Arizona homeowners left with unfinished swimming pools after dealing with Scottsdale-based Sun State Pools are calling for changes to the state’s contractor protection system, saying the compensation available to them is not enough to cover their losses.
The company’s licence was revoked by the Arizona Registrar of Contractors (ROC) on June 25 after 85 complaints were lodged by homeowners and subcontractors between September 2025 and June 2026. The Arizona Attorney General’s Office has also opened a criminal investigation.
Customers say they paid thousands of dollars for pool construction or renovations that were abandoned, leaving some with incomplete work, damaged gardens and substantial bills for repairs.
The ROC’s Residential Contractors’ Recovery Fund currently provides a maximum of $30,000 per homeowner, while claims linked to a single residential contractor’s licence are capped at $200,000. Where claims exceed the overall limit, payments can be distributed proportionately between eligible claimants.
Tom Cole, director of the Arizona Registrar of Contractors, said the limits were set by state law and had not kept pace with the cost of construction work.
“$30,000 seems like a lot until you start a construction contract. Average pools are double that if not quite more,” Cole said in an interview with FOX 10.
The ROC has backed proposed legislative changes that would raise the maximum individual award to $40,000 and increase the cap per contractor’s licence to $300,000. Senate Bill 1565 also seeks to clarify eligibility and procedures for making claims against the fund.
State records show the recovery fund is intended as financial protection for eligible homeowners whose licensed contractors fail to complete or properly carry out residential work. Claims must meet specific conditions, including requirements relating to the contractor’s licence and any available bond.
Cole said the fund had paid between 50% and 60% of valid claims received over the past year, but acknowledged that the payments did not generally make homeowners financially whole.
Homeowners affected by Sun State Pools have been encouraged to submit claims while the ROC investigates the individual cases. The agency said it could not comment on active investigations, and no response has been received from Sun State Pools.
