In 2007, the Legislature enacted SB 5926, which created a Joint Legislative Task Force to formulate a state policy to establish cohesion and transparency between state agencies to increase oversight and regulation of the underground economy practices in the construction industry.  The Joint Legislative Task Force met over a few years and developed findings and recommendations, which were incorporated into legislation that passed during the 2008 and 2009 sessions.  

The bill as referred to committee not considered.

The Joint Legislative Task Force on the Underground Economy (task force) in the Washington State construction industry is reestablished.  The purpose of the task force is to undertake a study on the nature and scope of the underground economy and to recommend what policy changes, if any, are needed to address the underground economy, including whether greater cohesion and transparency among state agencies is needed.

To assist the task force in achieving this goal and to determine the extent of and projected costs to the state and workers of the underground economy in the construction industry, the task force must contract with the Institute for Public Policy.
 
The task force members will be:

• the chair and ranking minority members from each of the Senate Labor, Commerce and Tribal Affairs committee and House Labor and Workplace Standards committee;
• four members representing the construction business, selected from nominations submitted by statewide construction business organizations;
• four members representing construction laborers, selected from nominations submitted by statewide labor organizations; and
• one representative from the Attorney General's Office.

 
The industry and labor representatives will be appointed jointly by the President of the Senate and the Speaker of the House.
 
The Employment Security Department, the Department of Labor and Industries, and the Department of Revenue must:

• cooperate with the task force and must each maintain a liaison representative, who is a nonvoting member of the task force;
• cooperate with the task force and the Institute for Public Policy, or other entity as appropriate; and
• provide information and data as requested.

The task force must choose its chair or cochairs from among its legislative membership.  The committee chairs must convene the initial meeting.  The task force must use legislative facilities and staff support.  Within available funding, the task force may hire additional staff with specific technical expertise if such expertise is necessary to carry out the mandates of this study.  The expenses of the task force will be paid jointly by the Senate and House of Representatives.  Task force expenditures are subject to approval.
 
The task force must report its findings and recommendations to the Legislature by December 1, 2022.
 
Underground economy means contracting and construction activities in which payroll is unreported or underreported with consequent nonpayment of payroll taxes to federal and state agencies including nonpayment of workers' compensation and unemployment compensation taxes.