Last week, SPEC testified before the Assembly Committee on Labor &Employment in support of AB 2770, a bill authored by Assemblymen BillMonning (D-Santa Cruz) and            Bill Berryhill (R-Stockton) tocombat California’s underground economy.  SPEC was joined in its supportby the National Federation of Independent Businesses, California LaborFederation, AFL-CIO and California Rural Legal Assistance Foundation.AB2770 is aimed at developing a coordinated approach to enforcement oflabor and tax laws.  According to the Employment DevelopmentDepartment's analysis of findings of the Internal Revenue Service, theunderground economy in California is flourishing and is estimated to bebetween $60 billion and $140 billion each year.  The Franchise Tax Boardand Board of Equalization estimate an average of $8.5 billion in owedtaxes go uncollected in California each year.

SPEC will bepublishing fact sheets for the industry explaining about the undergroundeconomy, and also a consumer fact sheet that industry professionals canmake available to prospects.

PR SPEC AB 2770.doc

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