Arizona law targets builders

Pool & Spa News, June 21, 2002 by Bob Dumas

A spate of consumer complaints in Arizona has prompted the state to pass legislation limiting down payments made to pool contractors to $1,000.

The law targets contractors who go out of business or lose their licenses before jobs are completed. The homeowner still might be left with a gaping hole in the backyard, but at least won't lose a substantial down payment.

Nearly 60 pool contractors across Arizona have gone out of business since 1996, according to the Registrar of Contractors, which regulates the state's construction industry.

"This legislation will help protect more people, said Michael Goldwater, director of the registrar's office, "but consumers have to be smart, too," by checking out the contractor thoroughly.

A study conducted by The Arizona Republic newspaper showed that for every 17 pools built annually in the Phoenix metro area, one has problems serious enough to prompt consumers to file formal complaints with the state.

Arizona already required that state-licensed contractors pay annually into the registrar's office recovery fund, established to provide consumers some measure of relief if builders fail to meet their obligations. The new law, besides limiting consumer down payments, will increase from $20,000 to $30,000 the amount that wronged homeowners can collect to help finish their pools.

Some other states with strong pool markets have created similar legislation. For example, builders in Nevada can take deposits of no more than $1,000 or 10 percent of a pool's price, whichever is less. In California, the Contractors State License Board mandates that homeowners pay no more than $200 down.