A.R.S. § 41-1092.04.

DISCLOSURE STATEMENT

At least seven calendar days before the hearing, each party must prepare and serve a

disclosure statement on all other parties, and file it with the Office of Administrative Hearings. A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/forms/RC-L-800A%20- %20Prehearing%20Disclosure%20Statement%2020191007v4.pdf

CHANGING THE HEARING DATE

The date of the hearing may only be advanced or delayed on the agreement of the

parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may

be changed by filing a written agreement of the parties to change the date of the hearing. The

written agreement must be filed with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmitted to the Registrar and all other parties. The assigned Administrative Law Judge may be found on the Office of Administrative Hearings’ web portal at www.azoah.com

If a party would like to move the date of the hearing without agreement of all parties, the party must file a written motion with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmit a copy to the Registrar and all other parties. The motion must state in detail good cause for why the date of the hearing should be advanced or delayed, and the position of all other parties regarding the advancement or delay. A party may also file a motion asserting a right to an expedited hearing upon a showing of

extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).

RESOLUTION SHORT OF ADJUDICATION In any case which is resolved or settled by the parties, or which is withdrawn by the Complainant without objection from Respondent after the Notice of Hearing is issued, the parties must notify the Office of Administrative Hearings of the resolution or settlement. Any such cases will be listed on the Registrar’s website and its records under the category: “Closed

Complaints – Resolved/Settled/Withdrawn.”

Dated September 26, 2024.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors

Copy mailed via USPS First Class mail September 26, 2024 to:

Respondent(s) Arizona Pools & Spas Inc. 4746 N 32nd St Ste. 135 Phoenix, AZ 85018

Complainant(s) Arizona Registrar of Contractors 1700 W Washington St Ste. 105 Phoenix, AZ 85007 Registrar’s Counsel Charles Hover III, Esq. 2005 N Central Ave Phoenix, AZ 85004 Copy sent electronically this same date to: Respondent at email address on record with the Registrar Complainant’s Attorney at email address of record with Registrar Case No. 2024-07278 /

Hearing Packet FAQ What is the The Hearing Packet is a packet of certain documents collected or Hearing Packet? issued by the Registrar over the course of its investigation. Who gets the The Hearing Packet is assembled and distributed to all parties and Hearing Packet? to the Office of Administrative Hearings (“OAH”) prior to an administrative hearing. What types of The Registrar prepares a Hearing Packet for Complainant-Handled cases does the Cases and No-Pay Cases. Note: If the Docket Number on the Registrar prepare a Notice of Hearing contains a “CHC” or “NPC”, your case is a Hearing Packet for? Complainant-Handled Case or a No-Pay Case. What is in the The Hearing Packet contains essential case-specific documents and Hearing Packet? at a minimum will include the following documents: ● Original complaint; ● Citation; and ● Answer. The Hearing Packet will also contain the following documents (if applicable): ● Jobsite inspection notices, notes, and photos; ● Written directives; and ● Compliance inspection notices, notes, and photos. What if there are If there is any evidence you submitted to the Registrar that are not documents missing included in the Hearing Packet it is your responsibility to introduce from the Hearing that evidence at the administrative hearing. Note: The Packet? administrative law judge assigned to your case does not have access to the entire Registrar record.

If there is additional evidence you submitted to the Registrar during the investigation that you also want to introduce as evidence during your hearing, it is your responsibility to: ● Properly disclose that evidence to the other party; and ● Introduce the evidence during your hearing.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

How do I disclose You must properly disclose any and all documents and witnesses evidence I intend to you intend to use at your hearing according to the Registrar’s use at a Hearing? Prehearing Disclosure Rules. See Arizona Administrative Code Section R4-9-118. A sample prehearing disclosure form and instructions are provided to the parties by the Registrar. How do I obtain If you previously submitted documents to the Registrar and need a documents I copy of these documents, please contact the Registrar’s Legal previously submitted Department or submit a public records request at to the Registrar? https://roc.force.com/AZRoc/s/roc-public-request.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Case No. 2024-07278 Arizona Registrar of Contractors,

COMPLAINANT, v. COMPLAINT AND CITATION Arizona Pools & Spas Inc., License Nos. ROC 350935 and 351558, RESPONDENT.

The Registrar issues this Complaint and Citation to Arizona Pools & Spas Inc. (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Complaint and Citation by July 16, 2024, then under A.R.S. § 32-1155(C), Respondent’s failure to answer may be deemed an admission of the act or acts charged in the underlying complaint, and the Registrar may then suspend or revoke Respondent’s license(s). JURISDICTION This Complaint and Citation is issued pursuant to A.R.S. § 32-1101 et seq., which authorizes the Registrar to impose disciplinary sanctions against licensees for violations of Title 32, Chapter 10 of the Arizona Revised Statutes. FACTUAL ALLEGATIONS A. Respondent’s License Nos. 350935 and 351558 1. On March 14, 2024, the Registrar issued License No. 350935 to Respondent. Exhibit 1. 2. Owen Brown is named on the license application as the sole owner/member and the qualifying party. Exhibit 2.

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 3. On April 12, 2024, the Registrar issued License No. 351558 to Respondent. Exhibit 3. 4. Mr. Brown is named on the license application as the sole owner/member and the qualifying party. Exhibit 4. B. Pleasure Spas Inc., License Nos. 166025 and 201430 5. On November 18, 2022, the Registrar received a request to add Mr. Brown as owner and President to License Nos. 166025 and 201430, issued to Pleasure Spas Inc. Exhibit 5. 6. On June 12, 2023, the Registrar received an application to add Mr. Brown as qualifying party for License No. 166025, which was approved on July 28, 2023. Exhibits 6-7. 7. On June 13, 2023, the Registrar received an application to add Mr. Brown as qualifying party for License No. 201430, which was approved on July 28, 2023. Exhibits 8-9. 8. Mr. Brown never disassociated from either License No. 166025 or 201430. 9. According to the Arizona Corporation Commission’s records, Mr. Brown is Director, President, Treasurer, and Statutory Agent for Pleasure Spas Inc. Exhibits 10-11. 10. On February 8, 2024, the Office of Administrative Hearings issued a Certification of Decision of Administrative Law Judge in Case No. 2023-02825, finding Pleasure Spas in violation of A.R.S. §§ 32-1154(A)(3) and (22), and suspending License No. 166025 for two days and assessing a $250 civil penalty. Exhibit 12. 11. License No. 166025 was suspended March 20-21, 2024. Exhibit 13. 12. On May 14, 2024, the Registrar issued a Final Administrative Decision and Order in Case No. 2023-11844, finding Pleasure Spas in violation of A.R.S. § 32-1154(A)(3), and suspending License Nos. 166025 and 201430 for five days. Exhibit 14. 13. The licenses were suspended June 25-29, 2024. Exhibits 15-16. 14. License No. 201430 was also suspended for lack of bond on March 5, 2024, which suspension has not been cleared. Exhibit 17. 15. In addition to these suspensions, Pleasure Spas currently has the following eleven open complaints that have resulted in citations being issued against its licenses, and which may result

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 in additional discipline: 1 a. Complaints with hearings held, pending final administrative decisions: 2023- 12801, 2023-14302, and 2024-00966; b. Complaints with Notices of Hearing issued: 2024-04225, 2024-03195, 2024-02534, 2024-01169, and 2024-01151; and c. Complaints where hearings have been requested: 2024-05465, 2024-05186, 2024- 03095. 16. Mr. Brown was named on License Nos. 166025 and 201430 at the time the acts and omissions occurred that resulted in suspension of the licenses as set forth in paragraphs 10-14 above, and that resulted in citations and possible forthcoming discipline of the licenses as set forth in paragraph 15. ALLEGED VIOLATIONS Charge 1: A.R.S. § 32-1154(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 unless the prior revocation was based solely on a violation of this paragraph. 17. The conduct and circumstances set forth in Paragraphs 1-14 above, constitute violations of A.R.S. § 32-1154(A)(20) because Mr. Brown is a person named on Respondent’s licenses, and was also named on Pleasure Spas’ License Nos. 166025 and 201430 when the acts or omissions resulting in suspension occurred. Additionally, Mr. Brown is a person named on Respondent’s licenses, and was also named on Pleasure Spas’ License Nos. 166025 and 201430 when the acts or omissions occurred that resulted in citations and possible forthcoming discipline of the licenses as set forth in paragraph 15.

1 The Registrar may submit evidence of any additional discipline that occurs prior to the hearing in this matter. of 6

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21

FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2024-07278. How to File a Written Answer: Respondent’s written answer may be submitted in the following ways: In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Email: [email redacted]

The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday.

If Respondent submits a written answer by mail, it is not filed with the Registrar until the

Registrar actually receives it.

Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than July 16, 2024. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides a

deadline ten days after service of the Citation. Service of the Citation and Complaint is

complete five days after the Registrar mails a copy of the Citation and Complaint to

Respondent’s latest address of record in the Registrar’s office.

Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written

complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s

license(s).

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE

Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline.

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated July 1, 2024. By: /s/ Margaret Lindsey Margaret Lindsey Assistant General Counsel Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, July 1, 2024 to:

Respondent Certified Mail No: [number redacted]

Arizona Pools & Spas Inc. 4746 N 32nd St Ste 135 Phoenix, AZ 85018

Copy mailed by USPS First Class mail this same date to: Arizona Pools & Spas Inc. 4746 N 32nd St Ste 135 Phoenix, AZ 85018

Copy sent electronically this same date to:

Respondent at email address on record with the Registrar

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 EXHIBIT 1 EXHIBIT 2 EXHIBIT 3 EXHIBIT 4 EXHIBIT 5 EXHIBIT 6 EXHIBIT 7 July 28, 2023

Pleasure Spas Inc 2004 E Irvington Rd #186 Tucson, AZ 85714

RE: Application to Replace Qualifying Party ROC 166025

Dear Contractor,

On June 7, 2023 the Registrar received an application to replace a Qualifying Party for your entity. We are pleased to inform you that your new Qualifying Party has been approved. The Registrar's records have been updated to reflect this approved status.

By becoming a Qualifying Party, that person is a “person named” on this license for the purposes and duties of all Registrar statutes and rules, including, but not limited to, A.R.S. §§ 32-1122, 32-1139(B) & 32-1154. These purposes and duties include violations arising out of or relating to agreements that were entered into, monies received, or work performed while named as the Qualifying Party for this license. A.R.S. § 32-1155(A) establishes a two-year period for the filing of complaints. Accordingly, these purposes and duties continue for up to two years after the Qualifying Party disassociates from this license.

Sincerely,

Rachel Poole Rachel Poole Licensing Office Specialist 602 7716759 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov L203 08/19 EXHIBIT 8 EXHIBIT 9 July 28, 2023

Pleasure Spas Inc 2004 E Irvington Rd #186 Tucson, AZ 85714

RE: Application to Replace Qualifying Party ROC 201430

Dear Contractor,

On May 26, 2023 the Registrar received an application to replace a Qualifying Party for your entity. We are pleased to inform you that your new Qualifying Party has been approved. The Registrar's records have been updated to reflect this approved status.

Sincerely,

Rachel Poole Rachel Poole Licensing Office Specialist 602 7716759 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov L203 08/19 EXHIBIT 10 EXHIBIT 11 EXHIBIT 12 IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Keith Kanipe , No. 2023A-02825-CHC-ROC COMPLAINANT v. CERTIFICATION OF DECISION Pleasure Spas Inc OF ADMINISTRATIVE DBA: Pleasure Pools LAW JUDGE License No. ROC 166025, RESPONDENT

Pursuant to the licensee’s timely request, the Office of Administrative Hearings hereby certifies the recommended decision in this matter as the final agency decision pursuant to A.R.S. §41-1092.08(I). NOTICE Rights for Rehearing or judicial review will be lost without action taken in a timely manner. A Party has the right to request a rehearing from the Registrar of Contractors pursuant to A.R.S. § 41-1092.09(A). In addition, the matter may be reviewed by the Superior Court, pursuant to A.R.S. § 41-1092.08(H), although a party may be required to seek a rehearing from the Registrar of Contractors before petitioning the Superior Court for such review. See A.R.S. § 411092.09(B). Further rights may be lost without action taken in a timely manner. Parties may wish to review these statutes as quickly as possible after receipt of this notice. The relevant statutes may be found at the local library or on the internet at: http://www.azleg.state.az.us/ArizonaRevisedStatutes.asp.Not later than ten days after a complaint for judicial review of an administrative decision is filed with the Superior Court, the party who filed the complaint must file a notice of the action with the Office of Administrative Hearings Done this day, February 8, 2024.

/s/ Greg Hanchett Director

Copy mailed/e-mailed/faxed to:

Tom Cole Director Registrar of Contractors c/o Legal Department 1700 W. Washington Street, Suite 105 Phoenix, AZ 85007 [email redacted] Office of Administrative Hearings 1740 West Adams Street, Lower Level Phoenix, Arizona 85007 (602) 542-9826

Pleasure Spas Inc DBA: Pleasure Pools 2004 E Irvington Rd #186 Tucson, AZ 85714 [email redacted]

Keith Kanipe 11270 E Vail Vista Ct Tucson, AZ 85747 [email redacted] By: OAH Staff

Received 1/30/2024 ROC Legal

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Keith Kanipe , No. 2023A-02825-CHC-ROC COMPLAINANT v. ADMINISTRATIVE LAW JUDGE Pleasure Spas Inc DECISION DBA: Pleasure Pools License No. ROC 166025, RESPONDENT

HEARING: January 11, 2024, 1:00 P.M. APPEARANCES: Complainant Keith Kanipe appeared on his own behalf; Owen Brown appeared on behalf of Respondent ADMINISTRATIVE LAW JUDGE: Roger A. Geddes EXHIBITS ADMITTED INTO EVIDENCE: None submitted. _____________________________________________________________________ FINDINGS OF FACT

BACKGROUND AND PROCEDURE

1. Pleasure Spas, Inc., dba: Pleasure Pools (“Respondent”), is the holder of

License Number 166025 issued by the Registrar of Contractors (“Registrar”).

2. On or about March 9, 2023, Keith Kanipe (Complainant) filed a Complaint against Respondent with the Registrar alleging poor work by Respondent in connection with a swimming pool installation at a residence in Tucson, Arizona (“project”). 3. The Registrar performed an inspection of the project on March 21, 2023. Thereafter, the Registrar issued a Written Directive, dated March 31, 2023 (“Directive”), requiring Respondent to remedy the following violations by April 21, 2023, by appropriate means (“Directive deadline”): Compliance Item: 1 - "Pool Shell/Shock Crete is cracked in several areas , Shell is compromised and severely leaking. ;" Investigator’s Observation: Verified. Upon inspection at this JSI I

Office of Administrative Hearings 1740 West Adams Street, Lower Level Phoenix, Arizona 85007 (602) 542-9826 Received 1/30/2024 ROC Legal

observed for: -unsuccessfully attempted crack repairs performed by Backyard Pool Plastering Service & Repair LLC when the pool was initially completed have resulted in the pool structure along with the interior lining not forming a single waterproof unit. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. Compliance Item: 2 - "Pebble Tek is Cracked in several areas and leaks water from shell." Investigator’s Observation: Verified. Upon inspection at this JSI I observed for: -cracking in pebble tec Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a

professional and workmanlike manner.

Compliance Item: 3 - "Pebble tek poorly installed and has multiple missing

areas exposing the shock Crete, There are bubbles and high spots."

Investigator’s Observation: Verified. Upon inspection at this JSI I observed for: -area of chipped out pebble tec Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. Compliance Item: 4 - "Patches that were original attempted are not compete are very discolored and very noticeable." Investigator’s Observation: Verified. Upon inspection at this JSI I observed for: -the pebble tec patches/repairs added to the unsuccessfully attempted crack repairs performed by Backyard Pool Plastering Service & Repair LLC when the pool was initially completed do not closely match the surrounding pebble tec and are poorly finished. Governing Rule: Violation of any rule adopted by the Registrar;

Received 1/30/2024 ROC Legal

Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. 4. The Registrar performed a Compliance Inspection on May 31, 2023, and made the following findings: Compliance Item: 1 - "Pool Shell/Shock Crete is cracked in several areas, Shell is compromised and severely leaking. ;" Investigator’s Observation: Work was performed for this item but an independent 3rd party engineering inspection has found that this work does not meet standards. Compliance Item: 2 - "Pebble Tek is Cracked in several areas and leaks water from shell." Investigator’s Observation: Work not completed for this item. Compliance Item: 3 - "Pebble tek poorly installed and has multiple missing

areas exposing the shock Crete, There are bubbles and high spots."

Investigator’s Observation: Work not completed for this item.

Compliance Item: 4 - "Patches that were original attempted are not compete

are very discolored and very noticeable." Investigator’s Observation: Work not completed for this item. 5. The Registrar then issued a Citation to Respondent, dated July 24, 2023, for the alleged violation of the following: a. A.R.S. § 32-1154(A)(3) (violation of Arizona Administrative Code Rule 4-9-108(a) for failure to perform work in a professional and workmanlike manner); b. A.R.S. § 32-1154(A)(22) (failure to perform corrective action without valid justification). 6. The Registrar referred the matter to the Office of Administrative Hearings, an independent state agency, for an evidentiary hearing that was continued to January 11, 2024, at 1:00 P.M. At the January 11, 2024, hearing, Complainant Keith Kanape testified on his own behalf; Owen Brown, majority owner, appeared on behalf of

Received 1/30/2024 ROC Legal

Respondent. Mike Springer, the Registrar Investigator (“Investigator”), testified on behalf of the Registrar. Neither party submitted exhibits.1 7. The Investigator testified on behalf of the Registrar consistently with the findings contained in the Directive and the job inspection notes. He stated that he was appearing because Arlo Houston, the Investigator on the project, was not available. 8. Complainant Keith Kanipe testified that the swimming pool leaked within a month of the installation and has not been repaired. He stated it will not hold water and has since been drained. 9. Owen Brown testified on behalf of Respondent, as herein relevant, that he purchased a majority interest in Respondent after the pool was installed and that he was not involved with the installation of the pool. He stated Backyard Pools, a subcontractor on the project, came out to perform repairs but was unsuccessful. 10. Administrative notice is taken of the Registrar’s public website which

reflects Respondent was first issued the subject license on July 30, 2001. The site also

reflects two Open cases, no Disciplined cases, and two Resolved/Settled cases.

CONCLUSIONS OF LAW

1. The Registrar has jurisdiction over this matter, pursuant to A.R.S. § 32- 1101, et seq., which authorizes the Registrar to impose disciplinary sanctions against licenses for violations of A.R.S. § 32-1154. 2. The burden of proof at an administrative hearing falls to the party asserting a claim, right, or entitlement and the standard of proof on all issues in these matters is by preponderance of the evidence. See Arizona Administrative Code Rule 2- 19-119. 3. To warrant sanctions by the Registrar, Complainant must demonstrate by a preponderance of the evidence that Respondent violated the statutory section cited. Proof by a “preponderance” means that “the evidence is sufficient to persuade the finder of fact that the proposition is more likely true than not.” In re: Arnold and Baker Farms,

1 The Tribunal took administrative notice of the Registrar’s file submissions to the Arizona Office of Administrative Hearings.

Received 1/30/2024 ROC Legal

177 B. R. 648 (9th Cir. BAP (Ariz.) 1994). See also Culpepper v. State of Arizona, 187 Ariz. 431, 930 P.2d 508 (App. 1996). It is “evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.” BLACK’S LAW DICTIONARY 1182 (Rev. 6th ed. 1990). 4. A.R.S. § 32-1154(A) includes in pertinent part among the grounds for suspension, revocation, or other disciplinary action against a contractor’s license, the following that were included in the Citation:

3. Violation of any rule adopted by the registrar. …

22. Failure to take appropriate corrective action to comply with his chapter or with rules adopted pursuant to this chapter without valid justification within a reasonable period of time after receiving a written directive from the registrar.….

5. With regard to the “violation of any rule adopted by the registrar” under A.R.S. § 32-1154(A)(3) referenced in the Citation, the rule allegedly violated in this case is Arizona Administrative Code Rule 4-9-108(A) which requires that “[a] contractor shall perform all work in a professional and workmanlike manner.” 6. A.R.S. § 32-1154(A)(3). Complainant has presented sufficient evidence to establish that Respondent failed to perform work in a professional and workmanlike manner in violation of Arizona Administrative Code Rule 4-9-108(a). Respondent

conceded that the Directive items existed and had not been remedied.

7. A.R.S. § 32-1154(A)(22). Complainant has presented sufficient evidence

to establish that Respondent failed to perform corrective action without a valid justification. There was no evidence presented to support a valid justification for not completing the corrective work. 8. Accordingly, the Tribunal finds that Complainant has established that Respondent’s license should be disciplined for a violation of § 32-1154(A)(3) and A.R.S. § 32-1154(A)(22).

Received 1/30/2024 ROC Legal

RECOMMENDED ORDER Based on the foregoing, it is recommended that on the effective date of this Order, Pleasure Spas, Inc.’s, License Number 166025 is suspended for two (2) days. IT IS FURTHER RECOMMENDED that pursuant to A.R.S. § 32-1154(E), Respondent must pay to the Registrar a civil penalty of $250.00 in certified funds on or before 30 days from the effective date of this Order. IT IS FURTHER RECOMMENDED that if Respondent fails to pay the entire amount of the civil penalty on or before thirty days following the effective date of the Registrar’s final order, the Registrar revoke Respondent’s license, effective on such deadline date. No future license shall be issued to any entity consisting of persons associated with Respondent, as defined in A.R.S. § 32-1101(A)(5), unless Respondent tenders payment of the outstanding prior civil penalty.

Pursuant to A.R.S. § 41-1092.08(I), the licensee may accept the Administrative Law Judge Decision by advising the Office of Administrative Hearings in writing not more than ten (10) days after receiving the decision. If the licensee accepts the Administrative Law Judge Decision, the decision shall be certified as the final decision by the Office of Administrative Hearings.

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 forty (40) days from the date of that certification.

Done this day, January 30, 2024.

/s/ Roger Geddes Administrative Law Judge

Transmitted electronically to:

Tom Cole, Director Registrar of Contractors

Pleasure Spas, Inc. DBA: Pleasure Pools 2004 E. Irvington Rd. #186 Tucson, AZ 85714 [email redacted]

Received 1/30/2024 ROC Legal

Keith Kanipe 11270 E. Vail Vista Ct. Tucson, AZ 85747 [email redacted] By: OAH Staff

EXHIBIT 13 Close Window Print This Page Expand All | Collapse All

WRN-[number redacted]

Warning Type Finite Suspension Effective Date 3/20/2024 Warning for bankruptcy Cleared Date 3/21/2024

Related Records Account Pleasure Spas Inc Complaint 2023-02825 License ROC 166025 Case Log Entry CL-[number redacted] Recovery Fund

Comments Comments

Warning Name WRN-[number redacted] Created By Shaquira Adebule, 3/20/2024 8:21 AM Licenses Approved Date Last Modified By Shaquira Adebule, 3/20/2024 8:21 AM Licenses Application Approved 7/10/2023 Date- Form

Lic approve date and effective -254 date

Warning History 3/20/2024 8:21 AM User Shaquira Adebule Action Created.

Tad Johnson, Case No. 2023-11844

COMPLAINANT, Docket No. 2023A-11844-CHC-ROC v. Pleasure Spas Inc. FINAL ADMINISTRATIVE DECISION DBA: Pleasure Pools AND ORDER License Nos. ROC 166025, ROC 201430, RESPONDENT.

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 of each finding of fact or conclusion of law. MODIFICATION AND WRITTEN JUSTIFICATION In this case, a hearing was held, and the administrative law judge (“ALJ”) issued a written decision. See ALJ Decision, attached. The Registrar reviewed that decision and modifies it as set forth below. As the ALJ correctly noted, while the Citation alleged six different statutory violations, the Notice of Hearing only placed Respondent on notice of A.R.S. § 32-1154(A)(3), namely A.A.C. R4-9-108(A) and (B), thus narrowing the issues to be addressed to these two statutory provisions. ALJ Dec. 3 note 3. Nonetheless, the ALJ recommended that Respondent be required to pay $500.00 as a civil penalty pursuant to A.R.S. § 32-1154(E). In order for a civil penalty to be assessed pursuant to § 32-1154(E), there must be a finding of a violation of § 32-1154(A)(22). Accordingly, because there was no such finding in of 2 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877)692-9762 Lg131 10/23 this case due to the charge being omitted from the Notice of Hearing, the Registrar modifies the ALJ decision to remove the part of recommended order that orders Respondent to pay a civil penalty. CONCLUSION AND ORDER The Registrar modifies the ALJ Decision by removing lines 4.5 to 11.5 on page 6. The Registrar accepts the remainder of the Administrative Law Judge Decision, which becomes effective on June 23, 2024. Dated May 14, 2024. By: /s/ Chance Peterson Chance Peterson General Counsel Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail May 14, 2024 to: Respondent Pleasure Spas Inc. DBA: Pleasure Pools 2004 E Irvington Rd #186 Tucson, AZ 85714 Complainant Tad Johnson 953 S Grantham Ave Vail, AZ 85641 Copy sent electronically this same date to:

Office of Administrative Hearings Amy M. Haley, Administrative Law Judge Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar Case No. 2023-11844/tq

of 2 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877)692-9762 Lg131 10/23 Received 4/18/2024 ROC Legal

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Tad Johnson , No. 2023A-11844-CHC-ROC COMPLAINANT ADMINISTRATIVE LAW JUDGE v. DECISION Pleasure Spas Inc DBA: Pleasure Pools License No. ROC 166025, License No. ROC 201430, RESPONDENT HEARING: March 29, 2024 APPEARANCES: Tad Johnson appeared on his own behalf. Owen Brown, qualifying party, appeared on behalf of Respondent. ADMINISTRATIVE LAW JUDGE: Amy M. Haley EXHIBITS ADMITTED INTO EVIDENCE: Administrative Notice was taken of the Notice of Hearing packet and all of its documents contained therein. _____________________________________________________________________ FINDINGS OF FACT 1. Pleasure Spas Inc (Respondent) is the holder of License Nos. 1660251 and 2014302 issued by the Arizona Registrar of Contractors (Registrar). 2. On or about December 12, 2022, Tad Johnson (Complainant) entered into a contract with Respondent for, among other things, the installation of polytube for the irrigation system (without connection), re-doing the front yard rocks, and adding decorative rock in the remaining yard. 3. On or about October 12, 2023, the Registrar received a Complaint against Respondent from Complainant alleging abandonment with respect to the project. 4. The Registrar assigned the complaint to Investigator John Smith. After a jobsite inspection, Investigator Smith issued a written directive to Respondent that provided as follows:

1 This is a B-5 General Swimming Pool Contractor License. This is a B General Residential Contractor License.

Received 4/18/2024 ROC Legal

After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on January 15, 2024. RESTRICTIONS • You may not perform or hire other contractors to perform work that is outside the scope of your license. • If your license is currently suspended for administrative reasons1, or is inactive, expired, or cancelled, you may not perform any corrective work nor contract in any manner, which includes hiring other contractors to perform work, until the suspension of your license(s) has been lifted or your license(s) has been reactivated. DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means: Complaint Item 1: “Been paid in full Since July 2023 and no work has been completed since then. Fireplace is still not finished;” Investigator’s Observations: Verified. The fireplace is incomplete. There is no gas fire log currently installed. The respondent acknowledged this still needs to be completed. .....

Complaint Item 2: “Irrigation lines were not installed properly;” Investigator’s Observations: Verified. Irrigation not complete: Irrigation lines not ran to tops of planter stands/structures. Sleeves are present; however, irrigation lines are incomplete. The respondent acknowledged this still needs to be completed. ..... Complaint Item 3: “Rock for entire backyard has not been laid” Investigator’s Observations: Verified. Decorative rock is not installed. All areas of current bare dirt are to be covered with decorative rock. The respondent acknowledged this still needs to be completed. .....

Received 4/18/2024 ROC Legal

ADDITIONAL VIOLATIONS In addition to the allegations in the complaint, the following violations were verified: Elements of a Contract Investigator’s Observations: As stated by the complainant, the respondent did not provide a copy of the contract. Governing Rules: A.R.S. § 32-1154(A)(12), Namely A.R.S. § 32-1158(A) Minimum Elements of a Contract.

A.R.S. § 32-1154(A)(12) Namely, A.R.S. § 32-1158(B): When a contractor and an owner sign a contract, the contractor shall provide the owner with a legible copy of all documents signed and a written and signed receipt for and in the true amount of any cash paid to the contractor by the owner. A.R.S. § 32-1154(A)(12) Namely A.R.S. § 32-1158.01 Swimming pool; spa; construction contracts REQUIRED CORRECTIVE ACTION: The respondent is to submit a copy of a current contract form that complies with A.R.S. § 32-1158 and § 32- 1158.01

Display of License Investigator’s Observations: The respondent’s business card does not include the respondent’s ROC number. Governing Rule: A.R.S. § 32-1154(A)(12) Namely A.R.S. § 32-1124(B) Display of License REQUIRED CORRECTIVE ACTION: The respondent is to submit documented compliance with A.R.S. § 32-1124 All errors contained in original. 5. After the deadline in the directive expired, Investigator Smith was notified no corrective work had been performed. 6. The Registrar issued a Citation against Respondent, charging possible violations of ARIZ. REV. STAT. § 32-1154(A)(3), namely ARIZ. ADMIN. CODE R4-9-108(A) and (B); ARIZ. REV. STAT. § 32-1154(A)(12), namely ARIZ. REV. STAT. § 32-1124(B), § 32-1158, and § 32-1158.01; and ARIZ. REV. STAT. § 32-1154(A)(22).3

However, the Notice of Hearing that was sent to Respondent on February 14, 2024 only placed Respondent on notice of ARIZ. REV. STAT. § 32-1154(A)(3), namely ARIZ. ADMIN. CODE R4-9-108(A) and (B). Therefore, the only issues to be addressed in this Decision are narrowed to these two statutory provisions only, despite having been cited for 6 different statutory violations.

Received 4/18/2024 ROC Legal

7. Investigator Smith testified consistently with his written directive. He further testified that while at the jobsite inspection, Respondent provided him a business card that lacked its ROC license number. Investigator Smith continued his testimony and stated that, on December 15, 2023, he sent Respondent a warning letter regarding his contract missing the required contract elements.4 Investigator Smith advised that Respondent never provided him a corrected contract. He further testified that Respondent acknowledged all of the issues and acknowledged that the issues were its responsibility. To that end, Investigator Smith asked Respondent for a deadline by which it believed it could comply with the written directive. Accordingly, Investigator Smith testified that he set the compliance deadline on January 15, 2024. Lastly, Investigator Smith testified that on January 16, 2024, he received a phone call from Complainant advising that the corrective work had never even started. 8. Complainant testified that Respondent broke ground in December 2022, and the work had not been completed to this day. He further stated that he paid Respondent, in full, in July 2023. Respondent finished the fireplace in September 2023 and once Respondent finished the structure, Respondent never returned. Complainant further testified that once the written directive was issued, he allowed Respondent on the property; however, Complainant testified that all Respondent did was send a person out to collect a rock sample and look at the polytube. Subsequent to that, approximately “2 hours before the completion date of January 15,” Complainant received a message from Respondent asking to come by to look at the polytube once again. Complainant advised Respondent at that time that if the work was not completed by the compliance deadline, he would move forward with “legal matters” and that Respondent would no longer be allowed on his property until all legal matters were settled. 9. Owen Brown, president and qualifying party, testified on behalf of Respondent. Mr. Brown testified that after the jobsite inspection, he and Iain MacInnes, project manager, headed back to Canada on personal matters. At that time, he did not understand that the written directive had to be completed before the January 15, 2024 date, and, in hindsight, realized that he should have communicated his issues to Investigator

Investigator Smith advised that Complainant stated he never received a copy of the contract.

Received 4/18/2024 ROC Legal

Smith. Mr. Brown further testified that the work itself would not take long to complete; however, after January 15, 2024 Respondent was no longer allowed on the premises. 10. Administrative notice is taken of Respondent’s prior License record on April 1, 2024. Such prior License record reflects that Respondent’s License No. 166025 was first issued on July 30, 2001 and is currently active. Such prior License record also reflects that there were 5 other open complaints, 1 prior disciplined complaint, and 3 prior resolved/settled complaints. 11. Additionally, Respondent’s License No. 201430 was noted to have been first issued on February 3, 2005 and is currently suspended due to lack of bond, as of March 5, 2024. Such prior License record also reflects that there were no open or prior complaints. CONCLUSIONS OF LAW 1. This matter lies within the Registrar’s jurisdiction.5 2. Complainant bears the burden of proof to establish Respondent’s statutory violations by a preponderance of the evidence.6 3. “A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.”7 4. Respondent’s suspended license does not deprive Complainant of his right to prosecute his Complaint or prevent the Registrar from determining the merits of the Complaint.8 5. The evidence established that Respondent’s work was not in conformity with the Registrar’s standards. Therefore, Complainant established that Respondent did not complete the project in a workmanlike manner in violation of ARIZ. REV. STAT. § 32- 1154(A)(3), namely ARIZ. ADMIN. CODE R4-9-108(A) and (B).9

See ARIZ. REV. STAT. § 32-1101 et seq. See ARIZ. REV. STAT. § 41-1092.07(G)(2); ARIZ. ADMIN. CODE R2-19-119(A) and ARIZ. ADMIN. CODE R2-19- 119(B)(1); see also Vazzano v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952). 7 MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960). See ARIZ. REV. STAT. § 32-1154(D) 9 ARIZ. REV. STAT. § 32-1154(A)(3) includes among the grounds for suspension, revocation, or other disciplinary action against a contractor’s license, “[v]iolation of any rule adopted by the registrar.” ARIZ. ADMIN. CODE R4-9-108 requires that “[a] contractor shall perform all work in a professional and workmanlike manner” and that “[a] contractor shall perform all work in accordance with any applicable building codes and professional industry standards.”

EXHIBIT 15 Close Window Print This Page Expand All | Collapse All

WRN-[number redacted]

Warning Type Finite Suspension Effective Date 6/25/2024 Warning for bankruptcy Cleared Date 6/29/2024

Related Records Account Pleasure Spas Inc Complaint 2023-11844 License ROC 201430 Case Log Entry CL-[number redacted] Recovery Fund

Comments Comments

Warning Name WRN-[number redacted] Created By Shaquira Adebule, 6/25/2024 8:16 AM Licenses Approved Date Last Modified By Shaquira Adebule, 6/25/2024 8:16 AM Licenses Application Approved 3/2/2023 Date- Form

Lic approve date and effective -481 date

Warning History 6/25/2024 8:16 AM User Shaquira Adebule Action Created.

WRN-[number redacted]

Warning Type Finite Suspension Effective Date 6/25/2024 Warning for bankruptcy Cleared Date 6/29/2024

Related Records Account Pleasure Spas Inc Complaint 2023-11844 License ROC 166025 Case Log Entry CL-[number redacted] Recovery Fund

Comments Comments

Warning Name WRN-[number redacted] Created By Shaquira Adebule, 6/25/2024 8:18 AM Licenses Approved Date Last Modified By Shaquira Adebule, 6/25/2024 8:18 AM Licenses Application Approved 7/10/2023 Date- Form

Lic approve date and effective -351 date

Warning History 6/25/2024 8:18 AM User Shaquira Adebule Action Created.

WRN-[number redacted]

Warning Type Suspended Lack of Bond Effective Date 3/5/2024 Warning for bankruptcy Cleared Date

Related Records Account Pleasure Spas Inc Complaint

License ROC 201430 Case Log Entry

Recovery Fund

Comments Comments

Warning Name WRN-[number redacted] Created By Angelica Buttice, 3/5/2024 4:03 PM Licenses Approved Date Last Modified By Angelica Buttice, 3/5/2024 4:03 PM Licenses Application Approved 3/2/2023 Date- Form

Lic approve date and effective -369 date

Warning History 3/5/2024 4:03 PM User Angelica Buttice Action Created.

Arizona Registrar of Contractors, Case No. 2024-07278 COMPLAINANT, v. Arizona Pools & Spas Inc. FINAL ADMINISTRATIVE License No. ROC 350935, and 351558 DECISION AND ORDER (DEFAULT) RESPONDENT.

A Citation was issued in this matter based on a complaint filed with the Registrar of Contractors. Based upon the entire record in this matter, the following Findings of Fact,

Conclusions of Law, and Order are made:

FINDINGS OF FACT 1. The Citation and Complaint were served on Respondent by certified mail, with postage prepaid, directed to the latest address of record for Respondent as shown in the license

files of the Registrar, in accordance with A.R.S. §§ 32-1155(A) and (B).

2. Respondent did not file a timely written Answer to the Citation as required by A.R.S. § 32-1155(A).

3. More than ten days have elapsed since service of the Citation, and under A.R.S. § 32- 1155(C) Respondent’s failure to answer within the time prescribed is deemed an admission of

the acts charged in the Complaint.

CONCLUSIONS OF LAW 1. Respondent violated the provisions of A.R.S. § 32-1154(A)(20) as charged in the Citation and Complaint.

of 2 1700 W. Washington Street, Suite 105 ꞏ Phoenix AZ 85007-2812 602.542.1525 ꞏ Toll Free 877.692.9762 ꞏ roc.az.gov Lg101 8/19 2. The Registrar has authority to suspend or revoke Respondent’s license under A.R.S. §§ 32-1154 and 32-1155.

ORDER Based on the foregoing, IT IS ORDERED that Respondent’s license 350935 and 351558 are revoked effective upon the issuance of this Order.

This Order is not subject to judicial review except for jurisdictional issues under A.R.S. §§ 41-1092.08(H) and 12-902(B).

Dated July 23, 2024. By: /s/ Mary Coyne Mary Coyne, CP Paralegal Manager Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed July 23, 2024 to: Respondent Arizona Pools & Spas Inc. 4746 N 32nd St., Ste. 135 Phoenix, AZ 85018 Copy sent electronically this same date to: Respondent at email address on record with the Registrar

Case No. 2024-07278 /

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[FF9+Ghh),2:6-55-:*6<5)h),2:hUh]i5XjXXNk?H)*f:lE<XZ2Jle4'AmUVnUk)bkA]<KXoP:iVU^PN85h?hDhp2bqOC,4*U*O,rgK2*Jq9Fg+*,7<[q,::g9*7)F[2s 'h' REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Arizona Registrar of Contractors, Case No. 2024-07278

COMPLAINANT, ORDER SETTING ASIDE FINAL v. ADMINISTRAIVE DECISION AND Arizona Pools & Spas Inc., ORDER (DEFAULT) License No. ROC 350935 and 351558 AND RESPONDENT. ORDER SETTING HEARING

After a review of the file and record, Respondent’s request to set aside the Registrar’s Final Administrative Decision and Order (Default) is granted for the following reasons: BACKGROUND On July 1, 20024, the Registrar issued a citation to Respondent for alleged violation(s) of A.R.S. § 32-1154(A)(20). The Registrar mailed the Citation via certified mail to Respondent’s address of record at: Arizona Pools & Spas Inc. 4746 N 32nd St., Ste. 135 Phoenix, AZ 85018. The Registrar did not receive a timely answer from Respondent. On July 23, 2024, the Registrar revoked Respondent’s license by Final Administrative Decision and Order (Default). On July 23, 2024, the Registrar received Respondent’s response to the Final Administrative Decision and Order (Default). ANALYSIS Service of a citation is fully effected by mailing a copy of the citation and complaint by registered mail to the licensee’s last address of record in the Registrar’s office. A.R.S. § 32- 1155(B). Service is complete five days after deposit in the mail. Failure of a licensee to respond of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877) 692-9762 Lg107 4/21 to a citation within ten days after service may result in a statutory admission of all acts charged in the complaint. The Registrar may accept a late answer if it determines, in its sole discretion, that the failure to timely answer is attributable to excusable neglect. A.R.S. § 32-1155(C). Here, the Citation was mailed to Respondent’s correct address of record via certified and USPS first class mail. The due date for Respondent to file an answer to the Citation was July 16, 2024. Because Respondent failed to timely file an answer as required under A.R.S. § 32-1155(C), the Registrar issued a default order in this case. The Registrar therefore considers Respondent’s July 23, 2024, submittal as a late answer and a request to set aside the default order. The Registrar favors resolving complaints on their merits rather than procedural technicalities. The Registrar reviewed the record to determine whether there is sufficient evidence to set aside the default in this case. Here, good cause exists to set this matter for a hearing before the Office of Administrative Hearings. Once Respondent was aware of the Registrar’s issuance of a default he promptly sought relief. Respondent further articulated reasons for failing to file a timely answer. Therefore, the Registrar determines that good cause exists to set aside the default. ORDER Based on the foregoing, Respondent’s request to set aside the Final Administrative Decision and Order (Default) is granted. IT IS ORDERED that the discipline imposed on July 23, 2024 is quashed. IT IS FURTHER ORDERED that a hearing be scheduled in the normal course of docketing. A Notice of Hearing will be issued in due course. Dated September 16, 2024. By: /s/ Chance Peterson Chance Peterson General Counsel Arizona Registrar of Contractors of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877) 692-9762 Lg107 4/21 Copy mailed via USPS First Class mail September 16, 2024 to: Respondent Arizona Pools & Spas Inc 4746 N 32nd St Ste 135 Phoenix, AZ 85018 Copy sent electronically this same date to: Respondent at email address on record with the Registrar

Case No. 2024-07278/

of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877) 692-9762 Lg107 4/21 Legal New Mail - AZROC <[email redacted]>

ROC Complaint 2024-07278 message

Legal New Mail - AZROC <[email redacted]> Thu, Jul 11, 2024 at 9:12 AM To: [email redacted]

Hello,

Friendly reminder that an Answer is due in the above referenced matter on or before July 16, 2024. A failure to submit a timely Answer may result in a suspension or revocation of the licenses charged in the Complaint and Citation.

Thank you,

Arizona Registrar of Contractors Legal Department

Fill out AZ ROC’s survey to let us know how we’re doing and how we can better serve you! Mediation Notice

Mediation Services Mediation services are available to the parties. What is Mediation? Mediation is a method of resolving disputes where the parties can end conflict without the expense and time associated with the full administrative process. Who Participates in During mediation, a mediator will attempt to help the Mediation? parties find an optimal solution to the conflict. Both parties must agree to participate in mediation, and both parties must bring a representative to mediation that has full authority to settle the entire matter. Mediation Is Not Neither the Registrar nor the Office of Administrative Mandatory Hearings will penalize a party for not agreeing to mediation. Where do the Parties The parties will meet at the Office of Administrative Meet for Mediation? Hearings to participate in mediation.

The Office of Administrative Hearings is located at 1400 West Washington, Suite 101, Phoenix, Arizona 85007. When does Mediation can occur after the Registrar issues a citation, but Mediation Occur? before the administrative hearing. Why Should Parties Mediation can be an alternative to the full administrative Consider Mediation? process. Mediation is beneficial because it is (1) time- efficient, (2) cost-effective, (3) confidential, and (4) capable of providing flexible solutions to complex problems. How to Request If the parties wish to mediate this case, they must file a Joint Mediation Request for Mediation with the Office of Administrative Hearings. A Joint Request for Mediation is included with this Mediation Notice. REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA _________________________ Case No. _______________ COMPLAINANT,

v. JOINT REQUEST FOR MEDIATION _________________________ RESPONDENT.

REQUEST

The parties jointly request that this matter be referred to mediation in the Office of Administrative Hearings (OAH). ☐ This matter is set for hearing on __________________(date). ☐ This matter is not currently set for hearing. MEDIATION AGREEMENT By requesting this mediation and signing below, the parties understand, represent, and agree: 1. The parties are prepared to commence mediation and will be ready for mediation on _____________________(date); 2. The parties will participate in the mediation process in good faith; 3. This request for mediation is not intended to hinder or delay administrative proceedings; 4. No party will contend that the mediation limits the power of OAH and its administrative law judges to conduct an administrative hearing and issue decisions under A.R.S. §§ 41-1092 – 1092.12; 5. The parties will be courteous and respectful throughout the mediation process to all participants; 6. The mediation is completely voluntary and the principal purpose is to allow the parties a full and fair opportunity to discuss settlement; of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 7. The mediator may conduct joint and separate meetings with the parties and may suggest resolutions to the parties’ dispute, but the mediator has no authority to impose a settlement upon the parties; 8. The mediation process is confidential. Communications made, material created for or used during, and acts occurring during mediation are confidential and may not be discovered or admitted into evidence in any proceeding except as provided by A.R.S. § 12-2238; 9. The mediator is not subject to service of process or a subpoena to produce evidence or to testify regarding any evidence or occurrence relating to the mediation except as provided in A.R.S. § 12-2238(C); 10. Neither the mediator, nor the Registrar of Contractors, nor the Office of Administrative Hearings is subject to civil liability for any act or omission in connection with any mediation service or activity except for acts involving

intentional misconduct or reckless disregard of a substantial risk of injury to the rights of others; 11. Throughout the mediation process, each party must have a representative present who will have full settlement authority to settle all claims at issue in the administrative

proceeding. 12. The mediation process will terminate when: a. The parties reach settlement; b. The mediator determines that further efforts at mediation are no longer likely

to achieve a settlement; or c. One of the parties withdraws from mediation. _____________________________________ _______________________ Complainant (or representative) Date

_____________________________________ _______________________ Respondent (or representative) Date

of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 PREHEARING DISCLOSURE STATEMENT INSTRUCTIONS ***DO NOT SUBMIT THESE INSTRUCTIONS WITH THE PREHEARING DISCLOSURE FORM***

ADMINISTRATIVE RULES A copy of the Arizona Administrative Code’s Rules for the Registrar of Contractors can be located on the Registrar’s Website.

PREHEARING DISCLOSURE REQUIREMENT Under A.A.C. R4-9-118(A), before a hearing, the parties must prepare a disclosure statement. The disclosure statement must contain: • A list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony; and • A list of all the exhibits that the party will use at the hearing.

FILE PREHEARING DISCLOSURE STATEMENTS • The Prehearing Disclosure Statements and Exhibits may be submitted to the Arizona Office of Administrative Hearings using any of the following: • Electronically: https://portal.azoah.com/submission/ • In-Person or by Mail: 1740 West Adams Street, Lower Level, Phoenix, Arizona 85007

EXCHANGING DISCLOSURE STATEMENTS AND EXHIBITS Under A.A.C. R4-9-118(B) (effective November 5, 2017), a party to the hearing must serve on every other party and file with the Office of Administrative Hearings a copy of: • The disclosure statement; and, • Any exhibit that the party will use at the hearing. Service: The disclosure statement and exhibits must be served on all parties in accordance with Arizona Administrative Code R2-19-108 Filing Documents. Under A.A.C. R2-19-108, service is completed by: • Personal delivery; • 1st class, certified or express mail; or • Facsimile. Timing: The disclosure statement and the exhibits must be served and filed not less than seven calendar days before the date of the hearing. Under A.A.C. R2-19-108, a document is served on a party: • On the date it is personally served; • Five days after it is mailed by express or 1st class mail; • On the date of the return receipt if it is mailed by certified mail; or • On the date indicated on the facsimile transmission.

CONSEQUENCES FOR FAILING TO DISCLOSE Under A.A.C. R4-9-108(C), if a witness or an exhibit is not timely disclosed as required the rules, and good cause for the failure to disclose is not shown, then the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.

Form RC-L-800A Prehearing Disclosure Statement Rev. 10/08/2019 Instructions Form PREHEARING DISCLOSURE STATEMENT FORM RC-L-800A

PART 1: WITNESS LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony. If you need additional space to list all witnesses, complete and attach additional Witness Lists. Example 1. Name 2. Telephone Number 3. Email Address

John Doe (123) 456-7890 [email redacted] 4. Subject Matter of Expected Testimony

John Doe will testify regarding the poor workmanship and poor installation of the Garage Door. Mr. Doe will also testify regarding the invoices and change orders for the project.

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 1 of 3 PART 2: EXHIBIT LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the exhibits that the party will use at the hearing. Note: All exhibits listed below must be provided to all parties to the hearing. See A.A.C. R4-9-118(B). If you need additional space to list all witnesses, complete and attach additional Exhibit Lists. Example Contract for new garage door. Invoice #10001 – Cost for garage door replacement.

Exhibit Exhibit Name

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 2 of 3 PART 3: ACKNOWLEDGEMENT & SIGNATURE I certify that the above information is true and correct and that I will serve a copy of this disclosure statement and any exhibits listed in Part 2 to all parties to the hearing in accordance with A.A.C. R4-9-118. I acknowledge and understand that if I fail to properly disclose a witness or exhibit, the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.

I am the (check one):  Complainant  Respondent Docket No.

Print Name Signature Date

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 3 of 3