NewsFox 13 Investigates

Actions

Other states have these contractor laws that Utah doesn’t

Posted at 9:48 PM, Jan 15, 2024
and last updated 2024-01-15 23:48:03-05

EDEN, Utah — Jeff Smith was looking for someone to fix up his late mother’s home here.

Stairs needed to be replaced in front of the house. Out back, last winter’s heavy snowfall destroyed the porch. Gutters all around the house were bent and spilling water onto the ground.

A man with a construction company answered the ad Smith placed on social media.

“Ultimately ended up choosing Ryan Goodrich,” Smith said.

That’s the same Ryan Goodrich FOX 13 reported on in 2023. First, the Utah Division of Insurance suspended Goodrich’s title agent license, saying he borrowed against a home he didn’t own.

Then Goodrich went into the construction business. A drywall installer told FOX 13 that a homeowner agreed to pay him when Goodrich did not. Meanwhile, the state of Utah has cited Goodrich four times for not having a contractor’s license.

The Utah Division of Professional Licensing, or DOPL, also cited Goodrich for not obtaining a construction permit from Weber County before beginning construction for Smith. In all, according to citations obtained by FOX 13, DOPL has fined Goodrich and his company $10,400.

“I think he needs to be locked up,” Smith said, “so he can't do this to anyone else.”

And DOPL has issued $19,800 in fines to Rob Riley at Triton Pools & Spa. FOX 13 reported in 2023 how Riley had started pool installations for at least a half dozen homeowners without finishing the jobs, leaving the owners with holes and some plaster or utilities.

Both Goodrich and Riley’s companies are still in business. Neither man agreed to recent interviews with FOX 13. They have previously denied wrongdoing and have not been charged with any crimes in Utah related to contracting.

The fines have been a fraction of what homeowners have paid.

“We share your frustration,” said Mark Steinagel, the director of DOPL, when asked what he would say to homeowners.

“You know who shares their frustration the most is our investigators,” Steinagel added.

The number of citations issued to Utah construction contractors has increased over the years, but a review from FOX 13 found Utah lacks laws that some states have used to regulate the industry.

  • It’s a felony in Hawaii to be an unlicensed contractor. It’s a misdemeanor in Utah.
  • Under Tennessee law, it’s theft if a contractor takes money, doesn’t perform the work and no refund is issued.
  • Then there’s Arizona. It has a “most wanted list” of contractors charged with crimes. Arizona also has a process where regulators can order a contractor to pay damages to a homeowner.

But in Utah…
“We don't have any ability to order restitution,” Steinagel said.

The best Steinagel and the staff at DOPL can do is refer a homeowner to the Utah Division of Consumer Protection. It’s a different state agency that can sometimes secure some restitution. Or the homeowner can try to take the contractor to court.

Steinagel said DOPL has been working with a criminal task force attempting to prosecute contractor fraud under Utah’s generic fraud or theft statutes, but without laws specifically addressing contractors, police and prosecutors have more to prove to a jury than they might have to in, say, Tennessee.

“We would welcome consideration of additional fraud penalties,” Steinagel said.

Sen. Curt Bramble, R-Provo, chairs the committee that could consider tougher regulations on contractors. He says the committee may be willing to give DOPL the power to order restitution, but said “the devil’s in the details.”

“Do you want to open up an avenue where fraud goes the other way against legitimate contractors?” Bramble asked.

Meanwhile, the state of Utah has been running a service campaign called “Scamalot” to warn Utahns about fraud, including contractor fraud.

“We’re asking homeowners to be empowered,” Steinagel said. “Recognize it’s a free market and do the things they need to do to protect themselves, too.”

When asked whether he was angry Utah hadn’t stopped Goodrich, Smith replied with a simple, “Yes.”

BEST PRACTICES FOR FINDING A TRUSTWORTHY CONTRACTOR AND PROTECTING YOURSELF:

  • First, verify he or she has a license by going to dopl.utah.gov. You can also look up discipline history at that address.
  • Check online reviews.
  • Ask friends and family for referrals.
  • Get a contract that specifies the work to be done and that the contractor will get the work inspected.
  • Do not pay any money earlier than what the contract calls for.
Story Idea or Tips
If you have a story idea or tip for the FOX 13 Investigative unit, please share it with us below: