Bill > SB1301

This bill, titled the "State Investment Accountability Act," establishes new requirements for employers in Arizona who plan to relocate out of state or to a foreign country, aiming to hold them accountable for state investments. Specifically, any employer with fifty or more employees (excluding part-time workers, defined as those working less than twenty hours per week on average or employed for less than six months in the past year) or those who received a state subsidy (such as tax incentives, grants, guaranteed loans, tax benefits, or other government support) and employ fifty or more individuals, must provide at least 120 days' notice to the Department of Economic Security before relocating. Failure to comply can result in a civil penalty of up to $10,000 per day, though this can be reduced for just cause. The Department of Economic Security will maintain a list of relocating employers, which will be shared with state agencies. Employers on this list will be ineligible for any state subsidies for five years and may be required to repay any state subsidies they previously received, unless the Arizona Commerce Authority grants a waiver based on specific criteria like preventing substantial job losses, environmental harm, or significant economic impact. Furthermore, state agencies must ensure that all work related to state business is conducted within Arizona, and state contractors are prohibited from hiring individuals to perform such work outside the state, with specific deadlines for compliance and for new hires starting November 1, 2026. Importantly, this chapter does not affect workers' rights to state benefits. The act becomes effective on October 31, 2026.

Government Affairs

https://apps.azleg.gov/BillStatus/BillOverview/84835