NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5898A
SPONSOR: Kolb (MS)
 
TITLE OF BILL: An act to amend the tax law, in relation to a tax
deduction for small business (Part A); to amend the tax law, in relation
to small business employee retention tax credit (Part B); to amend the
tax law in relation to small business hire-NY tax credit (Part C);
relating to directing the commissioner of taxation and finance to devel-
op a small business sales tax amnesty program (Part D); to amend the
public service law, in relation to the temporary state energy and utili-
ty service conservation assessment; and to repeal certain provisions of
such law relating thereto (Part E); to amend the tax law, in relation to
the college to work program and credit (Part F); to amend the executive
law, the state administrative procedure act and the legislative law, in
relation to the division of regulatory review and economic growth (Part
G); relating to directing the commissioner of the department of economic
development to develop a small business regulatory amnesty program (Part
H); and to amend the legislative law, in relation to an unfunded mandate
moratorium (Part I)
 
PURPOSE OR GENERAL IDEA OF BILL:
To enact the "Small Business Full Employment Act" to provide various tax
cuts to support small businesses, reduce regulatory burdens on small
businesses, eliminate the unnecessary 18-A energy tax assessment and
prohibit any new unfunded mandates on local governments, school
districts and small businesses. This bill will also provide an amnesty
period for small businesses to pay outstanding sales tax debts and fix
violations of regulatory requirements without penalty or fines.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 contains the title the "Small Business Full Employment Act."
Section 2 amends several sections of law in parts A through I:
PART A: Small Business Corporate Franchise Tax Rate Reduction and
Personal Income Tax Exemption
Small businesses making less than $290,000 would reduce their Corporate
Franchise Tax Rate from 6.5% to 4%.
Would expand a current Personal Income Tax exemption from 3% to 15% for
qualifying small businesses. A small business is defined as a sole
proprietor with business income less than $250,000, non-farm LLCs, LLPs
and S-Corps with gross income less than $1.5 million, farm LLCs, LLPs
and S-Corps with business income less than $250,000. Shareholders and
partners can also qualify for the exemption if their income attributable
to the gross income of an LLC, LLP, or S Corp is less than $250,000.
PART B: Small Business Employee Retainment Tax Credit
Small businesses with at least one and up to 100 employees would be
eligible for up to a $5,000 tax credit against PIT and CFT for maintain-
ing their current employment levels for one year.
These credits would be non-refundable. This would be a tiered credit
based on the number of employees a small business maintains:
*1-10 employees:$1,000 credit
*11-25 employees:$2,500 credit
*26-50 employees:$3,500 credit
*51-100 employees:$5,000 credit
PART C: Small Business Hire-NY Tax Credit
Small businesses with less than 100 employees would be eligible for a
$5,000 tax credit, against PIT and CFT, for each new job created annual-
ly.
PART D: Small Business Sales Tax Amnesty Program
Create a sales tax amnesty program for struggling small businesses that
have recently been audited and fined by the department of taxation and
finance.
Tax amnesty is a limited-time opportunity for small businesses to pay a
defined amount, in exchange for forgiveness of a tax liability (includ-
ing interest and penalties) relating to a previous tax period or periods
and without fear of criminal prosecution.
PART E: Temporary 18-A Repeal
Repeal the temporary 18-a assessment immediately.
PART F: Small Business Tuition Assistance Tax Credit
Grant Small businesses a 25 percent tax credit, up to $5,000 annually,
if they pay towards college tuition for an employee in exchange for that
person's commitment to work for a specified number of years, pursuant to
written agreement.
PART G: Division of Regulatory Review & Economic Growth
Establish a Division to review and make binding recommendations for the
elimination of burdensome regulations on small businesses. Require the
Division to:
*Require a small business economic impact statement prior to the passage
of any rule or regulation that impacts small businesses;
*Require a regulatory flexibility analysis prior to the adoption of any
proposed regulation with the goal of minimizing adverse impact on small
businesses
*Require a periodic review of rules and regulations to determine whether
such rules should be continued without change, or should be amended or
rescinded to minimize economic impact of the rules on small businesses.
*Review and make recommendations for the elimination of burdensome state
agency rules, regulatory process and permit requirements affecting local
governments, school districts, or businesses.
*Establish an 800 hotline and website to assist businesses and for the
public to report regulator), burdens and excessive fines and to submit
requests for regulatory review.
*Review every proposed state agency rule and either approve or reject
such rule.
*Submit an annual report to the governor and legislature with recommen-
dations on repealing or amending rules, regulatory process and permit
requirements it deems necessary to lower costs for local governments,
school districts, and businesses or promote economic growth. Require
those recommendations to take effect unless rejected by the governor or
by a concurrent resolution of the Legislature.
*Produce an annual report on the regulatory reform actions proposed and
implemented and their estimated or actual cost savings to the taxpayer.
*Prepare or have prepared a comprehensive study to measure and report
the cost of regulations to businesses throughout New York State.
Change the makeup of the joint legislative Administrative Regulations
Review Commission to eight members, with two members appointed by each
of the four legislative leaders, and authorize the Commission to review
legislation and laws that require the promulgation of rules and make
recommendations for action by the Legislature.
Implements "Regulatory Wednesdays," requiring the joint legislative
Administrative Regulations Review Commission, to meet on Wednesdays,
which are scheduled Session Days and to and make recommendations for
regulatory reform. Also, requires the Legislature to take up any legis-
lation approved by the Commission prior to taking up any other legis-
lation, unless such action is waived by a majority vote.
PART H: Small Business Regulatory Amnesty Program
Implement a "regulatory amnesty" period to allow for small businesses to
remedy rules or regulations violations. If a small business remedies the
violation within a time period of at least 6 months or more as deter-
mined by the Commissioner, they would not be subjected to fines or
penalties.
PART I: Unfunded Mandate Moratorium
Prohibit any new unfunded state mandates on local governments, school
districts and small businesses and require fiscal notes on bills.
Section 3 contains the severability clause. Section 4 contains the
effective date.
 
JUSTIFICATION:
Small businesses create jobs, provide the goods and services all New
Yorkers rely on and are community staples that bind neighbors. Giving
them a fair shot, which the overregulated and overtaxed business climate
has denied them, is a legislative priority. Simply put, there is too
much red tape, too many taxes and too many misguided legislative
proposals that are standing in the way.
New York needs sustained policies to foster economic growth, and the
Small Business Full Employment act is designed to help our small busi-
nesses realize immediate and long-term success. According to Empire
State Development, small businesses make up 98 percent of all businesses
in New York. This legislation would create the environment necessary for
these small businesses to compete in the 21st century global economy,
and is critical to sustained economic growth.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
5898--A
2015-2016 Regular Sessions
IN ASSEMBLY
March 6, 2015
___________
Introduced by M. of A. KOLB, BARCLAY, BLANKENBUSH, BRABENEC, BUTLER,
CERETTO, CORWIN, CROUCH, CURRAN, DiPIETRO, DUPREY, FINCH, FITZPATRICK,
FRIEND, GARBARINO, GIGLIO, GOODELL, GRAF, HAWLEY, JOHNS, LALOR,
LAWRENCE, LOPEZ, LUPINACCI, MALLIOTAKIS, McDONOUGH, McKEVITT, MONTESA-
NO, MURRAY, NOJAY, OAKS, PALMESANO, PALUMBO, RA, RAIA, SALADINO, STEC,
TEDISCO, WALTER, WOZNIAK, KATZ -- Multi-Sponsored by -- M. of A. MAGEE
-- read once and referred to the Committee on Ways and Means -- recom-
mitted to the Committee on Ways and Means in accordance with Assembly
Rule 3, sec. 2 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to a tax deduction for small
business (Part A); to amend the tax law, in relation to small business
employee retention tax credit (Part B); to amend the tax law in
relation to small business hire-NY tax credit (Part C); relating to
directing the commissioner of taxation and finance to develop a small
business sales tax amnesty program (Part D); to amend the public
service law, in relation to the temporary state energy and utility
service conservation assessment; and to repeal certain provisions of
such law relating thereto (Part E); to amend the tax law, in relation
to the college to work program and credit (Part F); to amend the exec-
utive law, the state administrative procedure act and the legislative
law, in relation to the division of regulatory review and economic
growth (Part G); relating to directing the commissioner of the depart-
ment of economic development to develop a small business regulatory
amnesty program (Part H); and to amend the legislative law, in
relation to an unfunded mandate moratorium (Part I)
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 Full Employment Act".
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08793-04-6
A. 5898--A 2
1 § 2. This act enacts into law components of legislation relating to
2 "Small Business Full Employment Act". Each component is wholly contained
3 within a Part identified as Parts A through I. The effective date for
4 each particular provision contained within such Part is set forth in the
5 last section of such Part. Any provision in any section contained within
6 a Part, including the effective date of the Part, which makes reference
7 to a section "of this act", when used in connection with that particular
8 component, shall be deemed to mean and refer to the corresponding
9 section of the Part in which it is found.
10 PART A
11 Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of
12 section 210 of the tax law, as amended by section 12 of part A of chap-
13 ter 59 of the laws of 2014, is amended to read as follows:
14 (iv) (A) for taxable years beginning before January first, two thou-
15 sand sixteen, if the business income base is not more than two hundred
16 ninety thousand dollars the amount shall be six and one-half percent of
17 the business income base; if the business income base is more than two
18 hundred ninety thousand dollars but not over three hundred ninety thou-
19 sand dollars the amount shall be the sum of (1) eighteen thousand eight
20 hundred fifty dollars, (2) seven and one-tenth percent of the excess of
21 the business income base over two hundred ninety thousand dollars but
22 not over three hundred ninety thousand dollars and (3) four and thirty-
23 five hundredths percent of the excess of the business income base over
24 three hundred fifty thousand dollars but not over three hundred ninety
25 thousand dollars;
26 (B) for taxable years beginning on or after January first, two thou-
27 sand seventeen, if the business income base is not more than two hundred
28 ninety thousand dollars the amount shall be four percent of the business
29 income base; if the business income base is more than two hundred ninety
30 thousand dollars but not over three hundred ninety thousand dollars the
31 amount shall be the sum of (1) eleven thousand six hundred dollars, (2)
32 six and one-half percent of the excess of the business income base over
33 two hundred ninety-thousand dollars but not over three hundred ninety
34 thousand dollars and (3) eighteen and thirteen hundredths percent of the
35 excess of the business income base over three hundred fifty thousand
36 dollars but not over three hundred ninety thousand dollars;
37 § 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
38 added by section 1 of part Y of chapter 59 of the laws of 2013, is
39 amended to read as follows:
40 (39) (A) In the case of a taxpayer who is a small business or a
41 taxpayer who is a member, partner, or shareholder of a limited liability
42 company, partnership, or New York S corporation, respectively, that is a
43 small business, who or which has business income and/or farm income as
44 defined in the laws of the United States, an amount equal to [three]
45 fifteen percent of the net items of income, gain, loss and deduction
46 attributable to such business or farm entering into federal adjusted
47 gross income, but not less than zero[, for taxable years beginning after
48 two thousand thirteen, an amount equal to three and three-quarters
49 percent of the net items of income, gain, loss and deduction attribut-
50 able to such business or farm entering into federal adjusted gross
51 income, but not less than zero, for taxable years beginning after two
52 thousand fourteen, and an amount equal to five percent of the net items
53 of income, gain, loss and deduction attributable to such business or
A. 5898--A 3
1 farm entering into federal adjusted gross income, but not less than
2 zero, for taxable years beginning after two thousand fifteen].
3 (B)(i) For the purposes of this paragraph, the term small business
4 shall mean: (I) a sole proprietor [or a farm business] who employs one
5 or more persons during the taxable year and who has net business income
6 or net farm income of less than two hundred fifty thousand dollars;
7 or (II) a limited liability company, partnership or New York s corpo-
8 ration that during the taxable year employs one or more persons and has
9 New York gross business income attributable to a non-farm business that
10 is greater than zero but less than one million five hundred thousand
11 dollars or net farm income attributable to a farm business that is
12 greater than zero but less than two hundred fifty thousand dollars.
13 (ii) For purposes of this paragraph, the term New York gross business
14 income shall mean: (I) in the case of limited liability company or a
15 partnership New York source gross income as defined in subparagraph (B)
16 of paragraph three of subsection (c) of section six hundred fifty-eight
17 of this article, and, (II) in the case of a New York S corporation, New
18 York receipts included in the numerator of the apportionment factor
19 determined under section two hundred ten-A of this chapter for the taxa-
20 ble year.
21 (C) To qualify for this modification in relation to a small business
22 that is a limited liability company, partnership of New York S corpo-
23 ration, the taxpayer's income attributable to the net business income
24 and/or net farm income from its ownership interests in limited liability
25 companies, partnerships or New York S corporations must be less than two
26 hundred fifty thousand dollars.
27 § 3. This act shall take effect immediately and shall apply to taxable
28 years beginning on or after January 1, 2017.
29 PART B
30 Section 1. The tax law is amended by adding a new section 42 to read
31 as follows:
32 § 42. Small business employee retention tax credit. (a) Allowance of
33 credit. A small business taxpayer, which is subject to tax under arti-
34 cle nine-A or twenty-two of this chapter and retains the base year
35 employment level, shall be allowed a credit against such tax. The credit
36 shall be one thousand dollars for small businesses that retain between
37 one and ten employees; two thousand five hundred dollars for small busi-
38 nesses that retain between eleven and twenty-five employees; three thou-
39 sand five hundred dollars for small businesses that retain between twen-
40 ty-six and fifty employees; and five thousand dollars for small
41 businesses that retain between fifty-one and one hundred employees.
42 (b) Definitions. As used in this section, the following terms shall
43 have the following meanings:
44 (1) "Small business taxpayer" shall mean an employer with at least one
45 employee but not more than one hundred full time employees.
46 (2) "Base year" shall mean the prior tax year.
47 (3) "Employee" shall mean an individual employed on a full-time basis.
48 (c) No credit shall be allowed under this section to a taxpayer for
49 any new employee if the taxpayer claims any other credit under this
50 article for such new employee where the basis of such other credit is an
51 increase in employment.
52 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
53 sion 49 to read as follows:
A. 5898--A 4
1 49. Small business employee retention tax credit. (a) Allowance of
2 credit. A taxpayer will be allowed a credit, to be computed as provided
3 in section forty-two of this chapter, against the tax imposed by this
4 article.
5 (b) Application of credit. The credit allowed under this subdivision
6 for any taxable year may not reduce the tax due for such year to less
7 than the amount prescribed in paragraph (d) of subdivision one of
8 section two hundred ten of this article. However, if the amount of cred-
9 it allowed under this subdivision for any taxable year reduces the tax
10 to such amount, any amount of credit thus not deductible in such taxable
11 year will be treated as an overpayment of tax to be credited or refunded
12 in accordance with the provisions of section one thousand eighty-six of
13 this chapter. Provided, however, the provisions of subsection (c) of
14 section one thousand eighty-eight of this chapter notwithstanding, no
15 interest will be paid thereon.
16 § 3. Section 606 of the tax law is amended by adding a new subsection
17 (ccc) to read as follows:
18 (ccc) Small business employee retention tax credit. (1) A taxpayer
19 will be allowed a credit, to the extent allowed under section forty-two
20 of this chapter, against the tax imposed by this article.
21 (2) Application of credit. The credit allowed under this subsection
22 for any taxable year may not reduce the tax due for such year to less
23 than the amount prescribed in paragraph (d) of subdivision one of
24 section two hundred ten of this chapter. However, if the amount of
25 credit allowed under this subsection for any taxable year reduces the
26 tax to such amount, any amount or credit thus not deductible in such
27 taxable year will be treated as an overpayment of tax to be credited or
28 refunded in accordance with the provisions of section one thousand
29 eighty-six of this chapter. Provided, however, the provisions of
30 subsection (c) of section one thousand eighty-eight of this chapter
31 notwithstanding, no interest will be paid thereon.
32 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
33 of the tax law is amended by adding a new clause (xli) to read as
34 follows:
35 (xli) Small business employeeAmount of credit under
36 retention tax credit undersubdivision forty-nine of
37 subsection (ccc)section two hundred ten-B
38 § 5. This act shall take effect immediately and shall apply to taxable
39 years beginning on or after January 1, 2017.
40 PART C
41 Section 1. The tax law is amended by adding a new section 43 to read
42 as follows:
43 § 43. Small business hire-NY tax credit. (a) Allowance of credit. A
44 small business taxpayer, which is subject to tax under article nine-A or
45 twenty-two of this chapter and creates a new job, shall be allowed a
46 credit against such tax. The credit shall be five thousand dollars for
47 any new job for one full year of employment by an employee; if that
48 employee has been hired for less than a full tax year this amount shall
49 be prorated and apportioned to each tax year.
50 (b) Definitions. As used in this section, the following terms shall
51 have the following meanings:
52 (1) "Small business taxpayer" shall mean an employer with at least one
53 employee but not more than one hundred full-time employees.
54 (2) "Base year" shall mean the prior tax year.
A. 5898--A 5
1 (3) "New job" shall mean the number of full-time employees or full-
2 time equivalent employees above the number of employees during the base
3 year. For a new business, base employment shall begin at zero.
4 (4) "Employee" shall mean an individual employed on a full-time basis.
5 (c) No credit shall be allowed under this section to a taxpayer for
6 any new employee if the taxpayer claims any other credit under this
7 article for such new employee where the basis of such other credit is an
8 increase in employment.
9 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
10 sion 51 to read as follows:
11 51. Small business hire-NY tax credit. (a) Allowance of credit. A
12 taxpayer will be allowed a credit, to be computed as provided in section
13 forty-three of this chapter, against the tax imposed by this article.
14 (b) Application of credit. The credit allowed under this subdivision
15 for any taxable year may not reduce the tax due for such year to less
16 than the amount prescribed in paragraph (d) of subdivision one of
17 section two hundred ten of this article. However, if the amount of cred-
18 it allowed under this subdivision for any taxable year reduces the tax
19 to such amount, any amount of credit thus not deductible in such taxable
20 year will be treated as an overpayment of tax to be credited or refunded
21 in accordance with the provisions of section one thousand eighty-six of
22 this chapter. Provided, however, the provisions of subsection (c) of
23 section one thousand eighty-eight of this chapter notwithstanding, no
24 interest will be paid thereon.
25 § 3. Section 606 of the tax law is amended by adding a new subsection
26 (eee) to read as follows:
27 (eee) Small business hire-NY tax credit. (1) A taxpayer will be
28 allowed a credit, to the extent allowed under section forty-three of
29 this chapter, against the tax imposed by this article.
30 (2) Application of credit. The credit allowed under this subdivision
31 for any taxable year may not reduce the tax due for such year to less
32 than the amount prescribed in paragraph (d) of subdivision one of
33 section two hundred ten of this article. However, if the amount of cred-
34 it allowed under this subdivision for any taxable year reduces the tax
35 to such amount, any amount of credit thus not deductible in such taxable
36 year will be treated as an overpayment of tax to be credited or refunded
37 in accordance with the provisions of section one thousand eighty-six of
38 this chapter. Provided, however, the provisions of subsection (c) of
39 section one thousand eighty-eight of this chapter notwithstanding, no
40 interest will be paid thereon.
41 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
42 of the tax law is amended by adding a new clause (xliii) to read as
43 follows:
44 (xliii) Small business hire-NY taxAmount of credit under
45 credit under subsectionsubdivision fifty-one of
46 (eee)section two hundred ten-B
47 § 5. This act shall take effect immediately and shall apply to taxable
48 years beginning on or after January 1, 2017.
49 PART D
50 Section 1. The commissioner of taxation and finance shall develop and
51 implement a "sales tax amnesty program" which allows a period of time
52 for small businesses to pay a defined payment of tax amount due as a
53 result of an audit by the department of taxation and finance, in
54 exchange for forgiveness of a tax liability, including interest and
A. 5898--A 6
1 penalties. Small businesses are businesses with less than one hundred
2 employees.
3 § 2. This act shall take effect immediately.
4 PART E
5 Section 1. Subdivision 6 of section 18-a of the public service law is
6 REPEALED.
7 § 2. Paragraph (g) of subdivision 2 of section 18-a of the public
8 service law, as amended by section 2 of part A of chapter 173 of the
9 laws of 2013, is amended to read as follows:
10 (g) The total amount which may be charged to any public utility compa-
11 ny and the Long Island power authority under authority of this subdivi-
12 sion for any state fiscal year shall not exceed one-third of one per
13 centum of such public utility company's or authority's gross operating
14 revenues derived from intrastate utility operations in the last preced-
15 ing calendar year, or other twelve month period as determined by the
16 chairman; provided, however, that no corporation or person that is
17 subject to the jurisdiction of the commission only with respect to safe-
18 ty, or the power authority of the state of New York, shall be subject to
19 the general assessment provided for under this subdivision.
20 Notwithstanding the provisions of subdivision one of this section, for
21 telephone corporations as defined in subdivision seventeen of section
22 two of this article, the total amount which may be charged such corpo-
23 rations for department expenses under the authority of subdivision one
24 of this section for any state fiscal year shall not exceed one-third of
25 one percentum of such corporation's gross operating revenue, over and
26 above five hundred thousand dollars, derived from intrastate utility
27 operations in the last preceding calendar year, or other twelve month
28 period as determined by the chairman.
29 § 3. This act shall take effect immediately.
30 PART F
31 Section 1. Section 210-B of the tax law is amended by adding a new
32 subdivision 52 to read as follows:
33 52. Credit for college to work program. (a) Allowance of credit. A
34 taxpayer who is a small business shall be allowed a credit, to be
35 computed as hereinafter provided, against the tax imposed by this arti-
36 cle, based upon its payment of tuition to an institution of higher
37 education on behalf of a qualified individual employee for a number of
38 years, as set forth in a written agreement between the small business
39 taxpayer and the individual employee.
40 (b) Tuition. For the purposes of this credit, the term "tuition" shall
41 mean the tuition and fees paid for the enrollment and attendance of a
42 qualified individual employee at an institution of higher education, as
43 well as monies paid for textbooks in connection with attendance at an
44 institution of higher education. Provided, however, any amounts which
45 have been paid for or reimbursed by any other scholarships or financial
46 aid, or tuition required for enrollment or attendance in a course of
47 study leading to the granting of a post baccalaureate or other graduate
48 degree, shall be excluded form the definition of "tuition".
49 (c) Institution of higher education. For the purposes of this credit,
50 the term "institution of higher education" shall mean any institution of
51 higher education, recognized and approved by the regents, or any succes-
52 sor organization, of the university of the state of New York or accred-
A. 5898--A 7
1 ited by a nationally recognized accrediting agency or association
2 accepted as such by the regents, or any successor organization, of the
3 university of the state of New York, which provides a course of study
4 leading to the granting of a post-secondary degree, certificate or
5 diploma.
6 (d) Qualified individual employee. For purposes of this credit, the
7 term "qualified individual employee" shall mean any individual employee
8 who is not a spouse, child or dependent of the taxpayer or any individ-
9 ual employee who is not a spouse, child or dependent of any officer or
10 employee of the taxpayer.
11 (e) Written agreement. For purposes of this credit, the term "written
12 agreement" shall mean a document signed and dated by both the small
13 business taxpayer and the qualified individual employee which contains
14 provisions including but not limited to the minimum salary which the
15 taxpayer will pay to the qualified individual upon completion of the
16 individual's degree; the required duration of employment upon completion
17 of the individual's degree; and the parties' respective responsibilities
18 in the event that the taxpayer ceases operations or later decides not to
19 offer employment to the individual upon completion of his/her degree or
20 in the event that the qualified individual fails to complete the degree
21 or to work for the taxpayer for the agreed upon term.
22 (f) Small business. For purposes of this credit, the term "small busi-
23 ness" shall mean any business with less than one hundred employees.
24 (g) Amount of credit. Notwithstanding the provision of any other law,
25 a taxpayer which provides for the payment of an individual employee's
26 tuition under the college to work program established by this subdivi-
27 sion, shall be allowed a credit against the tax imposed by this article,
28 to the extent of twenty-five percent of monies paid for each individ-
29 ual's tuition, but such credit shall not exceed five thousand dollars
30 for one year for each such qualified individual.
31 (h) Carryover. The credit allowed under this subdivision for any taxa-
32 ble year shall not reduce the tax due for such year to less than the
33 amount prescribed in paragraph (d) of subdivision one of section two
34 hundred ten of this article. Provided, however, if the amount of credit
35 allowable under this subdivision for any taxable year reduces the tax to
36 such amount, any amount of credit not deductible in such taxable year
37 may be carried over to the following year or years, and may be deducted
38 from the taxpayer's tax for such year or years.
39 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
40 of the tax law is amended by adding a new clause (xliv) to read as
41 follows:
42 (xliv) College to work programAmount of credit under
43 credit under subsection (s-1)subdivision fifty-two
44 of section two hundred ten-B
45 § 3. Section 606 of the tax law is amended by adding a new subsection
46 (s-1) to read as follows:
47 (s-1) Credit for college to work program. (1) Allowance of credit. A
48 taxpayer who is a small business shall be allowed a credit, to be
49 computed as hereinafter provided, against the tax imposed by this arti-
50 cle, based upon such taxpayer's payment of tuition to an institution of
51 higher education on behalf of a qualified individual employee in
52 exchange for the individual agreeing to work for the taxpayer for a
53 number of years, as set forth in a written agreement between the taxpay-
54 er and the individual. For the purpose of this subsection "small busi-
55 ness" shall mean a business which has one hundred or fewer employees.
A. 5898--A 8
1 (2) Tuition. For the purposes of this credit, the term "tuition" shall
2 mean the tuition and fees paid for the enrollment and attendance of an
3 individual at an institution of higher education, as well as monies paid
4 for textbooks in connection with attendance at an institution of higher
5 education. Provided, however, any amounts which have been paid for or
6 reimbursed by any other scholarships or financial aid, or tuition
7 required for enrollment or attendance in a course of study leading to
8 the granting of a post baccalaureate or other graduate degree, shall be
9 excluded from the definition of "tuition".
10 (3) Institution of higher education. For the purposes of this credit,
11 the term "institution of higher education" shall mean any institution of
12 higher education, recognized and approved by the regents, or any succes-
13 sor organization, of the university of the state of New York or accred-
14 ited by a nationally recognized accrediting agency or association
15 accepted as such by the regents, or any successor organization, of the
16 university of the state of New York, which provides a course of study
17 leading to the granting of a post-secondary degree, certificate or
18 diploma.
19 (4) Qualified individual employee. For purposes of this credit, the
20 term "qualified individual employee" shall mean any individual employee
21 who is not a spouse, child or dependent of the taxpayer or any individ-
22 ual employee who is not a spouse, child or dependent of any officer or
23 employee of the taxpayer.
24 (5) Written agreement. For purposes of this credit, the term "written
25 agreement" shall mean a document signed and dated by both the small
26 business taxpayer and the qualified individual employee which contains
27 provisions including but not limited to the minimum salary which the
28 taxpayer will pay to the qualified individual upon completion of the
29 individual's degree; the required duration of employment upon completion
30 of the individual's degree; and the parties' respective responsibilities
31 in the event that the taxpayer ceases operations or later decides not to
32 offer employment to the individual upon completion of his/her degree or
33 in the event that the qualified individual fails to complete the degree
34 or to work for the taxpayer for the agreed upon term.
35 (6) Small business. For purposes of this credit, the term "small busi-
36 ness" shall mean any business with less than one hundred employees.
37 (7) Amount of credit. Notwithstanding the provisions of any other law,
38 a taxpayer who provides for the payment of an individual employee's
39 tuition under the college to work program established by this
40 subsection, shall be allowed a credit against the tax imposed by this
41 article, to the extent of twenty-five percent of monies paid for each
42 individual's tuition, but such credit shall not exceed five thousand
43 dollars for one year for each such qualified individual.
44 (8) Carryover. If the amount of credit allowable under this subsection
45 for any taxable year exceeds the taxpayer's tax for such year, any
46 amount of credit not deductible in such taxable year may be carried over
47 to the following year or years and may be deducted from the taxpayer's
48 tax for such year or years.
49 § 4. This act shall take effect immediately and shall apply to all
50 taxable years commencing after January 1, 2017.
51 PART G
52 Section 1. Article 50 and sections 1000, 1001, 1002 and 1003 of the
53 executive law, as renumbered by chapter 770 of the laws of 1978 are
A. 5898--A 9
1 renumbered article 52 and sections 1050, 1051, 1052 and 1053 and a new
2 article 50 is added to read as follows:
3 ARTICLE 50
4 DIVISION OF REGULATORY REVIEW AND ECONOMIC GROWTH
5 Section 1010. Definitions.
6 1011. Division of regulatory review and economic growth.
7 1012. General functions, powers and duties.
8 1013. Assistance of other state agencies.
9 1014. Regulation review.
10 1014-a. Regulations affecting small business.
11 1015. Division annual recommendations.
12 1016. Implementation of recommendations.
13 1017. Cost of regulation study.
14 § 1010. Definitions. When used in this article, the following terms
15 shall have the following meanings:
16 1. "Commissioner" means the commissioner of the division of regulatory
17 review and economic growth.
18 2. "Division" means the division of regulatory review and economic
19 growth created by this article.
20 3. "Permit" shall mean the whole or part of any state agency permit,
21 license, certificate, approval, registration, charter, or similar form
22 of permission or authority required by law or by state agency rule
23 having the force and effect of law, which is required for a business
24 undertaking, project or activity; provided, however, it shall not mean
25 individual licenses for practicing a profession prescribed in title
26 eight of the education law, filings under the uniform commercial code,
27 or routine licenses and permits for individual privileges, including
28 licenses for operating a motor vehicle and amateur sporting licenses,
29 such as for hunting and fishing.
30 4. "Rule" means a rule as defined in subparagraph (i) of paragraph (a)
31 of subdivision two of section one hundred two of the state administra-
32 tive procedure act, including rules of the workers' compensation board,
33 but does not include the rules of the state comptroller or attorney
34 general, rules regarding jurisdictional classifications pursuant to
35 subdivision one of section six of the civil service law, and the alter-
36 ation of hunting or fishing seasons pursuant to article eleven of the
37 environmental conservation law.
38 5. "State agency" means an agency as defined in subdivision one of
39 section one hundred two of the state administrative procedure act.
40 6. "Small business" shall have the same meaning as set forth in subdi-
41 vision twenty of section three hundred ten of this chapter.
42 § 1011. Division of regulatory review and economic growth. 1. There
43 is hereby created in the executive department the division of regulatory
44 review and economic growth. The head of the division shall be the
45 commissioner of the division who shall be appointed by the governor with
46 the consent of the senate and serve a term of five years.
47 2. The commissioner must have at least ten years of experience running
48 a for-profit business, with at least three years experience as the chief
49 executive officer, chief operating officer, chief financial officer,
50 president, owner, or any other title used for the highest ranking offi-
51 cer, administrator or manager of a for-profit business.
52 3. The commissioner shall be appointed by the governor within thirty
53 days of the effective date of this section and within thirty days of the
54 expiration of every five year term thereafter, and upon confirmation of
55 the senate shall serve a term of five years effective from the date of
56 confirmation. If the senate rejects an appointment, the governor shall
A. 5898--A 10
1 have thirty days from the date of the rejection to appoint another
2 commissioner.
3 4. The commissioner may only be removed from office by a felony
4 conviction or a crime involving a violation of his or her oath of office
5 or by the assent of two-thirds of the members elected to each branch of
6 the legislature voting separately.
7 5. Such commissioner shall receive an annual salary to be fixed by the
8 governor within the amount made available therefor by appropriation and
9 shall be allowed his or her actual and necessary expenses in the
10 performance of his or her duties.
11 6. Upon appointment and until such term expires, the commissioner
12 shall not (a) participate in any partisan political party activities,
13 except that such candidate may register to vote as a member of any poli-
14 tical party and may vote in any party primary for candidates for nomi-
15 nation of the party in which he or she is registered to vote; (b)
16 endorse any candidate or political party; or (c) make contributions to
17 any candidate, political party committee, political action committee or
18 political committee pursuant to subdivision ten of section 14-114 of the
19 election law.
20 7. The commissioner shall direct the work of the division and shall be
21 the chief executive officer of the division. The commissioner may enter
22 into contracts and expend money, and appoint such officers and employees
23 as he or she may deem necessary, prescribe their duties, fix their
24 compensation, and provide for the reimbursement of their expenses, all
25 within amounts made available therefor by appropriation. Such staff
26 shall be management confidential employees with an understanding of
27 private sector business.
28 § 1012. General functions, powers and duties. The division of regula-
29 tory review and economic growth, by and through the commissioner or his
30 or her duly authorized officers and employees, shall have the following
31 functions, powers and duties:
32 1. To provide an oversight, review and analysis of the rules and regu-
33 latory processes of state agencies.
34 2. To make binding recommendations to the governor and legislature on
35 burdensome New York state codes, rules, regulations, regulatory proc-
36 esses, and permit requirements to eliminate or amend them, pursuant to
37 section one thousand fifteen of this article.
38 3. To review the environmental quality review process established
39 under article eight of the environmental conservation law and make
40 recommendations pursuant to subdivision two of this section to establish
41 a more efficient, predictable, timely, and transparent process, and to
42 ensure that the process does not stifle economic growth in New York
43 state.
44 4. To review permit requirements and the need by the state to require
45 such permits. The division shall make recommendations pursuant to subdi-
46 vision two of this section to eliminate, consolidate, simplify, expe-
47 dite, or otherwise improve permits, permit procedures, and paperwork
48 burdens affecting local governments, school districts or businesses.
49 5. To encourage and facilitate the participation of federal and local
50 government agencies in regulatory review.
51 6. To establish an 800 hotline and website to provide businesses with
52 one contact number to direct questions and to provide assistance to
53 businesses in the state or businesses looking to open or expand in New
54 York state. Such hotline may be used to report regulatory burdens, state
55 agencies overreaching their power, excessive fines and to submit
56 requests for regulatory review by the commissioner.
A. 5898--A 11
1 7. To adopt such rules and regulations, procedures, instructions, and
2 forms as are necessary or desirable to carry out the functions, powers,
3 and duties imposed upon the division by this article.
4 8. To publish an annual report, after January first and before Febru-
5 ary first, commencing two thousand nineteen, including all recommenda-
6 tions proposed by the division and those recommendations implemented by
7 the state during the prior calendar year. Such report shall include
8 specific details concerning estimated cost savings to the taxpayers from
9 proposed recommendations and actual cost savings to the taxpayers from
10 implemented recommendations.
11 § 1013. Assistance of other state agencies. To effectuate the purposes
12 of this article, the commissioner may request and shall be entitled to
13 receive from any state agency, and the same are authorized to provide,
14 such assistance, services, facilities, and data as will enable the divi-
15 sion to carry out its functions, powers and duties.
16 § 1014. Regulation review. 1. In developing a rule, each agency head
17 shall, prior to submitting a notice of proposed or revised rulemaking
18 for publication in the state register pursuant to section two hundred
19 two of the state administrative procedure act, submit to the commission-
20 er, in such form and manner as the commissioner may prescribe, the
21 complete text of the rule, any impact statements which would be required
22 by article two of the state administrative procedure act to propose the
23 rule, and any cost-benefit analysis, risk assessment and/or the results
24 of a negotiated rulemaking or policy dialogue undertaken in conjunction
25 with the development of the rule.
26 2. The commissioner shall review the agency's submission to determine
27 whether it is complete and in accordance with the goals, criteria and
28 requirements of this article and article two of the state administrative
29 procedure act, including whether the rule:
30 (a) is clearly within the authority delegated by law;
31 (b) is consistent with and necessary to achieve a specific legislative
32 intent of promoting economic growth or protecting the health and safety
33 of the public;
34 (c) is consistent with state statutory requirements;
35 (d) does not impose a mandate on local governments, school districts
36 or businesses that is not fully funded, except as specifically required
37 by state statute;
38 (e) is clearly written so that its meaning will be easily understood
39 by those persons affected by it;
40 (f) does not unnecessarily duplicate or exceed existing federal or
41 state statutes or rules;
42 (g) prescribes methodologies or requirements that allow regulated
43 parties flexibility and encourage innovation in meeting the legislative
44 or administrative requirements and objectives underlying the rule;
45 (h) is based on credible assessments, using recognized standards, of
46 the degree and nature of the risks which may be regulated, including a
47 comparison with everyday risks familiar to the public;
48 (i) gives preference to the least costly, least burdensome regulatory
49 and paperwork requirements needed to accomplish legislative and adminis-
50 trative objectives;
51 (j) is based upon the best scientific, technical and economic informa-
52 tion that can reasonably and affordably be obtained; and
53 (k) if possible and practical, favors market-oriented solutions and
54 performance standards over command-and-control regulation.
55 3. If the commissioner determines that the submission is complete,
56 complies with the provisions of subdivision two of this section, will
A. 5898--A 12
1 promote economic growth, or is vital to protect the health and safety of
2 the public, the commissioner shall authorize the agency to submit the
3 rulemaking for publication in the state register pursuant to section two
4 hundred two of the state administrative procedure act.
5 4. If the commissioner determines the submission is not complete or
6 does not comply with the requirements of subdivision two of this
7 section, or is detrimental to economic growth in New York state, or is
8 not vital to protect the health and safety of the public, the commis-
9 sioner may reject the rule or return it to the agency, together with any
10 direction that the agency amend, prepare or revise the rule, any
11 supporting impact statements, cost benefit analysis, risk assessment,
12 and/or undertake a negotiated rulemaking or policy dialogue to develop a
13 rule for proposal. The division may assist the agency in developing a
14 proposal that meets the requirements of subdivision two of this section.
15 5. An agency may consult informally with the division regarding
16 proposed rules, supporting impact statements, and other documents at any
17 time prior to the submission of such materials pursuant to subdivision
18 one of this section. Such informal consultation shall not be binding on
19 the division or the agency.
20 6. No agency head shall submit a notice of proposed or revised rule-
21 making for publication in the state register pursuant to section two
22 hundred two of the state administrative procedure act, without express
23 approval by the commissioner. The commissioner, in his or her sole
24 discretion, may reject any particular rule or category of rules he or
25 she determines is detrimental to economic growth in New York state, or
26 is not vital to protect the health and safety of the public. The divi-
27 sions shall promptly notify the agency of any such rejection.
28 § 1014-a. Regulations affecting small business. 1. Prior to the
29 adoption of any proposed regulation that may have an adverse impact on
30 small businesses, each agency shall prepare an economic impact statement
31 that includes the following:
32 (a) an identification and estimate of the number of the small busi-
33 nesses subject to the proposed regulation;
34 (b) the projected reporting, record keeping and other administrative
35 costs required for compliance with the proposed regulation, including
36 the type of professional skills necessary for preparation of the report
37 or record;
38 (c) a statement of the probable effect on impacted small businesses;
39 and
40 (d) a description of any less intrusive or less costly alternative
41 methods of achieving the purpose of the proposed regulation.
42 2. Prior to the adoption of any proposed regulation, each agency shall
43 prepare a regulatory flexibility analysis with the goal of minimizing
44 adverse impact on small businesses. The agency must consider each of the
45 following methods of reducing the impact of the proposed regulation on
46 small businesses:
47 (a) the establishment of less stringent compliance or reporting
48 requirements for small businesses;
49 (b) the establishment of less stringent schedules or deadlines for
50 compliance or reporting requirements for small businesses;
51 (c) the consolidation or simplification of compliance or reporting
52 requirements for small businesses;
53 (d) the establishment of performance standards for small businesses to
54 replace design or operational standards required in the proposed regu-
55 lation; and
A. 5898--A 13
1 (e) the exemption of small businesses from all or any part of the
2 requirements contained in the proposed regulation.
3 3. (a) Within four years of the effective date of this section, each
4 agency shall review all agency rules existing at the time of enactment
5 to determine whether such rules should be continued without change, or
6 should be amended or rescinded, consistent with the stated objectives of
7 those statutes, to minimize economic impact of the rules on small busi-
8 nesses.
9 (b) Rules adopted after the effective date of this section should be
10 reviewed every five years after the publication of such rules as the
11 final rule to ensure that they minimize economic impact on small busi-
12 nesses in a manner consistent with the stated objectives of applicable
13 statutes.
14 (c) In reviewing rules to minimize economic impact of the rule on
15 small businesses, the agency shall consider the following factors:
16 (i) the continued need for the rule;
17 (ii) the nature of complaints or comments received concerning the rule
18 from the public;
19 (iii) the complexity of the rule;
20 (iv) the extent to which the rule overlaps, duplicates or conflicts
21 with other federal, state and local governmental rules; and
22 (v) the length of time since the rule has been evaluated or the degree
23 to which technology, economic conditions, or other factors have changed
24 in the area affected by the rule.
25 § 1015. Division annual recommendations. On or before January first,
26 two thousand sixteen and annually thereafter, the division shall trans-
27 mit to the governor and the legislature a report containing its recom-
28 mendations, which shall include:
29 1. specific recommendations for repealing or amending New York state
30 codes, rules, regulations, regulatory processes, and permit requirements
31 as it deems necessary to lower costs for local governments, school
32 districts and businesses or promote economic growth; and
33 2. recommended dates by which such actions should occur.
34 § 1016. Implementation of recommendations. 1. Notwithstanding any
35 contrary provision of law, rule or regulation related to the repeal or
36 amendment of any New York state codes, rules, regulations, regulatory
37 processes, and permit requirements identified in the division's recom-
38 mendations, the secretary of state shall take all actions necessary to
39 implement, in a reasonable, cost-efficient manner, the recommendations
40 of the division pursuant to section one thousand fifteen of this arti-
41 cle, including, but not limited to coordination with state agencies,
42 authorities, and other parties as the commissioner deems appropriate.
43 2. The provisions of subdivision one of this section shall not apply:
44 (a) unless the governor has transmitted the division's report under
45 section one thousand fifteen of this article with his or her written
46 approval of the recommendations of the division pursuant to section one
47 thousand fifteen of this article to the secretary of state and transmit-
48 ted a message to the legislature stating his or her approval or
49 rejection of the report within five days of receiving such report; and
50 (b) if a majority of the members of each house of the legislature vote
51 to adopt a concurrent resolution rejecting the recommendations of the
52 division pursuant to section one thousand fifteen of this article in
53 their entirety within sixty days, after receiving a message from the
54 governor under this subdivision. In no event shall the secretary of
55 state begin to implement the recommendations of the division pursuant to
A. 5898--A 14
1 section one thousand fifteen of this article prior to the expiration of
2 the legislature's sixty day review period.
3 § 1017. Cost of regulation study. The commissioner is hereby author-
4 ized and directed to prepare or have prepared a comprehensive study to
5 measure and report the cost of regulations to businesses throughout the
6 state of New York.
7 2. Such study shall be completed within eighteen months of the effec-
8 tive date of this act.
9 § 2. Paragraph (a) of subdivision 6-a of section 202 of the state
10 administrative procedure act, as amended by chapter 171 of the laws of
11 1994, is amended to read as follows:
12 (a) An agency shall transmit a copy of any rule making notice prepared
13 pursuant to this article and approved by the commissioner of the divi-
14 sion of regulatory review and economic growth pursuant to article
15 fifty-one of the executive law to the governor, the temporary president
16 of the senate, the speaker of the assembly, the minority leader of the
17 senate, the minority leader of the assembly, the administrative regu-
18 lations review commission and the office of regulatory and management
19 assistance at the time such notice is submitted to the secretary of
20 state for publication in the state register. Such transmittal shall
21 include the complete rule text, regulatory impact statement, regulatory
22 flexibility analysis, rural area flexibility analysis, or revisions
23 thereof, and any other information submitted to the secretary of state
24 pursuant to this article.
25 § 3. Section 86 of the legislative law, as added by chapter 689 of the
26 laws of 1978, is amended to read as follows:
27 § 86. Administrative regulations review commission. There is hereby
28 created an administrative regulations review commission to consist of
29 two members of the senate to be appointed by the temporary president of
30 the senate, two members of the assembly to be appointed by the speaker
31 of the assembly, [one member] two members of the senate to be appointed
32 by the minority leader of the senate and [one member] two members of the
33 assembly to be appointed by the minority leader of the assembly. The
34 temporary president of the senate and the speaker of the assembly shall
35 each appoint a co-chairman from among the commission membership. Any
36 vacancies shall be filled in the same manner as the original appoint-
37 ment. Such appointees shall serve at the pleasure of the respective
38 legislative member making such appointment.
39 § 4. Section 87 of the legislative law, as added by chapter 689 of the
40 laws of 1978, is amended to read as follows:
41 § 87. Powers and duties. 1. The commission shall exercise continuous
42 oversight of the process of rule making and examine rules, as defined in
43 subdivision two of section one hundred two of the state administrative
44 procedure act, adopted or proposed by each agency with respect to (i)
45 statutory authority, (ii) compliance with legislative intent, (iii)
46 impact on the economy and on the government operations of the state and
47 its local governments, and (iv) impact on affected parties; and, in
48 furtherance of such duties, may examine other issues it deems appropri-
49 ate. For purpose of this article, the term agency shall mean any depart-
50 ment, board, bureau, commission, division, office, council, committee or
51 officer of the state or a public benefit corporation or public authority
52 at least one of whose members is appointed by the governor.
53 2. The commission shall review any legislation requiring a commission-
54 er or agency as defined by subdivision one of section one hundred two of
55 the state administrative procedure act, to promulgate any codes, rules
56 and regulations necessary for the implementation and make recommenda-
A. 5898--A 15
1 tions to the members of the legislature. Such recommendations should
2 include the commission's approval if the legislation is deemed necessary
3 to protect the health and safety of the public or the commission's
4 disapproval if such legislation is deemed detrimental to economic growth
5 in New York state, or is not vital to protect the health and safety of
6 the public.
7 3. The commission shall review New York state laws that result in the
8 promulgation of codes, rules or regulations by a commissioner or agency
9 as defined by subdivision one of section one hundred two of the state
10 administrative procedure act, or any laws the commission deems a regula-
11 tory burden on local governments, school districts or businesses and
12 make recommendations to the members of the legislature. Such recommenda-
13 tions should include the commission's request for the repeal of laws it
14 deems increase costs for local governments, school districts or busi-
15 nesses or are detrimental to economic growth in New York state, or are
16 not vital to protect the health and safety of the public.
17 4. The commission may employ such staff and retain such consultants
18 and expert services as may be necessary and fix their compensation and
19 expenses within the amounts appropriated therefor. Employment by the
20 commission shall be deemed to be employment by the legislature for all
21 purposes.
22 [3] 5. The commission shall have the power, subject to the provisions
23 of section seventy-three of the civil rights law, to hold hearings,
24 subpoena witnesses, administer oaths, take testimony and compel the
25 production of books, papers, documents and other evidence in furtherance
26 of its duties; provided, however, that no subpoena shall issue except
27 upon the affirmative vote of a majority of the whole membership of the
28 commission. The commission may request and shall receive from all agen-
29 cies such assistance and data as will enable it properly to consummate
30 any such examination, and review.
31 § 5. Section 88 of the legislative law, as amended by chapter 850 of
32 the laws of 1990, is amended to read as follows:
33 § 88. Reports. The commission shall, [from time to time] annually,
34 report its findings and recommendations to the governor, the temporary
35 president of the senate and the speaker of the assembly, the minority
36 leader of the senate, the minority leader of the assembly, and to the
37 members of the legislature, and may at any time make recommendations to
38 the division of regulatory review and economic growth and an agency
39 based upon its review of that agency's rule making process, or any of
40 the agency's proposed, revised or adopted rules.
41 § 6. The legislative law is amended by adding a new section 88-a to
42 read as follows:
43 § 88-a. Regulatory Wednesdays. 1. Every Wednesday, which is a sched-
44 uled session day for the legislature in every week beginning with a
45 scheduled session day on Monday, shall be deemed regulatory Wednesday.
46 The commission shall be required to meet on every regulatory Wednesday
47 to perform its powers and duties pursuant to section eighty-seven of
48 this article.
49 2. On every regulatory Wednesday, the senate and assembly shall take
50 up any bills on any order of third reading that are before each respec-
51 tive house for final disposition, that have gained the approval of the
52 commission prior to taking up any other bill on any order of third read-
53 ing, unless such action is waived, without debate, upon a majority vote
54 of the members present.
55 § 7. Severability clause. If any clause, sentence, paragraph, subdivi-
56 sion, section or part of this act shall be adjudged by any court of
A. 5898--A 16
1 competent jurisdiction to be invalid, such judgment shall not affect,
2 impair, or invalidate the remainder thereof, but shall be confined in
3 its operation to the clause, sentence, paragraph, subdivision, section
4 or part thereof directly involved in the controversy in which such judg-
5 ment shall have been rendered. It is hereby declared to be the intent of
6 the legislature that this act would have been enacted even if such
7 invalid provisions had not been included herein.
8 § 8. This act shall take effect on the one hundred twentieth day after
9 it shall have become a law and shall apply to rules and revised rules to
10 be submitted for publication in the state register on and after such
11 date.
12 PART H
13 Section 1. The commissioner of the department of economic development
14 shall develop and implement a "regulatory amnesty" period to allow for
15 small businesses to remedy rules or regulations violations before any
16 violations or sanctions are levied. Such regulatory amnesty period must
17 be at least six months. If a small business remedies the violation with-
18 in the time period established by the commissioner, such business shall
19 not be subjected to fines or penalties.
20 § 2. This act shall take effect immediately.
21 PART I
22 Section 1. The legislative law is amended by adding a new section 51-a
23 to read as follows:
24 § 51-a. Moratorium on unfunded mandates. 1. Definitions. As used in
25 this section, the following terms shall have the following meanings:
26 (a) "Local government" means a county, city, town, village, school
27 district, or special district.
28 (b) "Small business" means any business with less than one hundred
29 employees.
30 (c) "Net additional cost" means the cost or costs incurred or antic-
31 ipated to be incurred within a one year period by a local government in
32 performing or administering any program, project, or activity after
33 subtracting therefrom any revenues received or receivable by such local
34 government in relation to such program, project, or activity, including
35 but not limited to: (i) fees charged to the recipients of such program,
36 project, or activity; (ii) state or federal funds received for such
37 program, project, or activity; and (iii) an offsetting savings resulting
38 from the diminution or elimination of any other program, project, or
39 activity that state law requires such local government to provide or
40 undertake.
41 (d) "Unfunded mandate" means: (i) any state law that requires a local
42 government to provide or undertake any new program, project or activity
43 that results in an annual net additional cost to any local government in
44 excess of ten thousand dollars or an aggregate annual net additional
45 cost to all local governments within the state in excess of one million
46 dollars; or (ii) any state law that requires a local government to
47 provide a higher level of service or funding for an existing program,
48 project or activity that results in an annual net additional cost to any
49 local government in excess of ten thousand dollars or an aggregate annu-
50 al net additional cost to all local governments within the state in
51 excess of one million dollars; or (iii) any state law that requires a
52 local government to grant any new property tax exemption or that broad-
A. 5898--A 17
1 ens the eligibility or increases the dollar amount of any existing prop-
2 erty tax exemption, on property that otherwise would have generated
3 revenue under the current property tax rate of such local government in
4 excess of ten thousand dollars in any local government or in excess of
5 one million dollars statewide; or (iv) any state law with a legal
6 requirement that would otherwise likely have the effect of raising prop-
7 erty taxes in excess of ten thousand dollars in any local government or
8 in excess of one million dollars statewide; or (v) any state law that
9 requires a small business to undertake any new program, project or
10 activity that results in an annual net additional cost to the business.
11 2. Moratorium on unfunded mandates. Notwithstanding any other
12 provision of law, no unfunded mandates shall be enacted.
13 3. Exemptions. (a) A state law shall not be considered an unfunded
14 mandate where such law: (i) is required by a court order or judgment; or
15 (ii) is provided at the option of the local government under a law that
16 is permissive rather than mandatory; or (iii) results from the passage
17 of a home rule message whereby a local government requests authority to
18 implement the program or service specified in the statute, and the stat-
19 ute imposes costs only upon that local government which requests the
20 authority to impose the program or service; or (iv) is required by stat-
21 ute or executive order that implements a federal law or regulation and
22 results from costs mandated by the federal government to be borne at the
23 local level, unless the statute or executive order results in costs
24 which exceed the costs mandated by the federal government; or (v) is
25 imposed on both government and non-government entities in the same or
26 substantially similar circumstances; or (vi) repeals or revises a state
27 law to ease an existing requirement that a local government provide or
28 undertake a program, project, or activity, or reapportions the costs of
29 activities between local governments; or (vii) is necessary to protect
30 against an immediate threat to public health or safety.
31 (b) The effective date of any act establishing a mandate shall provide
32 a reasonable time for the state and any local government to plan imple-
33 mentation thereof and shall be consistent with the availability of
34 required funds.
35 § 2. Section 51 of the legislative law, as added by chapter 985 of the
36 laws of 1983, is amended to read as follows:
37 § 51. Fiscal [impact] notes on bills affecting political subdivisions.
38 1. For the purpose of this section, the term "political subdivision"
39 means any county, city, town, village, special district or school
40 district.
41 2. [The legislature shall by concurrent resolution of the senate and
42 assembly prescribe rules requiring fiscal notes to accompany, on a sepa-
43 rate form, bills and amendments to bills, except as otherwise prescribed
44 by such rules, which] A bill that would substantially affect the reven-
45 ues or expenses, or both, of any political subdivision shall contain a
46 fiscal note stating the estimated annual cost to the political subdivi-
47 sion affected and the source of such estimate.
48 3. Fiscal notes shall not, however, be required for bills: (a) subject
49 to the provisions of section fifty of this chapter, or (b) accompanied
50 by special home rule requests submitted by political subdivisions, or
51 (c) which provide discretionary authority to political subdivisions, or
52 (d) submitted pursuant to section twenty-four of the state finance law.
53 4. If the estimate or estimates contained in a fiscal note are inaccu-
54 rate, such inaccuracies shall not affect, impair or invalidate such
55 bill.
A. 5898--A 18
1 § 3. This act shall take effect immediately, provided, however, that
2 section one of this act shall only apply to laws enacted after such
3 effective date.
4 § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
5 sion, section or part of this act shall be adjudged by any court of
6 competent jurisdiction to be invalid, such judgement shall not affect,
7 impair, or invalidate the remainder thereof, but shall be confined in
8 its operation to the clause, sentence, paragraph, subdivision, section
9 or part thereof directly involved in the controversy in which such judg-
10 ment shall have been rendered. It is hereby declared to be the intent of
11 the legislature that this act would have been enacted even if such
12 invalid provisions had not been included herein.
13 § 4. This act shall take effect immediately provided, however, that
14 the applicable effective date of Parts A through I of this act shall be
15 as specifically set forth in the last section of such Parts.