AZ HB2265

Establishes an 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 membership includes the directors of the Industrial Commission of Arizona, Department of Insurance and Financial Institutions, and the Registrar of Contractors as voting members, with the Secretary of State and Attorney General as nonvoting advisory members.

Director of the Industrial Commission must convene the first task force meeting on or before February 1, 2023, and the task force shall elect a chairperson and other officers from voting members.

Task force must study impact of misclassification and tax fraud on state revenue, insurance earnings, enforcement effectiveness, uniform employment definitions, inter-agency information sharing, and educational prevention strategies.

Task force must submit annual reports to the Senate Commerce Committee and House Commerce Committee beginning February 1, 2024, and agencies may implement task force recommendations within their existing statutory authority.