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SB1301 • 2026

business relocation; notice; penalty

SB1301 - business relocation; notice; penalty

Labor Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Rosanna Gabaldón
Last action
2026-01-26
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The bill does not specify details on how exceptions to ineligibility for state subsidies are determined.

Business Relocation Notice and Penalty

SB1301 requires businesses with at least 50 full-time employees to notify Arizona's Department of Economic Security before relocating out of state or abroad, imposes penalties for non-compliance, and restricts certain benefits for such businesses.

What This Bill Does

  • Requires employers planning to move their business from Arizona to another U.S. state or a foreign country to give notice at least 120 days in advance if they have at least 50 full-time employees.
  • Imposes fines of up to $10,000 per day on employers who do not follow the notification rule.
  • Creates a semiannual list of businesses that have moved out of Arizona and sends this list to all state agencies.
  • Makes it so businesses cannot get certain government help for five years if they are on the list of those who left Arizona, unless there is an exception.

Who It Names or Affects

  • Businesses with at least 50 full-time employees that plan to move out of Arizona.
  • State agencies and departments receiving the list of businesses that have moved out of Arizona.

Terms To Know

Employer
A business entity that employs either at least 50 full-time employees or has received a state subsidy to relocate, expand, or start operations.
State Subsidy
Any type of financial support from the government such as tax incentives, grants, loans, and other benefits.

Limits and Unknowns

  • The bill does not specify what happens if a business moves without giving proper notice.
  • It is unclear how the penalties will be enforced or collected.

Bill History

  1. 2026-01-26 Senate

    Senate second read

  2. 2026-01-22 Senate

    Senate Rules: None

  3. 2026-01-22 Senate

    Senate Regulatory Affairs and Government Efficiency: None

  4. 2026-01-22 Senate

    Senate first read

Official Summary Text

SB1301 - business relocation; notice; penalty

Current Bill Text

Read the full stored bill text 
SB1301 - 572R - I Ver

REFERENCE TITLE:
business relocation; notice; penalty

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1301

Introduced by

Senator
Gabald�n

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

START_STATUTE
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 under section 44-7302.

4. "State subsidy" means
any of the following:

(
a
) a Tax
incentive.

(
b
) a Grant.

(
c
) a
Guaranteed loan.

(
d
) a Tax
benefit.

(
e
) any Other governmental
support.
END_STATUTE

START_STATUTE
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.
END_STATUTE

START_STATUTE
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
.
END_STATUTE

START_STATUTE
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 to this state the
unamortized value of any state subsidy the employer has previously received.

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 losses
in this state.

2. Harm the environment.

3. Result in a significant economic
impact to this state.
END_STATUTE

START_STATUTE
44-7305.

State business location requirement; contractor requirements

A. The director of each agency shall
ensure that all 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 on or before
November 1, 2027 except that beginning November 1, 2026 all new employees hired
by a state contractor to perform work on a contract shall immediately be
employed within this state.
END_STATUTE

START_STATUTE
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.
END_STATUTE

Sec. 2.
Effective date

This act is effective from and after
October 31, 2026.

Sec. 3.
Short title

This act may be cited as the
"State Investment Accountability Act".