HB 55 — An Act providing for small business fee exemption.

PRINTER'S NO.   45

                   THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        HOUSE BILL
                        No. 55
                                              Session of
                                                2025

     INTRODUCED BY M. BROWN, VENKAT, SANCHEZ AND KHAN,
        JANUARY 14, 2025

     REFERRED TO COMMITTEE ON INTERGOVERNMENTAL AFFAIRS AND
        OPERATIONS, JANUARY 14, 2025


                                    AN ACT
 1   Providing for small business fee exemption.
 2      The General Assembly of the Commonwealth of Pennsylvania
 3   hereby enacts as follows:
 4   Section 1.   Short title.
 5      This act shall be known and may be cited as the Small
 6   Business Fee Exemption Act.
 7   Section 2.   Definitions.
 8      The following words and phrases when used in this act shall
 9   have the meanings given to them in this section unless the
10   context clearly indicates otherwise:
11      "Business fee."   A fee required to be paid to the
12   Commonwealth or a political subdivision for starting or opening
13   a business within this Commonwealth. The term does not include a
14   fee for maintaining licensure or other requirement for
15   continuing to operate a business.
16      "Department."   The Department of State of the Commonwealth.
17      "Disadvantaged business."   As defined in 62 Pa.C.S. § 2102
 1   (relating to definitions).
 2      "Microbusiness."     A business that is a sole proprietorship,
 3   partnership or corporation which has five or less employees.
 4      "Minority-owned business."        As defined in 62 Pa.C.S. § 2201
 5   (relating to definitions).
 6      "Service-disabled veteran-owned small business."        As defined
 7   in 51 Pa.C.S. § 9601 (relating to definitions).
 8      "Small business."        A business which is independently owned
 9   and:
10            (1)   Employs 100 or fewer employees.
11            (2)   Had annual revenues of less than $10,000,000 in each
12      of the last three tax years.
13            (3)   Is not dominant in its field.
14      "Woman-owned business."        As defined in 62 Pa.C.S. § 2201.
15   Section 3.     Exemption.
16      (a)   Full payment exemption.--In addition to the exemption
17   provided to a veteran-owned or reservist-owned small business
18   under 51 Pa.C.S. Ch. 96 Subch. C (relating to business fee
19   exemption), the following shall be exempt from the payment of a
20   business fee:
21            (1)   A woman-owned small business.
22            (2)   A service-disabled veteran-owned small business.
23            (3)   A minority-owned small business.
24            (4)   A disadvantaged small business.
25            (5)   A microbusiness.
26      (b)   Partial payment exemption.--A small business other than
27   a small business eligible for a full exemption under subsection
28   (a) shall be exempt from the payment of 50% of a business fee.
29      (c)   Proof.--A person applying for the exemption under
30   subsection (a) or (b) shall, at the time of filing a business

20250HB0055PN0045                       - 2 -
 1   application, provide the department or licensing authority of a
 2   political subdivision with documentation of the person's
 3   eligibility for the exemption in a form and manner prescribed by
 4   the department.
 5      (d)   Status.--The department or licensing authority of a
 6   political subdivision, in consultation with other Commonwealth
 7   agencies, may determine an applicant's status as a small
 8   business eligible for an exemption under this section.
 9   Section 4.   Offenses.
10      (a)   Offense defined.--A person who fraudulently obtains a
11   business fee exemption under section 3 commits a misdemeanor of
12   the third degree.
13      (b)   Further defined.--A person assigning, transferring or
14   attempting to assign or transfer a business fee exemption or
15   using or attempting to use a business fee exemption contrary to
16   this act commits a misdemeanor of the third degree.
17   Section 5.   Reporting.
18      The department shall annually determine the total number of
19   business fee exemptions applied for and issued and the total
20   dollar amount of the exemptions under this act and submit a
21   report to the chair and minority chair of the Community,
22   Economic and Recreational Development Committee of the Senate
23   and the chair and minority chair of the Commerce Committee of
24   the House of Representatives. The report may be submitted
25   electronically.
26   Section 6.   Applicability.
27      This act shall apply to business applications for new
28   businesses filed on or after July 1, 2025.
29   Section 7.   Effective date.
30      This act shall take effect in 30 days.

20250HB0055PN0045                   - 3 -