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S7311Senate2019-2020 SessionSame asA9126

Protect Call Center Jobs

Official title

“Relates to enacting the New York call center jobs act”

Sponsor Timothy M. KennedySD-63Affects Finance
Status
In Assembly Committee
Ways And Means
Impact
7/10
Significant
Passage
0%

Bill progress

Step 5 of 7

In Assembly · Ways And Means

What's happening

This bill amends the New York Call Center Jobs Act to tighten restrictions and penalties on call centers relocating jobs out of state or overseas, and expands disqualification from state grants, loans, and tax credits for noncompliance.

Why it matters

  1. Expands the definition of “tax credits” and clarifies which specific incentives call centers risk losing. this means more types of state tax benefits are now explicitly at stake for call centers that move jobs out of New York, increasing the financial consequences of relocation.

  2. Lowers the notification period required before relocating jobs out of state from 100 to 90 days. and narrows the law’s focus to relocations out of New York to foreign countries (not to other U.S. states), making compliance requirements clearer and targeting offshoring more directly.

  3. Strengthens penalties and recovery mechanisms. call centers that violate the notification requirement face significant daily fines, and those that move jobs must pay back any state grants or loans received after the law’s effective date, heightening the financial risk of moving jobs out of New York.

  4. Increases the impact on state contracting and vendor selection. being listed as a relocating call center will now negatively affect a company’s standing in state vendor responsibility analyses, potentially disqualifying them from future state contracts in addition to grants, loans, and tax credits.

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Who cares

  • Call center employers

    The bill would limit relocation reporting to moves abroad, require 90 days’ notice and replace the call-volume trigger with a threshold based on relocating more than 30 percent of employees.

  • Call center workers in New York

    Employers listed for relocating abroad would face restrictions on state grants, guaranteed loans and specified tax credits, while grants for training displaced workers would remain available.

  • State contractors providing customer service

    The bill would replace the requirement to perform state call center work entirely in New York with a reasonable-best-efforts standard for agencies and make relocation-list status a negative factor in vendor responsibility reviews.

  • Likely support

    State labor and tax officials

    The labor commissioner would have to share the annual relocation list and waiver notices with the commissioner of taxation and finance to support administration of the bill’s tax-credit restrictions.

Headline styles

Protect Call Center Jobs

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Timothy M. Kennedy

Senator · Senate District 63

Chair, Transportation

No co-sponsors yet.

History

  1. Referred to ways and means
  2. Delivered to assembly
  3. Passed senateVote 59–2
  4. Ordered to third reading cal.203
  5. Referred to rules

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A9126Assembly

Keep Call Center Jobs Local

In Assembly Committee · Ways And Means · Sponsor Linda Rosenthal

Impact 7 · Significant0% to pass

Full text

3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

7311

IN SENATE

January 17, 2020

Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Rules

AN ACT to amend the labor law, in relation to the New York call center jobs act

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Sections 770, 771, 772 and 773 of the labor law, as added by a chapter of the laws of 2019, amending the labor law relating to enacting the "New York call center jobs act", as proposed in legislative bills numbers S. 1826-C and A. 567-C, are amended to read as follows:

§ 770. Definitions. As used in this article:

1. The term "call center" means a facility or other operation whereby employees receive phone calls or other electronic communication for the purpose of providing customer assistance [or other service].

2. (a) The term "call center employer" means any business entity that employs fifty or more employees, excluding part-time employees; or fifty or more employees that in the aggregate work at least fifteen hundred hours per week, excluding overtime hours, for the purpose of staffing a call center.

(b) The term "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 this article.

(c) The term "tax credit" means any of the following tax credits allowed under the tax law: recovery tax credit, tax-free New York area tax elimination credit, minimum wage reimbursement credit, empire state jobs retention program credit, economic transformation and facility redevelopment program tax credit, excelsior jobs program credit, employee training incentive program tax credit, empire state apprenticeship program tax credit, and employment incentive tax credit.

§ 771. List of relocated call centers. 1. A call center employer that intends to relocate a call center or more than thirty percent of a call center's employees measured as the employment level of the previous calendar month compared to the average employment level at such site

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD02106-10-0

S. 7311 2

over the previous twelve months, from New York state to a foreign country [or any other state, or reduce call volume handled at call centers in New York state by at least thirty percent, measured as the call volume of the previous calendar month compared to the average monthly call volume of the previous twelve months, and intends to relocate such operations from New York state to a foreign country or any other state,] shall notify the commissioner at least [one hundred] ninety days before such relocation.

2. A call center employer that violates subdivision one of this section shall be subject to a civil penalty not to exceed ten thousand dollars for each day of such violation, except that the commissioner may reduce such amount for just cause shown.

3. The commissioner shall compile an annual list of all call center employers that relocate [or reduce call volume] pursuant to subdivision one of this section, and such list shall be made available to the public and shall prominently display a link to the list on the department's website. The commissioner shall provide a copy of such list to the commissioner of taxation and finance.

[4. The commissioner shall make the list created pursuant to subdivision three of this section, available to the public and shall prominently display a link to the list on the department's website.]

§ 772. Grants, guaranteed loans and tax benefits. 1. Except as provided in subdivision [three] four of this section and notwithstanding any other provision of law, a call center employer that appears on the list described in section seven hundred seventy-one of this article shall be ineligible to enter into any agreements for any [direct or indirect] state grants[,] or state guaranteed loans[, tax benefits or other financial governmental support] for a period of five years from the date such list is published.

2. Except as provided in subdivision [three] four of this section and notwithstanding any other provision of law, a call center employer that appears on the list described in section seven hundred seventy-one of this article shall remit the unamortized value of any state grant or state guaranteed loans[, or any tax benefits or other governmental support] it has previously received [in the past five years. The provisions of this subdivision shall apply to grants, loans, tax benefits and financial governmental assistance that is entered into on or after the effective date of this article] for the call center appearing on the list, if the agreement for such grants and loans was entered into after the effective date of this article. Nothing in this subdivision shall be deemed to prevent the call center employer from receiving any grant to provide training or other employment assistance to individuals who are selected as being in particular need of training or other employment assistance due to the transfer or relocation of the call center employer's facility or operating units.

3. Except as provided in subdivision four of this section and notwithstanding any other provision of law, a call center employer that appears on the list described in section seven hundred seventy-one of this article shall not be allowed any tax credit described in subdivision (c) of section seven hundred seventy of this article for the five taxable years, excluding short taxable years, immediately succeeding the taxable year in which the call center first appears on such list, if the agreement for such tax credit was entered into after the effective date of this article.

4. The commissioner, in consultation with the appropriate agency providing a loan [or], grant[,] or tax credit may waive the requirement

S. 7311 3

provided under subdivision one, two or three of this section if the call center employer demonstrates that such requirement would:

(a) threaten state or national security;

(b) result in substantial actual or potential job loss in the state of New York; or

(c) harm the environment.

If the commissioner waives such requirement, such commissioner shall promptly notify the commissioner of taxation and finance of such waiver.

§ 773. Procurement contracts. The head of each state agency shall use reasonable best efforts to ensure that all state-business-related contracts for call center and customer service work be performed by state contractors or other agents or subcontractors entirely within the state of New York. [State contractors who currently perform such work outside the state of New York shall have two years following the effective date of this article to comply with this section; provided, that if any such contractors which perform work outside this state adds customer service employees who will perform work on such contracts, those new employees shall immediately be employed within the state of New York, except that businesses subject to a contract agreed to prior to the effective date of this article with terms extending beyond a date greater than two years after the effective date of this article shall be subject to the provisions of this subdivision at the next point in which the contract is subject to renewal] Presence on the list described in section seven hundred seventy-one of this article shall be considered a negative indication of ability to maintain jobs in the state as part of any vendor responsibility analysis.

§ 2. This act shall take effect on the same date and in the same manner as a chapter of the laws of 2019, amending the labor law relating to enacting the "New York call center jobs act", as proposed in legislative bills numbers S. 1826-C and A. 567-C, takes effect.

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the labor law, in relation to the New York call center jobs act

Purpose

This is a Chapter Amendment that makes changes to provisions of L.2019, Ch.752.

Summary of provisions

This legislation amends the underlying chapter by clarifying the intent of the legislature and ratifying changes requested by the Executive to fix technical and substantive concerns.

Justification

The underlying chapter sought to discourage outsourcing of call center jobs in New York. This chapter amendment makes changes that would main- tain the broad goals of discouraging the outsourcing of call center jobs from New York to foreign countries and ensuring that state resources spent promoting call centers can be recouped if a company outsources call center jobs.

Legislative history

Chapter amendment to Chapter 752 of the Laws of 2019.

Fiscal implications

None.

Effective date

This act shall take effect on the same date and in the same manner as the Chapter 752 of the Laws of 2019 amending the labor law relating to enacting the "New York call center jobs act" as proposed in legislative bills numbers 8.1826-C and A.1804-A.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.