HB 346 – Eliminates startup business fees

HB 346 seeks to reduce government-imposed costs on entrepreneurs by eliminating state business licensing and registration fees during a company’s first year. It also pushes state agencies to dedicate at least 5% of workforce and economic development funds to support businesses less than five years old. By doing so, the bill fosters a friendlier startup environment without expanding government bureaucracy. The legislation encourages the awarding of state contracts to new companies, aiming for a minimum of 5% of all state purchases. This can help small and local businesses grow without being crowded out by larger incumbents. The reporting requirements ensure transparency while keeping agencies accountable for supporting Texas entrepreneurs. While the bill does reduce revenue, it does so by cutting what amounts to a government barrier to entry, not by expanding spending. From a fiscally conservative viewpoint, the bill promotes free market competition, local innovation, and a leaner regulatory burden