The California Legislature is considering a bill to address contractors who are unlicensed or otherwise operate illegally.
Senate Bill 1272, by Senators Toni Atkins (D-San Diego) and Cathleen Galgiani (D-Stockton), proposes creating the Tax Recovery and Criminal Enforcement Taskforce. Shorthanded as TRaCE, this group would work in part through investigative teams positioned in highly populated regions, such as Los Angeles, San Francisco, Sacramento and San Diego. The bill also would institute coordination between several government bodies to identify and prosecute violators.
The California Pool & Spa Association supports the bill. “Upstanding business owners deserve a fair market, and every taxpayer deserves to see their hard-earned money used to fund vital services,” CPSA said in a press release. “This bill helps provide the resources needed to enforce the law and protect legitimate incomes.”
If this bill passes, agencies could collaborate, pool resources and share data, including confidential tax and fee information, for this purpose.
Some estimate that the California underground economy generates $60 to $140 billion annually and accounts for up to 40% of work performed in the pool and spa industry.
“A coordinated, data-driven approach to attacking the underground economy is long-overdue,” CPSA said.
