Montgomery, AL – Alabama Secretary of State Wes Allen has expressed his support for the final passage of HB 230, a significant piece of legislation aimed at reducing government red tape for small businesses across the state. The bill, which received unanimous approval, is poised to alleviate burdensome requirements imposed on Alabama small business owners, offering them greater flexibility and relief from administrative hurdles.
In a statement issued following the bill’s passage, Secretary Allen emphasized his commitment to championing the interests of Alabama’s hardworking entrepreneurs. “As Secretary of State, I will always support the hardworking men and women of Alabama as they pursue the American Dream,” stated Secretary Allen. “I am proud to have supported legislation that cuts government red tape and removes an unnecessary burden from the shoulders of Alabama small business owners.”
The impetus for HB 230 stemmed from an unintended consequence of Alabama Act 2022-252, which mandated businesses to file annual reports with the Secretary of State’s office instead of the Department of Revenue, effective January 1, 2024. This unforeseen change led to a wave of complaints and confusion among Alabama business owners. HB 230 addresses this issue by eliminating the requirement for businesses to file annual reports with the Secretary of State’s Office.
The legislation garnered widespread support from various stakeholders, including the Alabama Retail Association, Alabama Society of CPAs, the Alabama National Federation of Independent Business, and small business owners statewide. Secretary Allen underscored the importance of simplifying regulatory requirements for small businesses, citing the potential adverse impact of compliance errors on business registrations.
“Simplifying the requirements put on small businesses, especially when an error in compliance could result in the loss of a business’s registration, is a worthwhile cause,” remarked Secretary Allen.
Acknowledging the collaborative efforts behind HB 230, Secretary Allen extended his gratitude to bill sponsors Representative Margie Wilcox and co-sponsor Representative Bubba Underwood, along with Senator David Sessions for their advocacy in presenting the legislation in the Senate.
Representative Wilcox, reflecting on her motivation for sponsoring the bill, highlighted the tangible benefits it offers to Alabama businesses. “HB 230 prevents business owners from needing to pay accountants up to fifteen times the cost of the $10.00 report to navigate the confusing filing requirement,” stated Representative Wilcox. “The passage of HB 230 makes operating a business in Alabama more manageable for business owners.”
HB 230 was signed into law on May 7, 2024, and is scheduled to take effect on October 1, 2024. With its enactment, Alabama small businesses can anticipate a streamlined regulatory environment, empowering them to focus their resources and efforts on growth and innovation.
For more information on HB 230 and its implications for Alabama businesses, please visit the official website of the Alabama Secretary of State.
