Bill > HB2463

This bill establishes an advisory task force to study and make recommendations concerning employee misclassification and payroll tax fraud, particularly within the construction industry. Employee misclassification occurs when an employer incorrectly labels an employee as an independent contractor, and payroll tax fraud involves intentionally evading taxes related to employee wages. The task force will include representatives from the Industrial Commission of Arizona, the Department of Insurance and Financial Institutions, and the Registrar of Contractors, with non-voting advisory members from the Secretary of State's and Attorney General's offices. The task force is mandated to investigate the financial impact of these issues on government revenue and the insurance industry, assess the frequency and economic effects of misclassification and fraud, and evaluate the effectiveness of current laws. It will also explore ways to improve inter-agency information sharing, pool enforcement resources, develop new investigative strategies, facilitate complaint filing, and increase public awareness through educational materials. The task force is required to submit an annual report of its findings and progress to legislative committees, starting by February 1, 2028.

Business and Industry

https://apps.azleg.gov/BillStatus/BillOverview/84236