In addition to the notification requirements, the bill establishes a system for tracking employers who relocate their call centers. The Arizona commerce authority is tasked with creating a semiannual list of employers who have moved their call centers out of state or overseas. This list must be distributed to all state agencies that apply for qualified tax credits, ensuring that state resources are protected from companies that choose to relocate their operations away from Arizona.
Summary
House Bill 2264 addresses the relocation of call centers operated by employers in Arizona. The bill mandates that employers must notify the chief executive officer of the Arizona commerce authority at least 120 days prior to relocating a call center to another state or country. This requirement is put in place to maintain awareness about the movements of call centers and their potential impacts on employment within Arizona. If an employer fails to comply with this notification requirement, they face civil penalties up to $10,000 for each day they are in violation.
Contention
A notable aspect of the bill is the provision that makes employers ineligible for state grants or loans for five years if they are listed due to relocating a call center. This provision aims to deter businesses from moving operations outside of Arizona by imposing financial consequences that could impact their future funding opportunities. Discussions around the legislation highlighted differing viewpoints regarding the potential effectiveness of penalties in incentivizing companies to remain in-state versus the possible burden it could impose on business operations.