HB 2402 Summary

• Requires the Department of Business, Economic Development & Tourism to serve as primary point of contact for businesses operating five years or less and post annual reports on laws/rules supporting such businesses.

• Establishes reduced general excise tax rates for new businesses: complete exemption in years 1-2, reduced rates in years 3-4, and standard rates thereafter (specific percentages left blank in bill).

• Exempts businesses from paying licensing and registration fees during their first five years of operation, beginning July 1, 2022.

• Allows individuals to continue receiving unemployment benefits while actively working toward starting a business, provided they meet eligibility requirements including maintaining sufficient benefit balance and participating in business training.

• Prohibits savings and loan associations from requiring small businesses to sign confessions of judgment as a loan condition and directs state procurement office to allocate at least a percentage of funds (amount unspecified) to businesses established within five years.