Requires a report by the division for small business regarding the use of opportunities for cure or ameliorative action afforded to small businesses for first time violations of rules and regulations; extends such provisions for three years.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7500
SPONSOR: McDonald TITLE OF BILL:
An act to amend the executive law, in relation to a report by the divi-
sion for small business; and to amend chapter 731 of the laws of 2019
amending the executive law relating to regulatory fines for small busi-
nesses, in relation to the effectiveness thereof
PURPOSE OR GENERAL IDEA OF BILL:
This bill is intended to reduce regulatory fines on businesses and to
create a productive relationship between the state and business owners
that will allow them to work closely together.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends the executive law by adding a new section 170-c to
provide a small business with the opportunity to cure for a first
violation of such agency's regulations unless explicitly exempted.
Violation must be paperwork related, or omissions that are de minimus. A
successful completion will prevent the imposition of penalties. However,
no waiver may be given if the agency determines the violation resulted
in a natural resource damage claim or serious actual harm, or may have
presented an imminent and substantial endangerment to public safety,
human health or the environment; is a violation of human rights or civil
rights law in loss of employee wages or benefits; interferes with any
remedy, review, or resolution related to harassment or discrimination
claims; was a willful violation; violates requirements related to feder-
al funding; relates to state procurement; is similar to other
violations; is a penal law violation; or relates to a substantive part
of the business. Upon first violation a state agency shall provide the
small business with a copy of any applicable small business regulation
guide, or provide an in-person meeting, teleconference or videoconfer-
ence to help with the small business' compliance with the agency's rules
and regulations.
The legislation requires each state agency shall provide to the division
of small business, to provide certain information for reporting
purposes.
Section 2 removes the sunset date
Section 3 lists the effective date.
JUSTIFICATION:
New York's small businesses are heavily regulated and are not always
aware of the numerous current and new regulations. Various regulations
can cost small businesses thousands of dollars in implementation and
penalties. According to CNBC, New York state is currently ranked 29th
when comparing top business states across the country (2016).
For small business to effectively abide by state regulations, they
should be provided with essential resources such as literature or an
in-person meeting that informs the owner(s) of their obligations to New
York's state agencies. This includes frequent updates on updated rules
or regulations.
By allowing our small businesses the opportunity to cure as opposed to
an immediate fine, the state would be improving communication with our
small businesses and working to improve our business climate.
The previous chaptered law was only in effect for about a year and there
was no reporting to measure the efficacy. With the law expiring this
year, the goal is to extend it through 2024, but also to require report-
ing.
LEGISLATIVE HISTORY:
A.7540 - 2020
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately
