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Secretary of State applauds the passage of bill cutting red tape for businesses

HB 230 was signed into law on May 7 and will become effective on Oct. 1.

Secretary of State Wes Allen gives as an inaugural speech during the inauguration ceremony on Jan. 16, 2023. Inauguration Committee/Bryan Carter
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Wes Allen, Alabama’s Secretary of State, applauds the final passage of HB230, a bill to reduce government red tape for Alabama small businesses.

“As Secretary of State, I will always support the hardworking men and women of Alabama as they pursue the American Dream,” said 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.”

As an unintended consequence of Alabama Act 2022-252, businesses were required to file annual reports with the Secretary of State’s office rather than the Department of Revenue effective January 1, 2024. This inadvertent change resulted in numerous complaints and confusion from Alabama business owners. HB 230 removes the requirement for businesses to file an annual report with the Secretary of State’s Office. The legislation received letters of support from the Alabama Retail Association, Alabama Society of CPAs, the Alabama National Federation of Independent Business, and small business owners across Alabama.

“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,” said Secretary Allen. 

Secretary Allen thanks bill sponsor Representative Margie Wilcox, co-sponsor Representative Bubba Underwood, and Senator David Sessions for presenting HB230 in the Senate. Representative Wilcox offers comment on her motivation for sponsoring this legislation.

“I am proud to have sponsored legislation that removes an unnecessary requirement on Alabama businesses,” Representative Wilcox explained. “HB230 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. The passage of HB230 makes operating a business in Alabama more manageable for business owners.”

HB230 was signed into law on May 7, 2024 and will become effective on October 1, 2024.

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