LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington St., Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 6490 NOTE PREPARED: Dec 19, 2023 BILL NUMBER: SB 251 BILL AMENDED: SUBJECT: Call Center Worker and Consumer Protection. FIRST AUTHOR: Sen. Niezgodski BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State XDEDICATED XFEDERAL Summary of Legislation: The bill requires the Indiana Economic Development Corporation (IEDC) to compile a list of all employers that relocate a call center to a foreign country and to disqualify employers on that list from state grants, loans, and tax credits. It requires an employer receiving a state grant, loan, or tax credit to notify the IEDC if the employer intends to relocate a call center. It also requires, for all contracts entered into on or after July 1, 2024, that all call center or customer service work for the state be performed entirely within Indiana. Effective Date: July 1, 2024. Explanation of State Expenditures: State Contracts: For contracts entered into on or after July 1, 2024, each state executive agency must ensure that all call center and customer service work is performed entirely within the state. It also places similar requirements on contractors providing customer service functions for the state. This provision could potentially increase state expenditures if call center and customer service work is currently performed outside of the state at a lower cost than what could be completed within the state. Executive branch agencies receive operating funding from the state General Fund, dedicated funds, and federal funds. IEDC: The IEDC may be able to use existing staff and resources to implement the bill’s requirements. If necessary, additional funds and resources could be supplied through existing staff and resources currently being used in another program or with new appropriations. The source of any additional funds and resources would depend on legislative and administrative actions. Explanation of State Revenues: Recapture: If an employer is found in violation of the bill’s provisions, SB 251 1 the IEDC is required to recapture any grant, loan, or tax credit the employer received after June 30, 2024. The amount of additional revenue is indeterminable. The revenue would depend on the number of employers who relocate a call center and have received a state incentive. Employers in violation of the bill are also ineligible to receive a state grant, loan, or tax credit for five to seven years after the date they relocated a call center. Explanation of Local Expenditures: Explanation of Local Revenues: State Agencies Affected: All executive branch agencies; IEDC. Local Agencies Affected: Information Sources: Fiscal Analyst: Camille Tesch, 317-232-5293. SB 251 2