Bill > HB2494

This bill establishes an Employee Misclassification and Payroll Tax Fraud Advisory Task Force focused specifically on the construction industry, comprising key state officials from agencies like the Industrial Commission, Department of Insurance, and Registrar of Contractors. The task force will conduct a comprehensive study examining how employee misclassification and payroll tax fraud impact Arizona's state and local governments, including analyzing potential revenue losses, insurance industry effects, and the frequency of these practices. They are mandated to explore various aspects of the issue, such as developing a potential uniform definition of employment relationships, evaluating existing prevention and enforcement laws, identifying ways to improve information sharing between agencies, and creating strategies for investigating and preventing misclassification. The task force will seek public input, potentially conduct hearings, and is required to submit an annual report to legislative committees by February 1st each year, starting in 2027. State agencies are obligated to cooperate with the task force and provide necessary information, and participating agencies may individually implement the task force's recommendations within their existing statutory authority. The goal is to systematically address and reduce employee misclassification and payroll tax fraud in the construction industry through research, collaboration, and potential policy improvements.

Business and Industry

https://apps.azleg.gov/BillStatus/BillOverview/82293