The bill establishes civil penalties of up to $10,000 for daily violations of the notification requirement, imposing a significant accountability measure on larger employers. This aligns with state efforts to retain economic activity and discourage firms from relocating, particularly those benefiting from public funds. Additionally, the legislation mandates that employers who relocate will be ineligible for state subsidies for five years and must repay any previously received subsidies, further incentivizing businesses to consider the implications of their relocation decisions.
Summary
SB1382, also known as the 'State Investment Accountability Act', introduces regulations governing business relocations from Arizona to other states or countries. Under this act, businesses with fifty or more employees that receive a state subsidy must notify the Department of Economic Security at least 120 days before leaving. This aims to ensure transparency and and enable the state to assess the potential impact of such relocations on the local economy.
Conclusion
Overall, SB1382 seeks to balance the state's economic interests with worker protections and support for local businesses. By requiring prior notification and imposing penalties for non-compliance, the bill aims to hold businesses accountable while simultaneously fostering a more stable economic environment in Arizona.
Contention
Notably, the act allows the Arizona Commerce Authority to waive penalties for businesses that can demonstrate potential economic harm or job loss resulting from the loss of a state subsidy. This provision raises concerns among critics who argue that it may undermine the bill's intended deterrents against relocation. The legislation could potentially restrict business flexibility and create an environment where firms may feel pressured to remain in the state even under unfavorable conditions.