One significant impact of HB 2109 is the introduction of civil penalties for non-compliance. Employers who fail to adhere to the notification requirement may face fines of up to $10,000 for each day they are in violation. This enforcement mechanism is designed to incentivize compliance and ensure that employers take the notification requirement seriously, thereby providing the state with advance notice of any workforce transitions that could affect local economies.
House Bill 2109, titled 'Call Center Relocation', aims to regulate the relocation of call centers from Arizona to other states or countries. The bill requires employers to provide notification to the Chief Executive Officer of the Arizona Commerce Authority at least 120 days before such a relocation occurs. This measure seeks to enhance transparency concerning employment changes and protect jobs within the state. The intent is to give the state an opportunity to respond to potential job losses that could result from these relocations.
While the bill aims to safeguard local employment, it may also face opposition from business groups who may argue that such regulations could hinder operational flexibility and increase administrative burdens. The debate around this bill often centers on the balance between protecting jobs and allowing businesses the freedom to manage their operations effectively. Critics could raise concerns regarding the efficacy of the penalties and whether the state can provide support or alternatives to displaced workers if a call center does relocate.
Furthermore, the bill mandates the Arizona Commerce Authority to compile and maintain a semiannual list of call centers that have relocated, which could be referenced by relevant state agencies during tax credit applications. This transparency aims to hold businesses accountable and ensure that they do not receive incentives while relocating jobs away from Arizona.