AZ HB2659

Conditions building permits for commercial buildings costing at least $250,000 or residential buildings with at least 5 units on contractor compliance with employment and wage law requirements for both cities/towns and counties.

Requires contractors to not be suspended from construction work by government agencies in the previous 3 years and to not have been found in violation of workers' compensation, employee misclassification, payroll tax, wage and hour, prompt payment, or prevailing wage laws within 3 years.

Mandates contractors maintain workers' compensation insurance, properly classify employees, keep detailed payroll records available within 5 days of request, comply with wage payment laws, and pay unemployment compensation contributions.

Suspends permits by operation of law and requires immediate stop work orders on all project construction if contractors fail to comply; permits may resume once violations are remedied.

Makes violations class 6 felonies and authorizes the attorney general or county attorney to enforce the law, with authority to retain fines from enforcement actions.