HB 2689 Summary

• Establishes the Employee Misclassification and Payroll Tax Fraud Advisory Task Force to study and make recommendations regarding employee misclassification and payroll tax fraud in the construction industry.

• Task force voting membership includes the directors of the Industrial Commission of Arizona, Department of Insurance and Financial Institutions, and the Registrar of Contractors; Secretary of State and Attorney General serve as nonvoting ex officio members.

• Task force shall study issues including revenue losses from misclassification, insurance industry losses, frequency and economic impact of fraud, employment relationship definitions, effectiveness of existing enforcement laws, and inter-agency information sharing opportunities.

• Task force must submit annual reports to the Senate Commerce Committee and House of Representatives Commerce Committee beginning February 1, 2022.

• Task force terminates on July 1, 2028.