The bill, H.B. No. 346, aims to support new businesses in Texas by implementing several measures to reduce financial barriers and enhance access to state resources. It introduces a new section in the Government Code that mandates the elimination of all licensing and registration fees for business entities during their first year of operation, as coordinated by the Secretary of State. Additionally, the bill encourages state entities to allocate at least five percent of their economic development funding to support businesses established within the last five years that have their principal place of business in Texas.

Furthermore, the bill establishes requirements for state agencies to increase contracts awarded to new businesses, defined as those in operation for less than five years, to at least five percent of total contracts. It also mandates annual reporting by the comptroller and the Texas Workforce Commission on the number and value of contracts awarded to new businesses, as well as the allocation of economic development and workforce funding to support these entities. The bill is set to take effect on September 1, 2025, with initial reports due by September 1, 2026.

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