Establishes the small business working group to identify the twenty-five provisions of law or rules that are most frequently enforced through issuance of notices of violation and most frequently issued to small businesses; requires such working group to evaluate such provisions of law or rules to determine whether changes should be made to such provisions.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9004
SPONSOR: Bores TITLE OF BILL:
An act to amend the executive law, in relation to establishing the small
business working group
PURPOSE OR GENERAL IDEA OF BILL:
To establish a small business working group in order to reduce adverse
impacts of the 25 most common regulations from inspection agencies,
creating a more supportive regulatory environment where businesses can
build, grow, and thrive.
SUMMARY OF PROVISIONS:
Section one: Provides a short title.
Section two: Amends the Executive Law by adding a new section 384, which
establishes a Small Business Working Group within the executive depart-
ment. Subsection one: Establishes the members of the working group
consisting of the president of Empire State Development, agency repre-
sentatives, and legislative appointees. Subsection two: Identifies and
evaluates the 25 most frequently enforced laws and rules resulting in
fines against small businesses. Subsection three: Assess whether
provisions remain necessary, whether penalties are proportionate, and
whether warnings or cure periods should be required. Subsection four:
Recommends legislative, regulatory, or administrative reforms as appro-
priate and reports its findings to state leaders.
Section three of the bill establishes the effective date.
JUSTIFICATION:
According to NFIB's 2024 report on Small Business Problems & Priorities,
"unreasonable regulations" is the fourth most burdensome problem among
small business owners-,-higher than average in the country. According to
a 2019 ANHD survey, 49% of immigrant small business owners reveal that
red tape and fines are within the top three concerns. Research from
George Mason University further highlights these concerns by finding
that overregulation in New York contributed to over 350,000 people
living in poverty in 2019 because of contributions to higher consumer
prices, fewer business startups, and fewer new jobs.
The bill does not seek to weaken regulation-it modernizes it. The goal
is to preserve the essential safeguards to protect consumers while
removing outdated and harmful red tape regulations on small businesses.
Through the recommendations of the small business working group, the
legislation may implement data driven reforms that benefit both consum-
ers and small businesses.
Small businesses can face excessive fines-often between $300 and $2,500
per violation--for minor issues such as packaging errors, incorrect unit
price labels, and in some absurd cases "improper lampholder installa-
tion." These punitive penalties are issued with little warning, even for
first time or low-risk infractions. The model for this legislation is
NYC's Executive Order 2, Small Business Forward, which has led to the
implementation of over 120 reforms and contributed to a post-pandemic
resurgence in business openings and work. According to the Office of the
Mayor, the local initiative not only saved small businesses an estimated
$8.9 million in reduced fines, but also contributed to historic gains in
the city's labor market- private sector employment reaching a record
high of over 4.1 million jobs and labor force participation climbing to
62.8%, according to the New York City Economic Development Corporation's
State of the Economy report.
By expanding this education-first, fair enforcement model statewide, New
York can ensure small businesses are encouraged to grow-and that consum-
ers benefit from more affordable prices, more local options, and vibrant
neighborhood economies. These reforms protect what matters-public
health, safety, and accountability-while eliminating what doesn't.
STATE OF NEW YORK
________________________________________________________________________
9004
2025-2026 Regular Sessions
IN ASSEMBLY
August 13, 2025
___________
Introduced by M. of A. BORES -- read once and referred to the Committee
on Small Business
AN ACT to amend the executive law, in relation to establishing the small
business working group
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "small
2 business forward act".
3 § 2. The executive law is amended by adding a new section 384 to read
4 as follows:
5 § 384. Small business working group. 1. There is hereby created in the
6 executive department, no later than six months after the effective date
7 of this section, a small business working group consisting of:
8 (a) the director of the division of building standards and codes, or
9 such director's designee;
10 (b) the director of the division of licensing services, or such direc-
11 tor's designee;
12 (c) the commissioner of health, or such commissioner's designee;
13 (d) the commissioner of the department of environmental conservation,
14 or such commissioner's designee;
15 (e) the commissioner of the department of agriculture and markets, or
16 such commissioner's designee;
17 (f) the heads of such other departments or divisions within the execu-
18 tive department and such other state agencies as shall be designated by
19 the governor, or their designees, including, when appropriate, such
20 departments, divisions or agencies with subject matter expertise in
21 public health, inspections, or small businesses;
22 (g) two members appointed by the governor upon the recommendation of
23 the temporary president of the senate;
24 (h) two members appointed by the governor upon the recommendation of
25 speaker of the assembly;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13533-02-5
A. 9004 2
1 (i) one member appointed by the governor upon the recommendation of
2 the minority leader of the senate; and
3 (j) one member appointed by the governor upon the recommendation of
4 the minority leader of the assembly.
5 2. The department shall provide necessary technical and staff assist-
6 ance to the working group. Any department, division, board, bureau,
7 commission, authority or agency of the state, as such entity shall
8 determine appropriate, is authorized to provide such information, coop-
9 eration, or assistance as may be requested by the working group to carry
10 out the purposes of this section.
11 3. The president of the empire state development corporation shall
12 serve, ex officio, as the chair of the working group, and the governor
13 shall designate the vice chair of the working group. In appointing
14 members of the working group, appointing authorities shall ensure that
15 such members, as a group, represent diverse public health and business
16 perspectives relevant to the duties of the working group. The members of
17 the working group, except those who serve ex officio, shall be allowed
18 their actual and necessary expenses incurred in the performance of their
19 duties under this article but shall receive no additional compensation
20 for services rendered pursuant to this article.
21 4. The working group shall have the following powers and responsibil-
22 ities:
23 (a) to identify the twenty-five provisions of law or rules that are
24 most frequently enforced through the issuance of notices of violation by
25 or on behalf of each inspection office and agency, and, to the extent
26 practicable, identify those violations that are most frequently issued
27 to small businesses;
28 (b) to evaluate each provision of law or rule identified pursuant to
29 paragraph (a) of this subdivision and determine whether:
30 (i) such provision is necessary to promote an important public
31 purpose, and, if not, assess whether such provision should be amended or
32 repealed to better effectuate the public purpose at issue;
33 (ii) civil penalties established to enforce such provision are in an
34 amount appropriate to achieve the public purpose sought to be achieved
35 by the provision or, whether such civil penalties should be reduced; and
36 (iii) any such provision establishing such civil penalties requires a
37 warning or cure period for persons who violate such provision for the
38 first time, or whether rules should be adopted implementing such a warn-
39 ing or cure period.
40 (c) to specify whether legislation, rulemaking, or any other adminis-
41 trative reform, is recommended for each provision of law or rule identi-
42 fied pursuant to paragraph (a) of this subdivision and to seek input
43 from each inspection office or agency which enforces such provision;
44 (d) to explain the reason for each provision of law or rule identified
45 pursuant to paragraph (a) of this subdivision for which such the working
46 group determines that neither legislation, rulemaking, nor any other
47 administrative reform is recommended pursuant to paragraph (c) of this
48 subdivision, including but not limited to, specifying the safety or
49 health risks that could ensue from any change to such provision;
50 (e) to the extent practicable, to receive and respond to inquiries,
51 including data requests, and recommendations; and
52 (f) to report its findings and recommendations to the governor, the
53 temporary president of the senate and the speaker of the assembly, the
54 minority leader of the senate, and the minority leader of the assembly.
55 The working group may at any time make recommendations to an agency
A. 9004 3
1 based upon the working group's review of such agency's rulemaking proc-
2 ess, or any of such agency's proposed, revised or adopted rules.
3 5. If any appointments to the working group are not made within six
4 months of the effective date of this section, then the working group may
5 proceed to meet and fulfill its responsibilities, pursuant to subdivi-
6 sion four of this section without such appointees.
7 § 3. This act shall take effect immediately.
