Texas Senate Bill SB1881

Texas 2019 - 86th Regular

Caption

Relating to the regulation of call centers; providing a civil penalty.

Impact

The regulation introduced by SB1881 will have notable implications for state laws, particularly regarding employment retention and public agency contract policies. The bill mandates that public agencies must prefer vendors that are not listed as having relocated positions outside of Texas when awarding contracts. Furthermore, public agencies are restricted from offering subsidies to businesses that fall on this list, with exceptions only when such a refusal would lead to significant job loss or environmental harm within the state.

Summary

SB1881 aims to regulate call centers operating within Texas by establishing guidelines that must be followed when relocating customer service employee positions. Specifically, the bill requires businesses with a significant number of customer service employees to notify the Texas Department of Insurance at least 120 days before they terminate or move any positions outside of the state. This provision seeks to protect jobs and maintain employment levels in Texas by requiring transparency in the dealings of call centers that could reconsider their operational locations.

Contention

Next, it is crucial to recognize potential points of contention that could arise from SB1881. Opponents may argue that the bill imposes excessive restrictions on businesses, hindering their ability to operate efficiently in a competitive market while supporting job retention. They may contend that such regulations could dissuade company investments in Texas or lead to higher costs that are passed on to consumers. Proponents, on the other hand, will emphasize the bill's role in safeguarding Texas jobs and ensuring that residents are not left disadvantaged by corporate decisions driven by profit maximization.