Establishes the Small Business Start-up Fee Reduction Act

SECOND REGULAR SESSION
HOUSE BILL NO. 3084
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE RUSH.
6324H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 620, RSMo, by adding thereto one new section relating to reduced start-up
fees for small businesses.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 620, RSMo, is amended by adding thereto one new section, to be
2 known as section 620.505, to read as follows:
620.505. 1. This section shall be known and may be cited as the "Small Business
2 Start-up Fee Reduction Act".
3 2. As used in this section, the following terms mean:
4 (1) "Department", the department of economic development;
5 (2) "Eligible business", any Missouri-based business entity operating as a micr o-
6 business during the start-up period;
7 (3) "Micro- business", a business with thr ee or fewer employees, excluding the
8 owner;
9 (4) "Secr etary", the secr etary of state for the state of Missouri and his or her
10 delegates re sponsible for the administration of this section in coordination with the
11 department of economic development;
12 (5) "Start-up period", the first twenty-four months after a business is legally
13 formed or incorporated in Missouri.
14 3. (1) Eligible businesses shall qualify during the start-up period for a redu ction
15 or waiver of the following fees:
16 (a) Fees associated with forming a limited liability company;
17 (b) Business name r egistration fees;
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
18 (c) State vendor certification fees; and
19 (d) Annual reporting or registra tion fees.
20 (2) The department shall coordinate with the secr etary to establish a fee-
21 r eduction schedule which shall be updated annually and published on the department's
22 website.
23 (3) Fee waivers or r eductions shall be based on standards and proce dures
24 developed by the department in coordination with the secr etary and shall be subject to
25 appr opriation of funding by the general assembly to the department.
26 4. (1) The department and secr etary shall redu ce or waive the annual
27 r egistration and report filing fees for businesses that r emain micr o-businesses during
28 their start-up period.
29 (2) The department shall coordinate with the secr etary's office to ensur e that no
30 penalties or late fees shall be assessed for first-time filings made by a micr o-business
31 within the start-up period, pr ovided reas onable efforts ar e demonstrated by the micr o-
32 business.
33 5. (1) The department shall enter into partnership agreements with Missouri-
34 based agencies, chambers of commer ce, and entr epr eneurial organizations to offer
35 voluntary support to eligible businesses under this section including, but not limited to,
36 pr oviding:
37 (a) Business planning assistance;
38 (b) Marketing and branding support;
39 (c) Financial literacy training;
40 (d) Access to state vendor and contracting opportunities; and
41 (e) Connections to mentorship pr ograms.
42 (2) An eligible business shall not be r equir ed to participate in support progr ams
43 under subdivision (1) of this subsection in order to rec eive fee reduction s or waivers.
44 6. (1) The department shall submit a re port to the general assembly by January
45 first each year and annually ther eafter . The repo rt shall include, but not be limited to,
46 the following:
47 (a) The number of businesses receiv ing fee redu ctions;
48 (b) The cost of waivers to this state;
49 (c) The gr owth or stability of participating businesses; and
50 (d) The business survival rates beyond the start-up period.
51 (2) The department shall publish an annual re port on the department's website
52 in a format that is accessible to the public. The department shall prov ide written
53 r eports to members of the public, upon requ est, at no cost.
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54 7. (1) The department shall promul gate all necessary rules and r egulations for
55 the administration of this section including, but not limited to, the:
56 (a) Criteria for eligibility;
57 (b) Documentation requ irem ents;
58 (c) Fee schedules; and
59 (d) Parameters for partnerships with business development entities.
60 (2) Any rule or portion of a rule, as that term is defined in section 536.010, that is
61 cr eated under the authority delegated in this section shall become effective only if it
62 complies with and is subject to all of the pr ovisions of chapter 536 and, if applicable,
63 section 536.028. This section and chapter 536 are nonseverable and if any of the powers
64 vested with the general assembly pursuant to chapter 536 to revi ew , to delay the
65 effective date, or to disappr ove and annul a rule are subsequently held unconstitutional,
66 then the grant of rulemaking authority and any rule pro posed or adopted after August
67 28, 2026, shall be invalid and void.
68 8. This section shall become effective on January 1, 2027.
✔
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