Call center relocation; notice; penalty.
The bill carries significant implications for businesses that may consider relocation. Employers found in violation of the notification requirement face civil penalties of up to $10,000 for each day of non-compliance. Furthermore, if employers are listed for relocating a call center, they will be ineligible for state grants and loans for a period of five years. They are also required to repay any previously received government assistance, which can place financial strain on companies already considering downsizing or moving operations.
SB1215, known as the Consumer Protection Call Center Act of 2023, introduces provisions to govern the relocation of call centers from Arizona to other states or foreign countries. It mandates that any employer planning to relocate a call center must notify the Arizona Department of Economic Security at least 120 days before the intended move. This notification is intended to provide transparency and potential oversight regarding business decisions that could impact local employment. The bill specifically targets call centers that employ a minimum of 50 employees and engage in customer service operations.
There could be notable contention surrounding SB1215, particularly regarding the balance between corporate autonomy and government regulation. Proponents may argue that the legislation protects local jobs and the economic landscape of Arizona, while opponents could argue that it imposes undue restrictions on businesses. Additionally, the bill includes provisions that prevent state contractors from hiring individuals from outside Arizona for call center work, further asserting the state's commitment to retaining employment within its borders. The effectiveness of such measures in a rapidly digitizing economy may also be debated.