Right to Start Act

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Model Bill Info
Bill Title Right to Start Act
Date Introduced December 1, 2022
Type Model Policy
Status Draft
Task Forces Commerce, Insurance and Economic Development

Right to Start Act

BE IT ENACTED BY THE __________ (GENERAL ASSEMBLY OR LEGISLATURE) OF THE STATE OF __________:

This bill shall be known and may be cited as the “Right-to-Start Act.”

Section A: Office of Entrepreneurship

There is hereby created within the _________ (Department) of __________ (Economic Development or Commerce or Other) the “Office of Entrepreneurship.” The Office of Entrepreneurship shall employ personnel (at least one full-time equivalent) to strengthen policies and programs supporting the growth of entrepreneurship in the state, including across demographic segments and geographic areas. The Office shall work with stakeholders and organizations supporting entrepreneurship to enhance learning and skills, provide technical support, and expand access to resources for entrepreneurs across ________(State). The Office shall serve as a point of contact to assist businesses operating for five years or less in their interactions with state government. No later than _____ (Date), _____ (Year), and annually thereafter, the Office of Entrepreneurship shall prepare an annual report (“Entrepreneur Impact Statement”) detailing the extent to which state legislation that has been signed by the Governor in the prior legislative session or year supports, hinders, or otherwise affects businesses operating for five years or less. The office shall support and advise the _________ (Commissioner or Secretary) of _________ (Office of Administration) with preparing a report pursuant to Section B below.

Section B: Tracking of New Business Contracts

No later than _____ (Date), _____ (Year), and annually thereafter, the _________ (Commissioner or Secretary) of ____________ (Administration) shall file a report with the ________ (General Assembly or Legislature) that includes, but is not limited to:

The number and total dollar amount of state contracts awarded to businesses that have been in operation for less than five years, including a breakdown by demographic segments and geographical areas throughout the state; The percentage of the number of state contracts awarded to businesses that have been in operation for less than five years compared to the total number of contracts awarded; The percentage of the total dollar amount of state contracts awarded to businesses that have been in operation for less than five years compared to the total dollar amount of contracts awarded; and The _________ (Commissioner or Secretary) of _________ (Administration), in conjunction with the _______ (Office of Entrepreneurship), shall produce and file a report with the _______ (General Assembly or Legislature) making recommendations on improving access to state contracts for ________ (State) businesses that have been in operation for less than five years, including those businesses in statistically underrepresented demographic segments and geographic areas of ________ (State).

Section C: 5% to Start (Contracts)

Beginning _______(Date), _______(Year), ________(State) shall encourage five percent (5%) of the total number of state contracts to be awarded to businesses that have been operation for less than five (5) years and whose principal place of business is in the state.

Section D: Tracking of Workforce Development Funding

No later than _____ (Date), _____ (Year), and annually thereafter, the _________ (Commissioner or Secretary) of ____________ (Administration) shall file a report with the ________ (General Assembly or Legislature) that includes, but is not limited to:

The percentage of workforce development funding, including funding allocated by Workforce Development Boards across the state, supporting [organizations or programs] for individuals starting new businesses or to those [organizations or programs] that provide services to businesses established within the previous five (5) years and whose principal place of business is in the state; and The total dollar amount of workforce development funding, including funding allocated by Workforce Development Boards across the state, supporting [organizations or programs] for individuals starting new businesses or to those [organizations or programs] that provide services to businesses established within the previous five (5) years and whose principal place of business is in the state.

Section E: 5% to Start (Workforce Development)

Beginning _______(Date), ________(Year), _______ (State) shall encourage five percent (5%) of workforce development funding, including funding allocated by Workforce Development Boards across the state, towards supporting [organizations or programs] for individuals starting new businesses or to those [organizations or programs] that provide services to businesses established within the previous five (5) years and whose principal place of business is in the state.

Section F: Tracking of Economic Development Funding

No later than _____ (Date), _____ (Year), and annually thereafter, the _________ (Commissioner or Secretary) of ____________ (Administration) shall file a report with the ________ (General Assembly or Legislature) that includes, but is not limited to:

The percentage of economic development funding, including Community Development Block Grants, supporting [organizations or programs] for individuals starting new businesses or to those [organizations or programs] that provide services to businesses established within the previous five (5) years and whose principal place of business is in the state; and The total dollar amount of economic development funding, including Community Development Block Grants, supporting [organizations or programs] for individuals starting new businesses or to those [organizations or programs] that provide services to businesses established within the previous five (5) years and whose principal place of business is in the state.

Section G: 5% to Start (Economic Development)

Beginning _______(Date), ________(Year), _______ (State) shall encourage five percent (5%) of funding budgeted for economic development programs, including Community Development Block Grants, to be allocated to supporting [organizations or programs] for individuals starting new businesses or to those [organizations or programs] that provide services to businesses established within the previous five (5) years and whose principal place of business is in the state.

Section H: Reducing Barriers to Start (First Year License or Registration Fees)

Beginning _______(Date), ________(Year), _______ (State) shall encourage the elimination of all first-year business fees relating to any license or registration, for any new business or a person establishing a new business, including home-based businesses, whose principal place of business is in the state.