Bill Text: AZ SB1382 | 2025 | Fifty-seventh Legislature 1st Regular | Introduced
Bill Title: Business relocation; notice; penalty
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced) 2025-02-04 - Senate read second time [SB1382 Detail]
Download: Arizona-2025-SB1382-Introduced.html
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REFERENCE TITLE: business relocation; notice; penalty |
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State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
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SB 1382 |
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Introduced by Senators Gabaldón: Alston, Bravo, Diaz, Fernandez, Kuby, Miranda, Ortiz, Sundareshan
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AN ACT
amending title 44, arizona revised statutes, by adding chapter 30; relating to business relocation.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 44, Arizona Revised Statutes, is amended by adding chapter 30, to read:
CHAPTER 30
BUSINESS RELOCATION
ARTICLE 1. GENERAL PROVISIONS
44-7301. Definitions
In this chapter, unless the context otherwise requires:
1. "Agency" means a department or agency of the executive branch of state government.
2. "Employer":
(a) means a business entity that employs either of the following:
(i) Fifty or more employees, excluding part-time employees.
(ii) Fifty or more employees who in the aggregate work at least one THOUSAND FIVE hundred hours per week, not including overtime hours.
(b) Includes any business entity that employs fifty or more employees, excluding part-time employees, and that received a state subsidy to relocate, expand or start a business.
3. "Part-time employee" means an employee who is employed for an average of fewer than twenty hours per week or who has been employed for fewer than six of the twelve months preceding the date on which notice is required.
4. "State subsidy" means any of the following:
(a) Tax incentive.
(b) Grant.
(c) Guaranteed loan.
(d) Tax benefit.
(e) Other governmental support.
44-7302. Business entity relocation; notification; civil penalty
A. An employer that intends to relocate from this state to another state or to a foreign country shall notify the director of the department of economic security of that intention at least one hundred twenty days before the relocation.
B. An employer that violates this section is subject to a civil penalty not to exceed $10,000 for each day of the violation, except that the director of the industrial commission of Arizona may reduce the amount for just cause.
44-7303. Semiannual employer list; distribution
A. The director of the department of economic security shall compile a semiannual list of all employers that relocate from this state to another state or to a foreign country. The list shall include the name of the employer and the date on which the employer relocated.
B. The director of the department of economic security shall distribute the list required by this section to all agencies.
44-7304. Ineligibility for state subsidy; remittance of monies; exceptions
A. Except as provided in subsection B of this section and notwithstanding any other law, an employer that appears on the list prescribed by section 44-7303:
1. Is not eligible for any direct or indirect state subsidy for five years after the date that the list is published.
2. Shall remit the unamortized value of any state subsidy the employer has previously received to this state.
3. Shall pay to this state all state subsidies that the employer has received.
B. The Arizona commerce authority, in consultation with the appropriate agency providing a state subsidy, may waive the ineligibility or remittance requirement prescribed in subsection A of this section if the employer applying for the state subsidy demonstrates that a lack of the state subsidy would do any of the following:
1. Result in substantial job loss in this state.
2. Harm the environment.
3. Result in a significant economic impact to this state.
44-7305. State business location requirement; contractor requirements
A. The director of each agency shall ensure that all the work performed by an employer that relates to state business is conducted entirely within this state or by a state contractor or a state contractor's agent or subcontractor.
B. A state contractor that performs work related to state business may not hire an individual to perform that work at a location outside of this state.
C. a State contractor that currently performs work outside of this state shall comply with this section by November 1, 2026 except that beginning November 1, 2025 all new employees hired by a state contractor to perform work on a contract shall immediately be employed within this state.
44-7306. State benefits for workers
This chapter does not allow the withholding or denial of payments, compensation or benefits under any other law to workers who are employed by employers that relocate to another state or to a foreign country.
Sec. 2. Effective date
This act is effective from and after October 31, 2025.
Sec. 3. Short title
This act may be cited as the "State Investment Accountability Act".
