New York State Assembly

 
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A05423 Summary:

A05423 Actions:

A05423 Committee Votes:

Committee:WAYS AND MEANS   Chair:Weinstein      
DATE:06/14/2018AYE/NAY:23/10  Action: Held for Consideration         
Weinstein
Aye
Oaks
Nay
Lentol
Aye
Crouch
Nay
Schimminger
Aye
Barclay
Nay
Gantt
Excused
Fitzpatrick
Nay
Glick
Aye
Hawley
Nay
Nolan
Aye
Malliotakis
Nay
Pretlow
Aye
Walter
Nay
Perry
Aye
Montesano
Nay
Colton
Aye
Curran
Nay
Cook
Aye
Ra
Nay
Cahill
Aye
Aubry
Aye
Hooper
Excused
Thiele
Aye
Cusick
Aye
Ortiz
Aye
Benedetto
Aye
Weprin
Aye
Rodriguez
Aye
Ramos
Aye
Braunstein
Aye
McDonald
Aye
Rozic
Aye
Peoples-Stokes
Aye
Simotas
Aye

A05423 Floor Votes:

A05423 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5423
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 8, 2017
                                       ___________
 
        Introduced  by  M.  of  A. KOLB, BARCLAY, BLANKENBUSH, BRABENEC, BUTLER,
          CROUCH,  CURRAN,  DiPIETRO,  FINCH,  FITZPATRICK,  FRIEND,  GARBARINO,
          GIGLIO, GOODELL, GRAF, HAWLEY, JOHNS, LALOR, LAWRENCE, LOPEZ, LUPINAC-
          CI, MALLIOTAKIS, McDONOUGH, McKEVITT, MONTESANO, MURRAY, OAKS, PALMES-
          ANO, PALUMBO, RA, RAIA, STEC, WALTER -- Multi-Sponsored by -- M. of A.
          MAGEE -- read once and referred to the Committee on Ways and Means
 
        AN  ACT  to amend the tax law and the administrative code of the city of
          New York, 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 busi-
          ness hire-NY tax credit (Part C); relating to  directing  the  commis-
          sioner  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 assess-
          ment; 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); relat-
          ing to directing the commissioner of the department of economic devel-
          opment 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".
     3    § 2. This act enacts into law components of  legislation  relating  to
     4  "Small Business Full Employment Act". Each component is wholly contained
     5  within  a  Part  identified as Parts A through I. The effective date for
     6  each particular provision contained within such Part is set forth in the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08211-01-7
        A. 5423                             2
 
     1  last section of such Part. Any provision in any section contained within
     2  a Part, including the effective date of the Part, which makes  reference
     3  to a section "of this act", when used in connection with that particular
     4  component,  shall  be  deemed  to  mean  and  refer to the corresponding
     5  section of the Part in which it is found.
 
     6                                   PART A
 
     7    Section 1. Subparagraph (iv) of paragraph  (a)  of  subdivision  1  of
     8  section  210 of the tax law, as amended by section 12 of part A of chap-
     9  ter 59 of the laws of 2014, is amended to read as follows:
    10    (iv) (A) for taxable years beginning before January first,  two  thou-
    11  sand  sixteen,  if the business income base is not more than two hundred
    12  ninety thousand dollars the amount shall be six and one-half percent  of
    13  the  business  income base; if the business income base is more than two
    14  hundred ninety thousand dollars but not over three hundred ninety  thou-
    15  sand  dollars the amount shall be the sum of (1) eighteen thousand eight
    16  hundred fifty dollars, (2) seven and one-tenth percent of the excess  of
    17  the  business  income  base over two hundred ninety thousand dollars but
    18  not over three hundred ninety thousand dollars and (3) four and  thirty-
    19  five  hundredths  percent of the excess of the business income base over
    20  three hundred fifty thousand dollars but not over three  hundred  ninety
    21  thousand dollars;
    22    (B)  for  taxable years beginning on or after January first, two thou-
    23  sand seventeen, if the business  income  base  is  not  more  than  five
    24  hundred  thousand  dollars the amount shall be four percent of the busi-
    25  ness income base; if the business income base is more than five  hundred
    26  thousand  dollars  but  not over six hundred thousand dollars the amount
    27  shall be the sum of (1) twenty thousand dollars, (2)  six  and  one-half
    28  percent  of  the  excess  of  the business income base over five hundred
    29  thousand dollars but not over six hundred thousand dollars and (3) twen-
    30  ty-five percent of the excess of the  business  income  base  over  five
    31  hundred  fifty  thousand  dollars  but  not  over  six  hundred thousand
    32  dollars;
    33    (C) for taxable years beginning on or after January first,  two  thou-
    34  sand eighteen, if the business income base is not more than five hundred
    35  thousand  dollars  the  amount  shall be two and one-half percent of the
    36  business income base; if the business income  base  is  more  than  five
    37  hundred  thousand  dollars but not over six hundred thousand dollars the
    38  amount shall be the sum of (1) twelve thousand five hundred dollars, (2)
    39  six and one-half percent of the excess of the business income base  over
    40  five  hundred thousand dollars but not over six hundred thousand dollars
    41  and (3) forty percent of the excess of the  business  income  base  over
    42  five  hundred  fifty  thousand dollars but not over six hundred thousand
    43  dollars.
    44    § 2. Paragraph 39 of subsection (c) of section 612 of the tax law,  as
    45  added  by  section  1  of  part  Y of chapter 59 of the laws of 2013, is
    46  amended to read as follows:
    47    (39) (A) In the case of a taxpayer  who  is  a  small  business  or  a
    48  taxpayer who is a member, partner, or shareholder of a limited liability
    49  company, partnership, or New York S corporation, respectively, that is a
    50  small business, who or which has business income [and/or farm income] as
    51  defined  in  the  laws  of the United States, an amount equal to [three]
    52  five percent of the net  items  of  income,  gain,  loss  and  deduction
    53  attributable  to  such business [or farm] entering into federal adjusted
    54  gross income, but not less than zero, for taxable years beginning  after
        A. 5423                             3
 
     1  two  thousand [thirteen] seventeen, an amount equal to [three and three-
     2  quarters] ten percent of  the  net  items  of  income,  gain,  loss  and
     3  deduction  attributable to such business [or farm] entering into federal
     4  adjusted  gross income, but not less than zero, for taxable years begin-
     5  ning after two thousand [fourteen] eighteen, [and] an  amount  equal  to
     6  [five]  fifteen  percent  of  the  net  items  of income, gain, loss and
     7  deduction attributable to such business [or farm] entering into  federal
     8  adjusted gross income, but not less than zero[, for taxable years begin-
     9  ning after two thousand fifteen.]
    10    (B) In the case of a taxpayer who is a farm business or a taxpayer who
    11  is  a  member,  partner,  or shareholder of a limited liability company,
    12  partnership, or New York S corporation, respectively,  that  is  a  farm
    13  business,  who  or  which  has farm income as defined by the laws of the
    14  United States, an amount equal to twenty percent of  the  net  items  of
    15  income,  gain,  loss  and  deduction attributable to such farm. The term
    16  farm business shall mean a farm business that has  net  farm  income  of
    17  less than six hundred thousand dollars.
    18    (C)(i)  For  the  purposes  of this paragraph, the term small business
    19  shall mean: (I) a sole proprietor [or a farm business who employs one or
    20  more persons during the taxable year and] who has  net  business  income
    21  [or  net farm income] of less than [two hundred fifty] six hundred thou-
    22  sand dollars ; or (II) a limited liability company, partnership  or  New
    23  York S corporation that during the taxable year has New York gross busi-
    24  ness  income  attributable  to  a non-farm business that is greater than
    25  zero but less than one million five hundred thousand dollars or net farm
    26  income attributable to a farm business that is  greater  than  zero  but
    27  less than six hundred thousand dollars.
    28    (ii)  For purposes of this paragraph, the term New York gross business
    29  income shall mean: (I) in the case of a limited liability company  or  a
    30  partnership, New York source gross income as defined in subparagraph (B)
    31  of  paragraph three of subsection (c) of section six hundred fifty-eight
    32  of this article, and, (II) in the case of a New York S corporation,  New
    33  York  receipts  included  in  the  numerator of the apportionment factor
    34  determined under section two hundred ten-A of this chapter for the taxa-
    35  ble year.
    36    (D) To qualify for this modification in relation to a  non-farm  small
    37  business  that is a limited liability company, partnership or New York S
    38  corporation, the taxpayer's income  attributable  to  the  net  business
    39  income from its ownership interests in non-farm limited liability compa-
    40  nies,  partnerships  or  New  York  S corporations must be less than six
    41  hundred thousand dollars.
    42    § 3. Paragraph 35 of subdivision (c) of section 11-1712 of the  admin-
    43  istrative  code of the city of New York, as added by section 2 of part Y
    44  of chapter 59 of the laws of 2013, is amended to read as follows:
    45    (35) (A) In the case of a taxpayer  who  is  a  small  business  or  a
    46  taxpayer who is a member, partner, or shareholder of a limited liability
    47  company, partnership, or New York S corporation, respectively, that is a
    48  small business, who or which has business income [and/or farm income] as
    49  defined  in  the  laws  of the United States, an amount equal to [three]
    50  fifteen percent of the net items of income,  gain,  loss  and  deduction
    51  attributable  to  such business [or farm] entering into federal adjusted
    52  gross income, but not less than zero[, for taxable years beginning after
    53  two thousand thirteen, an  amount  equal  to  three  and  three-quarters
    54  percent  of  the net items of income, gain, loss and deduction attribut-
    55  able to such business or  farm  entering  into  federal  adjusted  gross
    56  income,  but  not  less than zero, for taxable years beginning after two
        A. 5423                             4

     1  thousand fourteen, and an amount equal to five percent of the net  items
     2  of  income,  gain,  loss  and deduction attributable to such business or
     3  farm entering into federal adjusted gross  income,  but  not  less  than
     4  zero, for taxable years beginning after two thousand fifteen].
     5    (B) In the case of a taxpayer who is a farm business or a taxpayer who
     6  is  a  member,  partner,  or shareholder of a limited liability company,
     7  partnership, or New York S corporation, respectively,  that  is  a  farm
     8  business,  who  or  which  has farm income as defined by the laws of the
     9  United States, an amount equal to twenty percent of  the  net  items  of
    10  income,  gain,  loss  and  deduction attributable to such farm. The term
    11  farm business shall mean a farm business that has  net  farm  income  of
    12  less than six hundred thousand dollars.
    13    (C)  (i)  For  the purposes of this paragraph, the term small business
    14  shall mean: (I) a sole proprietor [or a farm business who employs one or
    15  more persons during the taxable year and] who has  net  business  income
    16  [or  net farm income] of less than [two hundred fifty] six hundred thou-
    17  sand dollars ; or (II) a limited liability company, partnership  or  New
    18  York S corporation that during the taxable year has New York gross busi-
    19  ness  income  attributable  to  a non-farm business that is greater than
    20  zero but less than one million five hundred thousand dollars or net farm
    21  income attributable to a farm business that is  greater  than  zero  but
    22  less than six hundred thousand dollars.
    23    (ii)  For purposes of this paragraph, the term New York gross business
    24  income shall mean: (I) in the case of a  limited  liability  company  or
    25  partnership, New York source gross income as defined in subparagraph (B)
    26  of  paragraph three of subsection (c) of section six hundred fifty-eight
    27  of the tax law, and, (II) in the case of a New York S  corporation,  New
    28  York  receipts  included  in  the  numerator of the apportionment factor
    29  determined under section two hundred ten-A of the tax law for the  taxa-
    30  ble year.
    31    (D)  To  qualify for this modification in relation to a non-farm small
    32  business that is a limited liability company, partnership or New York  S
    33  corporation,  the  taxpayer's  income  attributable  to the net business
    34  income from its ownership interests in non-farm limited liability compa-
    35  nies, partnerships or New York S corporations  must  be  less  than  six
    36  hundred thousand dollars.
    37    § 4. This act shall take effect immediately and shall apply to taxable
    38  years beginning on or after January 1, 2018.
 
    39                                   PART B
 
    40    Section  1.  The tax law is amended by adding a new section 42 to read
    41  as follows:
    42    § 42. Small business employee retention tax credit. (a)  Allowance  of
    43  credit.   A small business taxpayer, which is subject to tax under arti-
    44  cle nine-A or twenty-two of this  chapter  and  retains  the  base  year
    45  employment level, shall be allowed a credit against such tax. The credit
    46  shall  be  one thousand dollars for small businesses that retain between
    47  one and ten employees; two thousand five hundred dollars for small busi-
    48  nesses that retain between eleven and twenty-five employees; three thou-
    49  sand five hundred dollars for small businesses that retain between twen-
    50  ty-six  and  fifty  employees;  and  five  thousand  dollars  for  small
    51  businesses that retain between fifty-one and one hundred employees.
    52    (b)  Definitions.  As  used in this section, the following terms shall
    53  have the following meanings:
        A. 5423                             5
 
     1    (1) "Small business taxpayer" shall mean an employer with at least one
     2  employee but not more than one hundred full-time employees.
     3    (2) "Base year" shall mean the prior tax year.
     4    (3) "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 52 to read as follows:
    11    52. Small business employee retention tax  credit.  (a)  Allowance  of
    12  credit.  A taxpayer will be allowed a credit, to be computed as provided
    13  in section forty-two of this chapter, against the tax  imposed  by  this
    14  article.
    15    (b)  Application  of credit. The credit allowed under this subdivision
    16  for any taxable year may not reduce the tax due for such  year  to  less
    17  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    18  section two hundred ten of this article. However, if the amount of cred-
    19  it allowed under this subdivision for any taxable year reduces  the  tax
    20  to such amount, any amount of credit thus not deductible in such taxable
    21  year will be treated as an overpayment of tax to be credited or refunded
    22  in  accordance with the provisions of section one thousand eighty-six of
    23  this chapter. Provided, however, the provisions  of  subsection  (c)  of
    24  section  one  thousand  eighty-eight of this chapter notwithstanding, no
    25  interest will be paid thereon.
    26    § 3. Section 606 of the tax law is amended by adding a new  subsection
    27  (ccc) to read as follows:
    28    (ccc)  Small  business  employee  retention tax credit. (1) A taxpayer
    29  will be allowed a credit, to the extent allowed under section  forty-two
    30  of this chapter, against the tax imposed by this article.
    31    (2)  Application  of  credit. The credit allowed under this subsection
    32  for any taxable year may not reduce the tax due for such  year  to  less
    33  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    34  section two hundred ten of this chapter.   However,  if  the  amount  of
    35  credit  allowed  under  this subsection for any taxable year reduces the
    36  tax to such amount, any amount or credit thus  not  deductible  in  such
    37  taxable  year will be treated as an overpayment of tax to be credited or
    38  refunded in accordance with  the  provisions  of  section  one  thousand
    39  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    40  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
    41  notwithstanding, no interest will be paid thereon.
    42    §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    43  of the tax law is amended by adding a new  clause  (xliii)  to  read  as
    44  follows:
    45  (xliii) Small business employee      Amount of credit under
    46  retention tax credit under           subdivision fifty-two of
    47  subsection (ccc)                     section two hundred ten-B
    48    § 5. This act shall take effect immediately and shall apply to taxable
    49  years beginning on or after January 1, 2018.

    50                                   PART C
 
    51    Section  1.  The tax law is amended by adding a new section 43 to read
    52  as follows:
    53    § 43. Small business hire-NY tax credit. (a) Allowance  of  credit.  A
    54  small business taxpayer, which is subject to tax under article nine-A or
        A. 5423                             6
 
     1  twenty-two  of  this  chapter  and creates a new job, shall be allowed a
     2  credit against such tax. The credit shall be five thousand  dollars  for
     3  any  new  job  for  one  full year of employment by an employee; if that
     4  employee  has been hired for less than a full tax year this amount shall
     5  be prorated and apportioned to each tax year.
     6    (b) Definitions. As used in this section, the  following  terms  shall
     7  have the following meanings:
     8    (1) "Small business taxpayer" shall mean an employer with at least one
     9  employee but not more than one hundred full-time employees.
    10    (2) "Base year" shall mean the prior tax year.
    11    (3)  "New  job"  shall mean the number of full-time employees or full-
    12  time equivalent employees above the number of employees during the  base
    13  year. For a new business, base employment shall begin at zero.
    14    (4) "Employee" shall mean an individual employed on a full-time basis.
    15    (c)  No  credit  shall be allowed under this section to a taxpayer for
    16  any new employee if the taxpayer claims  any  other  credit  under  this
    17  article for such new employee where the basis of such other credit is an
    18  increase in employment.
    19    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
    20  sion 53 to read as follows:
    21    53. Small business hire-NY tax credit. (a) Allowance  of  credit.    A
    22  taxpayer will be allowed a credit, to be computed as provided in section
    23  forty-three of this chapter, against the tax imposed by this article.
    24    (b)  Application  of credit. The credit allowed under this subdivision
    25  for any taxable year may not reduce the tax due for such  year  to  less
    26  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    27  section two hundred ten of this article. However, if the amount of cred-
    28  it allowed under this subdivision for any taxable year reduces  the  tax
    29  to such amount, any amount of credit thus not deductible in such taxable
    30  year will be treated as an overpayment of tax to be credited or refunded
    31  in  accordance with the provisions of section one thousand eighty-six of
    32  this chapter. Provided, however, the provisions  of  subsection  (c)  of
    33  section  one  thousand  eighty-eight of this chapter notwithstanding, no
    34  interest will be paid thereon.
    35    § 3. Section 606 of the tax law is amended by adding a new  subsection
    36  (hhh) to read as follows:
    37    (hhh)  Small  business  hire-NY  tax  credit.  (1)  A taxpayer will be
    38  allowed a credit, to the extent allowed  under  section  forty-three  of
    39  this chapter, against the tax imposed by this article.
    40    (2)  Application  of credit. The credit allowed under this subdivision
    41  for any taxable year may not reduce the tax due for such  year  to  less
    42  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    43  section two hundred ten of this article. However, if the amount of cred-
    44  it allowed under this subdivision for any taxable year reduces  the  tax
    45  to such amount, any amount of credit thus not deductible in such taxable
    46  year will be treated as an overpayment of tax to be credited or refunded
    47  in  accordance with the provisions of section one thousand eighty-six of
    48  this chapter. Provided, however, the provisions  of  subsection  (c)  of
    49  section  one  thousand  eighty-eight of this chapter notwithstanding, no
    50  interest will be paid thereon.
    51    § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    52  of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
    53  follows:
    54  (xliv) Small business hire-NY tax    Amount of credit under
    55  credit under subsection              subdivision fifty-three of
    56  (eee)                                section two hundred ten-B
        A. 5423                             7
 
     1    § 5. This act shall take effect immediately and shall apply to taxable
     2  years beginning on or after January 1, 2018.
 
     3                                   PART D
 
     4    Section  1. The commissioner of taxation and finance shall develop and
     5  implement a "sales tax amnesty program" which allows a  period  of  time
     6  for  small  businesses  to  pay a defined payment of tax amount due as a
     7  result of an audit  by  the  department  of  taxation  and  finance,  in
     8  exchange  for  forgiveness  of  a  tax liability, including interest and
     9  penalties. Small businesses are businesses with less  than  one  hundred
    10  employees.
    11    § 2. This act shall take effect immediately.
 
    12                                   PART E
 
    13    Section  1. Subdivision 6 of section 18-a of the public service law is
    14  REPEALED.
    15    § 2. Paragraph (g) of subdivision 2 of  section  18-a  of  the  public
    16  service  law,  as  amended  by section 2 of part A of chapter 173 of the
    17  laws of 2013, is amended to read as follows:
    18    (g) The total amount which may be charged to any public utility compa-
    19  ny and the Long Island power authority under authority of this  subdivi-
    20  sion  for  any  state  fiscal year shall not exceed one-third of one per
    21  centum of such public utility company's or authority's  gross  operating
    22  revenues  derived from intrastate utility operations in the last preced-
    23  ing calendar year, or other twelve month period  as  determined  by  the
    24  chairman;  provided,  however,  that  no  corporation  or person that is
    25  subject to the jurisdiction of the commission only with respect to safe-
    26  ty, or the power authority of the state of New York, shall be subject to
    27  the general assessment provided for under this subdivision.
    28    Notwithstanding the provisions of subdivision one of this section, for
    29  telephone corporations as defined in subdivision  seventeen  of  section
    30  two  of  this article, the total amount which may be charged such corpo-
    31  rations for department expenses under the authority of  subdivision  one
    32  of  this section for any state fiscal year shall not exceed one-third of
    33  one percentum of such corporation's gross operating  revenue,  over  and
    34  above  five  hundred  thousand  dollars, derived from intrastate utility
    35  operations in the last preceding calendar year, or  other  twelve  month
    36  period as determined by the chairman.
    37    § 3. This act shall take effect immediately.
 
    38                                   PART F
 
    39    Section  1.  Section  210-B  of the tax law is amended by adding a new
    40  subdivision 54 to read as follows:
    41    54. Credit for college to work program. (a) Allowance of  credit.    A
    42  taxpayer  who  is  a  small  business  shall  be allowed a credit, to be
    43  computed as hereinafter provided, against the tax imposed by this  arti-
    44  cle,  based  upon  its  payment  of  tuition to an institution of higher
    45  education on behalf of a qualified individual employee for a  number  of
    46  years,  as  set  forth in a written agreement between the small business
    47  taxpayer and the individual employee.
    48    (b) Tuition. For the purposes of this credit, the term "tuition" shall
    49  mean the tuition and fees paid for the enrollment and  attendance  of  a
    50  qualified  individual employee at an institution of higher education, as
        A. 5423                             8
 
     1  well as monies paid for textbooks in connection with  attendance  at  an
     2  institution  of  higher  education. Provided, however, any amounts which
     3  have been paid for or reimbursed by any other scholarships or  financial
     4  aid,  or  tuition  required  for enrollment or attendance in a course of
     5  study leading to the granting of a post baccalaureate or other  graduate
     6  degree, shall be excluded form the definition of "tuition".
     7    (c)  Institution of higher education. For the purposes of this credit,
     8  the term "institution of higher education" shall mean any institution of
     9  higher education, recognized and approved by the regents, or any succes-
    10  sor organization, of the university of the state of New York or  accred-
    11  ited  by  a  nationally  recognized  accrediting  agency  or association
    12  accepted as such by the regents, or any successor organization,  of  the
    13  university  of  the  state of New York, which provides a course of study
    14  leading to the granting  of  a  post-secondary  degree,  certificate  or
    15  diploma.
    16    (d)  Qualified  individual  employee. For purposes of this credit, the
    17  term "qualified individual employee" shall mean any individual  employee
    18  who  is not a spouse, child or dependent of the taxpayer or any individ-
    19  ual employee who is not a spouse, child or dependent of any  officer  or
    20  employee of the taxpayer.
    21    (e)  Written agreement. For purposes of this credit, the term "written
    22  agreement" shall mean a document signed and  dated  by  both  the  small
    23  business  taxpayer  and the qualified individual employee which contains
    24  provisions including but not limited to the  minimum  salary  which  the
    25  taxpayer  will  pay  to  the qualified individual upon completion of the
    26  individual's degree; the required duration of employment upon completion
    27  of the individual's degree; and the parties' respective responsibilities
    28  in the event that the taxpayer ceases operations or later decides not to
    29  offer employment to the individual upon completion of his/her degree  or
    30  in  the event that the qualified individual fails to complete the degree
    31  or to work for the taxpayer for the agreed upon term.
    32    (f) Small business. For purposes of this credit, the term "small busi-
    33  ness" shall mean any business with less than one hundred employees.
    34    (g) Amount of credit. Notwithstanding the provision of any other  law,
    35  a  taxpayer  which  provides for the payment of an individual employee's
    36  tuition under the college to work program established by  this  subdivi-
    37  sion, shall be allowed a credit against the tax imposed by this article,
    38  to  the  extent  of twenty-five percent of monies paid for each individ-
    39  ual's tuition, but such credit shall not exceed  five  thousand  dollars
    40  for one year for each such qualified individual.
    41    (h) Carryover. The credit allowed under this subdivision for any taxa-
    42  ble  year  shall  not  reduce the tax due for such year to less than the
    43  amount prescribed in paragraph (d) of subdivision  one  of  section  two
    44  hundred  ten of this article. Provided, however, if the amount of credit
    45  allowable under this subdivision for any taxable year reduces the tax to
    46  such amount, any amount of credit not deductible in  such  taxable  year
    47  may  be carried over to the following year or years, and may be deducted
    48  from the taxpayer's tax for such year or years.
    49    § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    50  of  the  tax  law  is  amended  by adding a new clause (xiiv) to read as
    51  follows:
    52  (xiiv) College to work program       Amount of credit under
    53  credit under subsection (s-1)        subdivision fifty-four
    54                                       of section two hundred ten-B
    55    § 3. Section 606 of the tax law is amended by adding a new  subsection
    56  (s-1) to read as follows:
        A. 5423                             9
 
     1    (s-1)  Credit  for college to work program. (1) Allowance of credit. A
     2  taxpayer who is a small business  shall  be  allowed  a  credit,  to  be
     3  computed  as hereinafter provided, against the tax imposed by this arti-
     4  cle, based upon such taxpayer's payment of tuition to an institution  of
     5  higher  education  on  behalf  of  a  qualified  individual  employee in
     6  exchange for the individual agreeing to work  for  the  taxpayer  for  a
     7  number of years, as set forth in a written agreement between the taxpay-
     8  er  and the individual.  For the purpose of this subsection "small busi-
     9  ness" shall mean a business which has one hundred or fewer employees.
    10    (2) Tuition. For the purposes of this credit, the term "tuition" shall
    11  mean the tuition and fees paid for the enrollment and attendance  of  an
    12  individual at an institution of higher education, as well as monies paid
    13  for  textbooks in connection with attendance at an institution of higher
    14  education. Provided, however, any amounts which have been  paid  for  or
    15  reimbursed  by  any  other  scholarships  or  financial  aid, or tuition
    16  required for enrollment or attendance in a course of  study  leading  to
    17  the  granting of a post baccalaureate or other graduate degree, shall be
    18  excluded from the definition of "tuition".
    19    (3) Institution of higher education. For the purposes of this  credit,
    20  the term "institution of higher education" shall mean any institution of
    21  higher education, recognized and approved by the regents, or any succes-
    22  sor  organization, of the university of the state of New York or accred-
    23  ited by  a  nationally  recognized  accrediting  agency  or  association
    24  accepted  as  such by the regents, or any successor organization, of the
    25  university of the state of New York, which provides a  course  of  study
    26  leading  to  the  granting  of  a  post-secondary degree, certificate or
    27  diploma.
    28    (4) Qualified individual employee. For purposes of  this  credit,  the
    29  term  "qualified individual employee" shall mean any individual employee
    30  who is not a spouse, child or dependent of the taxpayer or any  individ-
    31  ual  employee  who is not a spouse, child or dependent of any officer or
    32  employee of the taxpayer.
    33    (5) Written agreement. For purposes of this credit, the term  "written
    34  agreement"  shall  mean  a  document  signed and dated by both the small
    35  business taxpayer and the qualified individual employee  which  contains
    36  provisions  including  but  not  limited to the minimum salary which the
    37  taxpayer will pay to the qualified individual  upon  completion  of  the
    38  individual's degree; the required duration of employment upon completion
    39  of the individual's degree; and the parties' respective responsibilities
    40  in the event that the taxpayer ceases operations or later decides not to
    41  offer  employment to the individual upon completion of his/her degree or
    42  in the event that the qualified individual fails to complete the  degree
    43  or to work for the taxpayer for the agreed upon term.
    44    (6) Small business. For purposes of this credit, the term "small busi-
    45  ness" shall mean any business with less than one hundred employees.
    46    (7) Amount of credit. Notwithstanding the provisions of any other law,
    47  a  taxpayer  who  provides  for  the payment of an individual employee's
    48  tuition  under  the  college  to  work  program  established   by   this
    49  subsection,  shall  be  allowed a credit against the tax imposed by this
    50  article, to the extent of twenty-five percent of monies  paid  for  each
    51  individual's  tuition,  but  such  credit shall not exceed five thousand
    52  dollars for one year for each such qualified individual.
    53    (8) Carryover. If the amount of credit allowable under this subsection
    54  for any taxable year exceeds the  taxpayer's  tax  for  such  year,  any
    55  amount of credit not deductible in such taxable year may be carried over
        A. 5423                            10
 
     1  to  the  following year or years and may be deducted from the taxpayer's
     2  tax for such year or years.
     3    §  4.  This  act  shall take effect immediately and shall apply to all
     4  taxable years commencing after January 1, 2018.
 
     5                                   PART G
 
     6    Section 1. Article 50 and sections 1000, 1001, 1002 and  1003  of  the
     7  executive  law,  as  renumbered  by  chapter 770 of the laws of 1978 are
     8  renumbered article 52 and sections 1050, 1051, 1052 and 1053 and  a  new
     9  article 50 is added to read as follows:
    10                                 ARTICLE 50
    11              DIVISION OF REGULATORY REVIEW AND ECONOMIC GROWTH
    12  Section 1010. Definitions.
    13          1011. Division of regulatory review and economic growth.
    14          1012. General functions, powers and duties.
    15          1013. Assistance of other state agencies.
    16          1014. Regulation review.
    17          1014-a. Regulations affecting small business.
    18          1015. Division annual recommendations.
    19          1016. Implementation of recommendations.
    20          1017. Cost of regulation study.
    21    §  1010.  Definitions.  When used in this article, the following terms
    22  shall have the following meanings:
    23    1. "Commissioner" means the commissioner of the division of regulatory
    24  review and economic growth.
    25    2. "Division" means the division of  regulatory  review  and  economic
    26  growth created by this article.
    27    3.  "Permit"  shall mean the whole or part of any state agency permit,
    28  license, certificate, approval, registration, charter, or  similar  form
    29  of  permission  or  authority  required  by  law or by state agency rule
    30  having the force and effect of law, which is  required  for  a  business
    31  undertaking,  project  or activity; provided, however, it shall not mean
    32  individual licenses for practicing  a  profession  prescribed  in  title
    33  eight  of  the education law, filings under the uniform commercial code,
    34  or routine licenses and permits  for  individual  privileges,  including
    35  licenses  for  operating  a motor vehicle and amateur sporting licenses,
    36  such as for hunting and fishing.
    37    4. "Rule" means a rule as defined in subparagraph (i) of paragraph (a)
    38  of subdivision two of section one hundred two of the  state  administra-
    39  tive  procedure act, including rules of the workers' compensation board,
    40  but does not include the rules of  the  state  comptroller  or  attorney
    41  general,  rules  regarding  jurisdictional  classifications  pursuant to
    42  subdivision one of section six of the civil service law, and the  alter-
    43  ation  of  hunting  or fishing seasons pursuant to article eleven of the
    44  environmental conservation law.
    45    5. "State agency" means an agency as defined  in  subdivision  one  of
    46  section one hundred two of the state administrative procedure act.
    47    6. "Small business" shall have the same meaning as set forth in subdi-
    48  vision twenty of section three hundred ten of this chapter.
    49    §  1011.   Division of regulatory review and economic growth. 1. There
    50  is hereby created in the executive department the division of regulatory
    51  review and economic growth. The  head  of  the  division  shall  be  the
    52  commissioner of the division who shall be appointed by the governor with
    53  the consent of the senate and serve a term of five years.
        A. 5423                            11

     1    2. The commissioner must have at least ten years of experience running
     2  a for-profit business, with at least three years experience as the chief
     3  executive  officer,  chief operating   officer, chief financial officer,
     4  president, owner, or any other title used for the highest ranking  offi-
     5  cer, administrator or manager of a for-profit business.
     6    3.  The  commissioner shall be appointed by the governor within thirty
     7  days of the effective date of this section and within thirty days of the
     8  expiration of every five year term thereafter, and upon confirmation  of
     9  the  senate  shall serve a term of five years effective from the date of
    10  confirmation. If the senate rejects an appointment, the  governor  shall
    11  have  thirty  days  from  the  date  of the rejection to appoint another
    12  commissioner.
    13    4. The commissioner may only  be  removed  from  office  by  a  felony
    14  conviction or a crime involving a violation of his or her oath of office
    15  or  by the assent of two-thirds of the members elected to each branch of
    16  the legislature voting separately.
    17    5. Such commissioner shall receive an annual salary to be fixed by the
    18  governor within the amount made available therefor by appropriation  and
    19  shall  be  allowed  his  or  her  actual  and  necessary expenses in the
    20  performance of his or her duties.
    21    6. Upon appointment and until  such  term  expires,  the  commissioner
    22  shall  not  (a)  participate in any partisan political party activities,
    23  except that such candidate may register to vote as a member of any poli-
    24  tical party and may vote in any party primary for candidates  for  nomi-
    25  nation  of  the  party  in  which  he  or she is registered to vote; (b)
    26  endorse any candidate or political party; or (c) make  contributions  to
    27  any  candidate, political party committee, political action committee or
    28  political committee pursuant to subdivision ten of section 14-114 of the
    29  election law.
    30    7. The commissioner shall direct the work of the division and shall be
    31  the chief executive officer of the division. The commissioner may  enter
    32  into contracts and expend money, and appoint such officers and employees
    33  as  he  or  she  may  deem  necessary, prescribe their duties, fix their
    34  compensation, and provide for the reimbursement of their  expenses,  all
    35  within  amounts  made  available  therefor  by appropriation. Such staff
    36  shall be management confidential  employees  with  an  understanding  of
    37  private sector business.
    38    §  1012. General functions, powers and duties. The division of regula-
    39  tory review and economic growth, by and through the commissioner or  his
    40  or  her duly authorized officers and employees, shall have the following
    41  functions, powers and duties:
    42    1. To provide an oversight, review and analysis of the rules and regu-
    43  latory processes of state agencies.
    44    2. To make binding recommendations to the governor and legislature  on
    45  burdensome  New  York  state codes, rules, regulations, regulatory proc-
    46  esses, and permit requirements to eliminate or amend them,  pursuant  to
    47  section one thousand fifteen of this article.
    48    3.  To  review  the  environmental  quality review process established
    49  under article eight of  the  environmental  conservation  law  and  make
    50  recommendations pursuant to subdivision two of this section to establish
    51  a  more  efficient, predictable, timely, and transparent process, and to
    52  ensure that the process does not stifle  economic  growth  in  New  York
    53  state.
    54    4.  To review permit requirements and the need by the state to require
    55  such permits. The division shall make recommendations pursuant to subdi-
    56  vision two of this section to eliminate,  consolidate,  simplify,  expe-
        A. 5423                            12
 
     1  dite,  or  otherwise  improve  permits, permit procedures, and paperwork
     2  burdens affecting local governments, school districts or businesses.
     3    5.  To encourage and facilitate the participation of federal and local
     4  government agencies in regulatory review.
     5    6. To establish an 800 hotline and website to provide businesses  with
     6  one  contact  number  to  direct  questions and to provide assistance to
     7  businesses in the state or businesses looking to open or expand  in  New
     8  York state. Such hotline may be used to report regulatory burdens, state
     9  agencies  overreaching  their  power,  excessive  fines  and  to  submit
    10  requests for regulatory review by the commissioner.
    11    7. To adopt such rules and regulations, procedures, instructions,  and
    12  forms  as are necessary or desirable to carry out the functions, powers,
    13  and duties imposed upon the division by this article.
    14    8. To publish an annual report, after January first and before  Febru-
    15  ary first, commencing two thousand twenty, including all recommendations
    16  proposed  by  the  division and those recommendations implemented by the
    17  state during the prior calendar year. Such report shall include specific
    18  details concerning estimated cost savings to the taxpayers from proposed
    19  recommendations and actual cost savings to  the  taxpayers  from  imple-
    20  mented recommendations.
    21    § 1013. Assistance of other state agencies. To effectuate the purposes
    22  of  this  article, the commissioner may request and shall be entitled to
    23  receive from any state agency, and the same are authorized  to  provide,
    24  such assistance, services, facilities, and data as will enable the divi-
    25  sion to carry out its functions, powers and duties.
    26    §  1014.  Regulation review. 1. In developing a rule, each agency head
    27  shall, prior to submitting a notice of proposed  or  revised  rulemaking
    28  for  publication  in  the state register pursuant to section two hundred
    29  two of the state administrative procedure act, submit to the commission-
    30  er, in such form and manner  as  the  commissioner  may  prescribe,  the
    31  complete text of the rule, any impact statements which would be required
    32  by  article two of the state administrative procedure act to propose the
    33  rule, and any cost-benefit analysis, risk assessment and/or the  results
    34  of  a negotiated rulemaking or policy dialogue undertaken in conjunction
    35  with the development of the rule.
    36    2. The commissioner shall review the agency's submission to  determine
    37  whether  it  is  complete and in accordance with the goals, criteria and
    38  requirements of this article and article two of the state administrative
    39  procedure act, including whether the rule:
    40    (a) is clearly within the authority delegated by law;
    41    (b) is consistent with and necessary to achieve a specific legislative
    42  intent of promoting economic growth or protecting the health and  safety
    43  of the public;
    44    (c) is consistent with state statutory requirements;
    45    (d)  does  not impose a mandate on local governments, school districts
    46  or businesses that is not fully funded, except as specifically  required
    47  by state statute;
    48    (e)  is  clearly written so that its meaning will be easily understood
    49  by those persons affected by it;
    50    (f) does not unnecessarily duplicate or  exceed  existing  federal  or
    51  state statutes or rules;
    52    (g)  prescribes  methodologies  or  requirements  that allow regulated
    53  parties flexibility and encourage innovation in meeting the  legislative
    54  or administrative requirements and objectives underlying the rule;
        A. 5423                            13
 
     1    (h)  is  based on credible assessments, using recognized standards, of
     2  the degree and nature of the risks which may be regulated,  including  a
     3  comparison with everyday risks familiar to the public;
     4    (i)  gives preference to the least costly, least burdensome regulatory
     5  and paperwork requirements needed to accomplish legislative and adminis-
     6  trative objectives;
     7    (j) is based upon the best scientific, technical and economic informa-
     8  tion that can reasonably and affordably be obtained; and
     9    (k) if possible and practical, favors  market-oriented  solutions  and
    10  performance standards over command-and-control regulation.
    11    3.  If  the  commissioner  determines that the submission is complete,
    12  complies with the provisions of subdivision two of  this  section,  will
    13  promote economic growth, or is vital to protect the health and safety of
    14  the  public,  the  commissioner shall authorize the agency to submit the
    15  rulemaking for publication in the state register pursuant to section two
    16  hundred two of the state administrative procedure act.
    17    4. If the commissioner determines the submission is  not  complete  or
    18  does  not  comply  with  the  requirements  of  subdivision  two of this
    19  section, or is detrimental to economic growth in New York state,  or  is
    20  not  vital  to  protect the health and safety of the public, the commis-
    21  sioner may reject the rule or return it to the agency, together with any
    22  direction that the  agency  amend,  prepare  or  revise  the  rule,  any
    23  supporting  impact  statements,  cost benefit analysis, risk assessment,
    24  and/or undertake a negotiated rulemaking or policy dialogue to develop a
    25  rule for proposal.  The division may assist the agency in  developing  a
    26  proposal that meets the requirements of subdivision two of this section.
    27    5.  An  agency  may  consult  informally  with  the division regarding
    28  proposed rules, supporting impact statements, and other documents at any
    29  time prior to the submission of such materials pursuant  to  subdivision
    30  one  of this section. Such informal consultation shall not be binding on
    31  the division or the agency.
    32    6. No agency head shall submit a notice of proposed or  revised  rule-
    33  making  for  publication  in  the state register pursuant to section two
    34  hundred two of the state administrative procedure act,  without  express
    35  approval  by  the  commissioner.  The  commissioner,  in his or her sole
    36  discretion, may reject any particular rule or category of  rules  he  or
    37  she  determines  is detrimental to economic growth in New York state, or
    38  is not vital to protect the health and safety of the public.  The  divi-
    39  sions shall promptly notify the agency of any such rejection.
    40    §  1014-a.  Regulations  affecting  small  business.  1.  Prior to the
    41  adoption of any proposed regulation that may have an adverse  impact  on
    42  small businesses, each agency shall prepare an economic impact statement
    43  that includes the following:
    44    (a)  an  identification  and estimate of the number of the small busi-
    45  nesses subject to the proposed regulation;
    46    (b) the projected reporting, record keeping and  other  administrative
    47  costs  required  for  compliance with the proposed regulation, including
    48  the type of professional skills necessary for preparation of the  report
    49  or record;
    50    (c)  a  statement of the probable effect on impacted small businesses;
    51  and
    52    (d) a description of any less intrusive  or  less  costly  alternative
    53  methods of achieving the purpose of the proposed regulation.
    54    2. Prior to the adoption of any proposed regulation, each agency shall
    55  prepare  a  regulatory  flexibility analysis with the goal of minimizing
    56  adverse impact on small businesses. The agency must consider each of the
        A. 5423                            14
 
     1  following methods of reducing the impact of the proposed  regulation  on
     2  small businesses:
     3    (a)  the  establishment  of  less  stringent  compliance  or reporting
     4  requirements for small businesses;
     5    (b) the establishment of less stringent  schedules  or  deadlines  for
     6  compliance or reporting requirements for small businesses;
     7    (c)  the  consolidation  or  simplification of compliance or reporting
     8  requirements for small businesses;
     9    (d) the establishment of performance standards for small businesses to
    10  replace design or operational standards required in the  proposed  regu-
    11  lation; and
    12    (e)  the  exemption  of  small  businesses from all or any part of the
    13  requirements contained in the proposed regulation.
    14    3. (a) Within four years of the effective date of this  section,  each
    15  agency  shall  review all agency rules existing at the time of enactment
    16  to determine whether such rules should be continued without  change,  or
    17  should be amended or rescinded, consistent with the stated objectives of
    18  those  statutes, to minimize economic impact of the rules on small busi-
    19  nesses.
    20    (b) Rules adopted after the effective date of this section  should  be
    21  reviewed  every  five  years  after the publication of such rules as the
    22  final rule to ensure that they minimize economic impact on  small  busi-
    23  nesses  in  a manner consistent with the stated objectives of applicable
    24  statutes.
    25    (c) In reviewing rules to minimize economic  impact  of  the  rule  on
    26  small businesses, the agency shall consider the following factors:
    27    (i) the continued need for the rule;
    28    (ii) the nature of complaints or comments received concerning the rule
    29  from the public;
    30    (iii) the complexity of the rule;
    31    (iv)  the  extent  to which the rule overlaps, duplicates or conflicts
    32  with other federal, state and local governmental rules; and
    33    (v) the length of time since the rule has been evaluated or the degree
    34  to which technology, economic conditions, or other factors have  changed
    35  in the area affected by the rule.
    36    §  1015.  Division annual recommendations. On or before January first,
    37  two thousand eighteen and annually thereafter, the division shall trans-
    38  mit to the governor and the legislature a report containing  its  recom-
    39  mendations, which shall include:
    40    1.  specific  recommendations for repealing or amending New York state
    41  codes, rules, regulations, regulatory processes, and permit requirements
    42  as it deems necessary to  lower  costs  for  local  governments,  school
    43  districts and businesses or promote economic growth; and
    44    2.  recommended dates by which such actions should occur.
    45    §  1016.  Implementation  of  recommendations.  1. Notwithstanding any
    46  contrary provision of law, rule or regulation related to the  repeal  or
    47  amendment  of  any  New York state codes, rules, regulations, regulatory
    48  processes, and permit requirements identified in the  division's  recom-
    49  mendations,  the  secretary of state shall take all actions necessary to
    50  implement, in a reasonable, cost-efficient manner,  the  recommendations
    51  of  the  division pursuant to section one thousand fifteen of this arti-
    52  cle, including, but not limited to  coordination  with  state  agencies,
    53  authorities, and other parties as the commissioner deems appropriate.
    54    2.  The provisions of subdivision one of this section shall not apply:
    55  (a) unless the governor has  transmitted  the  division's  report  under
    56  section  one  thousand  fifteen  of this article with his or her written
        A. 5423                            15
 
     1  approval of the recommendations of the division pursuant to section  one
     2  thousand fifteen of this article to the secretary of state and transmit-
     3  ted  a  message  to  the  legislature  stating  his  or  her approval or
     4  rejection  of  the report within five days of receiving such report; and
     5  (b) if a majority of the members of each house of the  legislature  vote
     6  to  adopt  a  concurrent resolution rejecting the recommendations of the
     7  division pursuant to section one thousand fifteen  of  this  article  in
     8  their  entirety  within  sixty  days, after receiving a message from the
     9  governor under this subdivision. In no  event  shall  the  secretary  of
    10  state begin to implement the recommendations of the division pursuant to
    11  section  one thousand fifteen of this article prior to the expiration of
    12  the legislature's sixty day review period.
    13    § 1017. Cost of regulation study. The commissioner is  hereby  author-
    14  ized  and  directed to prepare or have prepared a comprehensive study to
    15  measure and report the cost of regulations to businesses throughout  the
    16  state of New York.
    17    2.  Such study shall be completed within eighteen months of the effec-
    18  tive date of the chapter of the laws  of  two  thousand  seventeen  that
    19  added this article.
    20    §  2.  Paragraph  (a)  of  subdivision 6-a of section 202 of the state
    21  administrative procedure act, as amended by chapter 171 of the  laws  of
    22  1994, is amended to read as follows:
    23    (a) An agency shall transmit a copy of any rule making notice prepared
    24  pursuant  to  this article and approved by the commissioner of the divi-
    25  sion of regulatory review and economic growth pursuant to article  fifty
    26  of  the  executive  law  to the governor, the temporary president of the
    27  senate, the speaker of the assembly, the minority leader of the  senate,
    28  the  minority  leader  of  the  assembly, the administrative regulations
    29  review commission and the office of regulatory and management assistance
    30  at the time such notice is submitted  to  the  secretary  of  state  for
    31  publication  in  the  state register. Such transmittal shall include the
    32  complete rule text, regulatory impact statement, regulatory  flexibility
    33  analysis, rural area flexibility analysis, or revisions thereof, and any
    34  other  information  submitted to the secretary of state pursuant to this
    35  article.
    36    § 3. Section 86 of the legislative law, as added by chapter 689 of the
    37  laws of 1978, is amended to read as follows:
    38    § 86. Administrative regulations review commission.  There  is  hereby
    39  created  an  administrative  regulations review commission to consist of
    40  two members of the senate to be appointed by the temporary president  of
    41  the  senate,  two members of the assembly to be appointed by the speaker
    42  of the assembly, [one member] two members of the senate to be  appointed
    43  by the minority leader of the senate and [one member] two members of the
    44  assembly  to  be  appointed  by the minority leader of the assembly. The
    45  temporary president of the senate and the speaker of the assembly  shall
    46  each  appoint  a  co-chairman from among the commission membership.  Any
    47  vacancies shall be filled in the same manner as  the  original  appoint-
    48  ment.    Such  appointees  shall serve at the pleasure of the respective
    49  legislative member making such appointment.
    50    § 4. Section 87 of the legislative law, as added by chapter 689 of the
    51  laws of 1978, is amended to read as follows:
    52    § 87. Powers and duties. 1. The commission shall  exercise  continuous
    53  oversight of the process of rule making and examine rules, as defined in
    54  subdivision  two  of section one hundred two of the state administrative
    55  procedure act, adopted or proposed by each agency with  respect  to  (i)
    56  statutory  authority,  (ii)  compliance  with  legislative intent, (iii)
        A. 5423                            16
 
     1  impact on the economy and on the government operations of the state  and
     2  its  local  governments,  and  (iv)  impact on affected parties; and, in
     3  furtherance of such duties, may examine other issues it deems  appropri-
     4  ate. For purpose of this article, the term agency shall mean any depart-
     5  ment, board, bureau, commission, division, office, council, committee or
     6  officer of the state or a public benefit corporation or public authority
     7  at least one of whose members is appointed by the governor.
     8    2. The commission shall review any legislation requiring a commission-
     9  er or agency as defined by subdivision one of section one hundred two of
    10  the  state  administrative procedure act, to promulgate any codes, rules
    11  and regulations necessary for the implementation  and  make  recommenda-
    12  tions  to  the  members  of the legislature. Such recommendations should
    13  include the commission's approval if the legislation is deemed necessary
    14  to protect the health and safety  of  the  public  or  the  commission's
    15  disapproval if such legislation is deemed detrimental to economic growth
    16  in  New  York state, or is not vital to protect the health and safety of
    17  the public.
    18    3. The commission shall review New York state laws that result in  the
    19  promulgation  of codes, rules or regulations by a commissioner or agency
    20  as defined by subdivision one of section one hundred two  of  the  state
    21  administrative procedure act, or any laws the commission deems a regula-
    22  tory  burden  on  local  governments, school districts or businesses and
    23  make recommendations to the members of the legislature. Such recommenda-
    24  tions should include the commission's request for the repeal of laws  it
    25  deems  increase  costs  for local governments, school districts or busi-
    26  nesses or are detrimental to economic growth in New York state,  or  are
    27  not vital to protect the health and safety of the public.
    28    4.  The  commission  may employ such staff and retain such consultants
    29  and expert services as may be necessary and fix their  compensation  and
    30  expenses  within  the  amounts  appropriated therefor. Employment by the
    31  commission shall be deemed to be employment by the legislature  for  all
    32  purposes.
    33    [3] 5.  The commission shall have the power, subject to the provisions
    34  of  section  seventy-three  of  the  civil rights law, to hold hearings,
    35  subpoena witnesses, administer oaths,  take  testimony  and  compel  the
    36  production of books, papers, documents and other evidence in furtherance
    37  of  its  duties;  provided, however, that no subpoena shall issue except
    38  upon the affirmative vote of a majority of the whole membership  of  the
    39  commission.  The commission may request and shall receive from all agen-
    40  cies such assistance and data as will enable it properly  to  consummate
    41  any such examination, and review.
    42    §  5.  Section 88 of the legislative law, as amended by chapter 850 of
    43  the laws of 1990, is amended to read as follows:
    44    § 88. Reports. The commission shall, [from  time  to  time]  annually,
    45  report  its  findings and recommendations to the governor, the temporary
    46  president of the senate and the speaker of the  assembly,  the  minority
    47  leader  of  the  senate, the minority leader of the assembly, and to the
    48  members of the legislature, and may at any time make recommendations  to
    49  the  division  of  regulatory  review  and economic growth and an agency
    50  based upon its review of that agency's rule making process,  or  any  of
    51  the agency's proposed, revised or adopted rules.
    52    §  6.  The  legislative law is amended by adding a new section 88-a to
    53  read as follows:
    54    § 88-a. Regulatory Wednesdays. 1. Every Wednesday, which is  a  sched-
    55  uled  session  day  for  the  legislature in every week beginning with a
    56  scheduled session day on Monday, shall be deemed  regulatory  Wednesday.
        A. 5423                            17
 
     1  The  commission  shall be required to meet on every regulatory Wednesday
     2  to perform its powers and duties pursuant  to  section  eighty-seven  of
     3  this article.
     4    2.  On  every regulatory Wednesday, the senate and assembly shall take
     5  up any bills on any order of third reading that are before each  respec-
     6  tive  house  for final disposition, that have gained the approval of the
     7  commission prior to taking up any other bill on any order of third read-
     8  ing, unless such action is waived, without debate, upon a majority  vote
     9  of the members present.
    10    § 7. Severability clause. If any clause, sentence, paragraph, subdivi-
    11  sion,  section  or  part  of  this act shall be adjudged by any court of
    12  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    13  impair,  or  invalidate  the remainder thereof, but shall be confined in
    14  its operation to the clause, sentence, paragraph,  subdivision,  section
    15  or part thereof directly involved in the controversy in which such judg-
    16  ment shall have been rendered. It is hereby declared to be the intent of
    17  the  legislature  that  this  act  would  have been enacted even if such
    18  invalid provisions had not been included herein.
    19    § 8. This act shall take effect on the one hundred twentieth day after
    20  it shall have become a law and shall apply to rules and revised rules to
    21  be submitted for publication in the state register  on  and  after  such
    22  date.
 
    23                                   PART H
 
    24    Section  1. The commissioner of the department of economic development
    25  shall develop and implement a "regulatory amnesty" period to  allow  for
    26  small  businesses  to  remedy rules or regulations violations before any
    27  violations or sanctions are levied. Such regulatory amnesty period  must
    28  be at least six months. If a small business remedies the violation with-
    29  in  the time period established by the commissioner, such business shall
    30  not be subjected to fines or penalties.
    31    § 2. This act shall take effect immediately.
 
    32                                   PART I
 
    33    Section 1. The legislative law is amended by adding a new section 51-a
    34  to read as follows:
    35    § 51-a. Moratorium on unfunded mandates. 1. Definitions.  As  used  in
    36  this section, the following terms shall have the following meanings:
    37    (a)  "Local  government"  means  a county, city, town, village, school
    38  district, or special district.
    39    (b) "Small business" means any business with  less  than  one  hundred
    40  employees.
    41    (c)  "Net  additional cost" means the cost or costs incurred or antic-
    42  ipated to be incurred within a one year period by a local government  in
    43  performing  or  administering  any  program,  project, or activity after
    44  subtracting therefrom any revenues received or receivable by such  local
    45  government  in relation to such program, project, or activity, including
    46  but not limited to: (i) fees charged to the recipients of such  program,
    47  project,  or  activity;  (ii)  state  or federal funds received for such
    48  program, project, or activity; and (iii) an offsetting savings resulting
    49  from the diminution or elimination of any  other  program,  project,  or
    50  activity  that  state  law  requires such local government to provide or
    51  undertake.
        A. 5423                            18
 
     1    (d) "Unfunded mandate" means: (i) any state law that requires a  local
     2  government  to provide or undertake any new program, project or activity
     3  that results in an annual net additional cost to any local government in
     4  excess of ten thousand dollars or an  aggregate  annual  net  additional
     5  cost  to all local governments within the state in excess of one million
     6  dollars; or (ii) any state law  that  requires  a  local  government  to
     7  provide  a  higher  level of service or funding for an existing program,
     8  project or activity that results in an annual net additional cost to any
     9  local government in excess of ten thousand dollars or an aggregate annu-
    10  al net additional cost to all local  governments  within  the  state  in
    11  excess  of  one  million dollars; or (iii) any state law that requires a
    12  local government to grant any new property tax exemption or that  broad-
    13  ens the eligibility or increases the dollar amount of any existing prop-
    14  erty  tax  exemption,  on  property  that otherwise would have generated
    15  revenue under the current property tax rate of such local government  in
    16  excess  of  ten thousand dollars in any local government or in excess of
    17  one million dollars statewide; or  (iv)  any  state  law  with  a  legal
    18  requirement that would otherwise likely have the effect of raising prop-
    19  erty  taxes in excess of ten thousand dollars in any local government or
    20  in excess of one million dollars statewide; or (v) any  state  law  that
    21  requires  a  small  business  to  undertake  any new program, project or
    22  activity that results in an annual net additional cost to the business.
    23    2.  Moratorium  on  unfunded  mandates.  Notwithstanding   any   other
    24  provision of law, no unfunded mandates shall be enacted.
    25    3.  Exemptions.  (a)  A  state law shall not be considered an unfunded
    26  mandate where such law: (i) is required by a court order or judgment; or
    27  (ii) is provided at the option of the local government under a law  that
    28  is  permissive  rather than mandatory; or (iii) results from the passage
    29  of a home rule message whereby a local government requests authority  to
    30  implement the program or service specified in the statute, and the stat-
    31  ute  imposes  costs  only  upon that local government which requests the
    32  authority to impose the program or service; or (iv) is required by stat-
    33  ute or executive order that implements a federal law or  regulation  and
    34  results from costs mandated by the federal government to be borne at the
    35  local  level,  unless  the  statute  or executive order results in costs
    36  which exceed the costs mandated by the federal  government;  or  (v)  is
    37  imposed  on  both  government and non-government entities in the same or
    38  substantially similar circumstances; or (vi) repeals or revises a  state
    39  law  to  ease an existing requirement that a local government provide or
    40  undertake a program, project, or activity, or reapportions the costs  of
    41  activities  between  local governments; or (vii) is necessary to protect
    42  against an immediate threat to public health or safety.
    43    (b) The effective date of any act establishing a mandate shall provide
    44  a reasonable time for the state and any local government to plan  imple-
    45  mentation  thereof  and  shall  be  consistent  with the availability of
    46  required funds.
    47    § 2. Section 51 of the legislative law, as added by chapter 985 of the
    48  laws of 1983, is amended to read as follows:
    49    § 51. Fiscal [impact] notes on bills affecting political subdivisions.
    50  1. For the purpose of this section,  the  term  "political  subdivision"
    51  means  any  county,  city,  town,  village,  special  district or school
    52  district.
    53    2. [The legislature shall by concurrent resolution of the  senate  and
    54  assembly prescribe rules requiring fiscal notes to accompany, on a sepa-
    55  rate form, bills and amendments to bills, except as otherwise prescribed
    56  by  such rules, which] A bill that would substantially affect the reven-
        A. 5423                            19
 
     1  ues or expenses, or both, of any political subdivision shall  contain  a
     2  fiscal  note stating the estimated annual cost to the political subdivi-
     3  sion affected and the source of such estimate.
     4    3. Fiscal notes shall not, however, be required for bills: (a) subject
     5  to  the  provisions of section fifty of this chapter, or (b) accompanied
     6  by special home rule requests submitted by  political  subdivisions,  or
     7  (c)  which provide discretionary authority to political subdivisions, or
     8  (d) submitted pursuant to section twenty-four of the state finance law.
     9    4. If the estimate or estimates contained in a fiscal note are inaccu-
    10  rate, such inaccuracies shall not  affect,  impair  or  invalidate  such
    11  bill.
    12    §  3.  This act shall take effect immediately, provided, however, that
    13  section one of this act shall only apply  to  laws  enacted  after  such
    14  effective date.
    15    § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
    16  sion,  section  or  part  of  this act shall be adjudged by any court of
    17  competent jurisdiction to be invalid, such judgement shall  not  affect,
    18  impair,  or  invalidate  the remainder thereof, but shall be confined in
    19  its operation to the clause, sentence, paragraph,  subdivision,  section
    20  or part thereof directly involved in the controversy in which such judg-
    21  ment shall have been rendered. It is hereby declared to be the intent of
    22  the  legislature  that  this  act  would  have been enacted even if such
    23  invalid provisions had not been included herein.
    24    § 4. This act shall take effect immediately  provided,  however,  that
    25  the  applicable effective date of Parts A through I of this act shall be
    26  as specifically set forth in the last section of such Parts.