Legislative Analysis
Phone: (517) 373-8080
CALL CENTER JOBS RETENTION ACT http://www.house.mi.gov/hfa
House Bills 5164 (H-1) and 5165 (H-1) as passed by the House Analysis available at
Sponsor: Rep. Amos O’Neal http://www.legislature.mi.gov
Committee: Labor
Complete to 12-7-24
SUMMARY:
Together, House Bills 5164 and 5165 would require the Michigan Department of Labor
and Economic Opportunity (LEO) to maintain a registry of call centers that have relocated
internationally out of Michigan and would disqualify those businesses from eligibility for
economic development incentives administered by the Michigan Strategic Fund (MSF).
The bills would take effect 90 days after they are enacted.
House Bill 5164 would create the “Call Center Jobs Retention Act,” which would require
LEO to maintain a registry of call centers that have relocated out of the United States.
Call center would mean a centralized office used primarily for receiving or
transmitting requests or inquiries by phone.
A person that employs at least 50 full- or part-time individuals at a call center would have
to provide LEO with at least 30 days’ notice before relocating the call center, or a facility
or operating unit within a call center that comprises at least 30% of its total call volume, 1
from Michigan to a foreign country, or before closing or ceasing the operations of such a
call center, facility, or operating unit if the employer contracts or intends to contract with
another person to provide those services in a foreign country. Violating employers would
be subject to a civil fine of up to $10,000, which would be deposited in the general fund.
The attorney general or the prosecutor of the county in which the violation occurred could
bring an action to collect the fine.
Every six months, beginning six months after the bill takes effect, LEO would have to
publish a registry of those employers on its website, which would have to include the
following information:
• The name of the employer.
• The date of the relocation or closing, as applicable.
• The number of jobs to be relocated.
• The location (including the city and country) of the relocated or new call center,
facility, or operating unit.
House Bill 5165 would add a new section to the Michigan Strategic Fund Act that would,
beginning October 1, 2024, require the MSF’s written agreements to include provisions for
1
The facility or unit’s share of the call volume would be measured against the call center’s average call volume during
the immediately preceding twelve months.
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 an event of default and clawback of funds if a recipient of funding, grants, loans, or other
economic assistance under the act reports a new listing on the call center registry during
the term of the agreement.
The bill is tie-barred to House Bill 5164, meaning that it cannot take effect unless HB 5164
is also enacted.
Proposed MCL 125.2015
BACKGROUND:
House Bills 5164 and 5165 are reintroductions of HBs 5835 and 5836 of the 2021-22
legislative session, HBs 5625 and 5626 of the 2019-20 session, and HBs 4988 and 4989 of
the 2017-2018 session. The bills are also identical to Senate Bills 582 and 583 of the current
session.
BRIEF DISCUSSION:
Supporters of the bills argue that Michigan should disincentivize companies from moving
their call centers overseas, since keeping those jobs in the United States ensures that
employees are afforded sufficient labor protections and that customers’ personal
information is protected. They suggest that the bills address this issue by prohibiting a
business that takes its call center jobs out of Michigan and the United States from receiving
incentives funded by Michigan taxpayers.
No arguments opposing the bills were presented during committee testimony, but concerns
were raised about placing restrictions on the free market and about how the bills would
pertain to international trade agreements.
FISCAL IMPACT:
The bills would increase costs to the Department of Labor and Economic Opportunity and
the Michigan Strategic Fund and have no direct fiscal impact on local government. The
amount of increase to LEO and the MSF would depend on the costs of the additional
administrative responsibilities under the bills’ provisions and are not likely to be
significant.
House Bill 5164 would have an indeterminate fiscal impact on the state and on local units
of government. The fiscal impact would depend on the number of employers that violate
the requirement to notify the department at least 30 days before relocating a call center, or
a facility or operating unit within a call center, to a foreign country. Violators would be
subject to a civil fine of not more than $10,000 and under the bill, any civil fine revenue
collected would be deposited in the state’ general fund. The fiscal impact on local court
systems would depend on how provisions of the bill affected court caseloads and related
administrative costs. Because there is no practical way to determine the number of
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 violations that will occur under provisions of the bill, an estimate of the amount of
additional revenue the state would collect or costs to local courts cannot be made.
POSITIONS:
Representatives of the Communications Workers of America testified in support of the
bills. (11-2-23)
The following entities indicated support for the bills (2-29-24):
• Michigan AFL-CIO
• Utility Workers Union of America
The following entities indicated opposition to the bills:
• Michigan Chamber of Commerce (11-2-23)
• Michigan Manufacturers Association (2-29-24)
Legislative Analyst: Holly Kuhn
Fiscal Analyst: Robin Risko
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
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