STATE OF NEW YORK
________________________________________________________________________
10213
IN ASSEMBLY
February 12, 2026
___________
Introduced by M. of A. STECK -- read once and referred to the Committee
on Social Services
AN ACT to amend the executive law, in relation to regulatory penalties,
fines, and/or revocation for small business
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 170-c of the executive law, as amended by section 1
2 of subpart B of part XX of chapter 55 of the laws of 2020 and subdivi-
3 sion 4 as amended by chapter 39 of the laws of 2022, is amended to read
4 as follows:
5 § 170-c. Regulatory penalties, fines, and/or revocation for small
6 businesses. 1. Unless explicitly exempted or excluded by any other law,
7 rule or regulation, upon a first time violation of a state agency's
8 rules or regulations related to paperwork submitted to a state agency or
9 actions or omissions that [are determined by such state agency to be de
10 minimus] are made in good faith and do not involve mendacity, a small
11 business, as defined in subdivision eight of section one hundred two of
12 the state administrative procedure act, shall be afforded a cure period
13 or other opportunity for ameliorative action if the violation can be
14 corrected, the successful completion of which will prevent the imposi-
15 tion of penalties, fines, and/or revocations on the party or parties
16 subject to enforcement of such de minimus violation. However, no waiver
17 of penalties, fines, and/or revocations or cure period or other opportu-
18 nity for ameliorative action may be given if the agency determines that
19 the violation may result in a natural resource damage claim or serious
20 actual harm, or may present an endangerment to public safety, human
21 health or the environment, is a violation of human or civil rights law,
22 results in loss of employee wages or benefits, interferes with any reme-
23 dy, review, or resolution related to harassment or discrimination
24 claims, was or is a willful violation, involves tax fraud, violates
25 requirements related to federal funding to the state, relates to state
26 funding or procurement, is similar to prior violations, is a penal law
27 violation, relates to a material or substantive portion of the business,
28 or is in contravention of the public interest and/or policy reflected by
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14670-03-6
A. 10213 2
1 the agency's mission. Upon such first violation, a state agency shall
2 (a) provide the small business with a copy of the applicable small busi-
3 ness regulation guides pursuant to section one hundred two-a of the
4 state administrative procedure act and any other helpful guidance or
5 information detailing the agency's rules and regulations, to the extent
6 such materials exist, or (b) to the extent practicable, provide such
7 small business assistance with compliance with the agency's rules and
8 regulations. The agency shall have the discretion to determine the
9 appropriate period of time to allow such small business to cure or take
10 such other ameliorative action to address such violation, which shall be
11 reasonable but shall not be less than fifteen business days unless a
12 longer period is allowed pursuant to law or regulation.
13 2. As used in this section "state agency" shall mean an agency as
14 defined in subdivision one of section one hundred two of the state
15 administrative procedure act; provided that "state agency" shall not
16 include the department of taxation and finance, the workers' compen-
17 sation board nor the department of financial services.
18 3. Nothing herein shall prevent or preclude any other waivers of
19 penalties, fines, and/or revocations that may be applicable by this or
20 any other agency.
21 4. Every state agency shall provide to the division for small busi-
22 ness, created pursuant to section one hundred thirty-two of the economic
23 development law, the following information covering the previous calen-
24 dar year, annually by July first following the effective date of this
25 subdivision, and every July first thereafter: (a) how many cure periods
26 or other opportunities for ameliorative action were afforded pursuant to
27 subdivision one of this section and how many small businesses made use
28 of such options, (b) how many cure periods and other opportunities for
29 ameliorative action were successfully completed and resulted in the
30 avoidance of a penalty, fines, and/or revocations, (c) what, if any,
31 guidance, information, and assistance with compliance was provided to
32 small businesses issued pursuant to subdivision one of this section, and
33 (d) the range of time granted by the state agency to correct first time
34 violations, fines, and/or revocations and the type of violations that
35 were ameliorated. The division for small business shall by October first
36 following the effective date of this subdivision, and every October
37 first thereafter, prepare a report compiling this information, by agen-
38 cy, and shall post this report on its website and shall provide a copy
39 of such report to the governor, the speaker of the assembly and the
40 temporary president of the senate.
41 § 2. This act shall take effect immediately; provided, however, that
42 the amendments to section 170-c of the executive law made by section one
43 of this act shall not affect the repeal of such section and shall expire
44 and be deemed repealed therewith.
