HB430 Alabama 2018 Session

Summary

Primary Sponsor

Phil Williams

Republican

Session

Regular Session 2018

Title

Commerce, recapture benefit extended to call centers that relocate out of state

Summary

HB 430 aims to keep call centers in Alabama by requiring notices before relocation, imposing penalties for noncompliance, recapturing benefits, and mandating in-state call center work for state contracts.

What This Bill Does

If a call center relocates a significant portion of its operations, the employer must notify the Director of ADECA at least 120 days before moving. Failure to notify can lead to a civil penalty of up to $10,000 per day, and the state can recapture previously granted benefits like grants, loans, or tax credits. The Director will publish a biannual list of relocated call centers and share it with state agencies, which will bar those employers from new state grants, loans, or tax credits for five years; waivers can be granted for just causes. The bill also requires state agencies and contractors to keep call center work in-state, prohibits outside-state performance, and, starting Oct 1, 2019, requires all such work to be done by in-state employees; it also ensures employee pay and benefits are not withheld.

Who It Affects

• Relocating call center employers must give advance notice, risk penalties, and potential benefit recapture; their ability to obtain state grants or loans is affected.
• State agencies, contractors, and employees involved in call center work must keep all operations in Alabama, with hiring and work performed only within the state; contractors cannot place work outside the state.

Key Provisions

• Relocation notice requirement: Employers relocating a call center must notify the Director at least 120 days before relocation.
• Penalties and benefit recapture: Civil penalties up to $10,000 per day for failure to notify; the Director may recapture unamortized state grants, loans, or tax credits.
• Relocation list and ineligibility: The Director compiles a biannual list of relocating call centers and shares it with state agencies; listed employers become ineligible for state grants, loans, or tax credits for five years after relocation.
• Waivers for just cause: Courts may reduce penalties or waive ineligibility if substantial job loss, environmental harm, or significant economic impact would occur otherwise.
• In-state work requirement for state contracts: All call center or customer service work for the state must be performed in Alabama; contractors cannot hire outside-state workers for this work; starting Oct 1, 2019, employees must perform the work in-state.
• Employee protections: The act does not authorize withholding or denial of payments, compensation, or benefits to employees.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Commerce Department