The Arizona Registrar of Contractors is on track to receive 8,000 complaints this year, but the agency lacks real enforcement power. Something Director Tom Cole says should change.
The ROC revoked the license of Scottsdale pool company Sun State Pools in June after receiving 85 complaints, many from customers who say the business took their money and never finished their projects. The agency's handling of those complaints has drawn scrutiny from both customers and contractors.
RELATED: Arizona ROC director discusses handling of complaints against Scottsdale company Sun State Pools
Director Cole said the agency has seen a small number of repeat offenders, but they face only misdemeanor-level consequences. He said he would recommend lawmakers consider an escalating penalty structure.
"I really feel like we have had a very small number, but but but a number of repeat offenders who will be held accountable at that misdemeanor class one misdemeanor level and then continue that bad behavior. You know, if I had a recommendation to lawmakers, I think I might recommend that we have an escalating penalty scenario where… someone that is found to have violated the law in the same way multiple times, ultimately is guilty of a felony. But that's outside of my purview as director. You know that's something we have to talk to our lawmakers about," Cole explained.
RELATED: Sun State Pools fallout: Contractor and customers push Arizona ROC to improve investigation process
Cole also said he supports raising the statutory caps on the ROC's Residential Contractors' Recovery Fund, which he said have not been adjusted in decades.
"One of the biggest challenges that we have with the Residential Contractors' Recovery fund are the statutory caps on the awards. Those haven't been adjusted for inflation… haven't been adjusted at all in decades. And at this point, per complaint, the cap's $30,000, and per license it's $200,000," Cole said.
Director Cole said a bill was introduced in the last legislative session to raise those caps, but it never made it to a vote. Still, Cole says the agency plans to push for the same change in the next session.
"That's a that's a matter of law, and that cap needs to be adjusted by the legislature. We had a bill in the last legislature to do exactly that, and if everything goes well, we're going to be doing the same thing in the next legislature, asking for those statutory caps to be raised in order to better compensate Arizona consumers that have been financially harmed by licensed contractors," Cole said.
Director Cole said the funding caps also slow down the process of victims getting their money from the recovery fund.
"If I've got if I've got 10 complaints against a single license, and they're all for $50,000, that's well over the $200,000 statutory cap for that one license. So, I have to get all 10 cases investigated fully to find out how much each of those 10 complainants will be awarded, because I can only dole out $200,000 as a statutory cap. So those are each one of those claims are typically if they're over, they're prorated," Cole said.
The dozens of customers who filed complaints against Sun State Pools are currently in that process, waiting for their money. Both the ROC and the Arizona Attorney General's Office are still investigating Sun State Pools.
Learn more about the Arizona Registrar of Contractors Residential Contractors' Recovery Fund here.
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